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Business Plan, funding, lending, executive summary, marketing strategies, marketing plan, financial summaries, mission, vision, market analysis, sales plan, pricing, operations, management, …

Business Plan, 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, mba4help.com

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  • Time and money are the most important resources in your business. Leveraging these resources wisely is one of the most important aspects of maximizing profit in your business.By creating a professional business plan you will learn how to best use your time and money.When you know your direction, you can set goals and create plans toachieve those goals.
  • A business plan is any plan that works for a business to look ahead, allocate resources, focus on key points, and prepare for problems and opportunities.You are going to get a 360 degree view of your business – what’s right with it and what needs workYou will take that feedback and decide what the Critical Issues facingyour business You will establish Decision Making Criteria to help you and others make sound decisions about your businessYou will create a plan for the next year and create action plans to make it happen In this process you will gain a clearer perspective on your business and you will feel empowered! Because you will know exactly where you are going and exactly what it will take to get there.
  • Just as a builder uses a blueprint to ensure that a building will be strong, the process of creating and writing a blueprint for your business -- called a business plan - will help you determine whether your business will be strong from the start. W/O a business plan, you leave far too many things to chance. Business owners who want to borrow money or attract investors will be successful only if they have well-written, well-researched business plans. All of your potential lenders or investors will want to understand as much as possible about how your business will work before deciding whether to back it financially.
  • What kind of business, product or service , what business structure , How you going to reach your goals , do you have the experience or expertiseWhat is your market, local or international, younger or baby boomers, Spanish or EnglishHow much will be initial cost , inventories , rent, insurance, machinery, equipment, break even point , It is the best opportunity cost for the investment, how to maximize profits, it is the right locationAn important part of your business strategy is to design or prepare an exit strategy for your business since you don’t want to run it till you die and definite your stakeholders want to know about it.
  • How you get the money to start your business . Most of the time you will need a business plan to achieve your funding to open or expand your business.Life time savings Borrow money from friends and familyLoan money from the banks using a business plan Ask money to Angel investors –need to be able to pay higher interest rate or share management control
  • Lenders want to know about your knowledge and experience to run your business , financial records for the last few years and forecast for the future.Lenders want to know how they going to get pay back, Income statement , cash flow and balance sheet. Credit history Any mayor change in policies , business direction , change in managements and any other loans. Lenders want to know is the collateral have the right value to cover the investment (deposit, inventory, equipment, real state, others)
  • What make you better, different or unique from the competition (new product, better service, more experience, better location, know politicBigger market for your product and service ( national better than local) Key employees experience in the field related to the business and their networkMost present a well done and define business and marketing plan and strategies in how to get there.The business plan most show high ROI, cash flow, and your long term plan for the business (selling, going public, adding or consolidating)
  • Include everything that you would cover in a five-minute interview.1.Explain the fundamentals of the proposed business: What will your product be? Who will your customers be? Who are the owners? What do you think the future holds for your business and your industry?2. Mission Statement, Company Goals and Objectives, Business Philosophy, Niche, Strengths, key to success and Legal form of ownership3. Describe in depth your products or services , competitive advantages or disadvantages, What are the pricing, fee for product or service4. Describe your industry. Is it a growth industry? What changes do you foresee in the industry, short term and long term?5. What is the total size of your market?-What percent share of the market will you have? (This is important only if you think you will be a major factor in the market.)-Current demand in target market.-Trends in target market—growth trends, trends in consumer preferences, and trends in product development.-Growth potential and opportunity for a business of your size.-What barriers to entry do you face in entering this market with your new company? 6. What products and companies will compete with you?List your major competitors:(Names and addresses)Will they compete with you across the board, or just for certain products, certain customers, or in certain locations?Will you have important indirect competitors? (For example, video rental stores compete with theaters, although they are different types of businesses.)How will your products or services compare with the competition?
  • 1Now that you have systematically analyzed your industry, your product, your customers, and the competition, you should have a clear picture of where your company fits into the world.2No matter how good your product and your service, the venture cannot succeed without effective marketing and sales plan. 3. Your marketing strategy involves target market focus, internet marketing , social media and seo to position your SMB.Sales close the deals that marketing opens. Sales strategies deals with how and when. Close sale prospects, compensate sales people, optimize order processing and changes in price, delivery and conditions.4.For SMB a great and cost effective marketing program ,will includes internet marketing, social media marketing and SEO5. For some business R/D are very significant part of their cost and operations for the nature of their business (laboratories)6.Operation s includes building , employees, operating budget , distributions ,process and other
  • List of manager and job responsibilities, employees, position , salary and benefits Involves human resource, employees and staffing forecast for next 5 years.3. Summary of your financial plan; how fast the business expected to growth, how you will finance this growth, Exit strategy4.Statement of cash flow, Income statement and Balance sheet 6.Appendices- Aditional pertinent info. like testimonials and others
  • Highlights the most important points of your business plan
  • Describe the market potential and market trends.for the company’s products and services
  • Vision -"What do we do?“"For whom do we do it?“"How do we excel?"
  • Primary market if you selling drug may be baby boomer need same drugs for life. Secondary may be the occasional/seasonal sickness.
  • The product breadth is the variety of product lines offered by a retailer.
  • It is the customersneed satisfy by product or service or they have to travel or buy on internet some place else.
  • Base in the cost of product or serviceProfit margins base in different level of volumeHow much value your product add to the buyerHow much your competitor is selling the same or similar product
  • Direct selling is the marketing and selling products directly to consumers away from a fixed retail locationSales Representatives demonstrate their products and advise clients on how using these products can reduce costs and/or increase revenue
  • Investors will definitely expect you to explain your exit scenarios, both for them and for you. In other words, investors want to see what happens next with your business, once it is launched, once it is a success, once they have made a profit.Reiterate how investors will be able to take their profits, how long they will have to wait from the time they invest with the company, and how they will receive their profits.
  • Supporting documents used to enhance your business proposal.
  • Primary market research is research that you conduct yourself, rather than information that you find already published Customer surveys

Transcript

  • 1. Business Plan Jose Cintron, MBA-CPC Business/Accounting Professor Josecintron.mba@gmail.com (954) 374-8298
  • 2. www.mba4help.com Why a Business Plan? If you don't know where you're going any road will take you there
  • 3. www.mba4help.com Why a Business Plan? to look ahead allocate resources focus on key points prepare for problems and opportunities Take business to next level
  • 4. www.mba4help.com No Business Plan = Russian Roulette
  • 5. www.mba4help.com Why a Business Plan? Strategic Guide Lenders- borrow money Investors-partnership
  • 6. www.mba4help.com 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. www.mba4help.com Funding Sources $$$ Savings-401k Refinance Friends and Family Financial Institutions Angel Investors
  • 8. www.mba4help.com Lender Expectations Good Business Track Ability to Repay Staying Power Collateral
  • 9. www.mba4help.com Investors Expect More! Competitive Advantage Huge Market Strong Management Team Strong Marketing and Sales Plan and strategies High ROI and Exit Strategy
  • 10. www.mba4help.com What is in a Business Plan? Executive Summary Company Description Product / Services Industry Overview Market Analysis Competitors
  • 11. www.mba4help.com What is in a Business Plan? Customers Marketing & Sale Plan Marketing Strategies Marketing Program Research & Development Operations
  • 12. www.mba4help.com What is in a Business Plan? Management Personnel Financial Financial Summary
  • 13. www.mba4help.com Executive Summary A mini-business plan on one/two pages Highlights the most important points … It is NOT an introduction to the plan It must grab your reader’s attention
  • 14. www.mba4help.com Executive Summary Identify the company, its background and structure Describe what the company does, and the market it serves Describe the market potential and market trends. Competitive Advantage
  • 15. www.mba4help.com Executive Summary Outline the backgrounds and experience of the top management team Describe the funding $ required, the purposes, collateral available and the expected outcomes
  • 16. www.mba4help.com Company Description2 Brief Company Introduction – Mission statement – Location, size, history – Market and products – Overview of company – Start up $$$ – Objectives
  • 17. www.mba4help.com 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. www.mba4help.com Products or Services Products / Services – What does it do? – Uniqueness – Competitive Advantage Technology – Brief description – Applications
  • 19. www.mba4help.com Industry Overview Legislation and Policies Driving the Industry Historical-Future Trends Industry Definition and Description Major players-industry
  • 20. www.mba4help.com Market Analysis Market Definition – Primary Market – Secondary Markets Market Size and Trends – Current total revenues – Predicted annual growth rate
  • 21. www.mba4help.com Competitors Direct Competitors – Who are they? – Size and product breadth – Revenues and profitability – Strengths and weaknesses – Market shares Indirect Competitors
  • 22. www.mba4help.com 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. www.mba4help.com Marketing Strategies Product or Service Strategy Pricing Strategy Distribution Strategy Advertising and Promotion Push and pull strategy Sales Strategy Marketing and Sales Forecasts
  • 24. www.mba4help.com Clientele reaching your Business
  • 25. www.mba4help.com Interruption Marketing DOES NOT WORK (Low ROI) Outbound Marketing is out • Telemarketing • Trade shows • Direct mail • Print ads TV/radio ads
  • 26. www.mba4help.com Marketing and Sales Plans: Marketing Program Conventional marketing Internet Marketing Social Media Marketing Website and SEO Networking /PR Email campaign Marketing Budget
  • 27. www.mba4help.com Marketing and Sales Plans: Pricing (4) Basis for targeted price (cost analysis) Margins and profitability by volume levels Add value Competitors
  • 28. www.mba4help.com 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. www.mba4help.com Research & Development Research & Development Plan – Objectives – Milestones and current status – Difficulties and risks – R & D Budget
  • 30. www.mba4help.com Operations: Manufacturing/Production Plan Objectives Facilities Staffing Subcontractors Quality Control Budget / Operating Expenses
  • 31. www.mba4help.com Management Company Organization Management Team Administrative Expenses
  • 32. www.mba4help.com Management Team President VP Finance VP Sales VP Marketing VP Manufacturing General Manager
  • 33. www.mba4help.com Personnel Human Resource Plan – Staffing Objectives – Organizational Structure – 3-5 year growth plan – Budget
  • 34. www.mba4help.com Summary of Financials Financial Objectives – Time to Cash Flow Positive (milestone) – Time to profitability Capital Requirements Repayment Exit Scenario
  • 35. www.mba4help.com 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. www.mba4help.com Financials Pro-forma Cash Flow Pro-forma Profit & Loss Statements Pro-forma Balance Sheet Break Even Point Business Ratios Method of Repayment
  • 37. www.mba4help.com Appendices Resumes of Key Photographs Patent Information Customer List Testimonials References
  • 38. www.mba4help.com 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. www.mba4help.com Conclusion With Business Plan NO Business Plan!