1. BUSINESS PLANS MARKETING PLANS STRUCTURE

2. WHAT IS BUSINESS? Business is the process of taking materials, goods or services from a beginning point and adding value along the way to the final user Business is the process of taking materials, goods or services from a beginning point and adding value along the way to the final user

3. WHY PLAN Planning will help shape your destination and provide the best way to get there. Planning will help shape your destination and provide the best way to get there. Provide the road map to success. Provide the road map to success. Define what it takes to Define what it takes to Open the door Keep the door open Maximize your business

4. WHO NEEDS A PLAN Lenders Lenders Investors Investors Customers Customers Employees Employees YOU YOU

5. A BUSINESS PLAN IS A written document that makes a compelling statement that your business generates enough profit to: A written document that makes a compelling statement that your business generates enough profit to: Provide sufficient cash flow to service debt Provide sufficient cash flow to service debt Provide adequate return to attract investors Provide adequate return to attract investors Provide adequate return on investment Provide adequate return on investment

6. BUSINESS PLAN OUTLINE Title page Title page Executive summary Executive summary Table of contents Table of contents Business description Business description Organizational plan Organizational plan Marketing plan Marketing plan Financial plan Financial plan Supporting documents Supporting documents

7. TITLE PAGE Company name Company name Telephone # Telephone # Fax Number Fax Number E-mail address E-mail address Website Website Name of person preparing plan Name of person preparing plan Date prepared Date prepared

8. TABLE OF CONTENTS Reference to major parts of the plan Reference to major parts of the plan Makes it user friendly Makes it user friendly Indicates completeness Indicates completeness

9. EXECUTIVE SUMMARY Describes your business Describes your business in no more then two pages in no more then two pages Must get attention of the reader Must get attention of the reader Write last or Write last or Write first and rewrite last Write first and rewrite last

10. BUSINESS DISCRIPTION Mission statement Mission statement Describes: Describes: Industry and growth Physical facilities Equipment Competitive issues Why you will be successful

11. The ORGANIZATIONAL PLAN Legal structure Legal structure How business is organized How business is organized Who will manage Type of business Type of business New startup Existing business Franchise

12. The MARKETING PLAN Marketing is the activity of presenting product or services to customers which makes them eager to buy Marketing is the activity of presenting product or services to customers which makes them eager to buy Marketing is every thing you do to make sales Marketing is every thing you do to make sales Selling is the result of marketing Selling is the result of marketing

13. MARKETING Products and Services Discuss features Discuss features Stress benefits and results Stress benefits and results People do not buy things People do not buy things People buy results People buy results

14. MARKETING Position Niche Niche  What sets you apart  What makes you better Location Location  Convenience  Parking  Safety  Attractiveness  Complementary business

15. MARKETING Price Can you sell cheaper? Can you sell cheaper? Do you want to sell cheaper? Do you want to sell cheaper? Don’t let others set price. Don’t let others set price. Customer reaction Customer reaction Perceived value Perceived value

16. MARKETING Promotion Name Name Advertising Advertising Signage Signage Customer service Customer service Employees Employees Public relations Public relations Website Website Tagline Tagline Net working Net working Branding Branding Guarantees Guarantees Dress Dress Events Events Email Email

17. MARKETING Competition Know more about them than they know about themselves Know more about them than they know about themselves Strengths and weaknesses and how do you compare Strengths and weaknesses and how do you compare Copy their strengths and improve Copy their strengths and improve Make their weakness your strength. Make their weakness your strength.

18. BUDGET % of projected sales % of projected sales Advertise when business is good Advertise when business is good Advertise when business is bad Advertise when business is bad Test and analyze results Test and analyze results Have something to say, say it well and say it often.

19. LOW COST MARKETING Business cardsBrochures Business cardsBrochures FlyersThank you notes FlyersThank you notes SignageGuarantees SignageGuarantees NetworkingTestimonials NetworkingTestimonials Recruit cheerleadersPublic relations Recruit cheerleadersPublic relations Under promise…over deliver! Under promise…over deliver! If it’s not broke fix it! If it’s not broke fix it!

20. WEBSITE/ INTERNET A must today A must today Provide useful information Provide useful information Must be easy to maneuver and use Must be easy to maneuver and use Use to: Use to:CommunicateEducateAdvertise Maximize website

21. FINANCIAL PLAN Financial needs Financial needs Sources and use of funds Sources and use of funds Start up list of expenses Start up list of expenses List capital requirements List capital requirements Equity invested Equity invested

22. FINANCIAL DOCUMENTS Profit and loss statement Profit and loss statement Cash flow projections Cash flow projections Balance sheet Balance sheet Break even analysis Break even analysis

23. SUPPORTING DOCUMENTS Personal resumes Personal resumes Copy of leases Copy of leases Purchase agreements Purchase agreements Contracts and letters of intent Contracts and letters of intent Key employee job descriptions Key employee job descriptions Licenses and permits Licenses and permits Mentors Mentors

24. WRAP UP Think – Write – then Do it Think – Write – then Do it Choose the right business Choose the right businessKnowledgeExperienceTrainingPassionWork Make sure of the funds Make sure of the funds

25. www.scorehouston.org Free business resources Free business resources Business templates Business templates Business plan Business plan 31 pages total 8 pages marketing 150 questions Answer questions that pertain to your business…skip rest Have business/ marketing plan

26. BUSINESS STRUCTURE Sole Proprietorship Sole Proprietorship General partnership General partnership Limited partnership Limited partnership Limited liability company Limited liability company Corporation Corporation

27. SOLE PROPRIETORSHIP One individual or married couple One individual or married couple Most common form of business Most common form of business Easiest form of doing business Easiest form of doing business Default business structure Default business structure Net income (loss) subject to individual income tax rates Net income (loss) subject to individual income tax rates

28. SOLE PROPRIETORSHIP ADVANTAGES Informal Informal One person control One person control Fewer reporting requirements Fewer reporting requirements Avoidance of double tax (vs. corp.) Avoidance of double tax (vs. corp.)DISADVANTAGES Unlimited liability Unlimited liability Fewer fringe benefits Fewer fringe benefits Limited capital Limited capital Profit taxed to owner Profit taxed to owner Business income subject to self employment tax Business income subject to self employment tax

29. GENERAL PARTNERSHIP Two or more persons (not married couple) Two or more persons (not married couple) Share profits, losses and management Share profits, losses and management Each partner personally liable for debts Each partner personally liable for debts Usually have written agreement Usually have written agreement Flexibility to allocate income, expense, gain. Loss among partners Flexibility to allocate income, expense, gain. Loss among partners

30. GENERAL PARTNERSHIP ADVANTAGES Ease of organization Ease of organization Combine resources and talents Combine resources and talents Liabilities as personal deductions Liabilities as personal deductions Continuation of business after death Continuation of business after deathDISADVANTAGES Unlimited liability Unlimited liability Profit taxed to individuals Profit taxed to individuals Fewer fringe benefits Fewer fringe benefits Business income subject to self- employment tax Business income subject to self- employment tax Subject to securities regulations? Subject to securities regulations?

31. LIMITED PARTNERSHIP One or more general partners One or more general partners One or more limited partners One or more limited partners General partners manage the business General partners manage the business Limited partners share in the profits but losses are limited Limited partners share in the profits but losses are limited Limited partners are liable to amount invested Limited partners are liable to amount invested

32. LIMITED PARTNERSHIP ADVANTAGES General partner – additional money Limited partner- limited risk Limited partner- deduction of losses Partners protected from acts of other partners DISADVANTAGES Limited partners have no control Limited partners have no control General partner has unlimited liability General partner has unlimited liability May be taxed as a corporation May be taxed as a corporation

33. LIMITED LIABILITY COMPANY LLC AND LLP Attributes of both corporation and partnership Attributes of both corporation and partnership Two or more members treated as partnership for tax purposes Two or more members treated as partnership for tax purposes Flexibility to allocate income, expenses, gains or losses among members Flexibility to allocate income, expenses, gains or losses among members Engage in any business other than banking or insurance Engage in any business other than banking or insurance State filing required State filing required

34. LIMITED LIABILITY COMPANY ADVANTAGE Limited liability Limited liability Ease of management and control Ease of management and control Combination of resources and talent Combination of resources and talent Allocation of profit and loss Allocation of profit and lossDISADVANTAGE Cost of organization Cost of organization Complexity of operating agreement Complexity of operating agreement Requirements and formalities must be followed to avoid personal liability Requirements and formalities must be followed to avoid personal liability Self employment tax Self employment tax

35. CORPORATION Chartered legal entity Chartered legal entity Has rights, privileges and liabilities beyond those of an individual Has rights, privileges and liabilities beyond those of an individual Unlimited ownership Unlimited ownership Limited liability Limited liability Net income (loss) subject to corporate tax rate Net income (loss) subject to corporate tax rate S-Corp income (loss) subject to partnership tax rate S-Corp income (loss) subject to partnership tax rate

36. COPORATION ADVANTAGE Readily transferable ownership Readily transferable ownership Perpetual existence Perpetual existence Flexibility of financing Flexibility of financing Fringe benefits Fringe benefitsDISADVANTAGE Active owners treated as employees Active owners treated as employees Cost and requirement of organization Cost and requirement of organization Possibility of double taxation Possibility of double taxation

37. SCORE Counselors to America’s Small Business We Counsel We Counsel In person and e-mail We Educate We Educate Workshops, seminars and speakers bureau We Mentor We Mentor In our office, on site and Smart Squad

38. SCORE Counselor to America’s Small Business Nationally Nationally 390 chapters 12,400 Volunteers Houston Houston 8701 S Gessner Suite 1200 8 Other locations 70 Volunteers 713-773-6565 www.scourehouston.org