2What is an Entrepreneur? An entrepreneur is a person who organizes, operates and assumes the risk for a business venture.
3What is a Business Plan?A business plan is a document that describes a new business and a strategy to launch that business.
4Why Do You Need A Business Plan? The primary functions of a business plan are:Set goals & objectives for thebusiness to follow (road map)To attract potential investorsTo acquire financingTo attract quality employees
5Components of a Business Plan Cover PageMarketing PlanExecutive SummaryOperations PlanCompany DescriptionSchedule of Startup FundsProduct /Service PlanProjected Income StatementMission and Vision StatementsManagement Team Plan(Owner’s credentials – resume)Market AnalysisSupporting Documents
6What is an Executive Summary? is an overview.The purpose of an executive summary is to summarize the key points of a document for its readers, saving them time and preparing them for the upcoming content.
7What is a Company Description? The company description section of the business plan outlines the company’s background information and basic business concept.
8What is a Product/Service Plan? In the product and serviceplan section of thebusiness plan, youpresent the natureof your business andthe unique featuresof the product or service.
9What is a Mission/Vision Statement? The vision statement and mission statementstate theguidingprinciples by which a company functions.vision statement a declaration of the scope and purpose of a companymission statement a declaration of the specific aspirations of a company, the major goals for which it will strive
10What is a Market Analysis? This section provides analysis of the conditions and trendsin an industry, the targetmarket (or customerprofile) of the business,and a detailed analysisof the competition
11What is a Marketing Plan? A marketing plan discusses how a company plans to make its customers aware of its products or services. It also describes the market niche, pricing, company image, marketing tactics, a media plan, and a marketing budget.
12What is an Operations Plan? This section details the operations of the business from acquiring materials and supplies to the distribution of the products and/or services to customers.
13What is a Financial Plan? This section details theplan for use of start-upfunds, as well asprojections for the futureof the business.
14What is a Management Team Plan? The management team plan presents your qualifications (as well as those of any partners you may have). You must describe how you (or your team) have the capabilities to execute yourbusiness plan.
15Characteristics of a Good Business Plan Although business plans vary in styles, content and format, all business plans should be:NeatOrganizedProfessionalWell-written & well-designedThorough; highlighting importantaspects of the business
16Characteristics of a Good Business Plan Every business plan should have a cover page, a title page, a table of contents, and supporting documents.Make a research plan and gather data.Set up a notebook to organize data.Write a first draft.
17Common Mistakes in Preparing Business Plans projecting exaggerated growth levelstrying to have expertise in all areasclaiming performance above industry averagesunderestimating the need for capital
18Review Questions What are two functions of the business plan? What is an executive summary & what is it’s purpose?What is a common mistake made in writing a business plan?