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Writing Your Business Plan - Training Transcript
 

Writing Your Business Plan - Training Transcript

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The idea of owning running a business is exciting and can be very rewarding. However, becoming a successful business owner can also be very challenging. It requires the right mindset, perspective, ...

The idea of owning running a business is exciting and can be very rewarding. However, becoming a successful business owner can also be very challenging. It requires the right mindset, perspective, attitude, traits & know-how.

Our Free Business Training is designed to give you an insight into what it means to own a business and provide you with the basics to get you started off on the path to success.

This compact but complete 10 session program will cover topics from accessing if business ownership is the right path for you, planning, opening your business to growing and expanding.

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    Writing Your Business Plan - Training Transcript Writing Your Business Plan - Training Transcript Document Transcript

    • 1 Writing Your Business Plan Training TranscriptNOTICE: You DO NOT Have the Right to Reprint, Re-Distribute or Resell the Information Herein. YouAlso MAY NOT Give Away, Sell, or Share the Content Herein Without Written ConsentCopyright © Baanabaana Business AgencyALL RIGHTS RESERVED. No part of this material may be reproduced or transmitted in any form whatsoever, electronic,or mechanical, including photocopying, recording, or by any informational storage or retrieval system without expressedwritten, dated and signed permission from the author and/or without proper accreditation.DISCLAIMER AND/OR LEGAL NOTICES: The information presented in this report represents the views of the publisher asof the date of publication. The publisher reserves the rights to alter and update their opinions based on new conditions.This report is for informational purposes only. The author and the publisher do not accept any responsibilities for anyliabilities resulting from the use of this information. While every attempt has been made to verify the informationprovided here, the author and the publisher cannot assume any responsibility for errors, inaccuracies or omissions. Anysimilarities with people or facts are unintentional.AFFILIATE DISCLAIMER: Baanabaana Business Agency may receive compensation from some of the entities listed in thisreport for referrals, as their “thank you” for sending you their way. However, Baanabaana Business Agency neverrecommends any service or product solely for the reason of receiving commissions (and neither should you) –Baanabaana Business knows our reputation is on the line. Free Online Business Training - Week Two - Writing Your Business Plan www.baanabaana.com | Facebook.com/Baanabaana | @Baanabaana | info@baanabaana.com
    • 2(Slide 1)WelcomeHello and welcome to Week Two of our free business training webinar series. Again, my nameis Sirra Ndow and I will be your trainer for the training sessions.Last week we explored what it means to own a business, how suited we were to becoming anentrepreneur, what we envisioned when we think of being our own boss, how to find out whatour options were and how to access and evaluate what would work best for us.(Slide 2)Training OverviewToday we will move on and take our business vision further – Writing Your Business Plan.(Slide 3)Writing Your Business PlanThe areas we will explore in the section are:What Is A Business Plan?Why Write A Business Plan?How Can A Business Plan Be Used?Anatomy Of A Business PlanSteps In Writing A Business PlanWhat To Do / What Not To Do(Slide 4)What Is A Business PlanWikipedia defines a business plan as “…a formal statement of a set of business goals, thereasons they are believed attainable, and the plan for reaching those goals” Free Online Business Training - Week Two - Writing Your Business Plan www.baanabaana.com | Facebook.com/Baanabaana | @Baanabaana | info@baanabaana.com
    • 3andSusan Urquhart Brown, Author of The Accidental Entrepreneur defines it as with a little moredetails as “…a document that precisely defines your business, identifies your businessobjectives, describe your strategies to reach the business objectives, and includes keyfinancials such as balance sheet and a profit and loss statement”Your business plan is quite simply meant to be a road map, a tool to guide you in your journeyto becoming a successful business owner, – from start up to managing to growing yourbusiness.A business plan can be as simple as a one page business plan or it can be extensive anddetailed depending on how you plan to use it.(Slide 5)Why Write A Business Plan?Writing a business plan can be hard. It can also take time and involve quite a bit of effort andcosts so why bother?Going through the process help focus your energy and thinking on defining your goals,objectives and the strategies that you will use to achieve them. The clearer your goals, theeasier it will be to implement the strategies to get you thereThe process will gives you the opportunity to systematically and objectively access your visionWhen you are clear on what needs to be done and to what end, it will be better able toprioritizeEarlier in the year I worked on a business plan that I believed was brilliant. Everything wasgreat for the most part except that when I did the financials; it showed that I will be runningout of cash two years into that business venture if I used the numbers I had so a business plancan identify shortcomings and help avert such consequencesMore information and clarity of purpose simply make for better decision for the most part Free Online Business Training - Week Two - Writing Your Business Plan www.baanabaana.com | Facebook.com/Baanabaana | @Baanabaana | info@baanabaana.com
    • 4Just as a turn-by turn road map to your destination does not mean you will not miss the wayor end up in a ditch, writing a business plan does not guarantee a successful business. Itmakes getting back on track easier and quicker(Slide 6)How Can A Business Plan Be Used?This is an important question to ask and answer before you set out to invest in writing abusiness plan or having one written for you because the end use can make a difference forexample the focus and level of details you will need to include if you are writing a businessplan to present to bankers or investors to get funding will probably be different than if you arewriting a plan simply to track performance.A business plan can be created for an internal audience and as a startup, operational andmanagement tool or put together for an external audience such as lenders and potentialbuyers. There will most likely be more depth, details, and formality for a business planintended to external audiences.The top 4 bullet points on the list are internal audience and the bottom half are considered anexternal audience.(Slide 7)Anatomy Of A Business Plan?While there is no hard or fast rule about the how a business plan should be organized, it is acommon enough document for your audience to expect certain essential elements that ispresented clearly and is professional. In fact, some lenders/investors may have certainrequirements both in terms of content and layout.There are thousands of business plan samples and templates out there. It is good to reviewsome samples out there but remember to focus and refine your plan based on your needs.Keep it simple. Scale your plan based on your needs. Free Online Business Training - Week Two - Writing Your Business Plan www.baanabaana.com | Facebook.com/Baanabaana | @Baanabaana | info@baanabaana.com
    • 5(Slide 8)Title / Cover pageTable of ContentsExecutive SummaryGeneral Company DescriptionMarket AnalysisProducts / ServicesMarketing & Sales PlanOperational PlanManagement & OrganizationFinancial Plan & ProjectionsAppendix(Slide 9)Title PageThe title page identifies your business and should generally include the date of the plan,business and contact information such as business address, telephone number as well.This is a good place to start making yourself stand out with you logo, slogans, company colorsetc.(Slide 10)Table Of ContentsThe reality is that not everyone will read your plan from cover to cover. Each audience will beinterested in specific sections and would want to jump to that specific section. Free Online Business Training - Week Two - Writing Your Business Plan www.baanabaana.com | Facebook.com/Baanabaana | @Baanabaana | info@baanabaana.com
    • 6(Slide 11)Executive SummaryThis section may be the most important part of your business plan. It should give a clear,concise overview of your business concept, written in a professional yet positive andenthusiastic tone to convey your confidence in the opportunity you see and your business’sstrategy for succeed.If you are looking for a loan, be more specific and state how much you need, how the moneywill be used and how you intend to pay it back(Slide 12)General Company DescriptionHelp your audience understand your company. Provide a high level review of the companythrough your mission statement, company objectives i.e why you are in business (which mustbe specific), the qualities, qualifications and experience your bring to the business, products anservices you offer including your Unique Selling Points(Slide 13)Market Research  The general industry you operate / will be operating in - understand the characteristics of the industry within which your business will operate (major players?, trends, challenges)  Your target customers - who are they? your primary or secondary market and the size of it  The Competition. What alternatives does your target market have? – direct competitors (ie those that offer the same product/service as you, those that offer similar products/services etc.  SWOT Analysis – indentify and describe your company’s greatest Strengths and Weakness, the market opportunity and Threats you face /may face Free Online Business Training - Week Two - Writing Your Business Plan www.baanabaana.com | Facebook.com/Baanabaana | @Baanabaana | info@baanabaana.com
    • 7(Slide 14)Product(s) / Service(s)  Your products or services – exactly what are you selling?  Your USP (unique Selling Points) – what makes your product /service stand out from your competitors?  Features & Benefits -  Positioning in market - How will your products or services be packaged to match the expectations of your customers and your business’s position in the marketplace (low, middle or high end)?  Stage – is it just an idea, a prototype or fully fledged product?  Sourcing - your suppliers(Slide 15)Marketing & Sales Plan  Delivery channel – How will your products/services reach your customers? online, brick- and-mortar store front, home deliveries etc  Pricing Strategy - Explain how you set your prices, including information about breakeven, competitors’ pricing. What will be your customer service and credit policies?  Advertising and Promotions - How you will market your product or service – online, offline, affiliate programs?  Sales Forecast – based on sales history or market research and industry data if yours is a new business; take your breakeven point into consideration and when you project that you will first reach breakeven (if yours is a startup business).  List assumptions you used in calculating the numbers. Estimate conservatively so that your sales forecast is not unrealistic. Free Online Business Training - Week Two - Writing Your Business Plan www.baanabaana.com | Facebook.com/Baanabaana | @Baanabaana | info@baanabaana.com
    • 8(Slide 16)Operational & Management PlanDepending on your type of business, the section may include:  Location & Facilities - Where is/will the business be located? How will space be used? Describe the facility, lease, maintenance and improvements  Production, Inventory & Break-Even Point – Detailed description of production process, how many products/services would you need to sell before you break even i.e recover your costs  Equipment & Technology – what equipment and technology will your company use?  Record keeping systems – what systems do you / would you have in place to keep track of information (computerized and paper copies) about customers, suppliers, finances and other essential business records like leases, tax records, legal documents, etc.?  Legal Business Structure – legal business form, ownership agreements etc  Management & Personnel – the role of the people behind the company? Organizational structure; How will your business be managed on a daily basis?  Consultants & Advisors - Who is your accountant or bookkeeper? Who is your attorney? Who are the people you can turn to for advice?(Slide 17)Financial Plan and Projections  Personal Financial Statement – complete statement of owner(s) net worth, credit worthiness, source of investment  Start Up Expenses and Capitalization - List your start up cost with actual or estimated amounts (explain how you estimated). Describe your strategy for capitalizing your business through your own investment and that of others, as well as any loan proceeds you intend to apply for  Cash Flow Projections and Assumptions – At least 12 Month’s worth of Cash Flow Projection, noting assumptions about revenue and expenses. Include loan proceeds and how they will be used and investment and loan proceeds matching your capitalization description. Also include loan repayments in your expenses. Free Online Business Training - Week Two - Writing Your Business Plan www.baanabaana.com | Facebook.com/Baanabaana | @Baanabaana | info@baanabaana.com
    • 9  Loan Requests - name of the lending organization, the amount of the loan request and how the money will be used by the business. What this will accomplish for the business? In what time period? What collateral do you own e.g. real estate, investments, that you offering as a guarantee for the loan?(Slide 18)AppendicesAll relevant supporting documents which may include:  Statistical Analysis  Forecast, Cash Flow Projection, Competitive Analysis sheets and charts  Copies of legal documents and agreements  Marketing material  Key employee resume(s)(Slide 19)Suggestions When Writing Your Business Plan  Be flexible - See you first attempt as a draft that will be subject to revision  Identify deal breakers/killers - factors that can shut down your business  Don’t plan too far out – conditions can chance rapidly  Get a loan for the amount you need but include a cushion for contingencies  Be clear on your key success factors – what are your assumptions?  Test and refine your business model and plan before you expand Free Online Business Training - Week Two - Writing Your Business Plan www.baanabaana.com | Facebook.com/Baanabaana | @Baanabaana | info@baanabaana.com
    • 10(Slide 20)What To Do / What Not To DoDo Don’t  prepare a clear and complete plan  be overly optimistic or pessimistic  present your business plan nicely  underplay weaknesses  conduct a details research  under estimate competitors  ask experts for their advice.  pin your success entirely on your USP  frequently modify your business plan to  try to serve everyone account for changing conditions.(Slide 21)This completes our session today. Many thanks to you all for being here. I sincerely hope youfound this session useful enough to join us again next week to talk about structuring yourbusiness. Please help us improve this training by giving your feedback on the survey we will besending along.Have a great weekend! Free Online Business Training - Week Two - Writing Your Business Plan www.baanabaana.com | Facebook.com/Baanabaana | @Baanabaana | info@baanabaana.com