BUSINESS PLANSBUSINESS PLANS

MARKETING PLANSMARKETING PLANS

STRUCTURESTRUCTURE

WHAT IS BUSINESS?WHAT IS BUSINESS?

Business is the process of taking Business is the process of taking materials, goods or services from materials, goods or services from a beginning point and adding a beginning point and adding value along the way to the final value along the way to the final useruser

WHY PLANWHY PLAN Planning will help shape your destination Planning will help shape your destination

and provide the best way to get there.and provide the best way to get there.

Provide the road map to success.Provide the road map to success.

Define what it takes toDefine what it takes toOpen the doorOpen the doorKeep the door openKeep the door openMaximize your businessMaximize your business

WHO NEEDS A PLANWHO NEEDS A PLAN

LendersLenders InvestorsInvestorsCustomersCustomersEmployeesEmployeesYOUYOU

A BUSINESS PLAN ISA BUSINESS PLAN IS

A written document that makes a A written document that makes a compelling statement that your business compelling statement that your business generates enough profit to:generates enough profit to:

Provide sufficient cash flow to service Provide sufficient cash flow to service debtdebt

Provide adequate return to attract Provide adequate return to attract investorsinvestors

Provide adequate return on investmentProvide adequate return on investment

BUSINESS PLAN OUTLINEBUSINESS PLAN OUTLINE

Title pageTitle page Executive summaryExecutive summary Table of contentsTable of contents Business descriptionBusiness description Organizational planOrganizational plan Marketing planMarketing plan Financial planFinancial plan Supporting documentsSupporting documents

TITLE PAGETITLE PAGE

Company nameCompany name Telephone #Telephone # Fax NumberFax Number E-mail addressE-mail address WebsiteWebsite Name of person preparing planName of person preparing plan Date preparedDate prepared

TABLE OF CONTENTSTABLE OF CONTENTS

Reference to major parts of the planReference to major parts of the plan

Makes it user friendlyMakes it user friendly

Indicates completenessIndicates completeness

EXECUTIVE SUMMARYEXECUTIVE SUMMARY

Describes your business Describes your business

in no more then two pagesin no more then two pages Must get attention of the readerMust get attention of the reader Write last orWrite last or Write first and rewrite lastWrite first and rewrite last

BUSINESS DISCRIPTIONBUSINESS DISCRIPTION

Mission statementMission statement Describes:Describes:

Industry and growthIndustry and growth

Physical facilitiesPhysical facilities

EquipmentEquipment

Competitive issuesCompetitive issues

Why you will be successfulWhy you will be successful

The ORGANIZATIONAL PLANThe ORGANIZATIONAL PLAN

Legal structureLegal structure How business is organizedHow business is organized

Who will manageWho will manage Type of businessType of business

New startupNew startup

Existing businessExisting business

FranchiseFranchise

The MARKETING PLANThe MARKETING PLAN

Marketing is the activity of presenting Marketing is the activity of presenting product or services to customers product or services to customers which makes them eager to buywhich makes them eager to buy

Marketing is every thing you do to Marketing is every thing you do to make salesmake sales

Selling is the result of marketingSelling is the result of marketing

MARKETINGMARKETINGProducts and ServicesProducts and Services

Discuss featuresDiscuss features Stress benefits and resultsStress benefits and results

People do not buy thingsPeople do not buy things People buy resultsPeople buy results

MARKETINGMARKETINGPositionPosition

NicheNiche What sets you apartWhat sets you apart What makes you betterWhat makes you better

LocationLocation ConvenienceConvenience ParkingParking SafetySafety AttractivenessAttractiveness Complementary businessComplementary business

MARKETINGMARKETINGPricePrice

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 reactionCustomer reaction Perceived valuePerceived value

MARKETINGMARKETINGPromotionPromotion

NameName AdvertisingAdvertising SignageSignage Customer serviceCustomer service EmployeesEmployees Public relationsPublic relations WebsiteWebsite

TaglineTagline Net workingNet working BrandingBranding GuaranteesGuarantees DressDress EventsEvents EmailEmail

MARKETINGMARKETINGCompetitionCompetition

Know more about them than they Know more about them than they know about themselvesknow about themselves

Strengths and weaknesses and how Strengths and weaknesses and how do you comparedo you compare

Copy their strengths and improveCopy their strengths and improve Make their weakness your strength.Make their weakness your strength.

BUDGETBUDGET

% of projected sales% of projected sales Advertise when business is goodAdvertise when business is good Advertise when business is badAdvertise when business is bad Test and analyze resultsTest and analyze results

Have something to say, say it well andHave something to say, say it well and

say it often.say it often.

LOW COST MARKETINGLOW COST MARKETING

Business cardsBusiness cards BrochuresBrochures FlyersFlyers Thank you Thank you

notesnotes SignageSignage GuaranteesGuarantees NetworkingNetworking TestimonialsTestimonials Recruit cheerleadersRecruit cheerleaders Public relationsPublic relations

Under promise…over deliver!Under promise…over deliver! If it’s not broke fix it!If it’s not broke fix it!

WEBSITE/ INTERNETWEBSITE/ INTERNET

A must todayA must today Provide useful informationProvide useful information Must be easy to maneuver and useMust be easy to maneuver and use Use to:Use to:

CommunicateCommunicateEducateEducateAdvertiseAdvertise

Maximize websiteMaximize website

FINANCIAL PLANFINANCIAL PLAN

Financial needsFinancial needs Sources and use of fundsSources and use of funds Start up list of expensesStart up list of expenses List capital requirementsList capital requirements Equity investedEquity invested

FINANCIAL DOCUMENTSFINANCIAL DOCUMENTS

Profit and loss statementProfit and loss statement Cash flow projectionsCash flow projections Balance sheetBalance sheet Break even analysisBreak even analysis

SUPPORTING SUPPORTING DOCUMENTSDOCUMENTS

Personal resumesPersonal resumes Copy of leasesCopy of leases Purchase agreementsPurchase agreements Contracts and letters of intentContracts and letters of intent Key employee job descriptionsKey employee job descriptions Licenses and permitsLicenses and permits MentorsMentors

WRAP UPWRAP UP

Think – Write – then Do itThink – Write – then Do it

Choose the right businessChoose the right businessKnowledgeKnowledgeExperienceExperienceTrainingTrainingPassionPassionWorkWork

Make sure of the fundsMake sure of the funds

www.scorehouston.orgwww.scorehouston.org

Free business resourcesFree business resources Business templates Business templates Business planBusiness plan

31 pages total31 pages total8 pages marketing8 pages marketing150 questions150 questionsAnswer questions that pertain to your Answer questions that pertain to your business…skip restbusiness…skip restHave business/ marketing planHave business/ marketing plan

BUSINESS STRUCTUREBUSINESS STRUCTURE

Sole ProprietorshipSole Proprietorship General partnershipGeneral partnership Limited partnershipLimited partnership Limited liability companyLimited liability company CorporationCorporation

SOLE PROPRIETORSHIPSOLE PROPRIETORSHIP

One individual or married coupleOne individual or married couple Most common form of businessMost common form of business Easiest form of doing businessEasiest form of doing business Default business structureDefault business structure Net income (loss) subject to Net income (loss) subject to

individual income tax rates individual income tax rates

SOLE PROPRIETORSHIPSOLE PROPRIETORSHIP

ADVANTAGESADVANTAGES InformalInformal One person controlOne person control Fewer reporting Fewer reporting

requirementsrequirements Avoidance of Avoidance of

double tax (vs. double tax (vs. corp.)corp.)

DISADVANTAGESDISADVANTAGES Unlimited liabilityUnlimited liability Fewer fringe Fewer fringe

benefitsbenefits Limited capitalLimited capital Profit taxed to Profit taxed to

ownerowner Business income Business income

subject to self subject to self employment taxemployment tax

GENERAL PARTNERSHIPGENERAL PARTNERSHIP

Two or more persons (not married Two or more persons (not married couple)couple)

Share profits, losses and managementShare profits, losses and management Each partner personally liable for debtsEach partner personally liable for debts Usually have written agreementUsually have written agreement Flexibility to allocate income, expense, Flexibility to allocate income, expense,

gain. Loss among partnersgain. Loss among partners

GENERAL PARTNERSHIPGENERAL PARTNERSHIP

ADVANTAGESADVANTAGES Ease of Ease of

organizationorganization Combine resources Combine resources

and talentsand talents Liabilities as Liabilities as

personal personal deductionsdeductions

Continuation of Continuation of business after business after deathdeath

DISADVANTAGESDISADVANTAGES Unlimited liabilityUnlimited liability Profit taxed to Profit taxed to

individualsindividuals Fewer fringe benefitsFewer fringe benefits Business income Business income

subject to self- subject to self- employment taxemployment tax

Subject to securities Subject to securities regulations?regulations?

LIMITED PARTNERSHIPLIMITED PARTNERSHIP

One or more general partnersOne or more general partners One or more limited partnersOne or more limited partners General partners manage the General partners manage the

businessbusiness Limited partners share in the profits Limited partners share in the profits

but losses are limitedbut losses are limited Limited partners are liable to amount Limited partners are liable to amount

investedinvested

LIMITED PARTNERSHIPLIMITED PARTNERSHIP

ADVANTAGESADVANTAGES

General partner – General partner – additional moneyadditional money

Limited partner- Limited partner- limited risklimited risk

Limited partner- Limited partner- deduction of lossesdeduction of losses

Partners protected Partners protected from acts of other from acts of other partnerspartners

DISADVANTAGESDISADVANTAGES Limited partners Limited partners

have no controlhave no control General partner General partner

has unlimited has unlimited liabilityliability

May be taxed as a May be taxed as a corporationcorporation

LIMITED LIABILITY LIMITED LIABILITY COMPANYCOMPANY

LLC AND LLPLLC AND LLP Attributes of both corporation and Attributes of both corporation and

partnershippartnership Two or more members treated as Two or more members treated as

partnership for tax purposespartnership for tax purposes Flexibility to allocate income, expenses, Flexibility to allocate income, expenses,

gains or losses among membersgains or losses among members Engage in any business other than banking Engage in any business other than banking

or insuranceor insurance State filing requiredState filing required

LIMITED LIABILITY LIMITED LIABILITY COMPANYCOMPANY

ADVANTAGEADVANTAGE Limited liabilityLimited liability Ease of Ease of

management and management and controlcontrol

Combination of Combination of resources and resources and talenttalent

Allocation of profit Allocation of profit and lossand loss

DISADVANTAGEDISADVANTAGE Cost of organization Cost of organization Complexity of Complexity of

operating agreementoperating agreement Requirements and Requirements and

formalities must be formalities must be followed to avoid followed to avoid personal liabilitypersonal liability

Self employment taxSelf employment tax

CORPORATIONCORPORATION

Chartered legal entityChartered legal entity Has rights, privileges and liabilities beyond Has rights, privileges and liabilities beyond

those of an individualthose of an individual Unlimited ownershipUnlimited ownership Limited liabilityLimited liability Net income (loss) subject to corporate tax Net income (loss) subject to corporate tax

raterate S-Corp income (loss) subject to S-Corp income (loss) subject to

partnership tax ratepartnership tax rate

COPORATIONCOPORATION

ADVANTAGEADVANTAGE Readily Readily

transferable transferable ownershipownership

Perpetual Perpetual existenceexistence

Flexibility of Flexibility of financingfinancing

Fringe benefitsFringe benefits

DISADVANTAGEDISADVANTAGE Active owners Active owners

treated as treated as employeesemployees

Cost and Cost and requirement of requirement of organizationorganization

Possibility of Possibility of double taxationdouble taxation

SCORESCORECounselors to America’s Small Counselors to America’s Small

BusinessBusiness

We CounselWe CounselIn person and e-mailIn person and e-mail

We EducateWe Educate

Workshops, seminars and Workshops, seminars and speakers speakers bureaubureau

We MentorWe Mentor

In our office, on site and Smart In our office, on site and Smart SquadSquad

SCORESCORECounselor to America’s SmallCounselor to America’s Small BusinessBusiness

Nationally Nationally 390 chapters 12,400 Volunteers390 chapters 12,400 Volunteers

HoustonHouston8701 S Gessner Suite 12008701 S Gessner Suite 12008 Other locations8 Other locations70 Volunteers70 Volunteers713-773-6565713-773-6565www.scourehouston.orgwww.scourehouston.org