The Business Plan- Creating and Starting the Business

1
The Business Plan- Creating and Starting the
Business
2
Planning

• Business Plan
• Always being updated
• What is the business plan?
• Like a road map
• Who should write the business plan?
• Advice
• Resources

3
Scope and Value of Business Plan

• Three Perspectives
• Entrepreneur
• Customer
• Investor
• Depth and detail
• Advantage to entrepreneur

4
Business Plan

• First Draft
• Evaluating Groups
• Suppliers
• Customers
• Capital suppliers
• Investors
• Presenting the Plan

5
Information Needs

• Three major areas
• Market information
• Market size
• National/local trends
• Operations
• Location
• Manufacturing
• Raw materials
• Equipment
• Labor skills
• Space
• Overhead
• Financial
• Benchmarks

6
Business Plan

• Using the Internet
• Resources

7
Writing the Business Plan

• Introductory Page
• Basic information
• Executive Summary
• Length
• Introduce business concept
• Key concepts
• Facts, where needed
• Exit strategy?

8
Writing the Business Plan

• Environmental Industry Analysis
• Environmental
• Economic
• Regulatory
• Technological
• Social
• Industry Analysis
• What is the market?
• Industry demand
• Competition

9
Writing the Business Plan

• Description of Venture
• Mission statement
• Key elements of products or services
• Location and size
• Personnel and office equipment
• Background of entrepreneurs
• History of venture

10
Writing the Business Plan

• Production Plan
• Subcontractors
• In-house

11
Writing the Business Plan

• Operations Plan
• Marketing plan
• 4 Ps
• Market research for forecasting
• Organizational plan
• Assessment of Risk
• Financial plan
• Three statements
• Appendix

12
Using Implementing the Business Plan

• Using the Plan
• Guide through the first year
• Is planning necessary?
• Contingency plans
• Implementing the Plan
• Inventory control
• Production control
• Quality control
• Sales control
• Disbursements
• Updating

13
Why Businesses Fail

• Goals are unreasonable
• Goals are immeasurable
• Lack of entrepreneurial commitment
• Lack of experience with type of business
• No sense of potential threats or weaknesses
• No customer need was established