1. Introduction to MIS1 Copyright © 1998-2002 by Jerry Post Introduction to MIS Appendix 11 Creating a Business Plan

2. Introduction to MIS2 Appendix: Business Plan  Purposes  Help managers identify strategies and plan for future  Identify goals and concrete objectives  Provide measurement of success and identify problems  Provide detailed information to investors  Outline budget needs

3. Introduction to MIS3 Business Plan Structure  Introduction  Outline and summary of the company and the plan  Marketing  Competitors  Market analysis  Advertising  Sales Management  Product Management: prices and costs  Historic Analysis  Sales, profits, structural changes  Organization  Structure of the firm and management  Financing  Detailed cash needs  Projections  Estimates of sales, costs, growth with detailed data and forecasts

4. Introduction to MIS4 Marketing Plans  Products  Costs  Prices  Profits  Competition  Strategy  Sales Goals and Forecasts  Promotional methods  Sales Management  Distribution and Service

5. Introduction to MIS5 Rolling Thunder Bicycles Example Sales estimated while the firm was being formed.

6. Introduction to MIS6 Rolling Thunder Bicycles Estimated Sales

7. Introduction to MIS7 Projected Income Statement Interest rate on borrow8.00% Interest rate on short term investments3.00% Depreciation, 5 years, straight line0.2 Tools purchases$250,000$50,000$50,000

8. Introduction to MIS8 Projected Balance Sheet Assumptions Receivables as percent of sales: 10% Payables as percent of material costs: 10% Inventory as percent of material costs: 12%

9. Introduction to MIS9 Projected Cash Flow