Creating Your Business Plan


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Many people want to be business owners, but one of the first things they need is a BUSINESS PLAN! This presentation provides plenty of help with creating your plan no matter what type of business you are interested in starting.

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Creating Your Business Plan

  1. 1. Welcome to How to Write a Business Plan • Please Silence or Mute Cell Phones • Please Ask Questions • Please complete registration forms • Introduce Yourself Powered by Lady Bizness
  2. 2. Powered by Lady Bizness A business plan is also a road map that provides directions so a business can plan its future and helps it avoid bumps in the road. The time you spend making your business plan thorough and accurate, and keeping it up-to-date, is an investment that pays big dividends in the long term. What is a Business Plan?
  3. 3. Powered by Lady Bizness Reasons People • Inadequate Starting Capital • Lack of Sufficient Knowledge of Marketplace • Underestimated Competition • Poor Management • Inadequate Management - 98% of Failures • Poor Quality Product or Service • Unrealistic Pricing
  4. 4. Powered by Lady Bizness Why Do You Need a Business Plan
  5. 5. Powered by Lady Bizness Getting Started
  6. 6. Powered by Lady Bizness •Write to Sell Yourself on the Business •May Save You Grief and Expense •May Show You Another Alternative •First Plan Is the Toughest Plan Benefits
  7. 7. Powered by Lady Bizness Assessing the Idea •What Would a Lender or Investor Want to Know About - Owner, Business, Community? •When Circles Converge There Is Synergy for a Good Business Idea •Planning Process Starts with Goals Both Business & Personal Phase
  8. 8. Powered by Lady Bizness Initial Research •Libraries •Chambers of Commerce •Government Agencies •Other Businesses • Trade Associations & SBC • Internet •Demographics of Marketplace •Occupancy Statistics for Area, Industry •Industry Trends •Start Up Expenses, Projections & Location • License, Tax Certificate, Zoning, Insurance • Competition Phase
  9. 9. Powered by Lady Bizness Decisions •Legal Structure •Management Team •Collateral and Equity •Source of Funds •Operation •Schedule •Theme •Services Being Offered Phase
  10. 10. Powered by Lady Bizness Writing the Plan •Statement of Purpose / Executive Summary •Description of the Business / History •Market Information and Strategy •Competition •Management and Personnel Phase
  11. 11. Powered by Lady Bizness Other Pointers •Anticipate Questions •Limit Access to Your Plan •Get Feedback from Others •Share Plan with Employees and Others •Make Sure That It Is Dynamic / Updated Often •A Business Plan is a road map for the business, a road map for success. It says where you are, where you want to go, and how you’re going to get there.
  12. 12. Powered by Lady Bizness Executive Summary •Company profile •Nature of product/service offered •Size and growth trend of market •Make-up and background of management team •Financing requirements •Key projections (sales, gross profit, net • income) •Proposed use of funds •Proposed exit strategy and ROI
  13. 13. Powered by Lady Bizness Business Description •Mission Statement •History behind idea or current business •Company’s current or proposed legal form •Proposed entry strategy and time line of events •Description of initial product/ service •Competitive advantages •Product research and development
  14. 14. Powered by Lady Bizness Market Analysis Objective to convince reader of explosive market opportunity: •Description of industry •Targeted markets •Marketing research •Competition •Barrier (or ease) of entry
  15. 15. Powered by Lady Bizness Management Team The strength of management is key to decision to fund or invest. Entrepreneur and team can make the venture successful: •Background and primary responsibilities of team members •Organizational structure •Board of directors/ advisors •Ownership
  16. 16. Powered by Lady Bizness Operations Strategy for implementing the business plan. Use assumptions developed here in the financial sections: •Marketing Strategy •Production Plan •Personnel •Customer Support •Future research and development plans •Plan to stay technically current
  17. 17. Powered by Lady Bizness Critical Risks Potential problems that could have a significant affect on the new company: •External risks •Internal risks •Insurance provisions •Contingency plans
  18. 18. Powered by Lady Bizness Financial Projections Does the venture make sense from a financial prospective? Should Address: •Procurement •Allocation •Return on investment •Cash management •Should include actual performance data if available.
  19. 19. Powered by Lady Bizness Additionl Finances Financial Data •Projected income statement •1st year by month •2nd and 3rd year by quarter •Balance Sheet •At opening •Projected for end of 1st, 2nd and 3rd years •Cash Flow •1st year by month •2nd and 3rd year by quarter •Break-even Points
  20. 20. Powered by Lady Bizness Appendix •Provide supporting documents •Provides more detailed information •Details explaining tax advantages •Copies of patents, trademarks or copyrights •Reviews by independent firms, publications or outside agencies •Letters expressing interest to buy the product or service •Questionnaires used to collect data •Detailed results of marketing studies that support assumptions •Non-compete agreements signed by the management team and key contributors •Resumes of key management team & key technical advisors •Price list of competitors •Promotional brochures or advertisements
  21. 21. Powered by Lady Bizness Strategic Plan •Honest, objective and critical appraisal of your business as it exists today •Where it is heading in the future •Competitive strengths and weaknesses •Risks and hurdles •Industry Trends •Assessment of the market •Profitability and cash flow requirements •Resource planning and HR issues
  22. 22. Powered by Lady Bizness Resources •Public Libraries have excellent resources and more importantly people to help you find and gather the information that you need •Small Business Assistance organizations: •GTCC SBC 336.334.5211 •SBTDC 336.334.7005 •SCORE 336.333.5399 •SBA •NOLO
  23. 23. Powered by Lady Bizness GTCC Small Business Center 1451 S. Elm Eugene Street Greensboro, NC 27406 To Request Counseling (free counseling) Mark Hagenbuch – 336.334.4822 x 62003 DarLinda Finch 336.334.4822 x 62001
  24. 24. Powered by Lady Bizness Share your Show Up & Show Out! Moment of the Night! Chisa D. Pennix-Brown, MBA Fin me online @LadyBizness