putting the pieces together developing an effective business plan
TRANSCRIPT
Putting the Pieces Together
Putting the Pieces Together
Developing an Effective Business Plan
Developing an Effective Business Plan
Discussion TopicsDiscussion Topics
Starting a Business VentureBusiness PlanningParts of a Business PlanResources for Small Businesses
Starting a Business VentureBusiness PlanningParts of a Business PlanResources for Small Businesses
Becoming an EntrepreneurBecoming an Entrepreneur
People become entrepreneurs for many reasons.
Entrepreneurs come from all type of backgrounds and industries.
There are advantages and disadvantages of owning your own business.
There are many resources that can help you identify and develop business opportunities.
People become entrepreneurs for many reasons.
Entrepreneurs come from all type of backgrounds and industries.
There are advantages and disadvantages of owning your own business.
There are many resources that can help you identify and develop business opportunities.
Starting a New Venture Starting a New Venture
• Determine the products or services you will sell/offer
• Determine what type of business you will own Franchise Buy an existing business Create a business from ground
up
• Create a business plan
• Determine the products or services you will sell/offer
• Determine what type of business you will own Franchise Buy an existing business Create a business from ground
up
• Create a business plan
Role of Small Business Today
Role of Small Business Today
In 2002, there were approximately 22.9 million small businesses in the United States.
Small business employ 99.7% of employers.
Most small businesses are service based.
Women and minority-owned business are growing at a fast rate.
In 2002, there were approximately 22.9 million small businesses in the United States.
Small business employ 99.7% of employers.
Most small businesses are service based.
Women and minority-owned business are growing at a fast rate.
Planning to Own a Business
Planning to Own a Business
“Begin with the end in mind.”--Stephen Covey,
The 7 Habits of Highly Effective People
“Begin with the end in mind.”--Stephen Covey,
The 7 Habits of Highly Effective People
What is a Business Plan?What is a Business Plan?
A written document that describes all the steps
necessary in opening and operating a successful
business.
A written document that describes all the steps
necessary in opening and operating a successful
business.
Purpose of Business PlanPurpose of Business Plan
Business plan serves three primary purposes:
1. Explains the idea behind your business and how your product or services will be produced and sold.
2. Sets specific objectives and describes how your business expects to achieve them.
3. Describes the backgrounds and experience of the people who will be running the business.
Business plan serves three primary purposes:
1. Explains the idea behind your business and how your product or services will be produced and sold.
2. Sets specific objectives and describes how your business expects to achieve them.
3. Describes the backgrounds and experience of the people who will be running the business.
Importance of Business Plan
Importance of Business Plan
Makes you think about all aspects of your business.
May help you secure financing for your business.
Helps communicate your ideas to others.
Serve as a tool for managing your business.
Makes you think about all aspects of your business.
May help you secure financing for your business.
Helps communicate your ideas to others.
Serve as a tool for managing your business.
Sections of a Business Plan
Sections of a Business Plan
Business plans should include some basic information in the following areas:
Executive SummaryHistory and Background of your ideaGoals and ObjectivesProduct(s) or Service(s) you will offerForm of OwnershipManagement and StaffingSales and Marketing PlanFinancial Plan
Business plans should include some basic information in the following areas:
Executive SummaryHistory and Background of your ideaGoals and ObjectivesProduct(s) or Service(s) you will offerForm of OwnershipManagement and StaffingSales and Marketing PlanFinancial Plan
Section 1: The Executive Summary
Section 1: The Executive Summary
Usually a one page description of the business.
Provides a snapshot or brief overview of the business plan.
Usually a one page description of the business.
Provides a snapshot or brief overview of the business plan.
Section 2: History & Background
Section 2: History & Background
Describes how you came up with your business idea.
May include your business philosophy or mission statement.
Describes how you came up with your business idea.
May include your business philosophy or mission statement.
Section 3: Goals & Objectives
Section 3: Goals & Objectives
Your business plan should outline your: short-term, medium-term, and long-term goals
Describes your vision of where you want your company to be in the future.
Your business plan should outline your: short-term, medium-term, and long-term goals
Describes your vision of where you want your company to be in the future.
Section 4: Products & Services
Section 4: Products & Services
• Describes the industry you will operate in: External factors affecting your business Growth potential of the industry Economic trends of the industry
• Describes the location of your business Lenders want to know exactly where
your business will be located because location is often a critical factor in operating a successful business.
• Describes the industry you will operate in: External factors affecting your business Growth potential of the industry Economic trends of the industry
• Describes the location of your business Lenders want to know exactly where
your business will be located because location is often a critical factor in operating a successful business.
Section 5: Forms of Ownership
Section 5: Forms of Ownership
Section 6: Management & Staffing
Section 6: Management & Staffing
People who manage your business are critical to its success.
This section of the business plan should show that you and the employees of your business are highly qualified to run the business.
People who manage your business are critical to its success.
This section of the business plan should show that you and the employees of your business are highly qualified to run the business.
Section 7: Sales & Marketing Plan
Section 7: Sales & Marketing Plan
• This part of the plan includes the following: Who are your prospective customers How large is the market for your
product or service How you plan to enter the market
• You should list your company’s advantages over the competition.
• This part of the plan includes the following: Who are your prospective customers How large is the market for your
product or service How you plan to enter the market
• You should list your company’s advantages over the competition.
Section 8: Financial PlanSection 8: Financial Plan
Identification of risks associated with your business.
Current and projected financial statements based on projected revenues and expenses.
Funding request and return on investment.
Identification of risks associated with your business.
Current and projected financial statements based on projected revenues and expenses.
Funding request and return on investment.
Resources for Small Business OwnersResources for Small Business Owners
Small Business Development Centers Provide one-on-one assistance in developing a business plan
Chambers of Commerce Supports local business owners by hosting training
workshops Small Business Administration (SBA)
Governmental agency concerned with helping small U.S. firms and advocates for small businesses within the U.S. government
Provides financial assistance in the form of loans Professional Organizations
Young Entrepreneur’s Organization (www.yeo.org): global non-profit organization for today’s leading business owners
National Federation of Independent Business (www.nfib.org): largest advocacy organization representing small and independent businesses in the US.
Small Business Development Centers Provide one-on-one assistance in developing a business plan
Chambers of Commerce Supports local business owners by hosting training
workshops Small Business Administration (SBA)
Governmental agency concerned with helping small U.S. firms and advocates for small businesses within the U.S. government
Provides financial assistance in the form of loans Professional Organizations
Young Entrepreneur’s Organization (www.yeo.org): global non-profit organization for today’s leading business owners
National Federation of Independent Business (www.nfib.org): largest advocacy organization representing small and independent businesses in the US.
Creating an Effective Business Plan
Creating an Effective Business Plan
Research the Business Plan Use printed resources to gather information
—books, magazines, etc. Access online resources using the internet. Seek assistance from resources such as
Small Business Development Centers, professional organizations, etc.
• Put Your Plan Together Type your business plan Include introductory elements such as a
cover letter, table of contents, etc.
Research the Business Plan Use printed resources to gather information
—books, magazines, etc. Access online resources using the internet. Seek assistance from resources such as
Small Business Development Centers, professional organizations, etc.
• Put Your Plan Together Type your business plan Include introductory elements such as a
cover letter, table of contents, etc.
Key Points Key Points
A business plan is a written document that describes what your business will produce/sell and how it will operate.
Writing a business plan will help you to think about all aspects of your business including financing and managing your business.
There are many resources to help you create an effective business plan
A business plan is a written document that describes what your business will produce/sell and how it will operate.
Writing a business plan will help you to think about all aspects of your business including financing and managing your business.
There are many resources to help you create an effective business plan
Final ThoughtsFinal Thoughts