Business Plan, strategic guide, funding, lending, executive summary, marketing strategies, marketing plan, financial summaries, mission, vision, market analysis, sales plan, pricing, operations, management, financials, jose cintron, advance business consulting, mba4help.com

1. Business Plan
Jose Cintron, MBA-CPC
Business/Accounting Professor
Josecintron.mba@gmail.com
(954) 374-8298

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Why a Business Plan?
If you don't know where you're going
any road will take you there

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Why a Business Plan?
to look ahead
allocate resources
focus on key points
prepare for problems
and opportunities
Take business to next
level

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No Business Plan =
Russian Roulette

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Why a Business Plan?
Strategic Guide
Lenders- borrow money
Investors-partnership

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Strategic Guide
Where Do You Want To Go?
How You Get There?
What is your Market?
What is your Niche?
How Much $ Cost?
Greatest Profit opportunity!
What Exit Strategy?

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Funding Sources $$$
Savings-401k
Refinance
Friends and Family
Financial Institutions
Angel Investors

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Lender Expectations
Good Business Track
Ability to Repay
Staying Power
Collateral

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Investors Expect More!
Competitive Advantage
Huge Market
Strong Management Team
Strong Marketing and Sales
Plan and strategies
High ROI and Exit Strategy

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What is in a Business Plan?
Executive Summary
Company Description
Product / Services
Industry Overview
Market Analysis
Competitors

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What is in a Business Plan?
Customers
Marketing & Sale Plan
Marketing Strategies
Marketing Program
Research & Development
Operations

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What is in a Business Plan?
Management
Personnel
Financial
Financial Summary

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Executive Summary
A mini-business plan on
one/two pages
Highlights the most
important points …
It is NOT an introduction
to the plan
It must grab your
reader’s attention

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Executive Summary
Identify the company, its
background and structure
Describe what the company
does, and the market it serves
Describe the market potential
and market trends.
Competitive Advantage

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Executive Summary
Outline the backgrounds
and experience of the top
management team
Describe the funding $
required, the purposes,
collateral available and
the expected outcomes

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Company Description2
Brief Company
Introduction
– Mission statement
– Location, size, history
– Market and products
– Overview of company
– Start up $$$
– Objectives

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Example
Vision statement
Avon: To be the company
that best understands and
satisfies the product,
service and self-fulfillment
needs of women - globally.
Mission statement
Google's mission is to
organize the world's
information and make it
universally accessible and
useful

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Products or Services
Products / Services
– What does it do?
– Uniqueness
– Competitive Advantage
Technology
– Brief description
– Applications

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Industry Overview
Legislation and Policies
Driving the Industry
Historical-Future Trends
Industry Definition and
Description
Major players-industry

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Market Analysis
Market Definition
– Primary Market
– Secondary Markets
Market Size and Trends
– Current total revenues
– Predicted annual growth rate

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Competitors
Direct Competitors
– Who are they?
– Size and product breadth
– Revenues and
profitability
– Strengths and
weaknesses
– Market shares
Indirect Competitors

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Customers
Customer Characteristics
– Who are they?
– Why do they buy?
– Customers Need satisfied?
– How is the need currently filled?
– What are the alternatives?
– Who makes the decision to buy?
– How frequently do they buy?

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Marketing Strategies
Product or Service Strategy
Pricing Strategy
Distribution Strategy
Advertising and Promotion
Push and pull strategy
Sales Strategy
Marketing and Sales
Forecasts

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Clientele reaching your
Business

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Interruption Marketing
DOES NOT WORK (Low ROI)
Outbound Marketing is out
• Telemarketing
• Trade shows
• Direct mail
• Print ads
TV/radio ads

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Marketing and Sales Plans:
Marketing Program
Conventional marketing
Internet Marketing
Social Media Marketing
Website and SEO
Networking /PR
Email campaign
Marketing Budget

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Marketing and Sales Plans:
Pricing (4)
Basis for targeted price
(cost analysis)
Margins and profitability
by volume levels
Add value
Competitors

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Marketing and Sales Plans:
Sales Plan
Sales force structure –
(direct or reps)
Sales expectations/quotas
Margins given to
intermediaries
Service and warranties
Sales Budget

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Research & Development
Research &
Development Plan
– Objectives
– Milestones and
current status
– Difficulties and risks
– R & D Budget

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Operations:
Manufacturing/Production Plan
Objectives
Facilities
Staffing
Subcontractors
Quality Control
Budget / Operating
Expenses

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Management
Company Organization
Management Team
Administrative Expenses

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Management Team
President
VP Finance
VP Sales
VP Marketing
VP Manufacturing
General Manager

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Personnel
Human Resource Plan
– Staffing Objectives
– Organizational
Structure
– 3-5 year growth plan
– Budget

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Summary of Financials
Financial Objectives
– Time to Cash Flow
Positive (milestone)
– Time to profitability
Capital Requirements
Repayment
Exit Scenario

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BEP and Contribution Margin
Fixed Cost- $10,000(Rent, insurance, manager, interest…)
Variable cost- $800/ea (Hourly, commission, inventory…)
Sales are $1,000 per unit
$1,000-$800=$200 Contribution Margin
$10,000/$200=50 Units to BEP Fixed Cost/Contribution Margin.
$10,000+5.000=$15,000/200=75 units to make a $5,000 profits.

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Financials
Pro-forma Cash Flow
Pro-forma Profit & Loss
Statements
Pro-forma Balance Sheet
Break Even Point
Business Ratios
Method of Repayment

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Appendices
Resumes of Key
Photographs
Patent Information
Customer List
Testimonials
References

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Market Research for your
Business Plan
Primary market Research
– Existing customers
– Potential customers
Your competition
Software
Equipment
Niche
Strategies
Secondary Market Research
Trade associations*
Government information
– Federal, state and local government reports
– Small Business Administration – SBA
– Small Business Development Center – SBDC
– U.S. Bureau of Census
Chambers of Commerce
Market research firms ($$$$$$$)

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Conclusion
With Business Plan NO Business Plan!