1. Chapter 5 Feasibility & Business Planning
Entrepreneurship

2. Business Concept Clear and concise description of an opportunity
4 Elements:
The product/service and features
The customer
The benefit
The distribution
Purpose: to focus your thinking and begin the Business Planning process

3. Feature
A distinctive aspect, quality or characteristic of a product or service

4. The Customer
Demographic of people that you are trying to reach and sell to
Done thru:
Marketing
Advertising
Word of mouth
Reputation

5. Benefit Something that promotes or enhances the value to the customer
Example: convenience, good deal

6. Distribution How can you get your product/service to your customers
Retail store
Wholesale – selling to retail stores
Mail order
Online
Door-to-door delivery

7. Concept Statement
Eastside Sports offers sporting equipment and apparel to local teams and to people who play sports. It provides the convenience of one-stop shopping at a retail outlet in the customer’s own neighborhood.
Lower East Side, Manhattan, New York City

8. Feasibility Analysis The process used to test a business concept
Does it have potential to sell?
Is there enough demand?
What are my margins?

9. Define Vocabulary from book on back of your notes
Industry
Competitive Grid
Prototype
Target Customers
Business Model

10. 5.2 The Business Plan
Entrepreneurship

11. Business Plan
a document that describes a new business and a strategy to launch the business

12. Business Plan
It contains several sections and is written with great detail
People that you would like to read your business plan would include:
Investors
Bankers
Potential Management
Partners

13. Purpose of the Business Plan
Emphasize key points that will persuade the reader of the value of your Business Concept

14. Business Plan Sections
Executive Summary
Management Team Plan
Company Description
Product & Service Plan
Mission & Vision Statements
Industry Overview
Market Analysis
Competitive Analysis
Marketing Plan

15. Business Plan Sections
10. Operational Plan
11. Organizational Plan
12. Financial Plan
13. Growth Plan
14. Contingency Plan
15. Cover Page
16. Title Page
17. Table of Contents
18. Supporting Documents

16. 1. Executive Summary
a brief recounting of the key points contained in a Business Plan

17. Vision and Mission Statement
Vision statement- establishes the scope and purpose of a company and reflects its values and beliefs.
Walt Disney’s vision for his company was “to bring happiness to millions.”
Frank’s vision might be “to open the world of sports to neighborhood residents.”
Mission statement- expresses the specific aspirations of a company, the major goals for which it will strive.
Frank’s mission might be “To provide equipment to 100 customers by the end of the of the first year.”

18. Operational Plan
Distribution channel- is the means by which you deliver the product or service to the customer.
Direct Channel- delivery the product or service directly to the customer.
Indirect Channel- You sell to a wholesaler. The wholesaler finds retail stores and other types of outlets to carry your product.

19. Developing a business plan
Make a Research plan and gather data
List questions you want answered
Identify the type of data that will answer those questions
Set up a Notebook to Organize Your Data
Write the source of each item
Separate sections for each part
Write a Draft
Sort Data
Set up document with headers or use a business plan template

20. Common Mistakes Projecting Exaggerated Growth Levels
Be conservative
Trying to be a Jack-of-all-Trades
Investors prefer a team
Claiming Performance That Exceeds Industry Averages
Should project performance slightly below average
Underestimating the need for Capitol
Project enough capital to grow the company until there is sufficient internal cash flow.
Allow extra for the unexpected

21. Sources of Business Plan Information
Small Business Administration(SBA)- a federal agency that provides services to small businesses and new entrepreneurs.
Provides publications for a minimal charge
Gives special assistance to women, minorities, and the physically challenged
Offers financial assistance
Service Corps of Retired Executives (SCORE)-
Provides free, confidential face-to-face and counseling to small business

22. Sources of Business Plan Information
Small Business Development Centers (SBDCs)-
Administered by the SBA
63 centers offer information and guidance
Chambers of Commerce
Local chamber offices provide information about the local economy, business trends, and business needs.
Trade Associations-
offers technical and general assistance to entrepreneurs in a specific profession or industry.

23. Packaging and Presenting
Package professionally
Bind the plan
Use index tabs to separate sections
Use an easily readable 12pt. Font like Times New Roman
Use bold subheadings and bullets
Include a logo
Number each copy, include a Statement of Confidentiality that the reader should sign.
Place a statement on the cover page prohibiting copying of the plan.