Business Plan Introduction BMA II

Our Goals The student can categorize a business plan and explain the need for a well-orchestrated business plan. The student can explain a marketing plan, including price competition, non-price competition, market analysis, competition, marketing research, market segmentation, demographics, and sales forecasting. The student can research business plan outlines, resources, and templates using web search engines. The student can identify a legal plan, including the appropriate form of legal organization, including sole proprietorship, partnership, corporation, and S corporation. The can create and present a well-orchestrated business plan and critically explain the contents.

Vocabulary Business Plan Sole Proprietorship Partnership Corporation Executive Summary

Introduction A business plan is a proposal that describes the new business to potential investors. Basically a detailed description of what the business is and what it will sell. Different types of Ownership Partnership Sole Proprietorship Corporation Skills and Experience- Describe the experience and talent of those who are starting the business Financial Plan- Detail the finances of the business Organization – This should explain how the organization is set up. Who is in charge? How are duties divided? Marketing Plan- How you plan on selling and promoting your service or product. Where and to whom will you sell to?

Ownership/Legal Structure The legal structure of the business will fall into one of four categories and should be explained in the business plan. Sole Proprietorship- One person owns the company Partnership – Two or more people own the company Corporation- Business is a separate legal entity. Least Liability for owner’s personal assets

Marketing Products/Service Market Competition Location Describe in detail Market Demographics- segmenting the market by statistics such as age, race, gender, education, marital status, etc Geographic- segment the market by location, and product benefits are segmented by certain features or products that the customer is seeking. Psychographics- segmenting the market by interests or hobbies, such as gourmet cooking or sports Product Benefits- how does it benefit your target market. Competition Who, what, and where Location Where will your business be located and why did you choose that location?

Financial Management Identification of Risk Financial Statement Human Natural Economic Financial Statement Income statement Balance sheet Cash Flow

Risk Management Business Risks are the possibility of business loss or failure. There are three types of business risks. Economic- occur from changes in the overall business conditions Type or amount of competition Product obsolescence Government Regulation Natural Human It is very important for businesses know their strengths and their weaknesses.

Operations Critical for business success Management on a day-to-day business Necessary equipment Personnel needed for success

Executive Summary Summarize goals objectives for the business Emphasize your commitment to the success of the business