Transcript businessplan part one

Entrepreneur Certificate Program
Brought to you by
NJ Small Business Development Center
BUSINESS PLANNING
©2004 The Entrepreneur Certificate Program
is a product of the New Jersey Small Business Development Center.
All rights reserved.
Business Plan Formulation
The Key Elements For Success
Overview
 This workshop covers all the components of a business plan
(business description and focus, location selection, knowledge
of the competition, marketing strategy, financial plan,
personnel/management needs, strategic plan for business
growth) to help entrepreneurs and small business owners get
off to a fast start.
©2004 The Entrepreneur Certificate Program
is a product of the New Jersey Small Business Development Center.
All rights reserved.
Business Plan Formulation
The Key Elements For Success
Overview
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Description of the business
Selecting business location
Identifying the competition
Detailing a marketing strategy
Laying out a financial plan
Describing personnel/management needs
Designing a strategic plan for the present and future
©2004 The Entrepreneur Certificate Program
is a product of the New Jersey Small Business Development Center.
All rights reserved.
Business Plan Formulation
The Key Elements For Success
Description of the Business

Focus on the business concept and why such a business
opportunity exists as well as the products and services being
offered, the pricing system to be used to meet costs and
profits, distinguishing your business products/services from
others in the industry (lower prices, faster delivery, longer
warranties etc.) and identifying potential customers and
suppliers.
©2004 The Entrepreneur Certificate Program
is a product of the New Jersey Small Business Development Center.
All rights reserved.
Business Plan Formulation
The Key Elements For Success
Selecting an Appropriate Business Location
 Consideration of location choices on the basis of business
customers, accessibility and security and whether the
location is conducive to the business specific industry
needs.
©2004 The Entrepreneur Certificate Program
is a product of the New Jersey Small Business Development Center.
All rights reserved.
Business Plan Formulation
The Key Elements For Success
Identifying the Competition
Knowledge of who the competition is with reference to
the length of time in business, reputation, quality of
products and services, customer service, number of
employees, image and strengths and weaknesses.
©2004 The Entrepreneur Certificate Program
is a product of the New Jersey Small Business Development Center.
All rights reserved.
Business Plan Formulation
The Key Elements For Success
Detailing a Marketing Strategy
 Development of marketing/research techniques to help promote
your business market using various advertising tools such as
television, news, trade shows, telemarketing, sales programs,
internet, radio, magazines, direct mail, long-term sponsorships,
public relations (web presence, events, press releases), and other
referral mechanisms (yellow pages).
 Use of networking activities such as memberships or leadership
positions and strategic alliances to bolster your business market.
©2004 The Entrepreneur Certificate Program
is a product of the New Jersey Small Business Development Center.
All rights reserved.
Business Plan Formulation
The Key Elements For Success
Laying out a Financial Plan
 Assessment of the financial feasibility and profitability of a business
(break-even analysis), identification of funds needed and how the
funds will be spent, the potential sources for funding (personal
resources, banks, venture capital, angel investors, public agency loan
programs), the business sense of a loan or investment and how it
will be repaid, capital equipment list, revenue/expense assumptions,
three year profit and loss statements (projections), three year cash
flow summaries, balance sheets (assets/liabilities/net worth), and
providing for supporting documents relevant to the plan (personal
financial history, legal documents, leases, etc.)
©2004 The Entrepreneur Certificate Program
is a product of the New Jersey Small Business Development Center.
All rights reserved.
Business Plan Formulation
The Key Elements For Success
Describing Personnel/Management Needs
 Description of the human capital skills and experience needed for a
particular business, pay methods, fringe benefits, payroll taxes
and the use of independent contractors versus employees.
 Division of tasks/ reporting hierarchy / final decision makers.
 Creation of an advisor group and Board of Directors.
©2004 The Entrepreneur Certificate Program
is a product of the New Jersey Small Business Development Center.
All rights reserved.
Business Plan Formulation
The Key Elements For Success
Designing a Strategic Plan for the Present
and Future
 Establishment of business priorities and goals, including
branding, benchmarking, timetables for action, anticipated
plans to retain and expand current markets and having an
exit strategy.
©2004 The Entrepreneur Certificate Program
is a product of the New Jersey Small Business Development Center.
All rights reserved.
Business Plan Formulation
The Key Elements For Success
Major components of a business plan
I.
II.
III.
IV.
Executive Summary
Business Profile
Market Section
Financial Statements
©2004 The Entrepreneur Certificate Program
is a product of the New Jersey Small Business Development Center.
All rights reserved.
Business Plan Formulation
The Key Elements For Success
I. Executive Summary
 Keep It Short!
 A page and one-half emphasizing your
professional background (and other principals
in the business), the business concept, products,
customer base, marketing approach,
competition and past (if any) or projected
sales/income.
 What contingencies do you have in place if the
plan fails?
©2004 The Entrepreneur Certificate Program
is a product of the New Jersey Small Business Development Center.
All rights reserved.
Business Plan Formulation
The Key Elements For Success
II. Business Profile
 One page that states: Legal structure of the business
(e.g., proprietorship, subchapter S, corporation, etc.)
as well as the educational and professional background
of management and principle stake holders. Brief past
company history (if any), or related history of
principals.
©2004 The Entrepreneur Certificate Program
is a product of the New Jersey Small Business Development Center.
All rights reserved.
Business Plan Formulation
The Key Elements For Success
III. Marketplace
Product/Service, Price, Place & Promotion
Write a primary objective that is both quantitative and
qualitative and can be reasonably accomplished in a given
time frame.
What makes this product/service desirable? Develop
strategies that cover the four P’s of marketing (above).
Market analysis should cover both sales and industry
market potential in dollars and volume.
©2004 The Entrepreneur Certificate Program
is a product of the New Jersey Small Business Development Center.
All rights reserved.
Business Plan Formulation
The Key Elements For Success
IV. Financial Statements
 Start-up costs: licenses, equipment, inventory,
remodeling, deposits, etc.
 Show a break-even analysis: how many units must be
sold to cover fixed and variable costs.
 Produce pro-forma income statements: anticipated
sales, expenses, and net profit or loss projected over the
next three years.
 Pro-forma balance sheets should cover: anticipated
assets, liabilities and net worth of business.
©2004 The Entrepreneur Certificate Program
is a product of the New Jersey Small Business Development Center.
All rights reserved.