So You Want To Go Into Business!? Presented to The Future Entrepreneurs and Business Leaders of the Senior Class of Hudson Falls High School Presented by John.

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Transcript So You Want To Go Into Business!? Presented to The Future Entrepreneurs and Business Leaders of the Senior Class of Hudson Falls High School Presented by John.

So You Want To Go Into
Presented to
The Future Entrepreneurs and Business Leaders
of the Senior Class
of Hudson Falls High School
Presented by
John S. Kvocka
May 11, 2007
Who is this Guy???
New York City Born and Raised
Education: BS and MBA St. John’s University, NYC
Spent 36 years in the Corporate World and as a Senior Exec for some Big
outfits, traveled the world extensively
Consultant to Business in Planning, Leadership and Management
Certified Franchise Consultant
Taught part-time as an adjunct professor at 2 Colleges
Married 33 years, one son (and 2 dogs)
Live in Queensbury last 14 years
Entrepreneur for last several years, Own an English Pub with my son and
some Real estate properties
Volunteer work
Avid Sports Fan, Car Nut and Oldies Music freak!
The Business Plan
(For a Start-up Business)
• Why have a Plan?
• Who am I doing it for?
• What’s in a Plan?
Table of Contents
Executive Summary
General Company Description
Products & Services
Marketing Plan
Operational Plan
Management & Organization
Table of Contents continued
Personal Financial Statement
Start-Up Expenses and Capitalization
Financial Plan
Refining the Plan
Executive Summary
• Write this Section LAST!
• Covers everything you would include in a 5 minute
• Fundamentals of the business…product, service to be
• Who will be your customers? Who are the owners?
• What does the future hold for your business and your
• Enthusiastic, professional, complete and concise.
• If for a loan, how much, for what, and how will it make
your business profitable? (So it can be repaid!)
General Company Description
What is the business, what will you do?
Vision, Mission, Values
Company Goals and Objectives
Your Business Philosophy
To whom will you market your products?
Describe Industry (Growth? Changes? How will you take
advantage of them?)
• Your most important strengths & competence—to make
company succeed—your competitive strengths, experience
and skills
• Legal form of ownership—Partnership, Corporation, LLC
and why this form selected?
Products and Services
• Describe in depth your products and services
(Technical specifications, drawings, photos, sales
brochures and related belong in the Appendices)
• What factors will give you competitive advantages or
disadvantages? Examples include level of quality or
unique or proprietary features.
• What are the pricing, fee, or leasing structures of your
products or services?
Marketing Plan
• This area requires careful, systematic research, not just
“gut feel”
• Two kinds of data are needed: Primary and Secondary
• Secondary research means using published
information: industry profiles, trade journals,
newspapers, magazines, census data, demographics
• Primary research means gathering your own data:
traffic counts, yellow pages, surveys, visits to
competitors, interviews. Professional market research is
also a method, but is expensive.
• Be specific, giving statistics, numbers and sources
Marketing Plan continued
• Economics—regarding your industry, size of market?
Your share of market, current demand, trends, growth
potential, barriers to entry you face—costs, acceptance,
brand recognition, training and skills, technology, unions,
other barriers…and of course how will you overcome
these barriers?
• How could changes in technology, government regs, the
economy and industry changes affect your company?
Marketing Plan continued
Product –Describe your products and services from your customers’
point of view
•Features and Benefits—most important features, what is special?
Benefits—what will product do for the customer? Note differences and
what after-sale services will be provided? Also include various policies
regarding delivery, warranty, service contracts, support, refund policy
•Customers—who are targeted customers, their characteristics,
geographic locations (demographics)? Give their profile—Age, gender,
location, income level, social class and occupation, education and other
factors specific to your industry. For business customers—their industry,
location, size of firm, quality, technology and price preferences, etc.
Marketing Plan continued
• Competition—What products and companies will compete with you?
List your major competitors. In what areas, products, customers and
locations will they compete? Or across the board? Will you have
indirect competitors providing alternative products/services to
• How will you compare with the competition?
• Draw up a competitive analysis table to compare various factors to
show how you present your business side by side with key
competition. Customize as appropriate to your industry. List things
such as product selection, price, quality, service, reliability, stability,
expertise, reputation, location, appearance, etc. Prioritize factors by
importance and be very honest in your assessments.
• Niche—in one short paragraph define your niche, your unique
corner of the market.
Marketing Plan continued
• Strategy—outline your market strategy that is
consistent with your niche.
• Promotion—how will you get the word out to
customers? Advertising, media – why, how often?
Other methods to stimulate business? What image
do you want to project, how do you want your
customers to see you? Other considerations such
as logo design, brochures, signage, etc. A system
to identify and contact repeat customers?
• Promotional Budget—start-up, ongoing
Marketing Plan continued
• Pricing—explain your method of setting prices,
does it fit with competitive situation? Are you
higher, lower, same and why? How much is price a
factor given your position in the market?
• Location—this may be an extremely critical
decision depending upon the nature of your
business. Physical needs to be described later in
the Operational section.
Operational Plan
• Production—How and Where are your products
or services produced? Explain methods,
techniques, quality control, customer service,
inventory control, product development
• Location—What qualities do you need in a
location? Space, type of building, zoning, power
and utilities, access, proximity to transportation,
parking, etc. Include a drawing or layout. Include
cost estimates for the location-construction, fit-up,
rent, insurance, utilities, maintenance, etc.
Operational Plan continued
• Legal Environment—Licensing, bonding, health,
workplace/environmental regs, zoning, building code,
insurance coverage, trademarks, patents, copyrights, etc.
• Personnel—Number of employees, type of labor, where
and how to find, quality and skills of staff, pay structure,
training, tasks to be done, schedules.
• Inventory—Kind, value, rate of turnover, seasonal
considerations, storage, order lead times, etc.
• Suppliers—Key suppliers, names, addresses and
description of products furnished, costs, terms.
• Credit—dealings with customers, payment terms, etc.
Management and Organization
• Day to day management—experience and
competencies of responsible person
• Organizational structure—chart
• Position descriptions for Key employees
• Resumes of Owners and Key Management
• Professional and Advisory support—Board of
Directors, Attorney, Accountant, Insurance Agent,
Banker, Key Advisors
Personal Financial Statement
• Include personal financial statements for
each Owner with Assets and Liabilities held
outside the business and personal Net
Start-Up and Capitalization
• Provide estimates of all start-up expenses. Be
conservative and allow a cushion for unforeseen
items. Identify potential contingency requirements
as well.
• Explain how you arrived at these estimates
• Give sources and amounts of proposed loans and
identify amounts contributed by each investor and
percent of each one’s ownership in the business.
Financial Plan
• 12 Month Profit and Loss and Cash Flow
Projection—identify key assumptions and risks.
Also outline actions to be taken in the event
projections do not meet expectations. Use both
narrative and numeric presentation.
• Provide a 3 Year Forecast along with the first
year statement, in similar form.
• These statements will show whether your initial
and ongoing cash flow is adequate to sustain the
business and repay any loans made.
• Include any pertinent back-up documents
referred to in the Plan or data that will supplement
and support statements made or information used
in development of the Plan.
• Examples: Brochures, industry studies, maps,
blueprints, magazine or other articles, leases,
contracts, letters of support from customers,
market research studies, list of assets for
collateral for a loan.
Refining the Plan
• For Raising Capital—amount of loan, how funds
will be used, what will it accomplish (make it
stronger?), requested repayment terms, collateral
offered, along with any existing liens against
• For Investors—funds needed short-term, needed
in 2-5 years, how will funds be used, and what
accomplished, estimated return on investment, exit
strategy for investors, percent ownership obtained
Refining the Plan
• For Type of Business
• Plan will be modified according to Manufacturing,
Service, High Tech, Retail
• Further details pertinent to type of business will
enhance the Plan and make it more suitable and
• The Plan should remain a dynamic tool for use by
the management and owners on an ongoing basis!
It should be updated periodically!