DEVELOP A BUSINESS PLAN Entrepreneurship 11/7/2018 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
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.
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.
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.
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.
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.
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
HISTORY AND BACKGROUND Chapter 5 HISTORY AND BACKGROUND Describing how you came up with your idea can help lenders, investors, and others understand how your business will operate.
Chapter 5 GOALS AND OBJECTIVES Your business plan should outline your goals—short-term, medium-term, and long-term.
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.
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
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.
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
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
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
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.
RESEARCH THE BUSINESS PLAN Chapter 5 RESEARCH THE BUSINESS PLAN Print resources Online resources People resources Additional resources
PUT YOUR BUSINESS PLAN TOGETHER Chapter 5 PUT YOUR BUSINESS PLAN TOGETHER Introductory elements Cover letter Cover sheets Table of contents Statement of purpose Executive summary Main body of your plan Appendix