1. Week One Chapter five “Develop a Business Plan”

2. What is a Business Plan?
A business plan is a written document that describes all the steps necessary in opening and operating a successful business.
It’s broken into seven main sections
It also includes introductory and supporting sections/elements

3. Purpose of a Business pLan
Business idea and how the product/service will be produced and sold
Product description
Target market
Sets specific objectives and how you will achieve them
Sales projections (up to 5 years – long term)
Business expansion ideas
Describes the people running the business
Experience

4. Importance of a Business Plan
Think of all aspects of your business
Identify problems
Create strategies
Secure financing needed to obtain a loan
Your business plan is the proposal you bring with you
Helps communicate your ideas
A tool for managing your business

5. Structure of all good business plans
Introductory Elements
Cover Letter
Cover Sheet
Table of Contents
Statement of Purpose
Executive Summary
Main Body of the Plan
Mission, Goals, Objectives
Market Need
Location & Setup
Business Structure
Management & Staff
Marketing Plan
Financials
Supplementary Elements
Appendix and Attachments

6. seven main elements of your business plan
Mission, Goals, Objectives
Market Need
Location & Setup
Business Structure
Management & Staff
Marketing Plan
Financials

7. Mission, goals, and objectives
History and background of your idea
Describe how you came up with the business idea
Day Care Example: Page 110
Goals and Objectives
Short and long term goals
Short Term Goals: < 1 Year
Intermediate Term Goals: Between 2 & 5 Years
Long-Term Goals: Beyond 5 Years
What’s your vision for your company?
GOAL SETTING IS OF PRIMARY IMPORTANCE

8. Market need Understand Your Customer Outline your Target Market
What is your customer profile?
What are your market segments?
Understand your Competition
Direct and Indirect Competitors

9. Location and setup What sort of space is available?
How much will it cost?
Is it near my target market?
Is it near my competitors?
Is it near businesses that deal in related markets?
What will my floor layout look like?
What sort of starting inventory do I need?

10. Business structure How should I legally organize my business?
Sole Proprietorship
Partnership
S Corporation
C Corporation
How do I financially organize my business?
Buy an existing business
Go into a family business
Franchise my business
Start a brand new business

11. Management and staff Create an Organizational Chart
Who reports to whom?
How many employees will work at every level?
Write the Job Descriptions
What is expected of each type of employee on a daily basis?
Develop a Wages & Benefits Package
What will each employee be paid? What other perks will they receive?

12. Marketing plan “Marketing Mix” Product Place Price Promotion
What product/service are you trying to sell?
What are your product/service lines?
Place
How will you get your product/service to the market?
Price
What will you decide on charging for your products?
Promotion
How do you plan to advertise for each product/product line?

13. financials Preparing Financial Statements How do I get a loan/capital?
Start Up Costs
Cash Flow Statements
Income Statements
Balance Sheets
How do I get a loan/capital?
Should I buy insurance?

14. Business plan: introductory elements
Cover Letter [Example on pg. 118]
Explains or provides more information about the business plan that follows
Name
Name of your business
Address
Telephone number/Fax Number/Website/
Describe your business and its potential for success
How much money you will be seeking?
Should be no more than 1 page
Cover Sheet [Examples on Google]
Date
Owner of the company and title
Address, phone number, contact info

15. Business plan: introductory elements
Table of Contents
Listing of material included in the publication
Quick reference for what is covered on each page
Statement of Purpose [Example on pg. 119]
Describes WHY you are asking for the loan and what you will do with the money
Should be no more than 1-2 paragraphs
Executive Summary [Example on pg. 120]
Short restatement of the business plan to catch a readers attention
Written after the business plan is complete, approximately one to two pages long.

16. Business plan: Supplementary Elements
Appendix
Includes supporting evidence NOT included in the main body
Charts, graphs, financial statements
Think of it as a section to place large elements that are NOT text-based which would break up the reading of the main business plan
Attachments
Resume
Large sales contracts you may have negotiated
Letters of recommendation
Legal documents