business plan toolkit, part 3 of 3
Post on 21-Oct-2014
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Using Library Resources to Create a Winning Business Plan Part 3: Gain executive perspective by learning to research your industry; then work on developing your financial plan.TRANSCRIPT
RESEARCHING YOUR BUSINESS PLANFREE LIBRARY OF PHILADELPHIA
Part III: Researching Your Industry and Financial Plan
In This Class You Will Learn…
Why you should follow industry news and trends
How to follow your industry using library resources
How to most effectively follow your industry online
What is a financial plan and why your business needs one
How to research your financial plan using library resources
Business plans wrap-up
Why follow industry news?
Entrepreneurs are busy enough and dedicating time to following industry trends and news may seem unrealistic.
However, staying informed can provide real benefits, allowing you to…
React well to new trends and upcoming changes
Get out in front of your competition
Mini Case Study: Green Business
The impact of environmental awareness on business is everywhere. Entrepreneurs who anticipated the trend were able to position themselves well. For example:
The appliance dealer or window installer who was ready to help customers take advantage of high efficiency and Energy Star tax breaks
The pizza shop offering whole wheat pizza dough and toppings made with organic veggies and free-range animals before the competition
The Caterer who offers to recycle all trash and compost leftovers for a carbon-neutral wedding reception
Staying Informed
At the library: Search for industry and trade articles
using the Business Insights database, which provides full-text articles from over 3,500 periodicals, newsletters and other publications.
Search for other industry and trade articles using the databases Business Abstracts with Full Text and RDS Business and Industry on the Web
Staying Informed
ReferenceUSA OneSource is available on the database page of the library’s website : www.freelibrary.org. Follow the ReferenceUSA link and choose OneSource on the next page.
Refer to your handout “Accessing Electronic Resources From Home,” to learn how to access this resource.
Staying Informed
Using the web effectively: Join a listserv for industry news delivered to
your email (check Yahoo Groups or Google Groups for lists to join).
Consider setting up a Feedly account to get RSS feeds of the most useful sites and blogs
Consider joining Twitter Network with other people and organizations
by becoming active on social networking sites like Facebook or LinkedIn.
Your Financial Plan
“It's at the end of your business plan, but the financial plan section is the section that determines whether or not your business idea is viable, and is a key component in determining whether or not your business plan is going to be able to attract any investment in your business idea.”
-- Susan Ward, “Writing the Business Plan,” About.com
Your Financial Plan
The financial plan takes into account all the costs of doing business on a monthly basis and shows how much money you will need to earn to be profitable.
Your plan should include startup costs and operating expenses.
Your Financial Plan
Startup costs may include: Business registration fees, licensing and permits,
starting inventory, rent deposits, down payments on property and equipment, utility set up fees, etc.
Operating expenses may include: Salaries for yourself and your staff, rent or
mortgage, utilities, raw materials, promotion, loan payments, office supplies, maintenance, etc.
Your Financial Plan
Once you determine your operating expenses, add them up. Multiply by 6 or 12 for a 6 month or one year projection. Add this figure to your startup costs. This is a ballpark figure for what it will cost to get your business off the ground.
Your Financial Plan
The financial plan section of your business plan will include at least three parts.
1. Income Statement2. Cash Flow Projection3. Balance Sheet
To generate this information you will have to estimate what your monthly revenue or sales will be.
Your Financial Plan
Income Statement Revenue – Expenses = Profit/loss for a
particular period of time (usually monthly)
Cash Flow Projection Shows how much cash revenue you receive
and how much you will have to payout with the cash you have on hand in a given month. In other words, if all your bills came due this month, would you be able to pay them? This tells your loan officer whether or not your business is a good credit risk.
Your Financial Plan
Balance Sheet Shows all of your businesses assets and
liabilities for a particular point in time. The Balance Sheet will summarize all
the information found in the Income Statement and Cash Flow Projection. Established businesses usually prepare a balance sheet once a year.
Your Financial Plan
To create the best Financial Plan, look for examples: Read example plans in the Gale Virtual Reference
Library database (refer to slides from Part I of this series for access instructions).
You can also read sample financial ratios in the following reference texts (Visit the Free Library’s Business, Science & Industry Department for access)
Risk Management Association. “Annual Statement Studies: Financial Ratio Benchmarks, 2008-2009”. RMA: Philadelphia. 2009.
Troy, Leo. “Almanac of Business and Industrial Financial Ratios”. CCH: Chicago. 2009.
Your Financial Plan
In addition to industry reports, ReferenceUSA OneSource also contains RMA Annual Statement Studies, which can help you with your Financial Plan.
Your Financial Plan
Ultimately, your financial plan will reflect the seriousness of the work you put into it. Consider speaking with a loan officer and a small business counselor about your plan.
Your financial plan is unique to your business. Library research and librarians will be able to offer only limited assistance.
Business Plan Wrap-up
Your business plan is unique to your business.
No one knows your business as well as you do.
The process of writing your business plan should force you to question your ideas. This process can make your business stronger.
Business Plan Wrap-up
Finding help: SCORE Philadelphia, “Counselors to
America’s Small Business” offers one-on-one business counseling with a professional. www.scorephila.org
Pennsylvania’s Small Business Development Centers offer a variety of services to entrepreneurs including education, workshops, and information on funding. http://pasbdc.org
Business Plan Wrap-up
Slide presentations and handouts from this series of courses are
available online:
http://www.slideshare.net/freelibrarybsi
/tag/business-plans
Contact Us
Free Library of PhiladelphiaBusiness, Science & Industry
Department215-686-5394