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The Business Plan
Steps to Your New Business
Develop Business Concept Test the Concept in the Market Create a Business Plan
Objectives
Define a business plan and the role it plays in starting a new business
List, and describe parts of a business plan
Step 3: The Business Plan
Document that describes a new
business
Why a Business Plan?
To obtain financing
To serve as a guide for the business
To provide a start-up “blueprint”
Convey your vision for the company
What is “vision”?
The main concept you have for your business
Keep it broad for changing times
Don’t confuse with a “mission”:--an achievable goal
Parts of The Business Plan
Executive Summary Product Plan Management Team Plan Industry/Market Analysis Operational Plan Organizational Plan Marketing Plan Financial Plan Growth Plan
Executive Summary
Brief recounting of the key points
No longer than 2 pages
Read first by lenders
Product Plan
Product offered
Unique product features
Additional products (spin-offs) that may come later
Management Team Plan
Qualifications of you and partners
How to solve missing expertise problems
Advisory Board
Industry/Market Analysis
Presents findings of your research
Customers
Competition
Industry
Prospective geographic, economic and demographic data
Operational Plan
Process that takes place to get the product to the customer
Product development status
Distribution Channel(s): direct or indirect
Organizational Plan
“People” aspect of business
Management philosophy
Legal form of company
Key management personnel
Key employment policies
Marketing Plan
Target market Pricing policy Company image Marketing strategies Promotion plan Marketing budget
Financial Plan
Forecasts for future of the business
Financial Statement form
Shows business will be financial healthy
Growth Plan
How business will expand in future
New products
New markets
Greater profits
Creating The Business Plan
1. Gathering data
2. Organizing your data
3. Setting up a notebook
4. Writing a draft
Sources of information Small Business Administration
www.sba.org Service Corps of Retired Executive
(SCORE) – see SBA website Small Business Development Centers
colleges and universities Chambers of Commerce Trade Associations
Presentation of Business Plan
Cover Page to include:-name of the company-the works “Business Plan”-name of the contact person-address and phone number of company
Table of Contents and Headings Supporting Documents Use color and design as appropriate
