Most books and templates for building a business plan are overwhelming in the information they need. Learn to filter down to the necessary planning items you need to run your business, a practical business plan that you will use.

1. Sigma Free
Presents…
Creating a Practical Business Plan
Sponsored by:
Vantage Economics
Provided by Sigma College of Small Business, Inc.

2. Sponsored by:
Agenda
• Introductions
• Keynote Topic
– Creating a Practical Business Plan
• Vantage Economics
– Economic analysis for the tough decisions
• Break – Refreshments and Networking
– Compliments of Regina at Coffee and Cake Café
• Keynote Conclusion
– Creating a Practical Business Plan
– Questions and answers
Creating a Practical Business Plan
Copyright 2009 Sigma College of Small Business, Inc. 2

3. Sponsored by:
Survey Question One
• Which answer best describes how YOU decided to
go into business?
– I had a product or skill and decided to build a market for it.
– I saw a specific need in the market and built a product or
skill to fill the need
– I bought into a business where there was already a defined
market and product/services.
– The whole thing was thrust upon me!
– Other _____________________________________
Creating a Practical Business Plan
3
Copyright 2009 Sigma College of Small Business, Inc.

4. Sponsored by:
Product, Need and Value
The Core Planning Process
Product Value
Match
Market How Much Can or
Need Needs to be Made
Creating a Practical Business Plan 4
Copyright 2009 Sigma College of Small Business, Inc.

5. Sponsored by:
Execution
The Essential Element
Product Value
Execution:
Specific Actions
Match
for
Desired
Outcomes
Market How Much Can or
Need Needs to be Made
Creating a Practical Business Plan 5
Copyright 2009 Sigma College of Small Business, Inc.

6. Sponsored by:
Survey Question Two
• Choose the answer that BEST matches your
company's business plan.
– I use my written business plan daily in the operation of my
business.
– We review and update parts of our written plan periodically
as a guide to planning decisions
– We have a plan that we hire someone to update every year
or so.
– I have one somewhere that we did a few years ago.
– Business Plan? ‐ It's all up here baby!
– Other __________________________________________
Creating a Practical Business Plan
6
Copyright 2009 Sigma College of Small Business, Inc.

7. Sponsored by:
Types of Business Plans
Business Management Plans
• Used to run the business
• Communicates business
Investor Plans decisions to managers
• Communicate business • Process for guiding business
concept to others decisions
• Primarily to raise capital – Consolidates information
– Debt or Equity – Facilitates decision making
– Find Partners – Decision history and reasoning
– Execution
• Selling “The Business” • Links actions to
– Not necessarily the desired
product outcomes
Get Money vs. Make Money
7

8. Sponsored by:
The Practical Business Plan
Core Elements
Market Opportunity
Match Product to Need
Budget
Opportunity Value and Cost
Marketing and Sales
Method for Exchanging Product
for Cash
Creating a Practical Business Plan 8
Copyright 2009 Sigma College of Small Business, Inc.

9. Sponsored by:
Market Opportunity
• Gap in the Market
– The specific need or desire
– Potential buyers and users
– Reason for Gap
• Product Definition
– Basic description
– How it fills the gap
• Match Product and Need with Value
– Describe how the match will create value in the
market
Creating a Practical Business Plan
9
Copyright 2009 Sigma College of Small Business, Inc.

10. Sponsored by:
Budget
• Revenue
– Market Potential Approach
– Break Even Approach
• Expenses
– Cost to build
– Cost to market, sell and
manage
• Cash Flow
• Profitability
Creating a Practical Business Plan
10
Copyright 2009 Sigma College of Small Business, Inc.

11. Sigma Free
Presents…
Creating a Practical Business Plan
Sponsored by:
Vantage Economics
Provided by Sigma College of Small Business, Inc.

12. Sponsored by:
Marketing and Sales
• Packaging
– Sizes, combinations, service levels
• Price
– Strategy for pricing the product portfolio
• Message
– Key points to communicate for each product and
segment
– Show value and differentiate
• Promotion and Communication
– Methods and media for communicating the
message
– Includes advertising, discounts, promotion events,
etc…
• Sales and delivery
Creating a Practical Business Plan
12
Copyright 2009 Sigma College of Small Business, Inc.

13. Sponsored by:
Building on the Business Plan
Core Elements
Market Opportunity
Operations Detail
Business Strategy Match Product to Need
Procedures
Vision ‐ New Opportunities Organization
Mission Budget and Forecast HR Plan
Objectives Opportunity and Cost Development
Legal Structure ‐ Financial Plan Facilities
Marketing and Sales
Method for Exchanging
Product for Cash
‐ Marketing Plan
Creating a Practical Business Plan 13
Copyright 2009 Sigma College of Small Business, Inc.

14. Investment Sponsored by:
2009 Planning for the Small Business
14
Owner

15. Sponsored by:
Sigma College of Small Business
Critical Business
• Business Management Education Areas
• Transition from Owner to CEO Business Planning
– Equip business owners to Marketing and Sales
grow their business Accounting and
Finance
– Make sure the owner isn’t
Operations and
limiting the opportunity Quality
Leadership and
Administration
Technology and
Innovation
15
Dedicated to the Learning Needs of Small Business!

16. Sigma Free
Presents…
Creating a Practical Business Plan
Sponsored by:
Vantage Economics
Provided by Sigma College of Small Business, Inc.