Introduction to Entrepreneurship & What is a Business Plan? MRS. LOGAN
Today’s Agenda • What Will I Do This Year? • Introduc9on to Entrepreneurship • What is a Business Plan?
What Will I Do This Year ? • You will assume the role of a teen-‐based business owner. • The form of business ownership you will assume is that of a sole proprietorship. • A sole proprietorship is a business owned and operated by one person.
Ups and Downs of a Sole Proprietorship Advantages Disadvantages 1. Work long hours 2. Provide the necessary startup money, known as CAPITAL 3. Responsible for money, owed, known as DEBT 4. Dependent on your health and ability to operate
WHAT IS AN ENTREPRENEUR? • An entrepreneur is an amazing person who organizes, operates, and assumes the risk for a business venture. • To start a new business entrepreneurs need a business plan, which we will discuss next.
What is a Business Plan and Why Have One? • A business plan is a series of documents that serves as a blueprint for star9ng a business. • A business plan includes informa9on about – the business – the industry in which it competes – its products and/or services – its customers – its compe9tor, and – its ﬁnances
What is a Business Plan and Why Have One?, cont’d. • Business plans allow owner to break down the process because it can be an overwhelming task. • Business plans indicate 1. current status of the business 2. vision; future goals, and objec9ves 3. a plan to achieve the vision
What is a Business Plan and Why Have One?, cont’d. • The primary func9ons of a business plan are 1. set goals and objec9ves 2. aYract poten9al investors 3. acquire ﬁnancing 4. aYract quality emloyees 5. aYract poten9al new customers
Components of a Business Plan • Cover Page • Funds Required and • Execu9ve Summary Expected Uses • Company Descrip9on • Financial Statements • Descrip9on of • Owner’s Creden9als Products and Services (resume) • Market Analysis • Supplemental • Marke9ng Plan AYachments • Opera9ng Plan
Components of a Business Plan • Cover Page – includes the company name and address informa9on, the author of the business plan, and the date the business plan was prepared.
Components of a Business Plan • Execu9ve Summary – summarizes all the sec9ons of the business plan; it is to capture the aYen9on of the reader.
Components of a Business Plan • Company Descrip9on – sec9on that includes all details about the the business including its age, history, legal form of ownership, industry classiﬁca9on, structure, loca9on, the number of employees, and its primary func9ons.
Components of a Business Plan • Descrip9on of Products and Services – provides detailed informa9on about the products or services that will be oﬀered to customers.
Components of a Business Plan • Market analysis – informs the reader of the condi9ons and trends in an industry including the target market of the business, demographics of the target market, and an analysis of the compe99on. • Marke9ng plan – plans for building and maintaining the customer base, beneﬁts that the customers will have for choosing this business or service over compe9tors, pricing informa9on, and promo9on and adver9sing plan.
Components of a Business Plan • Opera9ng Plan – tell how the business will acquire materials and supplies to how they will be distributed to the customers.
Components of a Business Plan • Schedule of Start-‐up funds Required – shows the detailed plans for the use of any funds needed to start the business.
Components of a Business Plan • Financial Statements – includes a Statement of Proﬁt/Loss, a Balance Sheet, a Statement of Cash Flow • Resume – also known as owner’s creden9als, provides reader with the background and work experience of the owner of the business.
Components of a Business Plan • Supplemental AYachments – Logo and Tagline – Business Cards – Company LeYerhead – Customer Prospect Database – Promo9onal LeYer – Brochure – Newspaper Adver9sement – iMovie (commercial) – Website
5 Characteris9cs of a Good Business Plan • Neat • Organized • Professional • Well-‐wriYen and well-‐designed • Highlight important aspects of the business