Post on 27-Dec-2015
transcript
Feasibility and Business Planning2.2 The Business Plan
What you will learn . . .
• The Business Plan: Your Road Map to Entrepreneurial Success
• The Parts of the Business Plan
• Common Mistakes in Preparing Business Plans
• Sources of Business Plan Information
• Packaging and Presenting the Business Plan
The Business Plan: Your Road Map to Entrepreneurial Success
• Business Plan – a document that describes a new business and a strategy to launch that business.
• May reveal problems
• Helps ensure that you plan for all aspects of operations
• Investors, bankers, potential management and strategic partners
The Parts of the Business Plan
• May differ in order and name
• MUST include a financials section
The Parts of the Business Plan
• Executive Summary• Management Team
Plan• Company Description• Product and Service
Plan• Vision and Mission
Statements• Industry Overview• Market Analysis
• Competitive Analysis• Marketing Plan• Operational Plan• Organizational Plan• Financial Plan• Growth Plan• Contingency Plan• Cover Page, Title Page,
Table of Contents and Supporting Documents
Executive Summary
• A brief recounting of the key points contained in a business plan.
• No more than two pages
• Include the most important info from each section
• Start with a story explaining why it will be a success
• May be the only part read
Management Team Plan
• Qualification of you and your partners
• Discuss plan to fill any gaps– Partnerships– Advisory boards– Consultants
Company Description
• Outlines the company’s background information and basic concept
• Size
• Scope
• Type of business
• Why you think it will succeed
Product and Service Plan
• Present the product or service you are offering
• Clear and compelling concept statement
• Unique features and possible spin-offs
• Spin-offs – additional products or services that might exist later
Vision and Mission Statements
• The guiding principles by which the company functions.
• Vision statement – the scope and purpose of a company and relfects its values and beliefs– “To bring happiness to millions.”
- Walt Disney
– “To open the world of sports to neighborhood residents.”
Vision and Mission Statements, cont.
• The specific aspirations of a company, the major goals for which it strives– “To provide equipment to 100 customers
by the end of the first year.”
Industry Overview
• Research into the industry
• Trends and growth within the industry
Market Analysis
• The more you understand your customers, the better your chances of success.
• Customer profile (use primary and secondary sources)
• Determines marketing and sales strategies• Analyzes customers and competition• Contains geographic, economic, and demo
data about the site for the business
Competitive Analysis
• Demonstrates the advantage(s) the business has over competitors
• Talk to customers, vendors, suppliers and employees
• Websites
• Visits
Marketing Plan
• How customers will be aware of the products or services
• Includes market niche, pricing, company image, marketing tactics, media plan and marketing budget
Operational Plan
• All of the processes in the business that result in the production and delivery of the product or service.
• Distribution channel – how you will deliver the product or service to the customer.
• Direct channel – you deliver directly to the customer.
• Indirect channel – sell products to a wholesaler.
Organizational Plan
• The people aspects
• The legal form of business
• The management philosophy
• The role and compensation of management personnel and important employment policies.
Financial Plan
• Forecasts for the future of the business
• Explains the assumptions made when the forecast figures were calculated
• Proves the business will be financially healthy
Growth Plan
• How the business will expand in the future
Contingency Plan
• The probable risks– Changing economic conditions– Lower-than-expected sales
• How to minimize the risks
Cover Page
• Company name
• Address
• Phone number
• Web site address
• Company logo
Title Page
• Company name
• Names, titles and addresses of owners
• Date the business plan was issued
• Name of the preparer
Table of Contents & Supporting Documents
• Table of Contents– Headings and page numbers
• Supporting Documents– items– Exhibits– Documentation relevant to the business
Common Mistakes in Preparing Business Plans
• Projected exaggerated growth levels
• Trying to be a Jack-of-All-Trades
• Claiming performance that exceeds industry averages
• Underestimating the need for capital
Sources of Business Plan Information
• Small Business Administration (SBA)
• Service Crops fo Retired Executives (SCORE)
• Small Business Development Centers (SBDCs)
• Chambers of Commerce
• Trade Associations
Packaging and Presenting the Plan
• Bind – spiral works• Index tabs to separate sections• Easy-to-read 12-pt. font• Bold subheadings and bullets• Logo at the top of each page• Number each copy• Statement of confidentiality for ready to sign• A statement on the cover prohibiting copying
of the plan