1. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin

2. 7
Chapter
The Business Plan:
Creating And Starting
The Venture

3. Planning The Business Operation
Business Plan- Document Describes Internal/External Elements/Strategies For New Venture
Plan (Road Map)
Short-Term
Long-Term
Author = Entrepreneur
Internet - Resource

4. Business Plan Audiences
Employees
Investors/Venture Capitalists
Lenders/Suppliers
Customers
Advisors/Consultants

5. Plan Presentation Information Needs Financial Information Market
Operations
Location
Manufacturing Operations
Raw Materials
Equipment
Labor Skills
Space
Overhead
Financial Information

6. Gathering Market Information
General
General Environment & Demographic Trends
National Industry Trends
Local Environmental/Demographic Trends
Local Industry Trends
Competition- Strengths/Weaknesses
Market Positioning
Specific
Market Objectives

7. Plan Outline Introductory Page Executive Summary Industry Analysis
Description of Venture
Production Plan
Operational Plan
Marketing Plan
Organizational Plan
Assessment of Risk
Financial Plan
Appendix

8. Environmental/Industry Analysis
Environmental- External & Uncontrollable Variables
Economy
Culture
Industry
Industry Demand
Competition

9. Description of Venture
Mission
Product/Service
Location/Size
Personnel
Office Equipment
Entrepreneur’s Background
History of Venture

10. Developing Entrepreneurial Strategy
Mission Statement
Objectives
Strategic Plan
Business Plan

11. Objectives
Quantifiable
Obtainable
Flexible

12. Production Plan
How Product Manufactured- Complete Process vs. Subcontracting
Physical Plant Layout
Machinery/Equipment Needed
Raw Materials/Suppliers
Manufacturing Costs
Future Capital Needs

13. Operations Plan Marketing Organization Assessment of Risk
Market Conditions
Strategy- Distribution, Pricing, Promotion
Organization
Ownership Structure
Lines of Authority/Responsibility
Assessment of Risk
Potential Hazards
Alternative Strategies
Financial Plan
Economic Feasibility
Financial Commitment

14. Implementation Of Plan
Measuring Progress- Controls
Inventory
Production
Quality
Sales
Disbursements
Updating

15. Reasons For Plan Failure
Unreasonable Goals
Goals Not Measurable
No Total Commitment
Lack Of Experience
No Understanding Of Threats Or Weaknesses
Customer Need Not Established