Chapter 5 Feasibility & Business Planning Entrepreneurship

Business Concept Clear and concise description of an opportunity 4 Elements: The product/service and features The customer The benefit The distribution Purpose: to focus your thinking and begin the Business Planning process

Feature A distinctive aspect, quality or characteristic of a product or service

The Customer Demographic of people that you are trying to reach and sell to Done thru: Marketing Advertising Word of mouth Reputation

Benefit Something that promotes or enhances the value to the customer Example: convenience, good deal

Distribution How can you get your product/service to your customers Retail store Wholesale – selling to retail stores Mail order Online Door-to-door delivery

Concept Statement Eastside Sports offers sporting equipment and apparel to local teams and to people who play sports. It provides the convenience of one-stop shopping at a retail outlet in the customer’s own neighborhood. Lower East Side, Manhattan, New York City

Feasibility Analysis The process used to test a business concept Does it have potential to sell? Is there enough demand? What are my margins?

Define Vocabulary from book on back of your notes Industry Competitive Grid Prototype Target Customers Business Model

5.2 The Business Plan Entrepreneurship

Business Plan a document that describes a new business and a strategy to launch the business

Business Plan It contains several sections and is written with great detail People that you would like to read your business plan would include: Investors Bankers Potential Management Partners

Purpose of the Business Plan Emphasize key points that will persuade the reader of the value of your Business Concept

Business Plan Sections Executive Summary Management Team Plan Company Description Product & Service Plan Mission & Vision Statements Industry Overview Market Analysis Competitive Analysis Marketing Plan

Business Plan Sections 10. Operational Plan 11. Organizational Plan 12. Financial Plan 13. Growth Plan 14. Contingency Plan 15. Cover Page 16. Title Page 17. Table of Contents 18. Supporting Documents

1. Executive Summary a brief recounting of the key points contained in a Business Plan