1. Business Plan Basics Entrepreneurship 1 2.09 B

2. Why is business planning important? Helps shape your destination Gives you a blueprint to follow Use as a communication tool for investors, employees and others interested in your business.

3. A good business plan will… Explain – Who you are – Why you’re in business – What you do – How you do it – Where you operate – How you will generate profits – Who your customers are – Why your business is important

4. Components of a Business Plan Table of Contents Executive Summary Market Analysis Description of Products and Services Organization & Management Operations Plans Financial Management Appendices

5. Table of Contents Lists key sections within the plan Assist the reader in finding topics and areas of interest in your plan.

6. Executive Summary Last section written, but first section read by reviewers. Enthusiastic snapshot of your company Less than 2 pages Most important part of the business plan because the reviewer decided if they want to learn more about your business

7. Executive Summary (continued) Should contain Business Description and Vision:Exc 1. Business goals and objective – Must be specific and obtainable 2. Company History – Describe why and when the business was started. How has to company evolved? 3. Mission Statement – A brief statement about who the company is and what it stands for, usually 1 sentence. 4. Vision statement is about the future. – It should be a memorable and engaging expression of hope and inspiration. It should guide the mission statement

8. Market Analysis Steps in defining the market: 1.Describe the industry you operate in and how sales in that industry look. 2.Who is your competition? 3.Describe your customer’s needs and how you can meet those needs.

9. Market Analysis (cont.) 4. Identify your target market and profile your customers. Answer the following: Who are your current or prospective customers? What do they buy and why? What market segments or groups are more likely to buy your products? What is the size of your potential market?

10. Description of Products or Services Mission Statement Presentation of the product or service you’re offering. Nature of your business Unique features of your product/service Any possible spin-offs – Additional products or services that might be offered once the business is established

11. Organization and Management Organizational Structure – Responsibilities of each member of the business – Nothing is left undone – Nothing is done three or four times.

12. Organization and Management Ownership Information – Type of ownership Sole proprietor Partnership Corporation

13. Operations Plan Production – How will you make your product or fulfill your service? – Location? – Number of employees needed? – Suppliers – Computer systems needed – Equipment needed? – Permits or licenses – Contracts needed – Patents Copyrights – Develop Metrics (measurements)

14. Financial Start-up cost requirements Break-even analysis Income statement – profit /loss Cash flow statement – looks like a checkbook that looks ahead Balance sheet – keeps track of your assets and liabilities. It shows the actual worth of your business at a point in time.

15. Appendix This is where you need to include all of the supporting materials of your business plan. Product pictures or designs/sketches Letters of reference Relevant magazine or book references Licenses, permits or patents Building permits Contracts