2 What is a Business Plan?A business plan is a written document that describes all the steps necessary in opening and operating a successful business.It’s broken into seven main sectionsIt also includes introductory and supporting sections/elements
3 Purpose of a Business pLan Business idea and how the product/service will be produced and soldProduct descriptionTarget marketSets specific objectives and how you will achieve themSales projections (up to 5 years – long term)Business expansion ideasDescribes the people running the businessExperience
4 Importance of a Business Plan Think of all aspects of your businessIdentify problemsCreate strategiesSecure financing needed to obtain a loanYour business plan is the proposal you bring with youHelps communicate your ideasA tool for managing your business
5 Structure of all good business plans Introductory ElementsCover LetterCover SheetTable of ContentsStatement of PurposeExecutive SummaryMain Body of the PlanMission, Goals, ObjectivesMarket NeedLocation & SetupBusiness StructureManagement & StaffMarketing PlanFinancialsSupplementary ElementsAppendix and Attachments
6 seven main elements of your business plan Mission, Goals, ObjectivesMarket NeedLocation & SetupBusiness StructureManagement & StaffMarketing PlanFinancials
7 Mission, goals, and objectives History and background of your ideaDescribe how you came up with the business ideaDay Care Example: Page 110Goals and ObjectivesShort and long term goalsShort Term Goals: < 1 YearIntermediate Term Goals: Between 2 & 5 YearsLong-Term Goals: Beyond 5 YearsWhat’s your vision for your company?GOAL SETTING IS OF PRIMARY IMPORTANCE
8 Market need Understand Your Customer Outline your Target Market What is your customer profile?What are your market segments?Understand your CompetitionDirect and Indirect Competitors
9 Location and setup What sort of space is available? How much will it cost?Is it near my target market?Is it near my competitors?Is it near businesses that deal in related markets?What will my floor layout look like?What sort of starting inventory do I need?
10 Business structure How should I legally organize my business? Sole ProprietorshipPartnershipS CorporationC CorporationHow do I financially organize my business?Buy an existing businessGo into a family businessFranchise my businessStart a brand new business
11 Management and staff Create an Organizational Chart Who reports to whom?How many employees will work at every level?Write the Job DescriptionsWhat is expected of each type of employee on a daily basis?Develop a Wages & Benefits PackageWhat will each employee be paid? What other perks will they receive?
12 Marketing plan “Marketing Mix” Product Place Price Promotion What product/service are you trying to sell?What are your product/service lines?PlaceHow will you get your product/service to the market?PriceWhat will you decide on charging for your products?PromotionHow do you plan to advertise for each product/product line?
13 financials Preparing Financial Statements How do I get a loan/capital? Start Up CostsCash Flow StatementsIncome StatementsBalance SheetsHow do I get a loan/capital?Should I buy insurance?
14 Business plan: introductory elements Cover Letter [Example on pg. 118]Explains or provides more information about the business plan that followsNameName of your businessAddressTelephone number/Fax Number/Website/Describe your business and its potential for successHow much money you will be seeking?Should be no more than 1 pageCover Sheet [Examples on Google]DateOwner of the company and titleAddress, phone number, contact info
15 Business plan: introductory elements Table of ContentsListing of material included in the publicationQuick reference for what is covered on each pageStatement of Purpose [Example on pg. 119]Describes WHY you are asking for the loan and what you will do with the moneyShould be no more than 1-2 paragraphsExecutive Summary [Example on pg. 120]Short restatement of the business plan to catch a readers attentionWritten after the business plan is complete, approximately one to two pages long.
16 Business plan: Supplementary Elements AppendixIncludes supporting evidence NOT included in the main bodyCharts, graphs, financial statementsThink of it as a section to place large elements that are NOT text-based which would break up the reading of the main business planAttachmentsResumeLarge sales contracts you may have negotiatedLetters of recommendationLegal documents