1. DEVELOP A BUSINESS PLAN
Entrepreneurship
4/19/2017
Chapter 5
DEVELOP A BUSINESS PLAN
5.1 Why Do You Need a Business Plan?
5.2 What Goes into a Business Plan?
5.3 Create an Effective Business Plan
Chapter 5

2. Lesson 5.1 WHY DO YOU NEED A BUSINESS PLAN?
Chapter 5
Lesson 5.1 WHY DO YOU NEED A BUSINESS PLAN?
GOALS
Explain the purpose of writing a good business plan.
Describe the importance of a business plan.

3. Chapter 5
THE BUSINESS PLAN
A business plan is a written document that describes all the steps necessary in opening and operating a successful business.

4. PURPOSES OF A BUSINESS PLAN
Chapter 5
PURPOSES OF A BUSINESS PLAN
Explains the idea behind your business and spells out how your product or service will be produced and sold.
Sets specific objectives and describes how your business expects to achieve them.
Describes the background and experience of the people who will be running the business.

5. IMPORTANCE OF A BUSINESS PLAN
Chapter 5
IMPORTANCE OF A BUSINESS PLAN
Makes you think about all aspects of your business.
May help you secure financing for your business.
Helps you communicate your ideas to others.
Can serve as a tool for managing your business.

6. Lesson 5.2 WHAT GOES INTO A BUSINESS PLAN?
Chapter 5
Lesson 5.2 WHAT GOES INTO A BUSINESS PLAN?
GOALS
Study the seven basic elements of a business plan.
Recognize what additional elements may be needed.

7. SEVEN BASIC ELEMENTS OF A BUSINESS PLAN
Chapter 5
SEVEN BASIC ELEMENTS OF A BUSINESS PLAN
History and background
Goals and objectives
Products or services
Form of ownership
Management and staffing
Marketing
Current and projected financial statements

8. HISTORY AND BACKGROUND
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HISTORY AND BACKGROUND
Describing how you came up with your idea can help lenders, investors, and others understand how your business will operate.

9. Chapter 5
GOALS AND OBJECTIVES
Your business plan should outline your goals—short-term, medium-term, and long-term.

10. PRODUCTS OR SERVICES In this section your business plan should:
Chapter 5
PRODUCTS OR SERVICES
In this section your business plan should:
Explain how your products or services differ from those already on the market.
Describe the industry you will operate in.
Describe the location of your business.

11. FORM OF OWNERSHIP Identify your form of ownership
Chapter 5
FORM OF OWNERSHIP
Identify your form of ownership
Provide information relevant to your form of ownership

12. MANAGEMENT AND STAFFING
Chapter 5
MANAGEMENT AND STAFFING
Demonstrate that you and the people working for you have the experience, maturity, and common sense to manage your business.

13. MARKETING The marketing section should:
Chapter 5
MARKETING
The marketing section should:
Identify your prospective customers
Describe the size of the market for your product or service.
Explain how you plan to enter the market.
Explain how you plan to deal with competition

14. CURRENT AND PROJECTED FINANCIAL STATEMENTS
Chapter 5
CURRENT AND PROJECTED FINANCIAL STATEMENTS
The financial section has three elements:
Identification of risks
Financial statements
Funding request and return on investment

15. ADDITIONAL ELEMENTS OF THE BUSINESS PLAN
Chapter 5
ADDITIONAL ELEMENTS OF THE BUSINESS PLAN
Some businesses need to provide additional information in their business plans related to:
Licensing
Legal restrictions
Regulations

16. Lesson 5.3 CREATE AN EFFECTIVE BUSINESS PLAN
Chapter 5
Lesson 5.3 CREATE AN EFFECTIVE BUSINESS PLAN
GOALS
Research your business plan.
Organize your business plan.

17. RESEARCH THE BUSINESS PLAN
Chapter 5
RESEARCH THE BUSINESS PLAN
Print resources
Online resources
People resources
Additional resources

18. PUT YOUR BUSINESS PLAN TOGETHER
Chapter 5
PUT YOUR BUSINESS PLAN TOGETHER
Introductory elements
Cover letter
Title page
Table of contents
Statement of purpose
Executive summary
Main body of your plan
Appendix