Download presentation
Presentation is loading. Please wait.
Published byVirgil Hunter Modified over 9 years ago
1
www.sbdc.psu.edu 1 The Second Step of Starting a Business: Writing a Business Plan 119 Technology Center, University Park, PA 16802 814-863-4293 sbdc@psu.edusbdc@psu.edu
2
www.sbdc.psu.edu 2 About the SBDC Eighteen Centers in Pennsylvania More than 1,000 Centers Nationwide The SBDC network provides free confidential one-on-one consulting to current or potential small business owners and free and low-cost educational programs. www.asbdc-us.org www.pasbdc.org www.sbdc.psu.edu www.facebook.com/PennStateSBDC
3
www.sbdc.psu.edu 3 One-third fail in the first year, 50% go under within five years Poor Management Poor Marketing Poor Finances How to minimize your chances of failure? Write a business plan! Why do businesses fail?
4
www.sbdc.psu.edu 4 Business Planning What is a business plan? Who needs a business plan?
5
www.sbdc.psu.edu 5 Business Planning Five Reasons for Writing a Business Plan It forces you to look at your entire business It becomes a tool to help you manage your business It demonstrates your goals and objectives to others It provides a basis for your financing proposal It creates a ‘yardstick’ to measure your progress
6
www.sbdc.psu.edu 6 Business Planning Common Questions Can you write my plan for me? How long does it need to be? I know everything about my business. Do I need to write it? I don’t need a bank loan, so do I still need a plan? How long will it take to write a plan? How do I get started?
7
www.sbdc.psu.edu 7 Business Planning Formatting Issues It should look like a professional document. It should be typed and free of grammatical errors. Always write it in the third person— don’t use the words I, me, we, our, us, etc. All sections of the plan ‘talk’ to each other, so proofread it to check for mistakes. Include an appendix with supporting documentation.
8
www.sbdc.psu.edu 8 Business Planning Three Major Sections of a Business Plan The Company Marketing The Financial Plan
9
www.sbdc.psu.edu 9 Business Planning Title Page Business Name Owners’ Names Address Phone Numbers Website Email Addresses Logo Date
10
www.sbdc.psu.edu 10 Business Planning Table of Contents Bullet point list Prepare after all other sections are complete
11
www.sbdc.psu.edu 11 Business Planning Executive Summary Business purpose and goals Products or services Customers Marketing strategy Management team Funding needed—your ‘ask’ Written after all other sections are complete
12
www.sbdc.psu.edu 12 Business Planning Executive Summary—Your Mission Statement What are your values? What is your mission? It should be short and to the point The Scooter Store: “To provide freedom and independence to people with limited mobility.” eBay: “eBay’s mission is to provide a global trading platform for practically anyone can trade practically anything.”
13
www.sbdc.psu.edu 13 Business Planning Organization and Management Business history, purpose and goals Corporate structure Management team experience Individual roles Legal and Tax issues Advisors and support Opportunities and threats
14
www.sbdc.psu.edu 14 Business Planning Products and Services Products, services, or production process Facility and infrastructure needs Suppliers Pricing Future expansion opportunities
15
www.sbdc.psu.edu 15 Business Planning The Industry Industry trends Strengths and weaknesses Regulatory and technology issues Trade associations
16
www.sbdc.psu.edu 16 Business Planning Human Resources Employees Independent Contractors Compensation and Benefits Payroll Processing
17
www.sbdc.psu.edu 17 Business Planning What if… Data backup Alternative suppliers Teaming up with other businesses Insurance Disaster Preparedness
18
www.sbdc.psu.edu 18 Marketing Plan Starting the Marketing Plan What exactly am I selling? Is there a market niche that I can capture? Who exactly am I selling to? What do I know about my potential customers? Who are my competitors and what are they doing?
19
www.sbdc.psu.edu 19 Marketing Plan The Customers Target market—think bull's-eye Size of the market Characteristics and demographics How to get a message in front of them Master the bull's-eye before you move to the next ‘ring’ on the target
20
www.sbdc.psu.edu 20 Marketing Plan The Competition Direct vs. indirect Strengths Weaknesses Differentiation
21
www.sbdc.psu.edu 21 Marketing Plan Promotional Strategies Which media are most appropriate for your audience? What will you do at start-up and then on an ongoing basis? What is your mix of traditional vs. non-traditional methods? What will all of your efforts cost? Like the entire plan itself, your marketing plan is never ‘done.’ You will regularly be making updates and adjustments.
22
www.sbdc.psu.edu 22 Financial Plan Start-up Costs Recurring Monthly Expenses Projected Financial Statements
23
www.sbdc.psu.edu 23 Financial Plan Estimating Revenues Cash sales Credit terms to customers Seasonal variations Make a ‘grid’
24
www.sbdc.psu.edu 24 Financial Plan Other Concerns Inventory levels and lead times Production cycle and lead times Credit terms from suppliers Capital expenditures Loan repayment terms
25
www.sbdc.psu.edu 25 Cashflow Statement “A summary of the inflows and outflows of cash in over a certain period of time.” “What will my checkbook look like over the next few months or year?”
26
www.sbdc.psu.edu 26
27
www.sbdc.psu.edu 27 Breakeven Analysis Answers the questions: How many units do I need to sell? How many guests do I need to serve? How many clients do I need to capture? How much do I need to bill out each week?
28
www.sbdc.psu.edu 28
29
www.sbdc.psu.edu 29 Resources Penn State SBDC www.sbdc.psu.edu SBDCNet www.sbdcnet.org U. S. Small Business Administration www.sba.gov Central PA Chapter of SCORE www.scorecpa.org
30
www.sbdc.psu.edu 30 For Additional Assistance: 200 Innovation Boulevard, Suite 119, University Park 152 East Market Street, Suite 100, Lewistown 814-863-4293 717-247-1280 www.sbdc.psu.edu sbdc@psu.edu
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.