5.3 Create an Effective Business Plan Mrs. Leonard Entrepreneurship

Creating an Effective Business Plan A business plan needs to convince readers, that the entrepreneur has come up with a _________________________________ You must include information and data from objective sources to show the idea is founded on __________________________ Most entrepreneurs spend _____ to _____ hours developing their business plans This process requires patience, research, thought, and a great deal of writing and editing

Research the Business Plan Pulling information together to write your business plan involves researching all _____________ of your business Researching all of the aspects/parts of your business will teach you a lot about running a business and may provide you with specific ideas for _____________ your company

Resources There are many resources available to you when writing a business plan. The sources include: _______________________ Online Additional

Research the Business Plan: Print Resources Information for your business plan can come from many sources ______________________________ Books on marketing, financing, hiring and managing staff, purchasing a business, and operating a franchise Magazines devoted to small business ownership and the industry you will be involved in Government documents issued by the ____________ or other federal agencies SBA office nearest your location will have many publications to help you complete your business plan

Researching the Business Plan: Online Resources Printed resources are usually on the ___________ SBA website is on the Internet (contains much of the information that SBA provides in print) Magazine articles _____________________ Sites specifically for ____________________ and small business that may give detailed information www.Entrepreneur.com, http://www.sba.gov/ Also see http://www.gottamentor.com/ViewGeneralAdvice.aspx?g=25

Researching the Business Plan: People Resources People from many ________________ can help you with your business plan Counselors from Small Business Development Centers will provide one-on-one assistance when developing the business plan and inexpensive workshops on topics that may help Service Corps of Retired Executives (______________________) More than 12,000 retired executives volunteer their time with SCORE to help young entrepreneurs Provide free confidential _____________________ Set up a meeting or work with a volunteer over the Internet

Researching the Business Plan: Additional Resources _______________________________ and Small Business Development Centers Information on trends affecting local businesses Trade associations Organizations that promote certain types of businesses Hire experts/professional business ____________ Found in directories available at library or on Internet

Put Your Business Plan Together A business plan gives you the chance to _______________ people that your idea is sound and that you have the talent and resources to make a successful business Your business plan must: Be an _______________________ that is neat, well organized and inviting to read Be _______________________ and printed on standard-sized white paper Follow a standard format

Introductory Elements Every business plan should begin with: _____________________ Title page Table of contents Executive summary These elements set the ____________ for the body of your business plan

Introductory Elements: Cover Letter A cover letter is a letter that explains or provides ________________________________ about a document or a set of documents Cover Letter should include: Your name Name of your _________________ Your address and telephone number Briefly describe your business and its potential for success Tells the reader how much _______________ you need See page 118 for a cover letter example

Introductory Elements: Title Page Should include: Name of your _____________ Date Owner of the company Title of the owner Address and phone number of the company

Introductory Elements: Table of Contents Table of Contents is a listing of the material included in a publication Shows the reader what each page covers Important to make sure your table of contents is ___________________ Sections should be in correct order Page numbers in table of contents is correct Note: It might be a good idea to do the table of contents last!

Introductory Elements: Statement of Purpose _____________________________ Briefly describes ________ you are asking for a loan and what you plan to do with the money if you receive it No more than one or two ____________ See page 119 for an example

Introductory Elements: Executive Summary Executive Summary is a short restatement of a report It should capture the _____________ of the readers and make them want to read more A strong business plan is critical to the success of your business If the executive summary is unconvincing, a lender may decide ____________ your entire business plan

Introductory Elements: Executive Summary No longer than __________________ pages Written in a clear simple style Describe your business concept and communicate what is unique about your idea Include your __________________ for sales, costs, and profits Identify your ____________ (inventory, land, building, equipment, etc.) State the amount you are interested in borrowing

Introductory Elements: Executive Summary Although the executive summary appears before the business plan, it should be written ____________ the business plan has been completed Create a draft over most important and persuasive points you have in the business plan. Draft an _______________ based on these points Have the business plan edited by people who do and don’t understand your business See page 120 for an Executive Summary example

Introductory Elements: Main Body of the Plan The main body of your plan should include the _____________________________ Also include additional elements you think are necessary Should be short and to the point Use _______________________________ Use charts and tables to illustrate your point

Introductory Elements: Appendix ___________ is the part of the business plan that includes any supporting evidence that was not included on the body of the report Documents that might be included are: ____________________ Personal Financial Statements Income tax return Copies of any large sales contracts you have already negotiated ___________________________________ Legal Documents

5.3 Assessment Directions: Answer the following assessment questions about Chapter 5.3 with your Chapter 5 Assessment questions. Next, answer the 5.3 true/false and multiple choice worksheet. 5.3 Assessment Name three resources available to you to help you develop your business plan. What are the elements of a business plan? What is a cover letter? 5.3 True/False & Multiple Choice worksheet Put in your notebook