Transcript Introduction to Criminal Justice After this lecture you

UNIT 1• ENTREPRENEURIAL PATHWAYS
THE BUSINESS PLAN: ROAD
MAP TO SUCCESS
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ENTREPRENEURSHIP: Starting and Operating a Small Business, 3/e
Steve Mariotti and Caroline Glackin
Class Name
Instructor Name
Date, Semester
Performance Objectives
After this lecture, you should be able to complete the following Performance Objectives
1. Know what a feasibility analysis is and when to create one.
2. Know what a business plan is and how to describe it.
3. Explain the various purposes of a business plan and the
audience for each.
4. Understand the components of a business plan.
5. Be able to demonstrate proper development and formatting
of a business plan.
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Feasibility Analysis: Will My Idea Work?
Feasibility Analysis-a study to assist in making a go/no
go decision based upon a close examination of
product/service, market, industry, and financial data
in a sufficient degree of detail to ensure confidence
in the results.
The feasibility analysis essentially tests a business
concept for viability in three areas
• Product and/or service feasibility
• Market and industry feasibility
• Financial feasibility
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Five Industry Forces by Porter:
• Competitor rivalry
• Barriers to entry
• Threat of substitutes
• Supplier power
• Buyer power
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What is a Business Plan?
Document that thoroughly explains a business
idea and how it will be carried out
• Story of what the business is & will be
• All costs & a marketing plan
• Description of financing
• Estimation of earnings
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Why Do You Need a Business Plan?
Saves time & money
Key to raising capital
Serves as an operations guide
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Business Plan Components
Cover page
Management & operations
Executive summary
Financial analysis &
projections
Mission, vision & culture
Company description
Funding request & exit
strategy
Opportunity analysis &
research
Appendices
Marketing strategy & plan
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Cover Page
Full legal name of organization
Logo
Key contact information
Date
Non-disclosure information
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Executive Summary
Business definition
Target market
Key marketing strategy
Goals
Ownership
Financing request
Use of funds & exit strategy
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Mission, Mission Statement, Vision, & Culture
Mission = concise communication of strategy with business definition &
competitive advantage
Mission Statement = a brief, written statement that informs customers
and employees what an organization’s goal is, and describes the
strategy and tactics to meet it.
Vision = overall view of what the team wants the organization to
become
Culture = environment including risk tolerance & innovation, orientation
with respect to people, teams & outcomes, attention to detail, &
communication norms
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Company Description
Background
Track record
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Opportunity Analysis & Research: Testing Ideas
Industry analysis
Environmental analysis
Proof of market
Target market
Competitive analysis
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Marketing Strategy & Plan
Marketing Mix: combination of the Four P’s
 Products
 Pricing
 Promotion
 Place
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Promotional Plans:
 Advertising
 Public relations
 Publicity
 Direct marketing
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Management & Operations
Management team & employees
Research & development
Location & physical facilities & equipment
Inventory & production
Quality assurance
2 Financial Analysis & Projections
Sources and uses of capital
Cash flow projections (cash flow statements)
Income statement projections (profit & loss statements)
Balance sheet projections
Breakeven analysis
Key ratios & comparisons
2 Assets = Liabilities + Owner’s Equity
Asset -any item of value
Liability -a business debt
Net worth -the difference between assets & liabilities
Owner’s equity -net worth
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Breakeven point –the moment when the volume
of sales in a business exactly covers the fixed
costs
 Ratio analysis
 Risks and assumptions
2 Funding Request & Exit Strategy
Initial public offering (IPO) – first presentation of
corporate stock to investors on the open (public)
market.
 Amount, type & terms for funds
 Risks & barriers
 Exit & harvesting strategy
 Milestones
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Appendices
Rescues
Detailed financial projections
Product specifications, photos & the like
Advertising & promotion samples
Contracts
Other supportive materials
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Business Plan Suggestions
Write for your audience
Show that you have “skin in the game”
Be clear & concise
Use current data & reports for your industry
Choose a “voice”
Use a consistent, easy to read format
Number & label throughout
Present the plan professionally
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Presenting the Plan
Formal presentations
Elevator pitch
Venture Competitions
KEY TERMS
advertising
asset
balance sheet
breakeven point
business plan
cash flow statement
competitive analysis
culture
direct marketing
elevator pitch
environmental analysis
feasibility analysis
income statement
industry analysis
initial public offering (IPO)
liability
marketing mix
marketing plan
mission
mission statement
net worth
owner’s equity
profit and loss statement (P&L)
proof of market
public relations
publicity
research and development (R&D)
target market
vision