Aspects of a Business Plan
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1 Aspects of a Business Plan 1
2 Objectives 1. To identify and examine the parts of a business plan. 2
3 Main Menu The Business Plan 3
4 The Business Plan 4
5 A Business Plan Must be developed by anyone interested in starting a business Is a road map of where the business will be going Is a written proposal describing a prospective business to potential investors and lenders Should: convince investors and lenders the business will be profitable identify necessary legal procedures for start-up establish month-to-month steps to profitably operate the business 5
6 A Business Plan Includes five sections: 1. Executive Summary 2. Business Description and Analysis 3. Organization and Marketing Plan 4. Financial Plan 5. Supporting Documents 6
7 Executive Summary Highlights proposed business Describes: products and/or services to be offered type of ownership the skills and experiences being brought to business the uniqueness and strengths of the business in all areas market and competition analysis Highlights financial data Should be no longer than two pages Should convince the audience to read the rest of the plan 7
8 Business Description & Analysis Includes details such as: business type business philosophy product description self-analysis trading area analysis market segment analysis analysis of potential location 8
9 Business Philosophy Includes: mission statement: the purpose of the organization vision statement: where an organization is headed in the future and should capture the long-term picture of what the organization will become personal philosophy of management: how management will organize, motivate and communicate with employees 9
10 Self-Analysis Describes details concerning the business s: education and training: the level of expertise the owner, managers and employees have and how it will enable success strengths and weaknesses: elements which should be taken advantage of and elements which must be avoided or properly managed personal development plan: the plans for the growth of the business 10
11 Trading Area Analysis Discusses where the business will operate, including details such as: geographic, economic and demographic data: area population broken down by characteristics including location, income, age, race, gender, etc. possible competitors: number and size, strengths and weaknesses, and plans to deal with and overcome them 11
12 Market Segment Analysis Defines the business s target market the group of customers which the business identifies as most likely to find value in its products and therefore is most important to focus marketing efforts on Identifies the target market s needs, wants and buying habits, and how the business addresses these 12
13 Organization & Marketing Plan Includes details concerning: proposed organization proposed product proposed marketing plan 13
14 Proposed Organization Outlines: the type of business ownership: number of owners, percentage owned by each and how each is involved the management profile: identifies managers, their education, prior employment and defining characteristics, their obligations to the business, and the business s obligations to them personnel needs and organizational structure: number of employees, functions of each department, and the lines of communication within and among departments 14
15 Proposed Product Discusses the business s products and services including: suppliers: where raw materials needed for production will come from manufacturing plans: how and where the product will be made and for what cost inventory procedures: how the business will handle and store products which are ready to be sold 15
16 Proposed Marketing Plan Describes strategies for the activities which will communicate value to customers branding, packaging, promotions, advertising, public relations, etc. Identifies plans for pricing policies base price ranges, discounts, sales, etc. Describes the sales strategies which will be used sales force, projected sales volume, etc. 16
17 Financial Plan Include these details: sources of capital personal sources external sources projected income and expenses personal financial statement start-up costs business income business expenses income statement(s) balance sheet cash-flow statement 17
18 Supporting Documents Concerning business communication include: letterhead and business cards for correspondence with employees and customers list of potential communication barriers with employees and customers employee rules and regulations designed to prevent and help resolve conflicts list of potential liaisons developed with other organizations within the community explanation of the benefits of community involvement 18
19 Supporting Documents Regarding marketing include: sample fliers advertisements company newsletters Of legal and miscellaneous nature include: certificates licenses, tax requirements codes sample policy and procedures manual 19
20 The Business Plan Assessment 20
21 Assessment 1. Which of the following is the roadmap of where the business is going? A. Business plan B. Business agenda C. Executive plan D. Executive agenda 2. Which of the following should serve as a detailed outline of the company and convince the audience to read the rest of the business plan? A. Executive summary B. Business description C. Marketing plan D. Financial plan 21
22 Assessment 3. Which of the following describes the business type, the products offered and the philosophy of the business? A. Executive agenda B. Business description C. Marketing plan D. Financial plan 4. Which of the following describes strategies for branding, packaging, advertising and promoting the business and its products? A. Executive agenda B. Business description C. Marketing plan D. Financial plan 22
23 Assessment 5. Which of the following includes a list of the sources of capital and the projected income and expenses of the business? A. Executive agenda B. Business description C. Marketing plan D. Financial plan 23
24 Resources U.S. Small Business Administration Sample Business Plan from Bplans.com 24
25 Acknowledgements Production Coordinators Krista Scott Amy Hogan Technical Writer Jessica Odom Graphics Editors Jennifer Donaldson Daniel Johnson Executive Producer G.W. Davis Production Manager Geoff Scott MMXIV CEV Multimedia, Ltd. 25
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