Writing a Winning Business Plan Workshop Presented by: Mark Engle, DirectorMCCD Small Business Development Center 2400 N. Central Avenue, #104 Phoenix, AZ 85004 480-784-0590
Before We Get Started• Introductions of Site SBDC staff• Questions can be posed through moderators• www.maricopasbdc.com• Plan and Workbook
Why Do A Business Plan? • Failure to Plan is like Planning for Failure • Roadmap to chart path to success • Goals lead to success • Decision making tool
Why Do A Business Plan? • Educate and Motivate Others • Failure to Plan is like planning to fail • Forces you to think it through • Avoid costly mistakes!
Who Is The Plan For?• For a banker• For an investor• For an insurance policy• For employees & family• For YOU!
Authorship Issues• Neat, typed & free of errors• YOU need to do the plan• Not too slick or polished• Not too long
Authorship Issues• Avoid the “trust me” or too many generalizations• Use facts & figures to make points• SBA Guideline for what to have for an SBA loan
Authorship Issues• Protecting the Confidentiality of Your plan• Non-disclosure statements• Loaning vs. giving
What Do Lenders Want? • What is your background? Years in industry, experience factors • Answer the lenders questions: • What you will use funds for (schedule if possible), source of repayment (show in projection), collateral (schedule if possible), your equity (sources & uses schedule), and backup repayment plans
What Do Investors Want? • Must believe in you, first and foremost • Answer the investors questions: • How soon can you buy them out? What is the potential for future deals? What will you do if things don’t turn out as expected?
The Physical Plan • 3-ring Binder for your plan • Not too fat for the banker or investor • Use your plan as a tool, to evaluate progress over time • Name, address, phone #’s, email, website all on the front.
The Business Plan EXECUTIVE SUMMARY • Write last • Concept/mission statement • Summary statements and results
The Industry Analysis• The Name and information• The Industry• The Company• Products and/or services
The Marketing Strategy• Market research• Who is your customer?• Competitive Analysis• Market evaluation & trends
The Marketing Plan• Show marketing objectives and goals – overall strategy• Pricing strategies• Sales tactics• Advertising & other methods• Service & warranty issues• Show timelines & Budget
Critical Risks & Problems• Shows forethought and planning• Murphy’s Law• Product improvement and new products• Costs of improvements or startup costs
The Financial Plan• The financial history is shown – three years financials• A projection for three to five years of: – Balance sheet – Profit and Loss – Cash Flow – Ratios – Breakeven & other analysis
The Financial Plan• Show “reasonable” assumptions• For financing or investors, show them: – Need for financing – Use of funds – Sources & Uses Statement – Collateral? – Repayment – Debt coverage ratio – Breakeven analysis
The Financial Projections SBDC Excel Workbook • Either on your own or with our help • Download from www.maricopasbdc.com go to Free Downloads section and save to hard drive (before loading)
Where do we go from here• Getting “hopping” on the plan• Do like the Nike slogan “Just Do It”• Using other organizations resources – SBDC – SCORE – Accountant/Attorney/Banker – Employees/Associates
Building Your WinningBusiness Plan Workshop Presented by: Mark Engle, DirectorMaricopa Community Colleges Small Business Development Center 2400 N. Central Avenue, #104 Phoenix, AZ 85004 480-784-0590 www.maricopaSBDC.comSatellite locations – Paradise Valley, Scottsdale, Mesa, Chandler, Avondale, Glendale, Surprise & Online!