#5
#5 –– THE BUSINESS PLAN
THE BUSINESS PLAN
Gameplan for Action
Gameplan for Action
B b S
B b S
Baby Steps
Baby Steps
Start up versus Expansion
Start up versus Expansion
Purpose of a Plan
Purpose of a Plan
What’s In a The Business Plan ?
What’s In a The Business Plan ?
What’s In a The Business Plan ?
What’s In a The Business Plan ?
Why a The Business Plan ?
Why a The Business Plan ?
KNOW YOUR AUDIENCE
KNOW YOUR AUDIENCE
“A Business Plan is very, very
“A Business Plan is very, very audience and use audience and use –– specific
specific. You can actually have several versions, . You can actually have several versions, depending on who will read it, and why.” depending on who will read it, and why.”
… FOR
… FOR
FUNDING
FUNDING
Prove, justify your ideaProve, justify your idea
Show the market is thereShow the market is there
Show the market is thereShow the market is there
Orders? Letters of interest?Orders? Letters of interest?
Personal resume, balance sheetPersonal resume, balance sheet
Use of fundsUse of funds
Ability to reimburseAbility to reimburse
Minimal riskMinimal risk
Business / related experience Business / related experience
… FOR
… FOR
PARTNERS
PARTNERS
Investment sought, returns expectedInvestment sought, returns expected
Di i iDi i i f f ibilitibilit
Division of responsibilityDivision of responsibility
Limited risk factorsLimited risk factors
How you propose to access marketsHow you propose to access markets
Why you are seeking partnersWhy you are seeking partners
What you each bring to the tableWhat you each bring to the table
Long term growth potentialLong term growth potential
Long term growth potentialLong term growth potential
… FOR
… FOR
YOURSELF
YOURSELF
Realistic, achievable goalsRealistic, achievable goals
R li ti ti R li ti ti b d tb d t
Realistic, conservative budgetsRealistic, conservative budgets
Double the costs, half the revenuesDouble the costs, half the revenues
Realistic market penetrationRealistic market penetration
Realistic timelines, milestonesRealistic timelines, milestones
Affordable marketing strategiesAffordable marketing strategies
HOW TO….
HOW TO….
Get straight to the pointGet straight to the point
Don’t brag too muchDon’t brag too much
Use graphics, chartsUse graphics, charts
Visually pleasingVisually pleasing
Quote sources of stats, numbersQuote sources of stats, numbers
Avoid ‘motherhood’ Avoid ‘motherhood’ --This will be a This will be a major force in the industry, and set major force in the industry, and set ne standards for q alit & price ” ne standards for q alit & price ” new standards for quality & price.” new standards for quality & price.”
Executive Summary
Executive Summary
This section should:
This section should:
Be written last
Be written last
Be written last.
Be written last.
Provide an enthusiastic snapshot of
Provide an enthusiastic snapshot of
your company, explaining who you
your company, explaining who you
are, what you do and why.
are, what you do and why.
Be less than 2 pages in length.
Be less than 2 pages in length.
Be less than 2 pages in length.
Be less than 2 pages in length.
Business Description and Vision
Mission statement (business
purpose).
Company vision (statement about
company growth).
Business goals and objectives.
Brief history of the business.
Li t f k
i
i
l
Definition of the Market
Definition of the Market
Describe your business industry and outlook. Describe your business industry and outlook. Review the market research done, and what the Review the market research done, and what the
conclusions are conclusions are conclusions are. conclusions are.
Define the critical needs of your perceived or existing Define the critical needs of your perceived or existing market.
market.
Identify your target market. Identify your target market.
Provide a general profile of your targeted clients. Provide a general profile of your targeted clients. Describe what share of the market you currently have Describe what share of the market you currently have yy yy
and/or anticipate. and/or anticipate.
Description of Products and Services
Description of Products and Services
Specifically describe all of your
Specifically describe all of your
products and services.
products and services.
Explain how your products and
Explain how your products and
Explain how your products and
Explain how your products and
services are competitive.
services are competitive.
If applicable, reference a picture or
If applicable, reference a picture or
brochure of your products, which
brochure of your products, which
would be included in the plan’s
would be included in the plan’s
p
p
appendix.
appendix.
Organization and Management
Organization and Management
Provide a description of how your company is Provide a description of how your company is
organized as well as an organization chart, if organized as well as an organization chart, if
available. available.
D ib th l l t t f b i D ib th l l t t f b i
Describe the legal structure of your business Describe the legal structure of your business
(proprietorship, partnership, corporation, (proprietorship, partnership, corporation,
etc.). etc.).
Identify necessary or special licenses and/or Identify necessary or special licenses and/or
permits your business operates with. permits your business operates with.
Provide a brief bio description of key Provide a brief bio description of key
managers within the company. managers within the company.
Identify and describe your market Identify and describe your market –– who your who your customers are and what the demand is for your customers are and what the demand is for your
products & services. products & services.
Describe your channels of distribution.Describe your channels of distribution. How you plan to reach your clients / customers.How you plan to reach your clients / customers. Why your products / services will be able to compete Why your products / services will be able to compete
well, and meet the need of the market. well, and meet the need of the market. Explain your sales strategy, specific Explain your sales strategy, specific to pricing, to pricing,
promotion products and place (4Ps) promotion products and place (4Ps) promotion, products and place (4Ps). promotion, products and place (4Ps).
Financial Management
Financial Management
For a
For a New Business
New Business
o
o
Estimate of start
Estimate of start--up costs.
up costs.
o
o
Projected balance sheet (1 year
Projected balance sheet (1 year
j
j
( y
( y
forward).
forward).
o
o
Projected income statement (1 year
Projected income statement (1 year
forward).
forward).
o
o
Projected cash flow statement (12
Projected cash flow statement (12
months forward)
months forward)
months forward).
months forward).
Financial Management Financial Management For an For an Existing BusinessExisting Business o
o Balance sheets (last 3 years). Balance sheets (last 3 years). o
o Income statements (last 3 years). Income statements (last 3 years).
C f ( )
C f ( )
o
o Cash flow statement (12 months). Cash flow statement (12 months).
If Applying for a Loan (in addition to the If Applying for a Loan (in addition to the above)
above) o
o Current personal financial statement on Current personal financial statement on each principal.
Operational Plan
Operational Plan
Facilities and location.
Facilities and location.
Business license,
Business license,
registration.
registration.
Staffing requirements.
Staffing requirements.
How you propose to operate
How you propose to operate
your business.
your business.
you bus ess
you bus ess
Conclusions
Conclusions
This section should include:
This section should include:
Timelines to get started
Timelines to get started
Window of opportunity?
Window of opportunity?
Window of opportunity?
Window of opportunity?
Identified risks, and how they will be
Identified risks, and how they will be
dealt with.
dealt with.
Restate your ability to run this
Restate your ability to run this
business, and your contributions
business, and your contributions
y
y
(skills, funds) to get this business
(skills, funds) to get this business
going.
going.
Appendices
Appendices
This section should include:
This section should include:
Resume on yourself.
Resume on yourself.
Evidence of cash / equity to put into the
Evidence of cash / equity to put into the
Evidence of cash / equity to put into the
Evidence of cash / equity to put into the
business.
business.
Letters of support.
Letters of support.
Estimates for any outside contractors
Estimates for any outside contractors
you may be using, builders, etc.
you may be using, builders, etc.
y
y
g
y
y
g
If you have done up any brochures, add
If you have done up any brochures, add
‘FRESH EYES REVIEW’
‘FRESH EYES REVIEW’
Qualified third party, not family or friendsQualified third party, not family or friends
Do they understand the business?Do they understand the business?
Do they understand the business?Do they understand the business?
Does it answer most of their questions?Does it answer most of their questions?
Do they think you have been realistic?Do they think you have been realistic?
Do they think you are qualified?Do they think you are qualified?
Do they believe your #s, $ needs, uses?Do they believe your #s, $ needs, uses?
Have you explained yourself well enough?Have you explained yourself well enough?yy pp yy gg
MORE
MORE
‘FRESH EYES’
‘FRESH EYES’
Have you identified what you are selling?Have you identified what you are selling?
do they see who your customers are?do they see who your customers are?
do they see who your customers are?do they see who your customers are?
Do they feel your research is adequate?Do they feel your research is adequate?
Do they feel you have presented the risks?Do they feel you have presented the risks?
Would they recommend this to investors?Would they recommend this to investors?
If they were in a position to do so, would If they were in a position to do so, would they participate, invest, partner, etc? they participate, invest, partner, etc?y py p pp pp
DO THIS AGAIN, WITH MORE FRESH EYES !! DO THIS AGAIN, WITH MORE FRESH EYES !!
GETTING PERSONAL
GETTING PERSONAL
Personality fit with this business? Does Personality fit with this business? Does that come across in your Plan?
that come across in your Plan?
Enthusiasm?Enthusiasm? Confidence?Confidence? Passion?Passion?
Live with what you have presented?Live with what you have presented?
Patience demonstrated in gameplan?Patience demonstrated in gameplan?
Ability to deliver without causing undue Ability to deliver without causing undue
Ability to deliver, without causing undue Ability to deliver, without causing undue hardships to family, spouse?
INSPIRED CRAZINESS
INSPIRED CRAZINESS
“ W
t p
bit
“ W
t p
bit
“ We entrepreneurs are a bit
“ We entrepreneurs are a bit
(or more) crazy. That should
(or more) crazy. That should
reflect in the Plan. That spirit
reflect in the Plan. That spirit
is infectious. This is our
is infectious. This is our
moment to shine!”
moment to shine!”
FOR NEXT WEEK..
FOR NEXT WEEK..
1.1. Based on your own business, do up a Based on your own business, do up a brief summary of what you might brief summary of what you might include in your Business Plan. include in your Business Plan. Bullets are fine.
Bullets are fine. 2.
2. This is a quick overview only to This is a quick overview only to assure you grasped the Business assure you grasped the Business Plan, and why you need it.
Plan, and why you need it.
33 ShSh th th lt F l flt F l f t t il il 3.
3. Share the results. Feel free to email Share the results. Feel free to email me.
