A business plan acts as a roadmap for establishing and developing new businesses by outlining where the business currently stands, where the owners want it to go, and the route to get there. An effective business plan typically includes sections on the company description, products/services, marketing plan, operations, management, finances, and appendices. While some successful companies have minimal or no business plans, it is generally not advisable to forego a thorough plan unless independently wealthy due to the risks. Constant revision of a business plan as it is created can hinder its full development.
8. Cover Page Table of Contents Executive Summary General Company Description Products and Services Marketing Plan Operational Plan Management and Organization Personal Financial Statement Startup Expenses and Capitalization Financial Plan Appendices
10. A business plan illustrates: where the owners currently are where the business currently stands where the owners and the business want to be Also serves as a safety net between the now, the future, for the times when the road gets bumpy.
11. Are there companies that have been successful with a minimal business plan or none at all? Yes What's the catch? These companies either had an idea that changed the world or were really lucky. Is it worth the risk? Not unless you are independently wealthy.
13. Cover Page Important contact information should be placed here. Legal business name Owners Addresses Telephone number Email Address
14. Table of Contents A table of contents serves as a reference for quickly identifying and finding portions of business plan. All portions of the business plan should be listed.
16. General Company Description Mission statement Company goals and objectives Business philosophy Brief description of products and the market Short description of the industry Legal form of ownership
17. Products and Services Describe the products or services that the business will provide. Highlight competitive advantages/disadvantages. Briefly describe how products or services will be priced.
18. Marketing Plan Conduct intense market research Economics – market size, demand, trends, growth potential, barriers to entry? Describe the features and benefits of the major products or services. Who are my customers? Identify your company’s strengths and weaknesses. Do the same for the competition.
19. Marketing Plan (Continued…) Identify your company’s market niche. Strategize: Promotion Pricing Location Distributing Sales Forecast – create two forecasts: a realistic guess (what you expect) and a worst case scenario.
20. Operational Plan Production Inventory Suppliers Location Legal Employees
21. Management and Organization Organizational chart Professional support Board of directors, attorney, accountant, insurance agent, mentors, etc. Employees
23. Startup Expenses and Capitalization Research and illustrate startup expenses. Research – talk to others who have started similar businesses Research – read books, get statistics and properly interpret them Research some more! Always overestimate. You don’t want to be short in the midst of launching a new business! How is ownership divided?
24. Financial Plan 12-month profit and loss projection Future profit projection Projected Cash Flow Businesses have to pay bills or be forced to close their doors! Opening Day Balance Sheet – shows assets and debts (liabilities) Break-Even Analysis – the minimum about of sales needed to cover operating costs.
25. Appendices Include in-depth studies for your business plan: Blueprints Photos Equipment need/owned Assets available as collateral for a loan Brochures and advertising materials
27. Yes! Now we need to customize your business plan. How do you intend to raise capital? Bankers or Investors?
28. Revisions Why not revise while creating the plan? This only seeks to hinder your judgment and slow you down. By constantly altering parts you are hurting full development of other sections. Remember that every part is equally important.
29. Executive Summary Explains the fundamentals of the business. This is your best opportunity to make the sale to the banker or investor. Therefore, an executive summary ought to be concise, professional, and enthusiastic!
30. References Michaels, Nancy. “Entrepreneurship—An Alternate Career Choice.” Reading Room. 17 March 2003. SCORE. 4 March 2008. U.S. Small Business Administration. “Plan Your Business.” Small Business Planner. 12 February 2008. SBA. 3 March 2008. <http://www.sba.gov/smallbusinessplanner/plan/index.html> SCORE. “Business Plan for a Startup Business.” Business Tools. 3 March 2008. < http://www.score.org/business_toolbox.html> + Bill Harkell – Tampa SCORE advisor (Local)
31. Resources U.S. Small Business Administration – www.sba.gov SCORE “Counselors to America’s Small Business” – www.score.org Entrepreneur.com – www.entrepreneur.com Trend Magazine – www.floridasmallbusiness.com USF Libraries – www.lib.usf.edu
32. Lorenzo Orlando Caum Entrepreneur, marketer, and more… http://lorenzocaum.com hello@lorenzocaum.com Connect with me