The Business Plan

1
The Business Plan

• Roadmap for company success

2
You now have

• Core Values, Mission, Vision
• An idea for a product
• A set of needs or objectives the product will
  meet
• A set of functional requirements for the product
• A dedicated team of young professionals
• A preliminary or conceptual design

3
Yet we just have a good start!!!!
4
What you still need

• Money
• More money
• Time
• More time
• Completed Conceptual design
• Detailed design
• Manufacturing plan
• Marketing plan
• Actual manufacturing
• Sales and marketing organization
• Legal staff
• And the list still goes on

5
Design Process for Product
Dym Little 3rd ed.
6
Design Process 15 Step
Dym Little 3rd ed.
7
Design Process for Business
Why Start a Business? Layout a draft business
plan What, Why, How, When Final Business
Plan Business Plan in Writing
Dym Little 3rd ed.
8
Design Process for Business
Why Start a Business? Layout a draft business
plan What, Why, How, When Final Business
Plan Business Plan in Writing
Collins, Good To Great HarperCollins, New York,
2001.
9
http//www.sba.gov/smallbusinessplanner/plan/write
abusinessplan/index.html
10
Before you begin writing your business plan,
consider four core questions

• What service or product does your business
  provide and what needs does it fill?
• Who are the potential customers for your product
  or service and why will they purchase it from
  you?
• How will you reach your potential customers?
• Where will you get the financial resources to
  start your business?
• From sba.gov

11
Outline

• Executive Summary
• Market Analysis
• Company Description
• Organization Management
• Marketing Sales Management
• Service or Product Line
• Funding Request
• Financials
• From sba.gov

12
Contents of the Executive Summary

• The mission statement briefly explains the
  thrust of your business. It could be two words,
  two sentences, a paragraph, or even a single
  image. It should be as direct and focused as
  possible, and it should leave the reader with a
  clear picture of what your business is all about.
  
• Date business began
• Names of founders and the functions they perform
• Number of employees
• Location of business and any branches or
  subsidiaries
• Description of plant or facilities
• Products manufactured/services rendered
• Banking relationships and information regarding
  current investors
• Summary of company growth including financial or
  market highlights (e.g. your company doubled its
  worth in 12-month period you became the first
  company in your industry to provide a certain
  service)
• Summary of management's future plans - With the
  exception of the mission statement, all of the
  information in the Executive Summary should be
  highlighted in a brief, even bulleted, fashion.
  Remember, these facts are laid out in-depth
  further along in the plan.

From sba.gov
13
Writing The Plan What goes in a business plan?
The body can be divided into four distinct
sections

• 1) Description of the business2) Marketing3)
  Finances4) ManagementAgenda should include an
  executive summary, supporting documents, and
  financial projections. Although there is no
  single formula for developing a business plan,
  some elements are common to all business plans.
  They are summarized in the following outline

From sba.gov
14
Elements of a Business Plan 

• 1. Cover sheet 2. Statement of purpose3.
  Table of contents

From sba.gov
15
I. The Business

• Description of business
• Marketing
• Competition
• Operating procedures
• Personnel
• Business insurance

From sba.gov
16
II. Financial Data

•    A. Loan application
• B. Capital equipment and supply list C.
  Balance sheet                D. Breakeven
  analysis E. Pro-forma income projections (profit
  loss statements) F. Three-year summary G.
  Detail by month, first year             
                                 H. Detail by
  quarters, second and third years I.  Assumptions
  upon which projections were based J. Projected
  cash flow               

From sba.gov
17
III. Supporting Documents

• A. Tax returns of principals for last three years
  Personal financial                   
  statement (all banks have these forms
• B. For franchised businesses, a copy of franchise
  contract and all                    supporting
  documents provided by the franchisor
• C. Copy of proposed lease or purchase agreement
  for building
• space               
• D. Copy of licenses and other legal document
• E. Copy of resumes of all principal
• F. Copies of letters of intent from suppliers,
  etc.

From sba.gov
18
Thank You!