The Business Plan:

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7
Chapter
The Business Plan Creating And Starting The
Venture
3
Planning The Business Operation

• Business Plan- Document Describes
  Internal/External Elements/Strategies For New
  Venture
• Plan (Road Map)
• Short-Term
• Long-Term
• Author Entrepreneur
• Internet - Resource

4
Business Plan Audiences

• Employees
• Investors/Venture Capitalists
• Lenders/Suppliers
• Customers
• Advisors/Consultants

5
Plan Presentation

• Information Needs
• Market
• Operations
• Location
• Manufacturing Operations
• Raw Materials
• Equipment
• Labor Skills
• Space
• Overhead
• Financial Information

6
Gathering Market Information
General
General Environment Demographic Trends
National Industry Trends
Local Environmental/Demographic Trends
Local Industry Trends
Competition- Strengths/Weaknesses
Market Positioning
Specific
Market Objectives
7
Plan Outline

• Introductory Page
• Executive Summary
• Industry Analysis
• Description of Venture
• Production Plan

• Operational Plan
• Marketing Plan
• Organizational Plan
• Assessment of Risk
• Financial Plan
• Appendix

8
Environmental/Industry Analysis

• Environmental- External Uncontrollable
  Variables
• Economy
• Culture
• Industry
• Industry Demand
• Competition

9
Description of Venture

• Mission
• Product/Service
• Location/Size
• Personnel
• Office Equipment
• Entrepreneurs Background
• History of Venture

10
Developing Entrepreneurial Strategy
Mission Statement
Objectives
Strategic Plan
Business Plan
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Objectives

• Quantifiable
• Obtainable
• Flexible

12
Production Plan

• How Product Manufactured- Complete Process vs.
  Subcontracting
• Physical Plant Layout
• Machinery/Equipment Needed
• Raw Materials/Suppliers
• Manufacturing Costs
• Future Capital Needs

13
Operations Plan

• Marketing
• Market Conditions
• Strategy- Distribution, Pricing, Promotion
• Organization
• Ownership Structure
• Lines of Authority/Responsibility
• Assessment of Risk
• Potential Hazards
• Alternative Strategies
• Financial Plan
• Economic Feasibility
• Financial Commitment

14
Implementation Of Plan

• Measuring Progress- Controls
• Inventory
• Production
• Quality
• Sales
• Disbursements
• Updating

15
Reasons For Plan Failure

• Unreasonable Goals
• Goals Not Measurable
• No Total Commitment
• Lack Of Experience
• No Understanding Of Threats Or Weaknesses
• Customer Need Not Established