CREATING THE BUSINESS PLAN

Entrepreneurship

Creating the Business Plan

You will be able to: Construct a mission statement for a company Explain rationale for starting a business by

utilizing market research Describe a business, it’s products/services, and

customers Compare types of ownership for a business, and

select best option Determine organizational structure and

management skills needed to operate a business Assess locations for a business

Creating the Business Plan(Organizing the structure of the business)

Follow the outline on the project sheet in your hands.

There are different forms of business plans online.

You may focus more or less on each part, but all parts should be represented.

Executive Summary

Summarizes the main points covered in the business planEven though this is the second page

of the document, it is usually written last…thus the word “summary”

May contain the Mission Statement and Objectives of the company

Market Analysis and Business Rationale

The Market Analysis: Presents your market research Features a customer demographic profile Identifies and analyzes competitors and explains your

competitive advantage Addresses industry trends and growth

The Business Rationale: Includes history and background of idea Discusses features and benefits of the products/services

offered and how it benefits the customer Discusses target market, market niche served Assess locations

Assessing Locations for Business

Location, Location, Location WHERE you will locate and WHY…

Regardless of type of business, this is an important aspect of all business plans and must be explained in detail, including…

Zoning & Parking• Visibility of site Square footage • Costs (Lease, taxes,

renovations) Traffic counts • Nearby businesses,

including Accessibility target market

Ownership and Organization

Sole ProprietorshipPartnershipCorporationOther legal form of Ownership

Limited Liability CompanyNon profit Organization

Sole Proprietorship

Owned and operated by one personEasy to createReceives all profits, incurs any losses, and is

liable for the debts of businessMost entrepreneurs often switch to another

form that provides more personal financial protection as the business grows

Partnership

A business with two or more owners

Partners do not have to share a business equally

How the partnership interests are divided are spelled out in the Partnership Agreement.

Corporation

Registered by the state and operates apart from its owners

Ownership is represented by shares of stock, public or private

A corporation lives-on after the owners die or have sold interest

Other Forms of Ownership

Limited Liability CompanyNonprofit Corporations

Organizational Structure and Management Skills

Organizational Structure A plan which shows how the jobs in your

company relate to one another Smaller companies may have everyone report to

the owner. The larger the company, the more layers of management needed.

Organizational Chart

Management Skills

The management and staffing section should provide skill sets needed, a job description, for each position

Shows that you and your staff have the experience, maturity, and common sense to manage your business well

Good Management Skills

Human RelationsCommunicationsNetworkingTechnical and Math skillsProblem Solving & Decision-makingTime ManagementConceptual Skills

The Marketing Mix

The Marketing Mix (the 4 P’s) Product – What you are selling Price – How much is it and why. Mark-up,

competition-based, psychological pricing, discount pricing

Place – Where and how can people get it? Direct or Indirect

Promotion – Why? Includes an example of an advertisement

Planning Organizational Structure for Business

Let’s Review: Construct a mission statement for a company Explain rationale for starting a business by

utilizing market research Describe a business, it’s products/services, and

customers Compare types of ownership for a business, and

select best option Determine organizational structure and

management skills needed to operate a business Assess locations for a business