Ent-Chapter 05
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Transcript Ent-Chapter 05
Chapter 5
DEVELOP A BUSINESS PLAN
LESSONS
5.1 Why Do You Need a Business Plan?
5.2 What Goes into a Business Plan?
5.3 Create an Effective Business Plan
ENTREPRENEURSHIP: Ideas in Action
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Chapter 5
Slide 2
Lesson 5.1
WHY DO YOU NEED
A BUSINESS PLAN?
GOALS
Explain the purpose of
writing a good business
plan.
Describe the importance of
a business plan.
ENTREPRENEURSHIP: Ideas in Action
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Chapter 5
Slide 3
THE BUSINESS PLAN
A business plan is a written document
that describes all the steps necessary in
opening and operating a successful
business.
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Chapter 5
Slide 4
PURPOSES OF A BUSINESS PLAN
Explains the idea behind your business and
spells out how your product or service will be
produced and sold.
Sets specific objectives and describes how
your business expects to achieve them.
Describes the background and experience of
the people who will be running the business.
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Chapter 5
Slide 5
IMPORTANCE OF A BUSINESS PLAN
Makes you think about all aspects of
your business.
May help you secure financing for your
business.
Helps you communicate your ideas to
others.
Can serve as a tool for managing your
business.
ENTREPRENEURSHIP: Ideas in Action
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Chapter 5
Slide 6
Lesson 5.2
WHAT GOES INTO
A BUSINESS PLAN?
GOALS
Study the seven basic
elements of a business
plan.
Recognize what additional
elements may be needed.
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SEVEN BASIC ELEMENTS
OF A BUSINESS PLAN
Chapter 5
Slide 7
History and background
Goals and objectives
Products or services
Form of ownership
Management and staffing
Marketing
Current and projected financial
statements
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Chapter 5
Slide 8
HISTORY AND BACKGROUND
Describing how you came up with your
idea can help lenders, investors, and
others understand how your business
will operate.
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Chapter 5
Slide 9
GOALS AND OBJECTIVES
Your business plan should outline your
goals—short-term, medium-term, and
long-term.
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Chapter 5
Slide 10
PRODUCTS OR SERVICES
In this section your business plan should:
Explain how your products or services
differ from those already on the market.
Describe the industry you will operate in.
Describe the location of your business.
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Chapter 5
Slide 11
FORM OF OWNERSHIP
Identify your form of ownership
Provide information relevant to your
form of ownership
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Chapter 5
Slide 12
MANAGEMENT AND STAFFING
Demonstrate that you and the people
working for you have the experience,
maturity, and common sense to manage
your business.
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Chapter 5
Slide 13
MARKETING
The marketing section should:
Identify your prospective customers
Describe the size of the market for your
product or service.
Explain how you plan to enter the
market.
Explain how you plan to deal with
competition
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CURRENT AND PROJECTED
FINANCIAL STATEMENTS
Chapter 5
Slide 14
The financial section has three elements:
Identification of risks
Financial statements
Funding request and return on
investment
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ADDITIONAL ELEMENTS
OF THE BUSINESS PLAN
Chapter 5
Slide 15
Some businesses need to provide
additional information in their business
plans related to:
Licensing
Legal restrictions
Regulations
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Chapter 5
Slide 16
Lesson 5.3
CREATE AN EFFECTIVE
BUSINESS PLAN
GOALS
Research your business plan.
Organize your business plan.
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Chapter 5
Slide 17
RESEARCH THE BUSINESS PLAN
Print resources
Online resources
People resources
Additional resources
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PUT YOUR BUSINESS PLAN
TOGETHER
Chapter 5
Slide 18
Introductory elements
Cover letter
Cover sheets
Table of contents
Statement of purpose
Executive summary
Main body of your plan
Appendix
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