PowerPoint Presentation  Section 5.2  Pages 80-87

What you’ll learn  Why it’s important to do a business plan  What are the parts of a business plan  How to make a business plan 5.2 The Business Plan

Why it’s important  Once a feasible business plan has been developed, it’s important to make a business plan.  A business plan will help turn a concept into a business, rather than just a product or service. 5.2 The Business Plan

Key Terms business plan vision vision executive summary executive summary distribution channel distribution channel direct channel direct channel indirect channel Small Business Administration (SBA) Small Business Administration (SBA) trade associations trade associations 5.2 The Business Plan

Springboard In planning a road trip to a destination you have never visited, what would you do?

I. THE PURPOSE OF A BUSINESS PLAN A. A business plan is a document that describes a new business. 5.2 The Business Plan

B. It explains to lenders and investors why a new business deserves financial support. 5.2 The Business Plan

II. WHY MAKE A BUSINESS PLAN? A. To obtain financing. B. To serve as a living guide to the business. C. To provide a start-up blueprint. 5.2 The Business Plan

III. CONVEY YOUR VISION A. Vision is the main concept of a business. This body of ideas includes what your business is, what it will become, and how you should run it.

5.2 The Business Plan B.Making and keeping a vision 1. Keep the vision broad enough to last through changing times. 2. If your vision changes when something happens, then it’s not really a vision.

5.2 The Business Plan 3. Don’t confuse your vision with a mission. A mission is an allotted or self-imposed duty or task. 3. Don’t confuse your vision with a mission. A mission is an allotted or self-imposed duty or task.

5.2 The Business Plan IV. THE PARTS OF THE BUSINESS PLAN Formulating a business plan involves a great deal of research.

5.2 The Business Plan V. GETTING STARTED A. A business plan typically has nine features. 1. An executive summary is a brief recounting of key points contained in a business plan. 1. An executive summary is a brief recounting of key points contained in a business plan.

5.2 The Business Plan 2. Product or service plan 2. Product or service plan 3. Management team plan 3. Management team plan 4. Industry/market analysis 4. Industry/market analysis

5.2 The Business Plan 5. Operational plan a.A distribution channel is the means for supplying the product to the customer. b.A direct channel delivers goods or services directly to the customer. c.An indirect channel delivers goods or services to a wholesaler who finds retail outlets to carry the product.

5.2 The Business Plan 6. Organizational plan 6. Organizational plan 7. Marketing plan 8. Financial plan 9. Growth plan

5.2 The Business Plan Discussion Starter If you were planning to open a restaurant, whom would you ask to be part of the advisory board?

5.2 The Business Plan VI. HOW TO MAKE A BUSINESS PLAN A. Gather data. B. Organize your data. C. Set up a notebook. D. Write a draft.

5.2 The Business Plan VII. SOURCES OF INFORMATION A. Find agencies whose primary purpose is to assist entrepreneurs.

5.2 The Business Plan B. Contact agencies and firms with whom entrepreneurs do business.

5.2 The Business Plan 1. The Small Business Administration is a federal agency that provides services to small businesses and entrepreneurs.

5.2 The Business Plan 2. Service Corps of Retired Executives (SCORE) 3. Small Business Development Centers (SBDCs) 4. Chambers of Commerce

5.2 The Business Plan 5. Trade associations offer technical and general assistance to entrepreneurs in a specific profession or industry.

5.2 The Business Plan Critical Thinking Could SCORE’s help be effective? Why or Why not? Why might a retiree volunteer counsel others?

5.2 The Business Plan VIII. WHAT TO INCLUDE IN THE BUSINESS PLAN A. Cover page 1. Company name 2. The words Business Plan

5.2 The Business Plan 3. Name of the contact person 4. Address and phone number of the company

5.2 The Business Plan B.Table of Contents and Headings C.Supporting Documents

5.2 The Business Plan End of Section 5.2