1. Chapter 2 The Business Plan: Road Map to Success
Entrepreneurship
Chapter 2
The Business Plan:
Road Map to Success

2. What Is a Business Plan?
Document that thoroughly explains a business idea and how it will be carried out
Story of what the business is & will be
All costs & a marketing plan
Description of financing
Estimation of earnings

3. Why Create a Business Plan?
Saves time & money
Key to raising capital
Serves as an operations guide

4. Business Plan Components
Cover page
Executive summary
Mission, vision, & culture
Company description
Opportunity analysis & research
Marketing strategy & plan
Management & operations
Financial analysis & projections
Funding request & exit strategy
Appendices

5. Cover Page Full legal name of organization Logo
Key contact information
Date
Non-disclosure information

6. Executive Summary Business definition Target market
Key marketing strategy
Goals
Ownership
Financing request
Use of funds & exit strategy

7. Mission, Vision, Culture
Mission = concise communication of strategy with business definition & competitive advantage
Vision = overall view of what the team wants the organization to become
Culture = environment including risk tolerance & innovation, orientation with respect to people, teams & outcomes, attention to detail, & communication norms

8. Company Description Industry
Type of firm (manufacturing/service/wholesale)
Strategic advantage
Legal structure
Physical location & geographic reach
Ownership structure

9. Opportunity Analysis Industry analysis Target market
Environmental analysis (SWOT)
Competitive analysis

10. Marketing Strategy & Plan
Products
Pricing
Promotion
Place
Philanthropy

11. Economics of One Unit Definition of one unit Selling price per unit $
Direct labor
Materials
Total COGS per unit
Other variable costs
Total variable costs
Gross profit per unit

12. Management & Operations
Management team & employees
Research & development
Location & physical facilities & equipment
Inventory & production
Quality assurance

13. Financial Analysis & Projections
Start-up capital requirements
Cash flow projections
Income statement projections
Balance sheet projections
Breakeven analysis
Key ratios & comparisons

14. Funding Request & Exit Strategy
Amount, type, & terms for funds
Risks & barriers
Exit & harvesting strategy
Milestones

15. Appendices Resumes Detailed financial projections
Product specifications, photos, & the like
Advertising & promotion samples
Contracts
Other supportive materials

16. Business Plan Suggestions
Write for your audience
Show that you have “skin in the game”
Be clear & concise
Use current data & reports
Select a “voice”
Use a consistent, easy-to-read format
Number & label throughout
Present the plan professionally

17. Presenting the Plan
Formal presentations
Elevator pitch
Competitions