Business Plan Considerations

Types of Plans Complete, Quick/dehydrated, Operational Startup, Existing For-Profit, Non-Profit Customized, Fill-in-the-Blank

Motivation Why start a new business? Profit motive – make lots ‘O money Better the world Improve efficiency Do something you have a passion for Be your own boss Provide jobs Financial independence / job security Family firms, create jobs for a niche Ceiling at existing job Respect / power

Motivation What prevents people from starting a new business? Lack of capital Opportunity costs Fear of failure Not enough time Content in bad situation / comfortable Ignorance Hectic lifestyle (wear a lot of hats) People skills Uncertainty

Strengths Smart Funny Reliable Productive Weaknesses Avoid uncertainty Poor decision-maker Procrastinate tasks I do not enjoy Naive Introspection

Why write a business plan? Provide a roadmap for yourself For investors To recruit talent Buyer and suppliers To give yourself a budget Identify all the details of you venture(forces you to answer tough questions) Test feasibility (validate the idea) Provide a timetable Rationale

Evaluating Business Plans What determines small business success? Management experience (entrepreneurial experience) (team cohesion) What’s my expected ROI? When am I gonna make it? Preparation, where are you in the life cycle? Size of market, amount/fragmentation of competition, barriers to entry, growth rate of the market, accessibility (how much of this market can we get?), timing, cyclical nature of the market What’s your competitive advantage (value proposition) What’s your financial plan AND does the owner understand them (accounting) Is it a job you love. Location