2. What A written document that describes all the steps necessary for opening and operating a successful business. You plan should provide the following: What/ how you will produce and for whom Who will run biz and who will supply you How will you win customers and keep them Detailed financial info and how you will earn profit Future plans for growth (economies of scale)

3. It can make or break your business! Purpose of a Business Plan Explains your idea New product, better one, or less expensive alternative Target customer Sets specific objectives and how to achieve them Sales Projections Short Term (Year One) Medium Term (Years 2-5) Long Term (Year 5-?) Future Products

4. Background and Experience of leadership team The better qualified, more likely bank will make loans

5. Makes you think about all aspects of business Strategies Recognize limits Identify Problems Helps you secure financing Bank Loans Family Investors Private/Angel Investors Communicate Ideas to Others Any stakeholder in your business will believe Suppliers, Employees, Renters Tool for Managing Business Use plan for decision making

6. Introductory Materials Main Body Time and Effort Compiled before other two Composed of: Introduction Marketing Financial Management Operations Concluding Statement Appendix

7. Contains important details about biz idea Should include the following: Detailed description and goals¹ Ownership and legal structure² Skills and experience³ Advantage(s) over competitors ⁴

8. How you came up with idea Outline short/medium/long term goals

9. Ownership Sole Proprietorship Just you Partnership You and at least one more Corporation Many owners that hold stock in business Who makes up team and how many shareholders you have.

10. Emphasize all experience that relates Paid work experience Volunteer Experience Hobbies that relate All parties included Managers Leadership team

11. What do you have that they don’t Performance Quality Reliability Distribution Price Promotion Public Image or Reputation Features

12. Description of Products you offer¹ Who the market is² The industry³ Location ⁴

13. Description of product How it differs from competition Highlight unique features Explain benefits

14. Who are your prospective customers How large is this market How will you enter market How you will deal with competition

15. External factors affecting business High competition Lack of suppliers Growth potential of industry/Growth forecasts Economic trends of industry Technology Trends

16. Where will you be: Suburbia Rural area City Street Corner In a strip mall Stand alone Online Kiosk

17. Three Elements 1. Identification of Risks All businesses have risks Investors want to know you have thought them through and have developed strategy Some typical risks include: competitors cutting prices, costs exceeding projections, demand declining over time 2. Financial Statements Projected financial statements Pro Forma Statement 3. Funding Request and Return on Investment Indicate how much you need to borrow How you plan on using money How much investor can expect to earn How much are you investing

18. How business will be managed Hiring and Personnel Procedures Insurance Lease and Rental agreements Equipment needed Production Delivery Develop Harvest Strategy

19. How entrepreneur intends to extract his/her money from a business after it is operating successfully Selling business to someone else or another company Passing business to family Merging Going Public Closing down and selling assets

20. Summarize goals and objectives Emphasize commitment to business

21. Cover Letter Explains and introduces accompanying document or set of documents Title Page Name of company, Date, Owner, Title of Owner, Address and Phone number Table of Contents Shows what each page covers Statement of Purpose A brief explanation of why you are asking for a loan and what you plan to do with it Executive Summary A Short statement of the report