fully baked -- business plan presentation
DESCRIPTION
Developing a Business Plan: Clever Solutions to Daily ChallengesTRANSCRIPT
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Developing a Business Plan: Clever Solutions to Daily Challenges
ERNIE SPEARS – SMALL BIZ DEVELOPMENT [email protected]
www.brooklynbusinesscenter.comwww. ewvidco.com
SECTIONS OF A BUSINESS PLAN
1. Executive Summary2. Copy (or Body)3. Numbers
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BUSINESS PLAN SUMMARY
A. Business objectivei. Defined as a problem and solution
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BUSINESS PLAN SUMMARY
B.Business model i. Explain how you make $:
–Who pays you –Your channels of distribution–Your gross margins. (gross income/net sales, expressed as a %)
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BUSINESS PLAN SUMMARY
C.Unique selling propositioni. Describe the technology, secret sauce, or magic behind your product or service
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BUSINESS PLAN SUMMARY
D. Sales & Marketingi. Explain how you’re going to reach your customer and your marketing leverage points
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BUSINESS PLAN SUMMARY
E. Competitioni. Provide a complete view of the competitive landscape. Too much is better than too little
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BUSINESS PLAN SUMMARY
F. Management Teami. Describe the key players of your
management team board of directorsboard of advisors major investors
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BUSINESS PLAN SUMMARY
G.Financial Projections & Key Metricsi. Provide a 3 to 5 year forecast containing:• Dollars • Other key metrics,
a) number of customers b) conversion rate
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BUSINESS PLAN SUMMARY
H. Current Status & Use of Funds
i. Explain the current status of your product or service
ii. what does the near future looks likeiii. how will you use the money you’re trying
to raise
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MARKET PLANNING
J. Marketing Strategy – Value Discipline
i. Innovation
ii. Cost/Price
iii. Customer Service
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MARKET PLANNING
A. Products or Servicesi. What customer need or want is being filled?ii. What are the features & benefits of your products or services?iii. How will your product be made or how will your services be provided?iv. Who will supply the materials?v. What future products/services will you offer, and when?
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Truck, Features & BenefitsTruck, Features & Benefits
FEATURESFEATURES BENEFITSBENEFITS
Truck box Hauling
Small engine Gas mileage
Big engine More power
4-wheel drive Can take off-road, won’t get stuck
Snow plow Earn or save money
Big tires Traction and safety
Custom package Luxury
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MARKET PLANNING
B.Distributioni. How will your products or services be distributed?
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Mittens Mittens -- ExampleExample
A
Retailer
Wholesaler
E
B
C
D
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MARKET PLANNING
C. Industryi. What is happening in our industry (isit growing, stable, or declining?)ii. What do you believe the future holds for this industry?
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MARKET PLANNINGD. Customersi. Who are your customers?
– what does your customer profile look like?ii. How many customers will your business have?iii. What information do you have that supports your
decisions about your customers?iv. What is the growth potential?
1. What is your plan for growth?
v. What information do you have that supports your decisions about growth?
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MARKET PLANNING
E. Competitioni. Who are your main competitors?ii. What are their strengths and weaknesses?
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Competitive Analysis Competitive Analysis –– Flower ShopsFlower Shops
Items Rated:
Competitor AGrocery Store
Competitor BGranny’s Floral
Competitor CFlowers Are Us
YOUR Floral Business
Total Scores 24 37 75 111
Number of categories rated
14 14 14 14
Average Score = Total / # categories rated
1.71 2.64 5.36 7.93
Greatest strength Location, convenience
Cute store, lots of charm
Product selection, quality, experience
Greatest Weakness
Poor selection and quality, no delivery or
wire service
Poor location, poor quality
Poor customer service and low
customer satisfaction
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MARKET PLANNING
F. Positioni. What will your market position be?ii. What is your competitive advantage – why will customers buy from you instead of the competition?
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MARKET PLANNING (CONT’D)
G. Image and Packagingi. What will the image of your business be?ii. What will your packaging look like?iii. What do your business cards and promotional material look like?iv. Where will your business be located, and why did you choose this location? Include a sketch of your floor plan.
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MARKET PLANNING (CONT’D)
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H. Pricingi. How did you determine your pricing strategy?ii. How do your prices compare to the competition?
MARKET PLANNING (CONT’D)
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Pricing ComponentsPricing Components
Pricing ComponentsPricing Components
Product/Service Product/Service CostsCosts
Variable Costs:
Labor-DirectRaw MaterialsParts for ResaleCommissionsPackagingShipping
Overhead CostsOverhead Costs ValueValue
Fixed Costs:
RentUtilitiesSuppliesPayrollInsuranceAdvertisingAutoInterest ExpenseRepairsOwner Draw
Owner Perceived:
Business Profit
Customer Perceived:
ImageServiceWarrantiesExpertiseConvenience
++
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I. Marketing Goalsa. What is your dream – where do you see you business in
the next 2 to 5 years? b. What are your objectives for each of your goals? Why do
you think they are realistic, how will they be measured, and when will they be achieved?
MARKET PLANNING (CONT’D)
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OPERATIONS PLANNING
a. Who will handle which functions in the business?
b. What will their duties and qualifications be?
c. If employees, how many will you have and what will their duties be? (Onet.com)
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OPERATIONS PLANNING
d. Who will hire, train and supervise them?
e. What will it cost your business for the first two years?
f. What will your owner draw be for the first two years?
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OPERATIONS PLANNING
g. What will your employee salaries be for the first two years?
h. Who will your lawyer, accountant, insurance agent, and other advisory team members be?
i. How will you manage your record keeping, finances, and inventory?
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OPERATIONS PLANNING
j. What licenses, permits, or regulations will affect your business? (www.nys-opal.com)
k. Will you have to collect and pay sales tax, and if so, how much and for which entity (state or city)?
l. What types of insurance will you need
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M. What types of payments will you accept (cash, check, credit cards, house accounts, etc.)?
OPERATIONS PLANNING
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OPERATIONS PLANNINGn. What contingency plans have you made for you?i. What will you do if:
i. You become sick or are injured, ii. In the event of a family or personal emergency that takes you
away from the business? iii. If your car breaks down?iv. Your day-care provider can’t take care of your kid/s today, or if
your kid/s are too sick to go to school?
Who will take care of the business? How much will it cost?
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OPERATIONS PLANNING
o. What contingency plans have you made for the business?i. What will you do if sales are not what you expected? What will you do to increase them?ii. What will you do if costs are higher that you expected? What will you do to decrease them?iii. How will you make decisions to continue to stabilize or increase your cash flow and profits?iv. What will you do if a competitor lowers its prices?
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CASH FLOW PLANNING1) Include a month-by-month cash flow projection for at least the first 2 full
years. 1) Include written assumptions (explanations) supporting your projections. 2) If your business starts or the plan starts during a year, the first year
projection will be a partial year. 3) There should be two full years of projections after the partial year.
2) Include at least two years of financial statements for existing businesses. (If not in business two years, include what is available).
1) Include, if possible, balance sheets and profit and loss statements.
3) Include your personal financial data: 1) Personal Financial Statement (Assets, Liabilities, and Net Worth)2) monthly income and expense statement (your personal financial plan)
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START-UP April May June July August Sept Oct
TOTAL SALES
From Coffee
From Food
From Misc.
TOTAL CASH IN FROM SALES
CASH OUT FOR GOODS
Food
Coffee
Supplies
TOTAL CASH OUT FOR GOODS
CASH OUT FOR OPERATIONS
Wages
Tax on wages
Rent
Electric
Telephone
Insurance
Licenses/Permits
Heat/Utilities
Accounting/Legal
Office Supplies
Repairs/Maintenance
TOTAL CASH OUT FOR OPERATIONS
Continued. . .
CASH FLOW PLANNING
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Continued from previous slide START-UP April May June July August Sept Oct
NET CASH FROM OPERATIONS
OTHER CASH IN
Sales tax collected
Owner contributions
Loan from ____________________
TOTAL OTHER CASH IN
OTHER CASH OUT
Sales tax paid
TOTAL OTHER CASH OUT
NET CHANGE IN CASH
BEGINNING CASH
ENDING CASH BALANCE
CASH FLOW PLANNING
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ATTACHMENTS
• Attachments should be provided to substantiate your claims in your plan.
• Always keep copies of the original documents for your files.
a. Two years of personal income tax returns if requesting a loan.
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ATTACHMENTS (CONT’D)
b. Two years of business income tax returns. c. Credit application (form from the lender) if requesting a loan. d. Collateral documents (titles, abstracts, or other proofs of ownership) if requesting a loan.
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ATTACHMENTS (CONT’D)
e. Lists of assets to be acquired and their costs. f. Resumes of yourself and others who will work in the business. g. Market studies.
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k. Letters of intent from customers to do business with you. l. Examples of your brochures, business cards, stationary and other materials.
ATTACHMENTS (CONT’D)
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Developing a Business Plan: Clever Solutions to Daily Challenges
ERNIE SPEARS – SMALL BIZ DEVELOPMENT [email protected]