1. Developing a Business Plan Why a Business Plan is Important What Goes into a Business Plan? How to Create an Effective Business Plan

2. SWH Slide 2 Why a Business Plan is Important Goals Explain the purpose of writing a good business plan. Describe the importance of a business plan.

3. SWH Slide 3 Vocabulary Business plan

4. SWH Slide 4 The Business Plan Business plan a written document that describes all the steps necessary for opening and operating a successful business

5. SWH Slide 5 products manufacturing methods customers management suppliers competitive strategies how business will earn a profit future growth plans A Business plan will describe your:

6. SWH Slide 6 Purposes of a Business Plan A business plan: explains the idea behind your business how your product or service will be produced and sold sets specific objectives and how your business will achieve them describes the experience of the people who will run the business

7. SWH Slide 7 What are the three main purposes of a business plan?

8. SWH Slide 8 Importance of a Business Plan A Business Plan: makes you think about all aspects of your business may help you secure financing helps you communicate your ideas to others can serve as a tool for managing your business

9. SWH Slide 9 Why is a business plan important to an entrepreneur?

10. SWH Slide 10 What Goes into a Business Plan? Goals List and describe the basic elements of a business plan. Describe how to pull a business plan together.

11. SWH Slide 11 Vocabulary pro forma financial statement harvest strategy cover letter statement of purpose executive summary

12. SWH Slide 12 Basic Elements of a Business Plan The main body of a business plan should be organized into the following elements: 1.Introduction 2.Marketing 3.Financial Management 4.Operations 5.Concluding Statement

13. SWH Slide 13 Introduction The introduction should contain the following information: A detailed description of business goals Ownership and legal structure of the business Your skills and experience The competitive advantages of the business

14. SWH Slide 14 Describe how you came up with your business Outline the business goals for the Short-term Medium-term Long-term Detailed Description

15. SWH Slide 15 sole proprietor, partnership, or corporation identify leadership team list number of shareholders Ownership and Legal Structure

16. SWH Slide 16 list all of your relevant business experience paid work volunteer work hobbies list all of the relevant business experience of your leadership team Skills and Experience of the Leadership Team

17. SWH Slide 17 Performance Quality Reliability Distribution Price Promotion Public image or reputation Advantages

18. SWH Slide 18 Marketing The marketing section of the business plan should describe: Products and/or services Market Industry Location

19. SWH Slide 19 Financial Management Identification of Risks Prospective lenders and investors will want to know what risks your business faces and how you plan to deal with them.

20. SWH Slide 20 pro forma financial statement a financial statement based on projected revenues and expenses Funding Request and Return on Investment borrowed money personal investment anticipated return on investment Financial Statements

21. SWH Slide 21 Operations daily business management hiring and personnel procedures insurance lease or rental agreements equipment

22. SWH Slide 22 the way an entrepreneur intends to extract his or her money from a business after it is operating successfully Long term Strategy

23. SWH Slide 23 Concluding Statement Summarize goals and objectives. Emphasize your commitment to the success of your business.

24. SWH Slide 24 List the elements of the main body of a business plan and explain why each one is important.

25. SWH Slide 25 Complete the Business Plan Introductory elements cover letter a letter that introduces and explains an accompanying document or set of documents

26. SWH Slide 26 a short restatement of the report An executive summary should: describe your business concept include projections for sales, costs, and profits identify physical needs state the requested loan value Executive Summary

27. SWH Slide 27

28. SWH Slide 28 includes supporting documents that provide additional information to support the body of the report Put It All Together The business plan should be: neat well organized inviting to read Appendix

29. SWH Slide 29

30. SWH Slide 30 Why should you include supporting documents in your business plan?

31. SWH Slide 31 How to Create an Effective Business Plan Goals Describe resources available for researching your business plan. Name common mistakes to avoid in business planning.

32. SWH Slide 32 Vocabulary Small Business Administration (SBA) Small Business Development Centers (SBDC) Service Corps of Retired Executives (SCORE) trade associations

33. SWH Slide 33 Research the Business Plan Most entrepreneurs spend 50 to 100 hours developing their business plans.

34. SWH Slide 34 Community, Government, and Professional Resources Small Business Administration (SBA) an independent agency of the federal government helps Americans develop new businesses

35. SWH Slide 35 a cooperative effort of the private sector, the educational community, and federal, state, and local governments provides free help for businesses that cannot afford a private consultant Small Business Development Centers (SBDC)

36. SWH Slide 36 retired executives provide free, confidential advice to entrepreneurs either in person or over the Internet business related workshops both short-term and long-term assistance is available Service Corps of Retired Executives (SCORE)

37. SWH Slide 37 provides information on local business trends Trade Associations organizations that are made up of professionals in a specific industry provide educational and networking opportunities Chamber of Commerce

38. SWH Slide 38 experts who will provide business assistance for a fee Financial Institutions Bankers and accountants can provide information about loans and financial statements. Professional Consultants

39. SWH Slide 39 Mistakes in Business Planning Avoid making the following mistakes: Unrealistic financial projections An undefined target market Poor research Ignored competition Inconsistencies in the business plan

40. SWH Slide 40 PERFORMANCE INDICATORS Demonstrate effective communication skills Demonstrate skills in developing a speech using the three basic elements

41. SWH Slide 41 Apply speaking techniques using appropriate tempo and pitch Secure facts and data from multiple sources, emphasizing research skills Utilize nonverbal gestures as needed

42. SWH Slide 42 THINK CRITICALLY 1.How can good speaking skills benefit an entrepreneur? 2.Why is research important when preparing a speech?

43. SWH Slide 43 4.How do the three elements of a speech contribute to its effectiveness? 3.Why should you follow copyright laws when preparing a speech?