your business plan is a to your success. follow the road map to avoid termination

Your Business Plan is aYour Business Plan is a

to your Successto your Success

Follow the Road MapFollow the Road Map

To avoid TerminationTo avoid Termination

The Role of Your Business The Role of Your Business Plan is to give the potential Plan is to give the potential

investors:investors:

A Description and Analysis of the Business Situation

A Proposed Marketing Plan for your business.

A Proposed Financial plan for beginning your

business.

COMPANY NAMECity, State Zip

Student’s NameBusiness Plan

Date

Title Page

STATEMENT OF PURPOSE

States the objective of this business plan for your business Keep it simple Should be concise

Sample: This plan will be the operating guide and policy guide for XYZ, Inc.

If used as a financial proposal, the objective should be in greater detail.

Statement of Purpose

Executive Summary

The purpose of the executive summary of the business plan is to provide your readers with an overview of the business plan.

Executive Summary

Executive Summary Therefore, your business plan’s executive summary will include Therefore, your business plan’s executive summary will include

summaries of: summaries of:  A description of your company, including your products

and/or services Your mission statement Your business’s management The market and your customer Marketing and Sales Your competition Your business’s operations Financial projections and plans 

Remember this is a summary. Keep it as brief as possible. You will explain in detail later in the plan.

Executive Summary

The executive summary should end with a summary statement, a “last kick at the can” sentence designed to persuade the readers of your business plan “why is this a winning business?”

Executive Summary

Description & Analysis of the Description & Analysis of the Business SituationBusiness Situation

What type of business is this? What problem are you solving? How does your product/service solve the problem? How does this create financial value for your

company and its investors?

Content – Part 1

Rationale and marketing research on the acceptability of the products and services

An overview of the industry sector that your business will be a part of, including industry trends and major players in the industry. This section of the business plan will also include a summary of your business's place within the industry.

Industry OverviewIndustry Overview What is the size of your industry?What is the size of your industry? Who are the major players in this industry?Who are the major players in this industry? What national/economic trends have affected this What national/economic trends have affected this

industry and how?industry and how? What national/economic trends might affect it in What national/economic trends might affect it in

the the future and how?future and how?

Content – Part 1

Description & Analysis of the Description & Analysis of the Business SituationBusiness Situation

Introduction and Self-Analysis.

What makes you capable of operating this business

and being successful.

Content – Part 1

Description & Analysis of the Description & Analysis of the Business SituationBusiness Situation

Analysis of the Business Opportunity. Where will the business be located? Who will be the customer base? What is your competitive advantage in the

market place? How does your customer benefit?

Content – Part 1

Market AnalysisMarket Analysis This is an examination of the primary target market for your

product or service, including geographic location, demographics, your target market's needs and how these needs are being met currently.

The competitive analysis section can be the most difficult section to compile when writing a business plan. Before you can analyze your competitors, you have to investigate them.

You need to know: You need to know:  What markets or market segments your competitors serve;What markets or market segments your competitors serve; What benefits your competition offers;What benefits your competition offers; Why customers buy from them;Why customers buy from them; And as much as possible about their products and/or services, pricing, And as much as possible about their products and/or services, pricing,

and promotion.and promotion.

Description & Analysis of the Description & Analysis of the Business SituationBusiness Situation

Content – Part 1

Description & Analysis of the Description & Analysis of the Business SituationBusiness Situation

Proposed Organization

List the CEO and key management by name

Content – Part 1

Description & Analysis of the Description & Analysis of the Business SituationBusiness Situation

PROPOSED ORGANIZATIONPROPOSED ORGANIZATION

Types of ownershipTypes of ownership Sole proprietorshipSole proprietorship PartnershipPartnership Corporation, or limited liability company (LLC). Corporation, or limited liability company (LLC).

There's no one choice that fits every business; your job is to pick the form that best meets

your needs

Content – Part 1

Description & Analysis of the Description & Analysis of the Business SituationBusiness SituationPROPOSED ORGANIZATIONPROPOSED ORGANIZATION An Organizational Plan is basically a “to do” list for an

organization. It lists out the plan of work, programs, and organizational

growth over a period of time - six months, a year or five. The tasks involved, who is responsible for them, and

when they’ll be done. People reading your business plan will be looking to see

not only who's on your management team but also how the skills of your management and staff will contribute to the bottom line.

Content – Part 1

Proposed Marketing/Promotion Plan

This marketing plan section establishes the direction your business is going to take in order to promote your business, attract

customers, exploit any identified opportunities and make a profit.

Content – Part 2

Proposed Marketing/Promotion Plan

Proposed Product/Services What are you going to sell? What position you are going to take in the

market? (For example, high quality/high price or low quality

low price high volume)

Content – Part 2

Proposed Marketing/Promotion Plan

Pricing Policies What price you are going to set? How much profit you think you are going to

make at the price?

Content – Part 2

Proposed Marketing/Promotion Plan

Personal Promotion How you and your sales staff are going to

promote your business? What level of service you are going to

provide?

Content – Part 2

Proposed Marketing/Promotion Plan

Non-Personal Promotion How will you appeal to the public? What promotional plans will you use?

Content – Part 2

Proposed Marketing/Promotion Plan

Place Decisions Where you will distribute your goods

and/services? Where will you obtain the materials or other

items needed for your business? What is you channel of distribution?

Content – Part 2

Proposed Financial Plan

Basically, the financial plan section of the business plan consists of three financial statements:

• The income statement• The cash flow projection and • The balance sheet

and a brief explanation/analysis of these three.

First, you need to gather together some of the financial data you'll need to prepare these financial statements for your business plan by examining your expenses.  Think of your business expenses as broken into two categories: 

Your start up expenses and Your operating expenses.

Content – Part 3

Proposed Financial Plan

Projected Year 1 Income Statement

by month

Content – Part 3

Proposed Financial Plan

Projected Balance Sheet

Year 1 Beginning Balance Sheet and

Year 1 Ending Balance Sheet

Content – Part 3

Proposed Financial Plan

Projected Cash Flow Statement

Projected Year 1 Cash Flow Statement

by month

Content – Part 3

Proposed Financial Plan

Where will you go to get the money?Entrepreneur’s Entrepreneur’s

personal personal resourcesresources

Financial Financial institutionsinstitutions

Angel investorsAngel investorsUnusual Unusual

resourcesresources

Financing Financing OptionsOptions

Venture Venture capitalistscapitalists Public offeringPublic offering

Business Business development development

programprogram

Content – Part 3

Proposed Financial Plan

Capital Repayment Plan

•Where are you getting the money from?•What is the interest/loan arrangement?•How and when will you retire the debt?

Content – Part 3

““If you don’t know where you are going you If you don’t know where you are going you may end up somewhere else”. may end up somewhere else”. Casey StengelCasey Stengel