1. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 The Business Plan Executive Summary Mission Statement Business Environment Marketing Plan Management and Personnel Financial Projections Legal Considerations Insurance Requirements Suppliers Risks Assumptions / Conclusions

2. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 The Executive Summary (2 pages or less) Brief description of the business Most important trends in the industry Advertising and promotion Sales and profits—projected and historical Education and work experience of owners and key personnel

3. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 The Mission Statement Purpose of the business Products and services offered Management’s philosophy and values

4. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 The Business Environment National trends Industry trends Local trends

5. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 National Trends Demographic Legislative Technological Economic

6. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Industry Trends Dominated by large or small businesses Failure rate Lifecycle stage—new/mature Typical profitability General patterns/changes

7. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Local Trends Changes in the community’s population Attitude of the community toward your business Economic health of the community

8. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Describe Your Product or Service Size Shape Weight Raw materials Color Speed Packaging Personalized attention Response time Custom ordering Trial offers Guarantees

9. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 The Competition Your three main competitors Distance between you and your competitors Trading areas—yours and theirs Competitive analysis

10. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Competitive Analysis Product selection Market share Product quality Advertising & Promotion Pricing Workforce Financial condition Equipment/Technology Capacity

11. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Pricing Objective Pricing method Industry prices compared to yours Policies/general guidelines Strategies

12. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Pricing Strategies Introductory Skimming Price lining Odd-ending Loss-leader All-one-price Bundling

13. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Credit Policy Your terms to customers The competitions’ terms to customers Payment method—checks, credit cards, cash only

14. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Competitive Advantage Quality Price Selection Location Speed Personal service

15. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Target Market Segmentation Methods Geographic Demographic Benefit Usage rate Psychographically

16. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Retail or Service Location Business address Trading area Demographic data Traffic counts Average speed Accessibility Adjacent businesses Visibility Sign laws Parking ordinances Zoning

17. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Manufacturing Location Business address Labor climate Raw material-oriented or customer-oriented Utility access and rates Tax rates Transportation facilities Environmental regulations Quality of life Zoning

18. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Wholesale Location Business address Transportation facilities Financial condition of retailers in the community Zoning

19. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Promotion Sales and direct marketing Advertising Publicity and public relations Sales promotion

20. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Promotional Goals Sales volume (dollar amount) Sales increase (percentage) Increase in awareness

21. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Sales Force Inside sales force Outside sales force Compensation method Allocation of customer accounts

22. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Other Direct Marketing Telemarketing Direct mail Catalogs Direct response ads

23. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Sales Promotions Trade-oriented Consumer-oriented

24. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Public Relations Sponsoring sports teams Memberships in chambers of commerce Support of charitable organizations

25. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Publicity Grand opening Expansion plans New products Employee promotions

26. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Management and Personnel Qualifications of owners and key employees Job descriptions Wages and benefits Typical work schedule Organizational chart Federal laws

27. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Federal Employment Laws Occupational Safety and Health Act Title VII of the Civil Rights Act Americans with Disabilities Act Immigration Laws Family and Medical Leave Act National Labor Relations Taft Hartley Workers Compensation Employees vs. Subcontractors

28. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Start-Up Costs Inventory Furniture and fixtures Machinery and equipment Prepaid expenses Training costs for employees Deposits Renovations and/or building purchase Working capital

29. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Working Capital Worksheet Owner’s Salary Employee salary Employee taxes (approximately 11% of owner and employee wages) Rent Advertising Utilities Supplies Telephone Legal/Accounting fees Loan payment Repairs/Maintenance Auto/Travel expenses Inventory (If customers do not pay cash for purchases, this amount will be needed to replace inventory until payment is received.) Miscellaneous Other (specify) TOTAL WORKING CAPITAL $__________ x 3 = $__________ $__________ Cost Per Month

30. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Financing Debt Equity

31. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Debt Financing Bank loans Federal government loans State and local government programs Finance companies

32. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Equity Financing Personal funds Private investors Partners Venture capital firms Stock sales

33. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Projected Financial Statements Opening day balance sheet Projected income statement Projected cash flow

34. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Opening Day Balance Sheet Assets Current Assets Cash (working capital) Supplies Prepaid Expenses Inventory Total Current Assets Fixed Assets Furniture / Fixtures Machinery / Equipment Renovations Total Fixed Assets Total Assets Liabilities Current Liabilities Current portion of long-term debt Total Current Liabilities Long-Term Liabilities Note Payable Less: Current Portion Total Long-term Total Liabilities Equity Total Liabilities & Equity

35. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Projected Income Statement (Corporation) Sales Cost of Goods Sold Beginning Inventory Purchases Freight Ending Inventory Cost of Goods Sold Gross Margin Expenses Officer’s Salary Employee Wages Accounting / Legal Advertising Rent Depreciation Supplies utilities Telephone Interest Repairs Texas Insurance Miscellaneous Credit card fees Dues / Subscriptions Total Expenses Net Profit Income Taxes Net Profit after Taxes For planning purposes, compute the following: Net Profit Less: Income Taxes Less: Loan Principal Add: Depreciation Net Cash

36. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Projected Income Statement (Proprietorship or Partnership) Sales Cost of Goods Sold Beginning Inventory Purchases Freight Ending Inventory Cost of Goods Sold Gross Margin Expenses Employee Wages Accounting / Legal Advertising Rent Depreciation Supplies Utilities Telephone Interest Repairs Taxes Insurance Miscellaneous Credit card fees Dues / Subscriptions Total Expenses Net Profit Less: Income Taxes Less: Self-employment tax Net Profit after Taxes For planning purposes, compute the following: Net Profit after taxes Less: Owner Wages Less: Loan Principal Add: Depreciation Net Cash Year Ending 20xx

37. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Projected Cash Flow Beginning Cash Cash In Cash Available Cash Out Rent Telephone Advertising Insurance Equipment leases Office supplies Car phone lease Owner’s salary Employee wages employee taxes Accounting / Legal Repairs / Maintenance Auto expense Loan Payment (P&I) Inventory Purchases Income Taxes Other (itemize) Total Cash Out Cash Balance MonthMonth 1Month 2Month 3.....Month 12

38. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Legal Considerations Form of organization Taxes Other (contracts, patents, etc.)

39. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Forms of Organization Sole Proprietorship Partnership Corporation Limited Liability Company Joint Venture

40. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Federal Taxes Income Excise Social Security Self-employment Federal unemployment Federal withholding

41. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Peggy Lambing and Charles Kuehl: Entrepreneurship, 4 th edition© 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. State Taxes Income Unemployment Sales Withholding

42. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Insurance Workers compensation Property Liability Earnings Health, disability, life

43. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Suppliers Producers Wholesalers (merchant middlemen) Functional (agent) middlemen

44. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Risks Controllable Uncontrollable

45. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Assumptions Specific site Specific number of competitors Ability to obtain financing Others

46. ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Conclusion Feasible Not feasible