The Business Plan Workbook You and the Bplan Chef, create better Business Plans. Financial Worksheet. Links included..

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1 Financial Wrksheet Links included.. 1

2 The Business Plan Wrkbk Create a better business plan with the Bplan Chef Using this WrkBk: Think thrugh yur ideas. Print ut the BP Chef Wrkbk, make ntes n this frm r jt yur thughts int a ntebk Organize yur cmmunicatin int the business plan cmpnents Simply create yur frmal business plan t get the best funding fr yur venture! 2

3 Intrductin 1. Intrductin 2. Wrkbk Objectives 3. Business Plan Research The Wrkbk Exercises f writing and thinking thrugh yur business requirements are as imprtant as the final business plan dcument. This sectin is intended t allw yu t challenge yur assumptins, and prduce a rugh frmat with which t guide the creatin f yur business plan. Yu will use the ntes frm this wrkbk, as a reference fr when yu create yur frmal business plan. Fllw thrugh the business plan utline questins and write yur respnses n a separate piece f paper. Our purpse is t cmmunicate with yu, t help yu take wnership f yur wrk. Use yur wn style. It shuld be a persnal expressin (an art frm) as much as a prfessinal dcument (scientifically and structurally sund). Wrkbk Objectives 4. Business Plan Outline (Drafts) 5. Actins T challenge yur ideas and frmat them fr presentatin Prvide a frmat fr develping yur venture T understand what is a business plan Why yu need a business plan Hw t start Hw t write an effective business plan Hw t sell yur venture t investrs, and t build it successfully The whle prcess f business planning is nt just abut creating a reprt. It is an exercise, an evlving dcument that is a guide fr yu. It shws investrs the status f yur business and it s rad map fr develpment. Ultimately, it is a framewrk fr yu t start and grw yur business. This is a dynamic plan, each business has its wn persnality and ptential, make sure that yurs is nt just a carbn cpy f anther business, but truly reflects the uniqueness f the business and yur skill set t make it happen. If yu wuld like dwnlad a financials wrksheet please click here 3

4 Why Yu need t Write a Business Plan 1. Intrductin 2. Wrkbk Objectives T Define and Realize what business am I in? Create a Radmap t a successful venture T create the big picture t recgnize lng term directin and think abut staying in business and nt just starting a business 3. Business Plan Research 4. Business Plan Outline (Drafts) Fr a Reality Check The plan will challenge sme f yur pre-cnceived assumptins Yur plan will raise questins that will inspire slutins befre yu need face thse prblems It allws yu t recgnize what will be required f yu Identifies yur strengths and weaknesses and highlights needed areas f assistance 5. Actins T Prvide a Feasibility Test Test the viability f yur idea Can it prvide sustainable cash flw Is it ging t be prfitable What kind f financing will yu need, can yu pay it back Recgnize the barriers t yur success Make better decisins Anticipate issues and prblems befre they ccur The prcess f gathering infrmatin ahead f time will allw yu t make mre infrmed decisins Yur plan will prvide yu with an rganized apprach t face issues A Business Plan is like having a map. Withut a map yu can still get by in yur travels, but yu can appreciate hw much easier it is, when yu knw where yu are ging nce yu hld ne in yur hand. -- A. Mirkvic, PstIdea.cm Guide & Measurement Tl The Business Plan will act as guide thrughut yur develpment and allw yu measure yur prgress against planned expectatins. Yu can make adjustments accrdingly. Financial Selling Tl The Business Plan is the dcument ultimately needed t sell yur venture as an investment pprtunity t ptential investrs and partners (see and t yur wn suppliers, and emplyees. 4

5 Checklist fr cmpleting the wrkbk exercises: Cnsider yur audience, wh are yu writing the plan fr; View Samples f business plans if yu can, t get an idea f the type f structure yu will need t create, (see appendix 1); Prepare a timeline (hw much time yu will cmmit t the prject and the cmpletin date) Define the ptential audience fr yu business plan (investrs, suppliers, r emplyees), and what this plan prvides fr them; Gather research n yur industry, n similar businesses, yur particular lcatin, type f business, sectr, market, etc. Organize the research int easily referenced sectins\ Write the plan Prvide a business histry Use clear vcabulary, apprpriate fr yur audience Avid unneeded jargn Nte t stress yur plan is f quality and nt just quantity Be cnfident, it will shw in yur writing style Make a strng case fr yur cmpetency t lead the business (investrs place their mney and cnfidence in YOU t make it happen, nt just investment int an idea) By taking the time t g thrugh the exercises ahead f time, yu will be able t cnfrnt and deal with challenges f creating a successful business plan. In the end yu will write a mre effective business plan and actually cmplete it in less time than if yu just began writing it n yur wn! If yu wuld like dwnlad a financials wrksheet please click here. 5

6 Business Plan Research 1. Intrductin 2. Wrkbk Objectives 3. Business Plan Research 4. Business Plan Outline (Drafts) 5. Actins Befre yu begin writing within the fllwing sectin, Business Plan Outline, make sure that yu have dne sme research. Business Plan Research helps yu make infrmed decisins and create a successful directin fr yur business plan. Gather infrmatin surces Recrd relevant infrmatin Analyze the infrmatin yu have gathered and nte the assciated pprtunities and risks If yu are ging t submit the business plan t investrs, research what types f investment pprtunities are available t yu, why yu need investment (banks, gvernment, pstidea.cm, private equity investrs, etc.) What types f infrmatin t gather: 1. Primary Data Surces: Fcus Grups Questinnaire/Survey Prduct r Service Sampling 2. Secndary Data Surces; Libraries Gvernment industry agencies University publicatins Trade Assciatins Newspapers, Magazines, Peridicals The Internet Industry Directries Ecnmic Develpment Departments Cmpetitrs Financial Statements r annual reprts Etc. 6

7 Business Plan Outline 1. Intrductin 2. Wrkbk Objectives 3. Business Plan Research 4. Business Plan Outline (Drafts) 5. Actins Nte that there are many different types f Business Plan frmats. The layut is dependant upn the type f business, purpse f the plan, readership, etc. Yu may chse t add sme mre sectins t this utline r ignre sme thers, but the basics are listed belw: 1. Executive Summary 2. Cmpany Prfile 3. Business Histry 4. Marketing Plan Industry Trends Prduct/Service Target Market Cmpetitive Analysis Marketing Mix (distributin strategy) 5. Operatinal Plan Manufacturing Insurance (Risk Mgmt) 6. Management Team/Human Resurces 7. Financial Plan Start up csts Cash Flw Statement Incme Statement Balance Sheet Expected Outcme f business peratins 8. Cnclusin/ Actins 9. Appendices The fllwing pages cntain the remainder f the Business Plan Outline sectin f the wrkbk. Be sure t have dne sme research befre beginning the exercises. Simply use pint frm descriptins if yu like. Once yu have gne thrugh all f the sectins f the Outline, yu will be ready t begin yur frmal Business Plan! Let s get started. 7

8 1. Executive Summary: 1. Intrductin 2. Wrkbk Objectives 3. Business Plan Research 4. Business Plan Outline (Drafts) 5. Actins Yu shuld write yur Executive Summary nce yu have cmpleted the entire wrkbk r business plan. It prvides an verview f the entire plan. What is an Executive Summary? The Executive Summary is the ne t tw page intrductin f yur business plan. It describes the pprtunity and prves that any investment in the venture will prvide a gd return. Why is it imprtant: T capture interest and supprt frm the reader Based n the Executive Summary an investr will make up his/her mind whether r nt t read mre abut the pprtunity. Fr a financial wrksheet and pr frma incme and balance sheet statements visit us at: s.htm Answer the questin f what business am I in? (define the cre f the value yu are prviding t a cnsumer) Define the pprtunity fr yu t deliver this value (in ne sentence) Marketing Highlights: Distinctive features f the Prduct/Service Target market Summary Cmpetitive Analysis (define the cmpetitive landscape) Key marketing strategies Operatinal Highlights: Critical legal issues related t yur particular venture Management team verview rles and pertinent skills f each Is it an independent business, franchise, expansin, takever, etc? Wh will be yur majr suppliers, and what are the current r prpsed relatinships with them: Financial Highlights: Summary f financial requirements and prjectins Why yu need financial input Hw yu will use it 8

9 1. Intrductin 2. Wrkbk Objectives 3. Business Plan Research 4. Business Plan Outline (Drafts) 5. Actins What is a Cmpany Prfile: The Cmpany Prfile prvides a snapsht f yur business, and wh is invlved in it. This is an imprtant page fr a perspective investr as he/she can scan the type f business, cmmitment level and invlvement frm this ne page. Why is it imprtant: What is the equity that yu and any partners have invested in the venture? 2. Cmpany Prfile (Draft) Frm f Business: Sle Prprietrship Partnership Crpratin Franchise Owners/ Principals Name f Business What is the start date f the business? Business Operatin (F/T r P/T, perating hurs) Business Descriptin (What is yur prduct r service, & business type) Lcatin It is the fllw up sectin t the Executive Summary, prviding an verall impressin f the business Suppliers and ptential partners are ften interested in this page. Cntact Infrmatin (tel, fax, http address, ) Business Advisrs (Include Lawyers, Accuntants, Cnsultants, etc.) 9

10 Histry f the Business: 1. Intrductin 2. Wrkbk Objectives 3. Business Plan Research 4. Business Plan Outline (Drafts) 5. Actins If the business plan is t be used t supprt the purchase r expansin f an existing business, a histry f the business is required. Include years in existence, current wner, current lcatin, market share, strengths, weaknesses, and financial infrmatin fr the past three t five years (r hwever lng the business has been in peratin. If the business plan is being used t supprt a new business venture, state the requirements f supprt. That is, are yu seeking a partner, a bank lan, a private investment, access t an incubatr, etc., state the reasns why yu are seeking this type f investment and hw an investment in yur firm will benefit this particular type f investr r partner. 10

11 Marketing Plan A. Industry Overview B. Prduct/Service C. Target Market 3. Marketing Plan A. Industry Overview Many issues nt necessarily within the cntrl f yur business must be addressed. These can either psitively r negatively directly affect the yur sales. Nte any trends, legislatin r changes within the fllwing categries frm which yur business will ultimately benefit frm: D. Cmpetitive Analysis E. Marketing Mix E.1. Prmtin E.2. Place E.3. Price E.4. Prduct What is the Industry Overview This sectin prvides a synpsis fr the reader abut the industry and general ecnmy that yur business will be perating in. Nte trends, characteristics, etc. frm which yu can later justify pprtunities r risks. Scial Change Technlgical Change Plitical r Legal Change (zning regulatins, new laws, plicies, etc.) Demgraphic Change Ecnmic Change (ecnmic & spending trends, tax, interest rates, etc) Envirnmental Change (raw material availability, pllutin, weather, etc) Cnsider the trends and hw they relate t yur venture. What are the key success factrs f yur business, which will allw yu t benefit frm these trends? What are the barriers t entry fr this industry? Is the size f the industry large r small? Are the csts t enter the market high r lw? Is it based n technlgical advantage r supplier relatinships? 11

12 Marketing Plan A. Industry Overview B. Prduct/Service C. Target Market D. Cmpetitive Analysis E. Marketing Mix E.1. Prmtin E.2. Place E.3. Price E.4. Prduct What this sectin describes: This sectin describes the features and benefits f the prduct r service that yu are selling. It defines the prduct functin, hw it will be used, what is the new feature that it brings t market, etc. Nte that this is yur initial definitin f yur prduct/service, and mst likely this will evlve, as des yur business. S be sure t capture the cre f what yu are ffering and keep the descriptin clear and cncise. Stress the uniqueness f yur prduct. This is the feature that differentiates yur prduct. That is, the advantage that yur prduct has ver the cmpetitin. B. Prduct/Service What are yur prduct r service s unique characteristics? Are there any cmplimentary prducts/services that yur prduct is dependant upn? What are they if any? What are the value added features t the end user? Hw is yur prduct/service psitined against the cmpetitin? What are yu ding differently frm what is n the market currently? Hw has this prduct/service r a similar prduct perfrmed in the market? Prvide further descriptins f the prduct/service (Pictures, specificatins, diagrams, cmplimentary features t related prducts/services, functinality descriptin, design cmpnents, etc.) 12

13 Marketing Plan A. Industry Overview B. Prduct/Service C. Target Market D. Cmpetitive Analysis E. Marketing Mix E.1. Prmtin E.2. Place E.3. Price E.4. Prduct C. Target Market Cnsumer Demgraphics: Age Range Incme Range Gender Marital Status Dependants Occupatin Lcatin Average purchase value ($) Frequency f purchase ($) /per mnth ($) /per year Cnsumer Psychgraphics Lifestyle Descriptin (general pints) What need in their lifestyle des yur prduct fill? Why is the target market infrmatin imprtant? This is the grup f peple r businesses that is willing t pay fr yur prducts/businesses. Knwing yur target market prfile helps yu make critical decisins frm marketing, as well as fr yur cash flw prjectins, recgnizing hw many peple are willing t purchase yur gds/services. What are the majr influencers n their chice t purchase? Are there any demgraphic r market shifts ccurring? Is this market declining, grwing r steady? What is the size f this target market? Hw much f this market can yu capture within 6 mnths? % Hw much f this market can yu capture within 5 years? % Are there any secndary target markets that will have a need filled by yur prduct r service? If yes, what are the characteristics f that target market? 13

14 D. Cmpetitive Analysis Marketing Plan A. Industry Overview B. Prduct/Service Direct Cmpetitrs: Hurs f Operatin Years in Business Prduct/Service Descriptin C. Target Market D. Cmpetitive Analysis Custmer Prfile E. Marketing Mix E.1. Prmtin E.2. Place E.3. Price E.4. Prduct Where d the cmpetitrs custmer purchase the prducts (nline, thrugh distributrs, retail, direct frm manufacturer, etc.) Pricing Marketing/Advertising Strengths/Weaknesses (Why d custmers buy frm them? Why wuld they switch pssibly?) Why a Cmpetitive Analysis is imprtant? This sectin highlights the cmpetitive landscape fr yur business, identifies strengths & weaknesses f cmpetitrs and prvides insight int the price, market and differentiatin pints. It can prvide yu with an verview f why yur strngest cmpetitrs have been successful and identify infrmatin n the market such as general likes & dislikes Opprtunities fr yur Business given this cmpetitive landscape What have yu learned frm their peratins? Indirect Cmpetitrs: Make a list f yur indirect cmpetitrs. What are their characteristics? Why wuld their custmers chse t switch t purchasing yur prducts r services? Recgnize that yu als have Indirect cmpetitrs, althugh they are nt prviding the same service, they are cmpeting fr the same cnsumer s dllars. 14

15 Marketing Plan A. Industry Overview B. Prduct/Service C. Target Market D. Cmpetitive Analysis E. Marketing Mix E.1. Prmtin E.2. Place E.3. Price E.4. Prduct E. Marketing Mix Nte that the basic purpse f the marketing mix is t take the custmer t the prcess f: Awareness => Trial => Adptin => Retentin Thus, in yur prmtin strategy, yu need decide what the intent is fr each f yur ptins, hw much mney t dedicate t it, and what the intended utcme yu are expecting. That is, are yur effrts targeted t build awareness, r t encurage trial, etc. E.1 Prmtinal Strategy Fr each f the ptential prmtin channels listed belw create a table t cnsider: Csts versus effectiveness Subscriptin and distributin Target Market Prfile Distributin cverage Distributin frequency Type f distributin used within the channel Is this the right ne fr me? Ptential Prmtin Channels: Yes N What is the Prmtinal Strategy: This is the methd yu chse t cmmunicate with yur target market. The prmtinal strategy plays an integral rle in the awareness, trial and adptin rates f yur prduct r service. It is a critical link in the verall marketing strategy. As well it will have a direct impact n cash flw, s timing and planning are crucial. Keep this in mind when yu are making jtting ntes fr this sectin. Affiliate Prgrams (nline) Banner Advertising (nline) Business Cards Billbards Cntests C-p Advertising Cupns Crss-prmtin with cmplimentary prducts Crss-merchandising Direct Mail Flyers Giveaways Magazines Persnal Selling Radi Spnsrship f related events Televisin Trade magazines Yellw Pages 15

16 E.2. Place (Distributin strategy) Marketing Plan Hw are yu ging t get yur prduct r service t yur custmer. What is the lcatin f yur business: A. Industry Overview B. Prduct/Service Why have yu chsen this lcatin? C. Target Market What are the marketing advantages f this lcatin: D. Cmpetitive Analysis E. Marketing Mix E.1. Prmtin E.2. Place E.3. Price E.4. Prduct Distributin advantages (if any): What are the csts assciated with this lcatin: What are the ptential traffic flws frm this lcatin: What des Place cver? This sectin describes hw and where yu will sell yur prducts/service. Yu shuld shwcase any market research yu have cnducted t add credibility t yur claims in this sectin. Yu can have as many distributin channels as yu like, simply make sure t detail each ne. Nte: Yu shuld match yur distributin channels t the buying patterns f yur target market. -- Eg. If yur target market is mst likely t purchase sftware frm a stre just as sn as purchasing it nline, yu shuld describe the distributin apprach fr retail sales as well as nline initiatives and the related csts, and advantages. Where else can yur prduct r service be purchased: Online Retail Thrugh distributrs Bundled with ther prducts/services Direct (phne sales, cntract sales, trade shws, etc.) Other Be sure t nte the effects n service quality, prmtin, and timing with all f yur abve suggested distributin methds and lcatins. What are the assciated csts with each: What are the marketing advantages f each? Are there any ther methds f distributin yu currently have r will use in the future? 16

17 End f Preview. G t: Fr the full versin (which als includes examples t help yu alng the way) 17

18 Actins Idea Business Plan Wrkbk Frmal Business Plan Review Funding (PstIdea.cm) Fr Business Plan Reviews visit s.htm Fr Prfessinal writing services r full business plan templates visit us at es.htm Fr access t immediate funding visit Frmat yur business plan with great narrative with the Bplan Creatr Cngratulatins! Yu have wrked thrugh and itemized sme f the general cnsideratins fr yur business. Yu have prbably cnfrnted sme issues that have drawn attentin t weaknesses as well as highlighted sme pprtunities by ging thrugh this exercise. Nw that yu have yur ntes in hand and strnger understanding f hw t rganize and craft a business plan, yu can mve nt creating yur frmal business plan! Althugh yu are well equipped t begin building yur wn business plan, there are still ther resurces t help yu bring yur business t reality with greater success. T help yu in yur entrepreneurial endeavrs we wuld like t suggest sme f the fllwing ptins: 1. Visit t have a prfessinally written business plan. Simply prvide them with yur cmpleted wrkbk answers, and give them the g ahead t create a plished business plan t knck the scks right ff f an investr and increase yur chances fr funding. 2. Create yur business plan and have it reviewed by prfessinal cnsultants. Yu will receive a cmplete review within a week f the date submitted. The review will prvide feedback and suggestins n hw t mre effectively cmmunicate yur venture and set ptential investment hunters n fire with interest. Gain an advantage, get insight, and get yur business started immediately. Cntact review@bplanresurces.cm fr mre infrmatin. 3. Pst yur business plan at Find the best surce f funding fr yur venture! Yu can use sftware and templates frm this site t create yur frmal plan and pst it within their marketplace, and attract hundreds f active ptential partners and investrs. Yur plan will attract investrs interested t wrk with inspired entrepreneurs like yu, and t grw business. ============================= Gd Luck and Best Wishes fr success. the Business Plan Chef 18

19 19 The Business Plan Wrkbk