1. Creating the Business Plan
Entrepreneurship
Creating the Business Plan

2. Creating the Business Plan
You will be able to:
Construct a mission statement for a company
Explain rationale for starting a business by utilizing market research
Describe a business, it’s products/services, and customers
Compare types of ownership for a business, and select best option
Determine organizational structure and management skills needed to operate a business
Assess locations for a business

3. Creating the Business Plan (Organizing the structure of the business)
Follow the outline on the project sheet in your hands.
There are different forms of business plans online.
You may focus more or less on each part, but all parts should be represented.

4. Executive Summary
Summarizes the main points covered in the business plan
Even though this is the second page of the document, it is usually written last…thus the word “summary”
May contain the Mission Statement and Objectives of the company

5. Market Analysis and Business Rationale
The Market Analysis:
Presents your market research
Features a customer demographic profile
Identifies and analyzes competitors and explains your competitive advantage
Addresses industry trends and growth
The Business Rationale:
Includes history and background of idea
Discusses features and benefits of the products/services offered and how it benefits the customer
Discusses target market, market niche served
Assess locations

6. Assessing Locations for Business
Location, Location, Location
WHERE you will locate and WHY…Regardless of type of business, this is an important aspect of all business plans and must be explained in detail, including…
Zoning & Parking • Visibility of site
Square footage • Costs (Lease, taxes, renovations)
Traffic counts • Nearby businesses, including
Accessibility target market

7. Ownership and Organization
Sole Proprietorship
Partnership
Corporation
Other legal form of Ownership
Limited Liability Company
Non profit Organization

8. Sole Proprietorship Owned and operated by one person Easy to create
Receives all profits, incurs any losses, and is liable for the debts of business
Most entrepreneurs often switch to another form that provides more personal financial protection as the business grows

9. Partnership A business with two or more owners
Partners do not have to share a business equally
How the partnership interests are divided are spelled out in the Partnership Agreement.

10. Corporation Registered by the state and operates apart from its owners
Ownership is represented by shares of stock, public or private
A corporation lives-on after the owners die or have sold interest

11. Other Forms of Ownership
Limited Liability Company
Nonprofit Corporations

12. Organizational Structure and Management Skills
A plan which shows how the jobs in your company relate to one another
Smaller companies may have everyone report to the owner. The larger the company, the more layers of management needed.

13. Organizational Chart

14. Management Skills
The management and staffing section should provide skill sets needed, a job description, for each position
Shows that you and your staff have the experience, maturity, and common sense to manage your business well

15. Good Management Skills
Human Relations
Communications
Networking
Technical and Math skills
Problem Solving & Decision-making
Time Management
Conceptual Skills

16. The Marketing Mix The Marketing Mix (the 4 P’s)
Product – What you are selling
Price – How much is it and why. Mark-up, competition-based, psychological pricing, discount pricing
Place – Where and how can people get it? Direct or Indirect
Promotion – Why? Includes an example of an advertisement

17. Planning Organizational Structure for Business
Let’s Review:
Construct a mission statement for a company
Explain rationale for starting a business by utilizing market research
Describe a business, it’s products/services, and customers
Compare types of ownership for a business, and select best option
Determine organizational structure and management skills needed to operate a business
Assess locations for a business