© 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
7 Chapter The Business Plan: Creating And Starting The Venture
Planning The Business Operation Business Plan- Document Describes Internal/External Elements/Strategies For New Venture Plan (Road Map) Short-Term Long-Term Author = Entrepreneur Internet - Resource
Business Plan Audiences Employees Investors/Venture Capitalists Lenders/Suppliers Customers Advisors/Consultants
Plan Presentation Information Needs Financial Information Market Operations Location Manufacturing Operations Raw Materials Equipment Labor Skills Space Overhead Financial Information
Gathering Market Information General General Environment & Demographic Trends National Industry Trends Local Environmental/Demographic Trends Local Industry Trends Competition- Strengths/Weaknesses Market Positioning Specific Market Objectives
Plan Outline Introductory Page Executive Summary Industry Analysis Description of Venture Production Plan Operational Plan Marketing Plan Organizational Plan Assessment of Risk Financial Plan Appendix
Environmental/Industry Analysis Environmental- External & Uncontrollable Variables Economy Culture Industry Industry Demand Competition
Description of Venture Mission Product/Service Location/Size Personnel Office Equipment Entrepreneur’s Background History of Venture
Developing Entrepreneurial Strategy Mission Statement Objectives Strategic Plan Business Plan
Objectives Quantifiable Obtainable Flexible
Production Plan How Product Manufactured- Complete Process vs. Subcontracting Physical Plant Layout Machinery/Equipment Needed Raw Materials/Suppliers Manufacturing Costs Future Capital Needs
Operations Plan Marketing Organization Assessment of Risk Market Conditions Strategy- Distribution, Pricing, Promotion Organization Ownership Structure Lines of Authority/Responsibility Assessment of Risk Potential Hazards Alternative Strategies Financial Plan Economic Feasibility Financial Commitment
Implementation Of Plan Measuring Progress- Controls Inventory Production Quality Sales Disbursements Updating
Reasons For Plan Failure Unreasonable Goals Goals Not Measurable No Total Commitment Lack Of Experience No Understanding Of Threats Or Weaknesses Customer Need Not Established