Business plan


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Business Plan, strategic guide, funding, lending, executive summary, marketing strategies, marketing plan, financial summaries, mission, vision, market analysis, sales plan, pricing, operations, management, financials, jose cintron, advance business consulting,

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Business plan

  1. 1. Business Plan Jose Cintron, MBA-CPC Business/Accounting Professor (954) 374-8298
  2. 2. Why a Business Plan? If you don't know where you're going any road will take you there
  3. 3. Why a Business Plan? to look ahead allocate resources focus on key points prepare for problems and opportunities Take business to next level
  4. 4. No Business Plan = Russian Roulette
  5. 5. Why a Business Plan? Strategic Guide Lenders- borrow money Investors-partnership
  6. 6. Strategic Guide Where Do You Want To Go? How You Get There? What is your Market? What is your Niche? How Much $ Cost? Greatest Profit opportunity! What Exit Strategy?
  7. 7. Funding Sources $$$ Savings-401k Refinance Friends and Family Financial Institutions Angel Investors
  8. 8. Lender Expectations Good Business Track Ability to Repay Staying Power Collateral
  9. 9. Investors Expect More! Competitive Advantage Huge Market Strong Management Team Strong Marketing and Sales Plan and strategies High ROI and Exit Strategy
  10. 10. What is in a Business Plan? Executive Summary Company Description Product / Services Industry Overview Market Analysis Competitors
  11. 11. What is in a Business Plan? Customers Marketing & Sale Plan Marketing Strategies Marketing Program Research & Development Operations
  12. 12. What is in a Business Plan? Management Personnel Financial Financial Summary
  13. 13. Executive Summary A mini-business plan on one/two pages Highlights the most important points … It is NOT an introduction to the plan It must grab your reader’s attention
  14. 14. Executive Summary Identify the company, its background and structure Describe what the company does, and the market it serves Describe the market potential and market trends. Competitive Advantage
  15. 15. Executive Summary Outline the backgrounds and experience of the top management team Describe the funding $ required, the purposes, collateral available and the expected outcomes
  16. 16. Company Description2 Brief Company Introduction – Mission statement – Location, size, history – Market and products – Overview of company – Start up $$$ – Objectives
  17. 17. Example Vision statement Avon: To be the company that best understands and satisfies the product, service and self-fulfillment needs of women - globally. Mission statement Google's mission is to organize the world's information and make it universally accessible and useful
  18. 18. Products or Services Products / Services – What does it do? – Uniqueness – Competitive Advantage Technology – Brief description – Applications
  19. 19. Industry Overview Legislation and Policies Driving the Industry Historical-Future Trends Industry Definition and Description Major players-industry
  20. 20. Market Analysis Market Definition – Primary Market – Secondary Markets Market Size and Trends – Current total revenues – Predicted annual growth rate
  21. 21. Competitors Direct Competitors – Who are they? – Size and product breadth – Revenues and profitability – Strengths and weaknesses – Market shares Indirect Competitors
  22. 22. Customers Customer Characteristics – Who are they? – Why do they buy? – Customers Need satisfied? – How is the need currently filled? – What are the alternatives? – Who makes the decision to buy? – How frequently do they buy?
  23. 23. Marketing Strategies Product or Service Strategy Pricing Strategy Distribution Strategy Advertising and Promotion Push and pull strategy Sales Strategy Marketing and Sales Forecasts
  24. 24. Clientele reaching your Business
  25. 25. Interruption Marketing DOES NOT WORK (Low ROI) Outbound Marketing is out • Telemarketing • Trade shows • Direct mail • Print ads TV/radio ads
  26. 26. Marketing and Sales Plans: Marketing Program Conventional marketing Internet Marketing Social Media Marketing Website and SEO Networking /PR Email campaign Marketing Budget
  27. 27. Marketing and Sales Plans: Pricing (4) Basis for targeted price (cost analysis) Margins and profitability by volume levels Add value Competitors
  28. 28. Marketing and Sales Plans: Sales Plan Sales force structure – (direct or reps) Sales expectations/quotas Margins given to intermediaries Service and warranties Sales Budget
  29. 29. Research & Development Research & Development Plan – Objectives – Milestones and current status – Difficulties and risks – R & D Budget
  30. 30. Operations: Manufacturing/Production Plan Objectives Facilities Staffing Subcontractors Quality Control Budget / Operating Expenses
  31. 31. Management Company Organization Management Team Administrative Expenses
  32. 32. Management Team President VP Finance VP Sales VP Marketing VP Manufacturing General Manager
  33. 33. Personnel Human Resource Plan – Staffing Objectives – Organizational Structure – 3-5 year growth plan – Budget
  34. 34. Summary of Financials Financial Objectives – Time to Cash Flow Positive (milestone) – Time to profitability Capital Requirements Repayment Exit Scenario
  35. 35. BEP and Contribution Margin Fixed Cost- $10,000(Rent, insurance, manager, interest…) Variable cost- $800/ea (Hourly, commission, inventory…) Sales are $1,000 per unit $1,000-$800=$200 Contribution Margin $10,000/$200=50 Units to BEP Fixed Cost/Contribution Margin. $10,000+5.000=$15,000/200=75 units to make a $5,000 profits.
  36. 36. Financials Pro-forma Cash Flow Pro-forma Profit & Loss Statements Pro-forma Balance Sheet Break Even Point Business Ratios Method of Repayment
  37. 37. Appendices Resumes of Key Photographs Patent Information Customer List Testimonials References
  38. 38. Market Research for your Business Plan Primary market Research – Existing customers – Potential customers Your competition Software Equipment Niche Strategies Secondary Market Research Trade associations* Government information – Federal, state and local government reports – Small Business Administration – SBA – Small Business Development Center – SBDC – U.S. Bureau of Census Chambers of Commerce Market research firms ($$$$$$$)
  39. 39. Conclusion With Business Plan NO Business Plan!