BizBuilder Step 3: Business Plan Presentation

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 2 [Company Name] [Logo—insert below as clip art]

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 3 Executive Summary Business Definition Target Market Key Marketing Strategy Goals Ownership Financing Request Use of Funds & Exit Strategy

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 4 Overview Mission Vision Culture

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 5 Company Description Industry Type of firm (manufacturing/wholesale/service) Strategic advantage Legal structure Physical location & geographic reach Ownership structure

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 6 Opportunity Analysis Industry analysis Size Trends Characteristics Target market Size Trends Characteristics

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 7 Opportunity Analysis II Environmental Analysis SWOT Analysis StrengthsWeaknesses OpportunitiesThreats

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 8 Opportunity Analysis III Competitive Analysis Key competitors (analysis on next slide) International competitors Competitive advantage or Unique Selling Proposition (USP) Tactics to support the strategy Barriers to entry

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 9 Competitive Analysis Your Company Weighted Rating Competitor #1 Weighted Rating Competitor #2 Weighted Rating Competitor #3 Weighted Rating Quality Price Location Selection Service TOTAL

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 10 Market Segmentation Strategy Geographic Scope Size of Total Market Size of Target Market Customer Profile

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 11 Marketing – Products/Services Products/services to be sold Customer needs to be met Features and benefits Product life cycle stage(s) Intellectual property protection

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 12 Marketing - Pricing Strategy Structure Profit margins Discounts (Optional – Economics of One Unit Slide)

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 13 Economics of One Unit Definition of one unit Selling price per unit$ Direct labor$ Materials$ Total COGS per unit$ Other variable costs$ Total variable costs$ Gross profit per unit$

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 14 Marketing - Promotion  Advertising  Branding  Marketing materials  Publicity  Customer service

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 15 Marketing - Place Location Advantages Disadvantages Surrounding businesses & access routes Vehicular traffic Work force availability

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 16 Marketing - Philanthropy Philanthropic strategy Organizations to support Rationale

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 17 Management Team President/CEO MarketingOperationsFinance

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 18 Employees/Associates Full-time employees Present needs Future needs Benefits Training Part-time employees Present needs Future needs

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 19 Research & Development Types of research in which engaged Industry research in progress Intellectual property protection

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 20 Location & Facilities Type of building and equipment Technological tools Access to technology

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 21 Inventory & Production Supply chain (illustrate) Manufacturing process Economies of scale Innovations in production, inventory management, or distribution Production-distribution channel(s) Lead times

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 22 Quality Assurance Methods of defining & ensuring product/service quality Critical components of quality assurance Value of quality assurance to customers and the organization

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 23 Sources & Uses of Capital Amount of capital required Funds from personal resources Funds committed Type of funds and terms Uses of funds raised with timeline Start-up costs Payback period

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 24 Cash Flow Projections Q1Q2Q3Q4YR1YR2YR3 Starting Cash+ Cash in from Operations + Cash out from Operations - Cash in from Investing + Cash out from Investing - Cash in from Financing + Cash out from Financing -_______ Ending Cash Balance

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 25 Balance Sheet Projections ASSETS Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Property and Equipment, at cost Furniture and Equipment Less Depreciation Net Property and Equipment Other Long-Term Assets Total Assets LIABILITIES AND OWNER’S EQUITY Current Liabilities Accounts Payable Other Liabilities Total Current Liabilities Long-Term Liabilities Long-Term Debt Other Long-Term Liabilities Owner’s Equity TOTAL LIABILITIES AND OWNER’S EQUITY After start-up costs and before first sale ASSETS Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Property and Equipment, at cost Furniture and Equipment Less Depreciation Net Property and Equipment Other Long-Term Assets Total Assets LIABILITIES AND OWNER’S EQUITY Current Liabilities Accounts Payable Other Liabilities Total Current Liabilities Long-Term Liabilities Long-Term Debt Other Long-Term Liabilities Owner’s Equity TOTAL LIABILITIES AND OWNER’S EQUITY After first year 25

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 26 Income Statement Projections 1Q2Q3Q4QYR1YR2YR3 Net Sales Revenue Cost of Goods Sold_______________ Gross Profit Operating Expenses General Expenses Other Expenses_______________ Net Income Before Taxes Taxes_______________ Net Income

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 27 Return on Sales Return on Sales (ROS) Yearly Net Profit ÷ Total Sales × 100 % (Double click on chart to add information) 27

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 28 Breakeven Analysis Number of units that must be sold to break even: per month: __________ units per year: ____________ units

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 29 Ratio Analysis RatioCompanyIndustryVariance Current Quick Debt Debt to Equity Times Interest Earned

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 30 Ratio Analysis II Ave. Inventory Turnover Receivables Turnover Average Collection Period Average Payable Period Total Assets Turnover Net Profit on Sales Net Profit to Equity

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 31 Plan for Use of Funds Working capital$ Equipment$ Fixtures$ Furnishings$ Real estate$ Other$ TOTAL$

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 32 Funding Request Amount Type Terms

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 33 Risks & Barriers Key risks and assessment of impact Barriers to plan success Plans to mitigate risks and reduce barriers

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 34 Exit Plan Options Option 1 Option 2 Option 3 Time frame

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 35 Milestones Critical milestones listed with dates PERT chart

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 36 Opportunity Summary Highlight 1 Highlight 2 Highlight 3 Highlight 4 Highlight 5

Entrepreneurship, 11 th Edition Mariotti and Glackin with NFTE © 2010 Pearson Education, Upper Saddle River, NJ All Rights Reserved. 37 [Company Name] Thank you!