1. Develop a Business Plan3
Develop a Business Plan
3.1 Why a Business Plan is Important
3.2 What Goes into a Business Plan?
3.3 How to Create an Effective Business Plan

2. Ideas in Action Turning an Idea into a Business
Two young men turned a passion for graffiti art into a business.
Prior to requesting financing from a bank, you should prepare the “five c’s.”
character
capacity
capital
collateral
conditions
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3. Lesson 3.1 Why a Business Plan is Important
Goals
Explain the purpose of writing a good business plan.
Describe the importance of a business plan.
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4. Terms
business plan
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5. The Business Plan business plan A business plan will:
a written document that describes all the steps necessary for opening and operating a successful business
A business plan will:
describe your ideas to investors
serve as a guide for you as you start your business
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6. Purposes of a Business Plan
explains the idea behind your business
how your product or service will be produced and sold
sets specific objectives and how you will achieve them
describes the experience of the people who will run the business
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7. What are the three main purposes of a business plan?
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8. Importance of 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
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9. Why is a business plan important to an entrepreneur?
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10. Lesson 3.2 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.
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11. Terms pro forma financial statement cover letter statement of purpose
executive summary
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12. Basic Elements of a Business Plan
The three basic components of a business plan are:
introductory materials
the main body
the appendix
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13. The main body of a business plan contains the following elements:
Introduction
Marketing
Financial Management
Operations
Concluding Statement
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14. Introduction
The introduction should contain the following information:
A detailed description of business goals
short, medium, and long-term goals
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15. The legal structure of the business, including ownership
sole proprietor, partnership, or corporation
Your applicable skills and experience
paid, volunteer, and hobbies
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16. The competitive advantages of your business
Performance
Quality
Reliability
Distribution
Price
Promotion
Public image or reputation
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17. Marketing The marketing section of the business plan should describe:
Products and/or services
Market
Industry
Location
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18. Financial Management Identification of Risks
It is reassuring to lenders to know that you have proactively defined risks and that you have a plan for dealing with them.
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19. Funding Request and Return on Investment
Financial Statements
pro forma financial statement
a financial statement based on projected revenues and expenses
Funding Request and Return on Investment
personal investment
loan based financing
anticipated return on investment
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20. Operations daily business management staffing facilities equipment
buy or lease
equipment
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21. Concluding Statement Summarize goals and objectives.
Emphasize your commitment to the success of your business.
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22. List the elements of the main body of a business plan and explain why each one is important.
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23. Complete the Business Plan
Introductory elements
cover letter
a letter that introduces and explains an accompanying document or set of documents
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25. Title Page Table of Contents Statement of Purpose
a brief explanation of why you are asking for a loan and what you plan to do with the money
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27. An executive summary should:
a short restatement of the report
An executive summary should:
compel the reader to continue reading
describe your business concept
include financial projections
identify physical needs
state the requested loan value
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29. Appendix Put It All Together
includes supporting documents that provide additional information to support the body of the report
Put It All Together
The business plan should be:
neat
attractive
well organized
inviting to read
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30. Why should you include supporting documents in your business plan?
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31. Lesson 3.3 How to Create an Effective Business Plan
Goals
Describe resources available for researching your business plan.
Name common mistakes to avoid in business planning.
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32. Terms Small Business Administration (SBA)
Small Business Development Centers (SBDC)
Service Corps of Retired Executives (SCORE)
trade associations
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33. Research the Business Plan
Most entrepreneurs spend 50 to 100 hours developing their business plan.
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34. Community, Government, and Professional Resources
Small Business Administration (SBA)
an independent government agency
helps Americans develop new businesses
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35. Small Business Development Centers (SBDC)
a cooperative effort of the private sector, the educational community, and federal, state, and local governments
provides free, individualized help for business plan development for those who cannot afford a private consultant
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36. Service Corps of Retired Executives (SCORE)
retired executives provide free, confidential advice to entrepreneurs
either in person or over the Internet
both short-term and long-term assistance is available
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37. Chamber of Commerce Trade Associations
provides information on local business trends
Trade Associations
organizations that are comprised of professionals in a specific industry
provide educational and networking opportunities
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38. Professional Consultants
experts who will provide business assistance for a fee
Financial Institutions
Bankers and Accountants can provide information about loans and financial statements.
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39. Print Resources
library
magazines
government documents
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40. Online Resources Provide information similar to library information
Industry specific websites
Websites targeted to entrepreneurs and small business owners
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41. What are some of the resources that are available to help you develop your business plan?
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42. 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
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43. List some common mistakes that are made in business planning.
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44. PERFORMANCE INDICATORS EVALUATED
Demonstrate effective communication skills.
Demonstrate skills in developing a speech using the three basic elements.
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45. Utilize non-verbal gestures as needed.
Apply speaking techniques using appropriate tempo and pitch.
Secure facts and data from multiple sources, emphasizing research skills.
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46. THINK CRITICALLY How can good speaking skills benefit an entrepreneur?
Why is research important when preparing a speech?
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47. Why should you follow copyright laws when preparing a speech?
How do the three elements of a speech contribute to its effectiveness?
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