1. 5.3 Create an Effective Business Plan
Mrs. Leonard
Entrepreneurship

2. Creating an Effective Business Plan
A business plan needs to convince readers, that the entrepreneur has come up with a _________________________________
You must include information and data from objective sources to show the idea is founded on __________________________
Most entrepreneurs spend _____ to _____ hours developing their business plans
This process requires patience, research, thought, and a great deal of writing and editing

3. Research the Business Plan
Pulling information together to write your business plan involves researching all _____________ of your business
Researching all of the aspects/parts of your business will teach you a lot about running a business and may provide you with specific ideas for _____________ your company

4. Resources
There are many resources available to you when writing a business plan. The sources include:
_______________________
Online
Additional

5. Research the Business Plan: Print Resources
Information for your business plan can come from many sources
______________________________
Books on marketing, financing, hiring and managing staff, purchasing a business, and operating a franchise
Magazines devoted to small business ownership and the industry you will be involved in
Government documents issued by the ____________ or other federal agencies
SBA office nearest your location will have many publications to help you complete your business plan

6. Researching the Business Plan: Online Resources
Printed resources are usually on the ___________
SBA website is on the Internet (contains much of the information that SBA provides in print)
Magazine articles
_____________________
Sites specifically for ____________________ and small business that may give detailed information
Also see

7. Researching the Business Plan: People Resources
People from many ________________ can help you with your business plan
Counselors from Small Business Development Centers will provide one-on-one assistance when developing the business plan and inexpensive workshops on topics that may help
Service Corps of Retired Executives (______________________)
More than 12,000 retired executives volunteer their time with SCORE to help young entrepreneurs
Provide free confidential _____________________
Set up a meeting or work with a volunteer over the Internet

8. Researching the Business Plan: Additional Resources
_______________________________ and Small Business Development Centers
Information on trends affecting local businesses
Trade associations
Organizations that promote certain types of businesses
Hire experts/professional business ____________
Found in directories available at library or on Internet

9. Put Your Business Plan Together
A business plan gives you the chance to _______________ people that your idea is sound and that you have the talent and resources to make a successful business
Your business plan must:
Be an _______________________ that is neat, well organized and inviting to read
Be _______________________ and printed on standard-sized white paper
Follow a standard format

10. Introductory Elements
Every business plan should begin with:
_____________________
Title page
Table of contents
Executive summary
These elements set the ____________ for the body of your business plan

11. Introductory Elements: Cover Letter
A cover letter is a letter that explains or provides ________________________________ about a document or a set of documents
Cover Letter should include:
Your name
Name of your _________________
Your address and telephone number
Briefly describe your business and its potential for success
Tells the reader how much _______________ you need
See page 118 for a cover letter example

12. Introductory Elements: Title Page
Should include:
Name of your _____________
Date
Owner of the company
Title of the owner
Address and phone number of the company

13. Introductory Elements: Table of Contents
Table of Contents is a listing of the material included in a publication
Shows the reader what each page covers
Important to make sure your table of contents is ___________________
Sections should be in correct order
Page numbers in table of contents is correct
Note: It might be a good idea to do the table of contents last!

14. Introductory Elements: Statement of Purpose
_____________________________
Briefly describes ________ you are asking for a loan and what you plan to do with the money if you receive it
No more than one or two ____________
See page 119 for an example

15. Introductory Elements: Executive Summary
Executive Summary is a short
restatement of a report
It should capture the _____________ of the readers and make them want to read more
A strong business plan is critical to the success of your business
If the executive summary is unconvincing, a lender may decide ____________ your entire business plan

16. Introductory Elements: Executive Summary
No longer than __________________ pages
Written in a clear simple style
Describe your business concept and communicate what is unique about your idea
Include your __________________ for sales, costs, and profits
Identify your ____________ (inventory, land, building, equipment, etc.)
State the amount you are interested in borrowing

17. Introductory Elements: Executive Summary
Although the executive summary appears before the business plan, it should be written ____________ the business plan has been completed
Create a draft over most important and persuasive points you have in the business plan. Draft an _______________ based on these points
Have the business plan edited by people who do and don’t understand your business
See page 120 for an Executive Summary example

18. Introductory Elements: Main Body of the Plan
The main body of your plan should include the _____________________________
Also include additional elements you think are necessary
Should be short and to the point
Use _______________________________
Use charts and tables to illustrate your point

19. Introductory Elements: Appendix
___________ is the part of the business plan that includes any supporting evidence that was not included on the body of the report
Documents that might be included are:
____________________
Personal Financial Statements
Income tax return
Copies of any large sales contracts you have already negotiated
___________________________________
Legal Documents

20. 5.3 Assessment
Directions: Answer the following assessment questions about Chapter 5.3 with your Chapter 5 Assessment questions. Next, answer the 5.3 true/false and multiple choice worksheet.
5.3 Assessment
Name three resources available to you to help you develop your business plan.
What are the elements of a business plan?
What is a cover letter?
5.3 True/False & Multiple Choice worksheet
Put in your notebook