1. Develop a Business Plan
Chapter 3 - Entrepreneurship

2. 3-1: Importance of Business Plan
Business plan - is a written document that describes all the steps necessary for opening and operating a successful business
A business plan has many purposes...

3. Business Plan Overview
Answers three key economic questions
Who will run business and who will supply it with goods?
How business will win over competitors
What to do to keep customers
Provide detailed financial information to show how business will earn a profit

4. Purposes of a Business Plan
Explains idea behind your business and how your product/service will be produced and sold.
Sets specific objectives and describes how your business expects to achieve them.

5. Purposes of a Business Plan
3. Describes the backgrounds and experience of the people who will be running the business.
Why is this necessary?

6. Importance of Business Plan
Makes you think of all aspects of your business.
May help you secure financing for your business.
Helps you communicate your ideas to others.
May serve as a tool for managing your business.

7. 3-2: Elements of a Business Plan
Three Basic Components regardless of business size or structure:
Introductory elements
Main body
Appendix

8. Main Body of Business Plan
Introduction
Marketing
Financial Management
Operations
Concluding Statement

9. Introductory Elements of Bus. Plan
Cover letter
Title page
Table of contents
Statement of Purpose
Executive Summary

10. Appendix of Business Plan
Includes supporting documents that provide additional information and back up statements provided in the body of report.
Tax returns & personal financial statement
Copy of proposed lease/agreement of building
Licenses and legal documents
Letters of recommendation
Copies of letters of intent (suppliers)
Copies of large sales contracts

11. 3-3: Creating an Effective Bus. Plan
- Information needed for a business plan requires a lot of planning and research.
- You have many resources to help you with your business idea and business plan:
Community, Government, and Professional
Print Resources
Online Resources

12. Community, Gov’t, and Professional
The Small Business Administration (SBA) - federal administrative agency created to help start, build, and grow businesses.
The Office of Small Business Development Centers (SBDC) - provides management and assistance to current/future small business owners.

13. Community, Gov’t, and Professional
3. Service Corps of Retired Executives (SCORE) - is made up of more than 10,500 retired executives who volunteer time to provide entrepreneurs with real-world advice and know-how.
4…Chamber of Commerce, Trade Associations, Professional Consultants, Financial Institutions

14. Mistakes in Business Planning
Unrealistic Financial Projections
An Undefined Target Market
Poor Research
Ignored Competition
Inconsistencies in the Business Plan