Small Business Management BUS 402 Creating a Solid Financial Plan.
Creating Your Business Plan
-
Upload
lady-bizness-inc -
Category
Business
-
view
235 -
download
0
description
Transcript of Creating Your Business Plan
Powered by Lady Bizness
Welcome to How to Write a Business Plan
• Please Silence or Mute Cell Phones
• Please Ask Questions• Please complete
registration forms• Introduce Yourself
Powered by Lady Bizness
A business plan is also a road map that provides directions so a
business can plan its future and helps it avoid bumps in the road.
The time you spend making your business plan thorough and accurate, and keeping it up-to-date, is an investment that pays big
dividends in the long term.
What is a Business Plan?
Powered by Lady Bizness
Reasons People
• Inadequate Starting Capital•Lack of Sufficient Knowledge of Marketplace•Underestimated Competition•Poor Management•Inadequate Management - 98% of Failures•Poor Quality Product or Service•Unrealistic Pricing
Powered by Lady Bizness
Why Do You Need a Business Plan
Powered by Lady Bizness
Getting Started
Powered by Lady Bizness
•Write to Sell Yourself on
the Business
•May Save You Grief and
Expense
•May Show You Another
Alternative
•First Plan Is the Toughest
Plan Benefits
Powered by Lady Bizness
1Assessing the Idea
•What Would a Lender or Investor Want to
Know About - Owner, Business,
Community?
•When Circles Converge There Is Synergy
for a Good Business Idea
•Planning Process Starts
with Goals Both Business
& Personal
Phase
Powered by Lady Bizness
2Initial Research
•Libraries•Chambers of Commerce•Government Agencies•Other Businesses• Trade Associations & SBC• Internet•Demographics of Marketplace•Occupancy Statistics for Area, Industry•Industry Trends•Start Up Expenses, Projections & Location• License, Tax Certificate, Zoning,
Insurance• Competition
Phase
Powered by Lady Bizness
3Decisions
•Legal Structure•Management Team•Collateral and Equity•Source of Funds•Operation•Schedule•Theme•Services Being Offered
Phase
Powered by Lady Bizness
4Writing the Plan
•Statement of Purpose / Executive Summary•Description of the Business / History•Market Information and Strategy•Competition•Management and Personnel
Phase
Powered by Lady Bizness
Other Pointers•Anticipate Questions
•Limit Access to Your Plan
•Get Feedback from Others
•Share Plan with Employees and Others
•Make Sure That It Is Dynamic / Updated Often
•A Business Plan is a road map for the business,
a road map for success. It says where you are,
where you want to go, and how you’re going to
get there.
Powered by Lady Bizness
Executive Summary •Company profile•Nature of product/service offered•Size and growth trend of market•Make-up and background of management team•Financing requirements•Key projections (sales, gross profit, net • income)•Proposed use of funds•Proposed exit strategy and ROI
Powered by Lady Bizness
Business Description•Mission Statement•History behind idea or current business•Company’s current or proposed legal form•Proposed entry strategy and time line of events•Description of initial product/ service•Competitive advantages•Product research and development
Powered by Lady Bizness
Market Analysis Objective to convince reader of explosive market opportunity:•Description of industry•Targeted markets•Marketing research•Competition•Barrier (or ease) of entry
Powered by Lady Bizness
Management Team The strength of management is key to decision to fund or invest. Entrepreneur and team can make the venture successful:
•Background and primary responsibilities of team members•Organizational structure•Board of directors/ advisors•Ownership
Powered by Lady Bizness
Operations Strategy for implementing the business plan. Use assumptions developed here in the financial sections:
•Marketing Strategy•Production Plan•Personnel•Customer Support•Future research and development plans•Plan to stay technically current
Powered by Lady Bizness
Critical Risks Potential problems that could have a significant affect on the new company:
•External risks•Internal risks•Insurance provisions•Contingency plans
Powered by Lady Bizness
Financial ProjectionsDoes the venture make sense from a financial prospective? Should Address:
•Procurement•Allocation•Return on investment•Cash management•Should include actual performance data if available.
Powered by Lady Bizness
Additionl FinancesFinancial Data• Projected income statement
• 1st year by month• 2nd and 3rd year by quarter
• Balance Sheet• At opening• Projected for end of 1st, 2nd and 3rd years
• Cash Flow• 1st year by month• 2nd and 3rd year by quarter
• Break-even Points
Powered by Lady Bizness
Appendix •Provide supporting documents•Provides more detailed information•Details explaining tax advantages •Copies of patents, trademarks or copyrights•Reviews by independent firms, publications or outside agencies•Letters expressing interest to buy the product or service•Questionnaires used to collect data•Detailed results of marketing studies that support assumptions•Non-compete agreements signed by the management team and key contributors•Resumes of key management team & key technical advisors•Price list of competitors•Promotional brochures or advertisements
Powered by Lady Bizness
Strategic Plan •Honest, objective and critical appraisal of your business as it exists today•Where it is heading in the future•Competitive strengths and weaknesses•Risks and hurdles•Industry Trends•Assessment of the market•Profitability and cash flow requirements•Resource planning and HR issues
Powered by Lady Bizness
Resources •Public Libraries have excellent resources and more importantly people to help you find and gather the information that you need•Small Business Assistance organizations:• GTCC SBC 336.334.5211• SBTDC 336.334.7005• SCORE 336.333.5399• SBA www.SBA.gov• NOLO www.nolo.com
Powered by Lady Bizness
GTCC Small Business Center1451 S. Elm Eugene Street Greensboro, NC 27406
To Request Counseling (free counseling)www.ncsbc.net/center.aspx?center=75230
Mark Hagenbuch – 336.334.4822 x 62003
DarLinda Finch 336.334.4822 x 62001
Powered by Lady Bizness
Share your Show Up & Show Out! Moment of
the Night!Chisa D. Pennix-Brown, MBA
[email protected] Fin me online @LadyBizness