1. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ChapterChapter3 Develop a Business Plan 3.1 Why a Business Plan is Important 3.2 What Goes into a Business Plan? 3.3 How to Create an Effective Business Plan

2. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 3 Slide 2 The Business Plan business plan a written document that describes all the steps necessary for opening and operating a successful business

3. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 3 products manufacturing methods customers management suppliers competitive strategies how business will earn a profit future growth plans A business plan will describe your:

4. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 3 Slide 4 Purposes of a Business Plan A business plan: explains the idea behind your business how your product or service will be produced and sold sets specific objectives and how your business will achieve them describes the experience of the people who will run the business

5. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Executive Summary Define problem, solution, business model, and why your solution is better Write it last Grab readers attention No more than 2 pages! Most important part of your plan and usually written last 5

6. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 6

7. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Business Model Explain how you make money Who pays you? How do you collect? What are your channels of distribution? How do you integrate suppliers? Use examples if necessary Be complete 7

8. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marketing and Sales Define your primary, secondary, and other audiences Show some numbers How will you find, sell, and retain customers? Advertising and promotion budget Identify your leverage points 8

9. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Competition Everyone has competitors! Provide a complete view of the competitive landscape Direct and indirect competitors Current and anticipated competitors Competitor strengths and weaknesses Your competitive advantages 9

10. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Management Team Describe your key players Management Team Board of Directors Board of Advisors Major Investors Who are you missing? 10

11. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Financial Projections Cash Flow Projections Income Projections Balance Sheets Assumptions 11

12. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 3 Slide 12 Lesson 3.3 How to Create an Effective Business Plan Goals Describe resources available for researching your business plan. Name common mistakes to avoid in business planning.

13. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 3 Slide 13 Vocabulary Small Business Administration (SBA) Small Business Development Centers (SBDC) Service Corps of Retired Executives (SCORE) trade associations

14. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 3 Slide 14 Research the Business Plan Most entrepreneurs spend 50 to 100 hours developing their business plans.

15. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 3 Slide 15 Community, Government, and Professional Resources Small Business Administration (SBA) an independent agency of the federal government helps Americans develop new businesses

16. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 3 Slide 16 a cooperative effort of the private sector, the educational community, and federal, state, and local governments provides free help for businesses that cannot afford a private consultant Small Business Development Centers (SBDC)

17. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 3 Slide 17 retired executives provide free, confidential advice to entrepreneurs either in person or over the Internet business related workshops both short-term and long-term assistance is available Service Corps of Retired Executives (SCORE)

18. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 3 Slide 18 provides information on local business trends Trade Associations organizations that are made up of professionals in a specific industry provide educational and networking opportunities Chamber of Commerce

19. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 3 Slide 19 experts who will provide business assistance for a fee Financial Institutions Bankers and accountants can provide information about loans and financial statements. Professional Consultants

20. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Investor Pitch Slides 1.Title 2.Problem 3.Solution 4.Business Model 5.Secrets 6. Marketing and Sales Competition Management Team Financials Current Status 20 10/20/30 Rule

21. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 3 Slide 21 Print Resources library magazines government documents

22. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 3 Slide 22 Online Resources provide information similar to print information websites targeted to entrepreneurs and small business owners provide business plan templates

23. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 23 What are some of the resources that are available to help you develop your business plan?

24. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 3 Slide 24 Mistakes in Business Planning Avoid making the following mistakes: Unrealistic financial projections An undefined target market Poor research Ignored competition Inconsistencies in the business plan

25. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Internet Resources WSSI Inventor Resources Page - http://uwadmnweb.uwyo.edu/SBIR/inventorresources.html Innovative Products Technologies, Inc. - http://www14.inetba.com/inventonecom/ Business Plan Development Tools (online) – http://www.uwyo.edu/sbdc http://www.sba.gov/starting_business/index.html Sample Plans – http://www.bplans.com/samples/sba.cfm?DCMP=OTC-sba_course 25