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Section 35.1 The Business Plan Chapter 35 developing a business plan Section 35.2 Marketing and Financial Plans

Section 35.1 The Business Plan

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Chapter 35. developing a business plan. Section 35.1 The Business Plan. Section 35.2 Marketing and Financial Plans. The Business Plan. Section 35.1. PREDICT What might happen if a business were established without a plan?. The Business Plan. Section 35.1. - PowerPoint PPT Presentation

Text of Section 35.1 The Business Plan

  • Section 35.1The Business PlanChapter 35developing a business planSection 35.2Marketing and Financial Plans

  • The Business PlanPREDICT What might happen if a business were established without a plan?Section 35.1

  • The Business PlanExplain the purpose and importance of a business plan.Identify external planning considerations.

    Section 35.1

  • The Business PlanA business plan helps an entrepreneur develop goals, determine resources, and identify how the business will operate. A business plan also helps lenders decide to invest in the business.Section 35.1

  • The Business Planbusiness planbusiness philosophytrading areabuying behaviorSection 35.1

  • The Business PlanElements in the First Section of a Business PlanSection 35.1

  • The Business PlanElements in the First Section of a Business PlanSection 35.1

  • The Business PlanDeveloping the Business PlanSection 35.1Main Sections of a Business Planbusiness planA proposal that outlines a strategy to turn a business idea into a reality.Description and AnalysisOrganizational PlanMarketing PlanFinancial Plan

  • The Business PlanDescription and AnalysisSection 35.1Type of BusinessParts of the Description and Analysis Section

  • The Business PlanDescription and AnalysisSection 35.1business philosophyA companys stated beliefs on how its business should be run. Parts of the Description and Analysis SectionBusiness Philosophy

  • The Business PlanDescription and AnalysisSection 35.1Parts of the Description and Analysis SectionProduct and Service Plan

  • The Business PlanDescription and AnalysisSection 35.1Parts of the Description and Analysis SectionSelf-AnalysisEducation and TrainingSpecial StrengthsPlan for Personal Development

  • The Business PlanDescription and AnalysisSection 35.1Parts of the Description and Analysis SectionTrading Area AnalysisGeographic DataDemographic DataEconomic DataCompetitive Analysistrading areaThe geographical area from which a business draws its customers.

  • The Business PlanDescription and AnalysisSection 35.1Parts of the Description and Analysis SectionMarket Segment AnalysisTarget MarketCustomer Buying BehaviorLocation of the BusinessCompeting and Complementary Businessesbuying behaviorThe process that individuals use to decide what they will buy, where they will buy it, and from whom they will buy it. Hours of OperationVisibilityCustomer SafetyCustomer AccessibilityZoning and Other Regulations

  • The Business PlanDescription and AnalysisSection 35.1Provide the Titles for the Four Parts of the Business Plan

  • The Business PlanDescription and AnalysisSection 35.1Provide the Titles for the Four Parts of the Business Plan

  • The Business PlanDescription and AnalysisSection 35.1Think of two small businesses in their community that compete with each other. Determine answers to these questions:How does the business differentiate itself from the competition?How does it keep abreast of the competition?What indirect competition does it face?How does it keep abreast of the competition?

  • The Business PlanDescription and AnalysisSection 35.1Think of two small businesses in their community that compete with each other. Determine answers to these questions:How does the business differentiate itself from the competition?How does it keep abreast of the competition?What indirect competition does it face?How does it keep abreast of the competition?

  • The Business PlanDescription and AnalysisSection 35.1Examples of Each Type of Data

  • The Business PlanDescription and AnalysisSection 35.1Examples of Each Type of Data

  • The Business PlanDescription and AnalysisSection 35.1Parts of the Operational Plan

  • The Business PlanDescription and AnalysisSection 35.1Parts of the Operational Plan

  • The Business PlanDescription and AnalysisSection 35.1Operational Plan for an Athletic Shoe Business

  • The Business PlanDescription and AnalysisSection 35.1Operational Plan for an Athletic Shoe Business

  • The Business PlanList the four major parts of a business plan.Section 35.11.The four major parts of a business plan are description and analysis, organizational plan, marketing plan, and financial plan. Section 35.1

  • The Business PlanExplain why aspiring entrepreneurs should conduct a self-analysis as part of a business plan.Section 35.12.The self-analysis shows the entrepreneurs strengths and weaknesses. It allows him or her to plan ways to acquire the needed skills that are lacking or to improve in certain areas. Plans for continuing personal development show potential lenders and investors your intent to improve on your existing skills and abilities as a business owner.Section 35.1

  • The Business PlanDiscuss why knowledge about disposable income of potential customers is an important part of a business plan.Section 35.13.Disposable income is the personal income remaining from wages after all taxes are taken out. Disposable income is also known as buying income because this is the money consumers have to spend on the products and services offered by businesses.Section 35.1

  • Marketing and Financial PlansPREDICT What do lenders want to see in the organizational, marketing, and financial sections of a business plan?Section 35.2

  • Marketing and Financial PlansExplain a businesss organizational plan.Construct a marketing plan.Describe financing sources for businesses.Identify the financial elements of a business plan.Section 35.2

  • Marketing and Financial PlansThe organizational plan explains to investors how a business will function. The marketing plan explains how it will market its products. The financial plan projects its future profitability.Section 35.2

  • Marketing and Financial Plansjob descriptionorganization chartequity capitaldebt capitalcollateralcredit unionSection 35.2

  • Marketing and Financial PlansSection 35.2Describe the Three Business Plan Components Explained in this Section

  • Marketing and Financial PlansSection 35.2Describe the Three Business Plan Components Explained in this Section

  • Marketing and Financial PlansSection 35.2Organizational Planjob descriptionA written statement listing the requirements of a particular job and the skills needed to fulfill those requirements. Organizational PlanProposed OrganizationEstablishing Your BusinessPersonnel NeedsJob DescriptionsOrganization ChartsOutside ExpertsProposed Product and Serviceorganization chartA diagram of a companys departments and jobs with lines of authority clearly shown.

  • Marketing and Financial PlansSection 35.2Organizational PlanProposed Product and Service

  • Marketing and Financial PlansSection 35.2Organizational PlanProposed Product and Service

  • Marketing and Financial PlansSection 35.2Marketing PlanMarketing PlanPricing PoliciesPromotional Activities

  • Marketing and Financial PlansSection 35.2Financial PlanFinancial PlanEquity CapitalPersonal SavingsPartnersShareholdersDebt CapitalBanksCredit UnionsSupplier and Previous OwnersFinancial Statementsequity capitalMoney raised from within a company or from selling part of an owners share. debt capitalBorrowed funds, from sources such as banks, friends, and suppliers, that must be repaid. credit unionA cooperative association formed by groups of employees to serve as a financial organization and offer lower rates for the benefit of its members.

  • Marketing and Financial PlansSection 35.2Financial PlanSources of Capital

  • Marketing and Financial PlansSection 35.2Financial PlanSources of Capital

  • Marketing and Financial PlansSection 35.2Financial PlanThe Six Cs of CreditCharacterCapabilityCapitalCollateralCoverageConditionscollateralSomething of value that you pledge as payment for a loan in case of default.

  • Marketing and Financial PlansSection 35.2Financial PlanFinancial Statements

  • Marketing and Financial PlansSection 35.2Financial PlanFinancial Statements

  • Marketing and Financial PlansIdentify the three main types of ownership.Section 35.21.The three main types of business ownership structures are sole proprietorships, partnerships, and corporations. Section 35.2

  • Marketing and Financial PlansExplain why personnel needs are identified in a business plan.Section 35.22.Potential investors and lenders need to know that the entrepreneur can identify essential jobs for the business so that it will operate efficiently and successfully.Section 35.2

  • Marketing and Financial PlansName the six Cs of credit.Section 35.23.The six Cs of credit include: character, capability, capital, collateral, coverage, and conditions.Section 35.2

  • End ofSection 35.1The Business PlanChapter 35developing a business planSection 35.2Marketing and Financial Plans