The Teen Entrepreneur Show Me The Money!
What is an Entrepreneur? An entrepreneur is a person who organizes, operates and assumes the risk for a business venture.
What is a Business Plan? A business plan is a document that describes a new business and a strategy to launch that business.
Why Do You Need A Business Plan? The primary functions of a business plan are: Set goals & objectives for the business to follow (road map) To attract potential investors To acquire financing To attract quality employees
Components of a Business Plan Cover Page Marketing Plan Executive Summary Operations Plan Company Description Schedule of Startup Funds Product /Service Plan Projected Income Statement Mission and Vision Statements Management Team Plan (Owner’s credentials – resume) Market Analysis Supporting Documents
What is an Executive Summary? is an overview. The purpose of an executive summary is to summarize the key points of a document for its readers, saving them time and preparing them for the upcoming content.
What is a Company Description? The company description section of the business plan outlines the company’s background information and basic business concept.
What is a Product/Service Plan? In the product and service plan section of the business plan, you present the nature of your business and the unique features of the product or service.
What is a Mission/Vision Statement? The vision statement and mission statement state the guiding principles by which a company functions. vision statement a declaration of the scope and purpose of a company mission statement a declaration of the specific aspirations of a company, the major goals for which it will strive
What is a Market Analysis? This section provides analysis of the conditions and trends in an industry, the target market (or customer profile) of the business, and a detailed analysis of the competition
What is a Marketing Plan? A marketing plan discusses how a company plans to make its customers aware of its products or services. It also describes the market niche, pricing, company image, marketing tactics, a media plan, and a marketing budget.
What is an Operations Plan? This section details the operations of the business from acquiring materials and supplies to the distribution of the products and/or services to customers.
What is a Financial Plan? This section details the plan for use of start-up funds, as well as projections for the future of the business.
What is a Management Team Plan? The management team plan presents your qualifications (as well as those of any partners you may have). You must describe how you (or your team) have the capabilities to execute your business plan.
Characteristics of a Good Business Plan Although business plans vary in styles, content and format, all business plans should be: Neat Organized Professional Well-written & well-designed Thorough; highlighting important aspects of the business
Characteristics of a Good Business Plan Every business plan should have a cover page, a title page, a table of contents, and supporting documents. Make a research plan and gather data. Set up a notebook to organize data. Write a first draft.
Common Mistakes in Preparing Business Plans projecting exaggerated growth levels trying to have expertise in all areas claiming performance above industry averages underestimating the need for capital
Review Questions What are two functions of the business plan? What is an executive summary & what is it’s purpose? What is a common mistake made in writing a business plan?