Download Putting the Pieces Together

Putting the Pieces Together
Developing an Effective Business Plan
Discussion Topics
Starting a Business Venture
 Business Planning
 Parts of a Business Plan
 Resources for Small Businesses
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Becoming an Entrepreneur
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People become entrepreneurs for many
reasons.
Entrepreneurs come from all type of
backgrounds and industries.
There are advantages and disadvantages of
owning your own business.
There are many resources that can help you
identify and develop business opportunities.
Starting a New Venture
• Determine the products or services you
will sell/offer
• Determine what type of business you
will own
 Franchise
 Buy an existing business
 Create a business from ground up
• Create a business plan
Role of Small Business Today
In 2002, there were approximately 22.9
million small businesses in the United
States.
 Small business employ 99.7% of
employers.
 Most small businesses are service
based.
 Women and minority-owned business
are growing at a fast rate.
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Planning to Own a Business
“Begin with the end in mind.”
--Stephen Covey,
The 7 Habits of Highly
Effective People
What is a Business Plan?
A written document that describes
all the steps necessary in opening
and operating a successful
business.
Purpose of Business Plan
Business plan serves three primary purposes:
1. Explains the idea behind your business
and how your product or services will
be produced and sold.
2. Sets specific objectives and describes
how your business expects to achieve
them.
3. Describes the backgrounds and
experience of the people who will be
running the business.
Importance of Business Plan
Makes you think about all aspects of
your business.
 May help you secure financing for your
business.
 Helps communicate your ideas to
others.
 Serve as a tool for managing your
business.
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Sections of a Business Plan
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Business plans should include some basic
information in the following areas:
 Executive
Summary
 History and Background of your idea
 Goals and Objectives
 Product(s) or Service(s) you will offer
 Form of Ownership
 Management and Staffing
 Sales and Marketing Plan
 Financial Plan
Section 1: The Executive Summary
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Usually a one page description of the
business.
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Provides a snapshot or brief overview
of the business plan.
Section 2: History & Background
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Describes how you came up with your
business idea.
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May include your business philosophy
or mission statement.
Section 3: Goals & Objectives
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Your business plan should outline your:
 short-term,
 medium-term,
and
 long-term goals
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Describes your vision of where you
want your company to be in the future.
Section 4: Products & Services
• Describes the industry you will operate
in:
 External
factors affecting your business
 Growth potential of the industry
 Economic trends of the industry
• Describes the location of your business
 Lenders
want to know exactly where your
business will be located because location is
often a critical factor in operating a
successful business.
Section 5: Forms of Ownership
Section 6: Management & Staffing
People who manage your business are
critical to its success.
 This section of the business plan should
show that you and the employees of
your business are highly qualified to
run the business.
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Section 7: Sales & Marketing Plan
• This part of the plan includes the
following:
 Who
are your prospective customers
 How large is the market for your product
or service
 How you plan to enter the market
•
You should list your company’s
advantages over the competition.
Section 8: Financial Plan
Identification of risks associated with
your business.
 Current and projected financial
statements based on projected
revenues and expenses.
 Funding request and return on
investment.
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Resources for Small Business Owners
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Small Business Development Centers
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Chambers of Commerce
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Supports local business owners by hosting training workshops
Small Business Administration (SBA)
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Provide one-on-one assistance in developing a business plan
Governmental agency concerned with helping small U.S. firms
and advocates for small businesses within the U.S. government
Provides financial assistance in the form of loans
Professional Organizations
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Young Entrepreneur’s Organization (www.yeo.org): global nonprofit organization for today’s leading business owners
National Federation of Independent Business (www.nfib.org):
largest advocacy organization representing small and independent
businesses in the US.
Creating an Effective
Business Plan
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Research the Business Plan
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Use printed resources to gather information—
books, magazines, etc.
Access online resources using the internet.
Seek assistance from resources such as Small
Business Development Centers, professional
organizations, etc.
• Put Your Plan Together
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Type your business plan
Include introductory elements such as a cover
letter, table of contents, etc.
Key Points
A business plan is a written document
that describes what your business will
produce/sell and how it will operate.
 Writing a business plan will help you to
think about all aspects of your business
including financing and managing your
business.
 There are many resources to help you
create an effective business plan
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Final Thoughts