Transcript Slide 1

Before You Begin . . .


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before
presenting
In order to develop a business plan, you need to have
an idea for a business. Section 6.2, “What Is a Business
Opportunity,” (pages 145-160 in your textbook) helps
you develop and evaluate an idea for your own
business.
When you see text in brackets [like this], fill in your own
writing or data. Delete the brackets in the slides you
present.
Read Notes
at bottom
before you
work on each
slide.
1
The 30-Second Pitch/Hook
1. [Describe your product or service. Make sure to include
your company’s name.]
2. [What problems does the product or service solve (or
what demand does it meet)?]
3. [How is your product different?]
4. [Why should your potential investors
care?]
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Example: "Do you use a flash memory drive? What if your car
had a USB port and you could play music through it? That’s
what my company, Play-On, is building. . . .”
2
[Business Name]
[Logo]
[Entrepreneur’s Name]
[Grade]
[Age]
3
Mission Statement

Mission Statement


[A mission statement is a company’s constant
reminder to its employees and customers of why the
company exists.]
Opportunity

[What is your product or service? How does it work?
What are its unique features? Walk us through what
the customer sees/receives.]
4
Business Profile

Type of Business



[Is yours a Service, Retail, Manufacturing, or
Wholesale business?]
[Describe your product/service in terms of
your type of business and your customer.
(Example: “Company Name is a
manufacturing company making baskets for
sale to wholesalers.”)]
Insert an
image of your
product
or service
here.
Legal Structure


[Sole Proprietorship, Partnership, C
Corporation, SubChapter-S, Limited Liability
Company, or Not-for-Profit Corporation?]
[Why did you select this legal structure?]
5
Qualifications
 I’m qualified to run this business because:
 [Enter reason #1 here.]
 [Enter reason #2 here.]
 [Enter reason #3 here.]
6
Market Analysis (Example)
Industry Name
Special food services
Industry Size
$31,130,659
Total Population
San Francisco, Mission District
ZIP code: 94110
Target Market
Potential Market
Adults, both male and female, ages
18-34, with an average household
income of greater than $35,000
Based on our survey of 30 individuals
from the target market, we believe our
potential market size is 80% of the
target market.
 90% eat out 3+ times per week
 80% don’t have enough time to cook
meals for themselves
 80% said they would try a personal
chef service if one were available in
their neighborhood
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presenting
Total Population
77,239
Target Market
24,716
Potential
Market
19,773
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Market Analysis
Industry Name
[What industry are you in? (http://www.bizstats.com)]
Industry Size
[How much is being spent in your industry?
(http://www.bizstats.com/industry-markets.asp)]
Total Population
[Where are you planning to market
you product/service? Is there a
particular area, city, neighborhood, or
ZIP code(s)?]
Total Population
[?]
Target Market
Target Market
Potential Market
[What gender are you targeting (if
applicable)? What age group are you
targeting? What is the average
household income of the group you’re
targeting?]
[Survey your target market. What
percentage of them would be willing
to try your product/service? Why?]
[?]
Potential
Market
[?]
8
Target Market Segment

Demographics

[The age, gender, occupation,
and education of your
customers. Economic factors,
such as household income,
family composition, and size.]
Insert image
of a
consumer.

Geographics

[The size of the area, density,
and location of your
customers. Where do they live,
work, go to school, or shop?]

Psychographics


[The general personality,
lifestyle, sports, hobbies, music
preferences, and other freetime activities.]
Buying Patterns

[The purchasing patterns and
buying behavior of your
customers, including the rate
of use, repetition of purchases,
benefits sought, brand
preferences, and brand loyalty.
Also the purchasing behavior
(impulsive or cautious, using
cash or credit card).]
9
Competitive Advantage
Factors
[Your
Business]
[Competitor
A]
Price
[?]
[?]
[?]
Quality of
Product/Service
[?]
[?]
[?]
Location
[?]
[?]
[?]
Reputation/Brands
[?]
[?]
[?]
Unique Factors/
Knowledge
[?]
[?]
[?]
[Competitor
B]
10
Marketing Mix
[Enter your
marketing strategy
for Place.]
[Enter your
marketing strategy
for People.]
People
Product
[Enter your
marketing strategy
for Product.]
Place
[Enter your
marketing strategy
for Promotion.]
Price
Promotion
[Enter your
marketing strategy
for Price.]
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Promotional Mix
Promotional Expense
Monthly
Amount
[List plans for advertising, if any.]
[$]
Publicity
[List plans for publicity, if any.]
[$]
Personal
Selling
[List plans for personal selling, if any.]
[$]
Sales
Promotion
[List plans for sales promotion, if any.]
[$]
Advertising
Other
[List plans for visual merchandising or
public relations, if any.]
Total Monthly Promotional Expense
[$]
[$]
12
Cost of Materials/Labor
Materials
Material Description
Cost/Total Quantity
Cost per Unit
[Description]
[$]
[$]
[Description]
[$]
[$]
[Description]
[$]
[$]
[Description]
[$]
[$]
Total Material Cost per Unit
[$]
Labor
Labor Cost per Hour
Time (in Hours) to
Make One Unit
[$]
[Time]
Total Labor Cost per Unit
COGS (per Unit)
Labor Cost per Unit
[$]
[$]
[Total Materials Cost per Unit +
Total Labor Cost per Unit]
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Economics of One Unit
Description of One
Unit of Sale:
[Describe a unit of sale. What is the
customer actually buying from you?]
Selling Price (per Unit)
[$]
COGS (per Unit)
[$]
Other Variable Expenses (per Unit)
[$]
Total Variable Expenses (per Unit)
[$]
Contribution Margin (per Unit)
[$]
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Average Monthly Fixed Expenses
Fixed Expense
Average Monthly Expense
Insurance
[$]
Salaries of Employees
[$]
Advertising
[$]
Interest
[$]
Depreciation
[$]
Utilities (Gas, Electric, Telephone)
[$]
Rent
[$]
Other Fixed Expenses
[$]
Total Average Monthly Fixed Expenses
[$]
15
Time-Management Plan
Schedule for a Typical Week
Total Hours in a Week = 168
16
Monthly Sales Projections
First Year
Total Units
Sold
[Units]
Units Sold
80
60
40
20
0
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
17
Monthly Break-Even Units
[Monthly Fixed Expenses]
=
[Monthly Break-Even Units]
[Contribution Margin per Unit]
In an average month, the company will begin
[?]
to make a profit after selling
units.
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Projected Yearly Income Statement
First Year
A
Selling Price per Unit
[$]
B
Number of Units Sold
[Number of Units]
C
Total Sales
D
E
F
G
H
I
Variable Expenses
[A × B]
[Variable Expense
per Unit × B]
[C – D]
Contribution Margin
Fixed Operating Expenses
[Monthly Fixed
Expenses × 12]
[E – F]
Pre-Tax Profit
Taxes @ 15%
Net Profit
[G × 0.15]
[G – H]
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Start-Up Investment
Start-Up Expenditures
Item
Where Will I Buy This?
Cost
[Item]
[Vendor/Location]
[$]
[Item]
[Vendor/Location]
[$]
[Item]
[Vendor/Location]
[$]
[Item]
[Vendor/Location]
[$]
[Item]
[Vendor/Location]
[$]
[$] A
Total Start-Up Expenditures
Cash Reserves
Emergency Fund
[$]
B
Reserve for Fixed Expenses
[$]
C
Total Start-Up Investment
[A + B + C]
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ROS & ROI
ROS: Return on Sales
For My Business:
[Annual Net Profit]
[Annual Sales]
X 100 =[0.0]% ROS
Dollar
Equivalent = [$0.00]
ROI: Return on Investment
For My Business:
[Annual Net Profit]
[Start-Up Investment]
X 100 =[0.0]% ROI
Dollar
Equivalent = [$0.00]
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Financing Strategy
[$]
Total Start-Up Investment
Source
Amount
Debt
Equity
Personal Savings
[$]
Relatives/Friends
[$]
[$]
[$]
Investor
[$]
[$]
[$]
Partner(s)
[$]
[$]
[$]
Totals
[$]
[$]
[$]
Gift
[$]
[$]
[$]
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Business Responsibility
& Philanthropy

Business Responsibility


[Explain how you will incorporate business
responsibility into your marketing plan.]
Philanthropy

[Describe how your business will give back to the
community or support a cause in which you believe.]
23
Business & Personal Goals
Long-Term
Short-Term
Business

[Describe the next steps you
need to take to make your
business fully operational.]

[Explain how you will
improve or maintain the
quality of your
product/service.]

[Describe education or
training you could get to
help with your business.]

[Mention anyone you could
seek out as a mentor.]
Personal

[Explain how you will
expand the business (hire
employees, attract new
customers, purchase a
storefront, and so on).]

[Describe how big your
business could get.]

[Indicate how long you
plan to run the business.
Describe your exit strategy,
if you have one.]

[Describe how your
experience with this
business will prepare you
for your career.]
24
[Enter your slogan ]
Thank you for your consideration.
[Enter company name]
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