Preparing a Business Plan SET YOURSELF APART FROM THE CROWD.
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Preparing a Business Plan SET YOURSELF APART FROM THE CROWD
WHAT IS A BUSINESS PLAN? n your firm's resume for potential investors. n the management and financial blueprint for a business start-up and profitable operation. n Explains: –how the business will function –its operational characteristics. –capitalization and management
It Starts With A Good Idea! n Brainstorm several ideas around a business concept. n Evaluate and select the idea. n Develop the business plan.
Why Is A Plan Important? n In order to gain insight into the future, you must be able to identify yourself in the present. n A well thought out business plan provides specific and organized information about your company and how you will repay borrowed money.
Why Is A Plan Important? n A good business plan is crucial to any loan package. n Helps tell sales personnel, suppliers, and others about your operations and goals. n Can be used as a performance benchmark.
Business ideas can include: n Extension of an existing business. n Response to a change in the market. n Exploitation of a competitive advantage. n Inventions. n Becoming an agent or distributor. n Service/Retail.
Elements of a Business Plan n The Cover Sheet –Name, address, phone of the company –Name, etc. of owners/corporate officers –Month/year plan was prepared –Name of the preparer –Copy number of the plan n Executive Summary (Statement of Purpose) n Table of Contents
Executive Summary n States the business plan objectives n Uses key words to summarize: –Your company (who, what, where, when) –Your management and their strengths –Your objectives and why you will succeed –Financing need: n Why and how much; how you will repay the investor
Major Components n The Organizational Plan n The Marketing Plan n The Financial Plan n Supporting Documents
The Organizational Plan n Summary Description of the Business –Mission –Business model –Strategy –Strategic relationships –Risks n Products of Services n Intellectual Property –Copyrights, trademarks, patents
The Organizational Plan n Location n Where and at what cost? n If it also pertains to Marketing, add info in your Marketing Section, too n Legal Structure n Why is this structure appropriate? n Who owns/corporate officers? n Management n Who runs the company? n Describe responsibilities, abilities, salaries
The Organizational Plan n Personnel n How many employees? n Qualifications, schedules, wages n Future needs n Accounting and Legal n Who and how n Insurance n Property & Liability, Life & Health n Costs and carriers n Security n Inventory control and theft of information (online and offline)
The Marketing Plan n Overview and Goals of Your Marketing Strategy n Market Analysis n Target market –Demographics, psychographics, niche markets n Competition –Assess their strengths & weaknesses n Market trends –Industry trends, customer trends n Market research –Methods of research, database analysis, results
The Marketing Plan n Marketing Strategy –General description (% online v. offline) –Method of sales & distribution n stores, offices, kiosks, catalogs, website, direct mail –Packaging –Pricing –Branding –Database marketing
Marketing Strategy Marketing Strategy n Sales Strategies –Direct sales, direct mail, email, affiliate, reciprocal, viral marketing… n Sales Incentives/Promotions –Samples, coupons, online promo, rebates… n Advertising Strategies –Traditional radio, tv and print; web/new media, long-term sponsorships…
The Marketing Plan The Marketing Plan n Marketing Strategy –Public Relations n Online presence, events, press releases, interviews with the press –Networking n Memberships and leadership positions n Customer Service –Activities and outcomes n Implementation of the Plan –In-house, out-sourced responsibilities
The Financial Plan n Pro formas n Balance sheet n Profit & Loss statements n Cash flow analysis n Break even analysis
Supporting Documents n Everything you can include to make you and your business look terrific….
Resources n Online information – for example: www.state.nj.us/njbiz/s_step1_elements.shtml n NJ-Small Business Development Centers (SBDC) –800-432-1565 –www.yourbizpartner.com
Guidelines n Define your objectives for the plan. n Do your research. n industry, potential customers, competitors, sales, and costs n Outline the key points for in each section. n Write the plan. n Generate believable financial projections. n Do the executive summary last. n highlights what is important in your plan while getting the reader excited about your business
Sample Plans n Http://www.sba.gov/starting/wideindexbuspl an.html n www.bplans.com n http://www.businessplans.org/MootCorp.html n http://www.state.nj.us/njbiz/s_step1_sample.shtml n http://www.sb.gov.bc.ca/smallbus/workshop /download/samplebp.html n http://126.96.36.199/sbdc/centsbdc/BUSPLAN.HTM
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