Develop a Business Plan Chapter #5. Why do you need a Business Plan Business Plan –Written...
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Transcript of Develop a Business Plan Chapter #5. Why do you need a Business Plan Business Plan –Written...
![Page 1: Develop a Business Plan Chapter #5. Why do you need a Business Plan Business Plan –Written document that describes all the steps necessary in opening.](https://reader034.fdocuments.us/reader034/viewer/2022051622/5697c0231a28abf838cd3f00/html5/thumbnails/1.jpg)
Develop a Business Plan
Chapter #5
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Why do you need a Business Plan
Business Plan –Written document that describes all the steps necessary in opening and operating a successful business◦Describes what your business will produce, how
it will produce it and who will buy your product or service.
◦Explains who will run the business and who will supply it.
◦States how your business will win over customers
◦Provides detailed financial information
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Purpose of a business Plan
① Explains the idea behind your business② Sets specific objectives and describes
how your business expects to achieve them
③ Describes the background and experience of people running it.
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Importance of a Business Plan
Makes you think about all aspects of your business
May help you secure fundingHelps you communicate your ideas to
others.Can serve as a tool for managing your
business.
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Seven Basic Elements of a Business Plan
① History and Background Idea② Goals and Objectives for your company③ Product or Services you will offer④ Form of Ownership⑤ Management and Staffing⑥ Marketing⑦ Current and Projected Financial
statements
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History and Background
How you can up with the idea◦Demand in the area?◦Invention you make?◦Area not being serviced?◦Suggestion from others?◦Prior experiences?
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Goals and Objectives
Plan should outline your short, medium and long term goals.
Vision for the future of your company
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Products or Services
What is your product or service?How are you different from other in the
market?◦This section should include the following:
INDUSTRY – Potential Growth, Economic Trends, Technology, Industry Forecasts
LOCATION – What town – what type of community, talk about people in community and need for your product.
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Form of Ownership
Are you running the business alone?Who is your partnerHow many shareholders will you have?
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Management and Staffing
How is your company organized?What is the education of your
management staff?What is the set up of your company?
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Marketing
Items to cover◦Performance◦Quality◦Price◦Promotion◦Reliability◦Distribution◦Public Image or Reputation
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Current or Projected Financial Statement
Three Elements① Identification of Risks② Financial Statements③ Funding request and return on
Investment
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Additional Elements
What is special about your business and what is a lender going to need to know?
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Create an Effective Business Plan
Your plan needs to convince readers you have a great idea and plan
Most entrepreneurs spend 50 – 100 hours on developing their business plan.
You have to think about every part of the business.
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Research
Print Resources◦Books on writing a business plan◦Books on coming up with ideas◦Trade Magazines◦Government documents (SBA)
Online Resources◦WWW.SBA.ORG◦Magazines online◦Google searches
People Resources◦SCORE Service Corps or Retired Executives◦Small Business Development Centers
Additional Resources◦Trade Associations◦Chamber of Commerce
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Put Your Business Plan Together
Typed, Standard formatIntroductory Elements
Cover LetterTitle PageTable of ContentsStatement of PurposeExecutive Summary
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Cover Letter
Business Letter Format◦Your Name◦Business Name◦Address◦Phone◦Describe business and its potential for success◦How much capital is needed
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Title Page
Name of CompanyDateOwner of CompanyTitle of OwnerAddressPhone
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Table of Contents
Listing of all materials included in the plan and the page number they are on.
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Statement of Purpose
Describes why you are asking for a loan and what you plan to do with the money if you receive it.
One to two paragraphs
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Executive Summary
Should capture the interest of the reader.No longer than one to two pagesShould summarize all the parts of a
business plan.
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Main Body of Your Plan
Should be well laid out and easy to followUse simple languageCharts and graphs help illustrate points
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Appendix
End of the business plan Supporting documentation not part of
your plan is placed here◦Charts◦Surveys◦Tax Returns◦Legal Documents
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Who is a Business Plan Written for?What are the elements of a Business Plan?Why do you need a business plan?How can a well do plan help a business?
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Check List for a Business Plan