Transcript The Business Plan How does a well written business plan affect the

The Business Plan
How does a well written
business plan affect the
future of a business?
The Business Plan
 What
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is it?
A business plan is a written document
that describes all the steps necessary in
opening and operating a successful
business.
The Business Plan
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Purpose of a business plan
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Idea behind your business
Product or Service
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Specific objectives
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How produced and sold
How you expect to achieve
Backgrounds and Experiences of those running
the business
The Business Plan
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Why is it important?
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Think about all aspects
Secure Financing
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Start up costs/risks
Communicate Ideas to others
Overall management
7 Elements of a Business Plan
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History and background
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Has another company been successful in this
market?
What is your background, history in business
Goals and objectives
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Outline your short-term, medium-term, and longterm goals.
Future
7 Elements of a Business Plan
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Products or Services
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What products will you offer?
How do they differ from what is already on the
market?
Why would customers buy your product or
service?
7 Elements of a Business Plan
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Products or Services continued…
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What industry will you operate in?
Is there a lot of competition?
 Is there potential for growth?
 What are current trends?
 How about technology?
***You will have to conduct research to answer these
questions. Include your sources in your business plan.
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7 Elements of a Business Plan
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Products or Services continued
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Location
Form of Ownership
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Provide details relevant to your form of business.
Do you have partners? Who are they?
Will you have shareholders? How many?
7 Elements of a Business Plan
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Management and Staffing
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Who will run your company?
Why are they/you qualified?
Marketing
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Who are your prospective customers?
How large is the market for your product?
How will you enter the market?
How will you deal with your competition?
7 Elements of a Business Plan
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Current and Projected Financial Statements
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Risks and Solutions
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Examples include competitors cutting prices, costs
exceeding projections, and no demand for your
product/service.
Financial statements
New Businesses
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pro forma financial statement – estimate of revenues
and expenses
7 Elements of a Business Plan
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Current and Projected Financials
continued...
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Existing Businesses
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Current financial and projected statements
Funding request and ROI (return on investment)
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How much to borrow
How you intend on using it
Include money you are already investing in company
Additional Elements
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All business plans must include the seven
elements; however, additional elements may
be required
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Licensing requirements
Special legal considerations
The Business Plan
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Summarizer
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What are the 7 elements of a business plan?
What role does research play in making a
business plan?
Research
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Print resources
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Books on marketing, financing, hiring, and
managing a staff
Magazines devoted to small business and specific
industry
Government documents
Online resources
Research
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People resources
Additional resources
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Local chamber of commerce
Small business development center
Trade associations
Helpful Hints
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Short and to the Point for Lenders
Use charts and tables to illustrate your point
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People like visuals 