The Business Plan Apparel Development 2 Objective 4.02
Business Plan Purpose Describes the new business Obtain financing ** **Feasibility A “living guide” to the business (road map**)
Business Plan is a Manual ** To help during: Design Start-up operating
Parts of the Business Plan Executive Summary Product or Service Plan Management Team Plan Industry Market Analysis Operational Plan Organizational Plan Marketing PlanFinancial PlanGrowth Plan
Executive Summary Time to persuade potential investors Keep it simple What are you going to do?
Product/Service Plan What are you going to offer? Be descriptive
Management Team Plan Who will be in charge of what? Job Descriptions Skills
Industry/Market Analysis** Customers Competition Industry
Operational Plan Process Delivery – distribution Logistics** - details about how the product gets to the customer Product development
Organizational Plan Management Philosophy Personnel Employment policies
Marketing/Promotion Plan ** Product Price Promotion = Advertising Place = Distribution
Financial Plan ** Projected Income / Cash Flow Statements Repayment of Borrowed Funds
Putting it all Together The final decision to start a small business is made after the completion of the business plan **
Assessing Feasibility Feasibility Analysis Market Niche Target Customers
Feasibility Analysis **consider what will actually work when choosing a class project Is the business decision possible or within reason** **process of testing a business idea
Market Niche Don’t try to be everything to everyone Specialize
Target Customers The people who are most likely to buy your specific product or service **
Choosing Your Product Considering OptionsProduct Development OutsourcingDemand Product MixPrototype
Product Development **Moving an idea from design to model **Highest risk area for a business – no money coming in and it might fail
Steps in Product Development 1. Opportunity Recognition 2. Concept Investigation 3. Inspections 4. Prototype Building
Proto-type A working model of a product** NOT sample
Outsourcing **process of hiring specialists to do specific work instead of using company employees
Outsourcing Using someone else to do part of the work you aren’t able to do **gives entrepreneurs opportunities to supply services to other companies
Product Standards **developed to benefit the customer
Quality Control **system to verify and maintain desired product standards **responsibility of entire production team