1. ©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™ ™ Business Plan Management and Organization Plan Management team Compensation and ownership Contracts and franchise agreements Board of directors/advisory council Infrastructure Insurance Employee stock option plan and other incentives Organization charts BP.1 © 2004 Ewing Marion Kauffman Foundation

2. ©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™ ™ Business Plan Product/Service Plan Purpose of the product or service Unique features Stages of development Future research and development Proprietary or intellectual property BP.2 © 2004 Ewing Marion Kauffman Foundation

3. ©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™ ™ Business Plan Product/Service Plan Governmental approvals Product/service limitation Product/service liability Related services and spin-offs Production Facilities BP.3 © 2004 Ewing Marion Kauffman Foundation

4. ©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™ ™ Business Plan Marketing Plan Industry profile Current size Growth potential Geographic locations Industry trends Seasonal factors Profit characteristics Existing distribution networks Basis of industry competition Profile of competition BP.4 © 2004 Ewing Marion Kauffman Foundation

5. ©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™ ™ Business Plan Marketing Plan Customer profile Target market profile Pricing profile Gross margin on products Break-even analysis Distribution channels Sales representatives BP.5 © 2004 Ewing Marion Kauffman Foundation

6. ©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™ ™ Business Plan Marketing Plan Direct-sales force Direct mail/marketing Advertising and promotion Packaging and labeling Services and warranties Trade shows Future markets BP.6 © 2004 Ewing Marion Kauffman Foundation

7. ©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™ ™ Business Plan BP.7 © 2004 Ewing Marion Kauffman Foundation Financial Plan Budget worksheets Assumptions Cash flow statements Income statements Balance sheets

8. ©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™ ™ Checklist Explain Financial Projections In addition to projected financial statements, the body of the Business Plan includes an explanation of: q Sales projections q Income projections q Cash requirements q Sources of financing BP.8 © 2004 Ewing Marion Kauffman Foundation

9. ©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™ ™ Checklist Explain Financial Projections The Appendix includes support documents: qHistorical balance sheet and payoff schedule for existing businesses qStart-up funding and expenditures for new businesses qWorksheets and assumptions for three years– sales, inventory, operating expenses, capital budget, equity & debt BP.9 © 2004 Ewing Marion Kauffman Foundation

10. ©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™ ™ Business Plan BP.10 Operating and Control Systems Plan Administrative policy, procedures, and controls Receiving orders Billing customers Paying suppliers Collecting accounts receivable Reporting to management Staff development © 2004 Ewing Marion Kauffman Foundation

11. ©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™ ™ Business Plan BP.11 © 2004 Ewing Marion Kauffman Foundation Operating and Control Systems Plan Administrative policy, procedures, and controls Inventory control Handling warranties and returns Monitoring the company budgets Security systems Documents and paper flow

12. ©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™ ™ Business Plan Operating and Control Systems Plan Planning Chart Product/service development Manufacturing Financial requirements Marketing flow chart Market penetration Management and infrastructure Risk analysis Salvaging assets BP.12 © 2004 Ewing Marion Kauffman Foundation

13. ©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™ ™ Business Plan Growth Plan New offerings to market Capital requirements Personnel requirements Exit strategy BP.13 © 2004 Ewing Marion Kauffman Foundation

14. ©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™ ™ Business Plan Appendix Three-year budgets and financial projections Research documentation Product and location photos Operating/control systems Customers’ letters of intent Industry studies, demographics, magazine articles Detailed descriptions of high-tech products BP.14 © 2004 Ewing Marion Kauffman Foundation

15. ©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™ ™ Business Plan Appendix Map showing location of business Credit reports Personal financial statements Tax returns Management team resumes Employee contracts, stock option plans, and the like BP.15 © 2004 Ewing Marion Kauffman Foundation

16. ©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™ ™ Business Plan Appendix Patent, trademark, and/or copyright documents Business agreements Product/service brochures and advertising samples Company logos Reference letters, recommendations, endorsements or testimonials BP.16 © 2004 Ewing Marion Kauffman Foundation

17. ©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™ ™ Presenting Your Business Plan 1. Obtain referrals 2. Make the appointment 3. Submit business plan for review 4. Prepare for the interview 5. Present your business plan 6. Close the deal BP.17 Key: Match your business with the appropriate money source. © 2004 Ewing Marion Kauffman Foundation