Starting a Business

• Ready– in the box idea

• Aim– business plan

• Fire– review, refine, then execute

Why a Business Plan?

• Impress your friends?• Something to do on the weekend?• Professor requires it?• To impress investors, lenders, landlords, etc.?

• To help you figure out what you are doing.

Three Weaknesses in New Business Startups

• Managing customers (marketing and sales)• Managing people• Managing cash flow

Table of ContentsI.Table of ContentsII.Executive SummaryIII.General Company DescriptionIV.Products and ServicesV.Marketing PlanVI.Operational PlanVII.Management and OrganizationVIII.Personal Financial StatementIX.Startup Expenses and CapitalizationX.Financial PlanXI.AppendicesXII.Refining the Plan

Business Plan for Start-ups

Marketing PlanMarket research - Why?

Market research - How?• Secondary research - published information

– Industry profiles– Trade journals– Newspapers, magazines– Census data– Demographic profiles.

Where?Public libraries, industry associations, chambers of commerce, from vendors who sell to your industry, and from government agencies.

Marketing PlanMarket research - Why?Market research - How?• Secondary research - published information

– Industry profiles– Trade journals– Newspapers, magazines– Census data– Demographic profiles.

Where?Public libraries, industry associations, chambers of commerce, from vendors who sell to your industry, and from government agencies.

• Primary research - gathering your own data– Traffic count at a proposed location,– Yellow pages to identify competitors,– Surveys or focus-group interviews – How to books

Be as specific as possible; give statistics, numbers, and sources. The marketing plan will be the basis, later on, of the all-important sales projection.

Marketing Plan• Product

– Features and Benefits• Customers• Competition• Niche• Strategy• Promotion• Promotional Budget• Pricing• Proposed Location• Distribution Channels• Sales Forecast

Financial Plan

• Startup Expenses and Capitalization• 12-Month Profit and Loss Projection• Four-Year Profit Projection• Projected Cash Flow• Opening Day Balance Sheet• Break-Even Analysis

Last Piece of Advice

• You don’t have to fill in all the blanks• Better a good well thought out plan than a

large document

• The plan is for you! Enjoy the journey.