How To Write A Business Plan


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How to Write a Business Plan

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How To Write A Business Plan

  1. 1. How to Write a Business Plan Jackie Rouse, MHA Principal, GFG Consulting 06/08/09 GFG Consulting
  2. 2. Introductions <ul><li>Name? </li></ul><ul><li>Type of Business? </li></ul><ul><li>What do you hope to gain? </li></ul>06/08/09 GFG Consulting
  3. 3. <ul><li>Course Objectives </li></ul><ul><ul><li>Learn the basic components of a business plan </li></ul></ul><ul><ul><li>Identify a structure for your plan </li></ul></ul><ul><ul><li>Learn the importance of researching </li></ul></ul><ul><ul><li>Identify your target market </li></ul></ul><ul><ul><li>Know how of financial analysis </li></ul></ul><ul><ul><li>Resources for your business </li></ul></ul><ul><ul><li>Getting outside help </li></ul></ul>How to Write a Business Plan 06/08/09 GFG Consulting
  4. 4. How to Write a Business Plan <ul><li>Two Main Purposes </li></ul><ul><ul><li>To serve as a guide during the life of your business </li></ul></ul><ul><ul><ul><li>Blueprint for your business </li></ul></ul></ul><ul><ul><ul><li>Keeps you on track </li></ul></ul></ul><ul><ul><li>Required if you are planning to seek loan funds </li></ul></ul><ul><ul><ul><li>Provides lenders with detailed information </li></ul></ul></ul><ul><ul><ul><li>All aspects of your company’s past and current operations </li></ul></ul></ul><ul><ul><ul><li>Future projections </li></ul></ul></ul>06/08/09 GFG Consulting
  5. 5. Business Plan Basics <ul><li>Cover Page </li></ul><ul><li>Table of Contents </li></ul><ul><li>Executive Summary </li></ul><ul><li>Business Description (10) </li></ul><ul><li>Marketing Analysis / Plan (9) </li></ul><ul><li>Financial Analysis / Plan (8) </li></ul><ul><li>Supporting Documents / Appendices (6-8) </li></ul>06/08/09 GFG Consulting
  6. 6. The Business <ul><li>Legal Structure </li></ul><ul><li>Business Description </li></ul><ul><li>Products & Services </li></ul><ul><li>Location </li></ul><ul><li>Management & Personnel </li></ul><ul><li>Methods of Record Keeping </li></ul><ul><li>Insurance </li></ul><ul><li>Security </li></ul><ul><li>Summary </li></ul>06/08/09 GFG Consulting
  7. 7. The Business <ul><li>Legal Structure </li></ul><ul><ul><li>Sole Proprietor, General Partnership, Limited Partnership, Limited Liability Partnership (LLP), Limited Liability Corporation (LLC), C- Corporation, S-Corporation </li></ul></ul><ul><ul><li>Resource Link– http// (State of Illinois Business Portal) </li></ul></ul>06/08/09 GFG Consulting
  8. 8. Products and Services <ul><li>Briefly describe the product or service, the user problems it solves, and the audience for which it is intended. </li></ul><ul><li>Outline different models available. </li></ul><ul><li>Group features in logical categories </li></ul><ul><li>Be sure to state the user benefit of each feature. </li></ul>06/08/09 GFG Consulting
  9. 9. Products and Services <ul><li>Discuss how the product or service can be used by different groups, giving real user examples where possible. </li></ul><ul><li>For products, give relevant technical specifications </li></ul><ul><li>For services, detail the terms and conditions under which the service is offered. </li></ul>06/08/09 GFG Consulting
  10. 10. Marketing <ul><li>Target Market </li></ul><ul><li>Competition </li></ul><ul><li>Methods of Distribution </li></ul><ul><li>Advertising </li></ul><ul><li>Pricing </li></ul><ul><li>Product Design </li></ul><ul><li>Timing of Market Entry </li></ul><ul><li>Location </li></ul><ul><li>Industry Trends </li></ul>06/08/09 GFG Consulting
  11. 11. Market Summary <ul><li>Market: past, present, & future </li></ul><ul><ul><li>Review changes in market share, leadership, players, market shifts, costs, pricing, competition </li></ul></ul>06/08/09 GFG Consulting Early Adopters/ Pioneers Mass Market/ Followers End of Life Time Number of customers
  12. 12. Competition <ul><li>The competitive landscape </li></ul><ul><ul><li>Provide an overview of product competitors, their strengths and weaknesses </li></ul></ul><ul><ul><li>Position each competitor’s product against new product </li></ul></ul>06/08/09 GFG Consulting A B C D Performance Price
  13. 13. Class Exercise <ul><li>30 Minutes to complete assignments / 20 minutes for presentation </li></ul><ul><li>Each person will answer questions on Business Questionnaire and share with your partner </li></ul><ul><li>Provide questions and suggestions </li></ul><ul><li>Decide on which business you and your partner will highlight to the class </li></ul><ul><li>Provide presentation to class </li></ul>06/08/09 GFG Consulting
  14. 14. Positioning <ul><li>Positioning of product or service </li></ul><ul><ul><li>Statement that distinctly defines the product in its market and against its competition over time </li></ul></ul><ul><li>Consumer promise </li></ul><ul><ul><li>Statement summarizing the benefit of the product or service to the consumer </li></ul></ul>06/08/09 GFG Consulting
  15. 15. Packaging & Fulfillment <ul><li>Product packaging </li></ul><ul><ul><li>Discuss form-factor, pricing, look, strategy </li></ul></ul><ul><ul><li>Discuss fulfillment issues for items not shipped directly with product </li></ul></ul><ul><li>COGs </li></ul><ul><ul><li>Summarize Cost of Goods and high-level Bill of Materials </li></ul></ul>06/08/09 GFG Consulting
  16. 16. Launch Strategies <ul><li>Launch plan </li></ul><ul><ul><li>If product is being announced </li></ul></ul><ul><li>Promotion budget </li></ul><ul><ul><li>Supply back up material with detailed budget information for review </li></ul></ul>06/08/09 GFG Consulting Jan Feb Mar Apr May Jun July Sep Oct Nov Dec Phase 1 Phase 2 Phase 3
  17. 17. Public Relations <ul><li>Strategy & execution </li></ul><ul><ul><li>PR strategies </li></ul></ul><ul><ul><li>PR plan highlights </li></ul></ul><ul><ul><li>Have backup PR plan including editorial calendars, speaking engagements, conference schedules, etc. </li></ul></ul>06/08/09 GFG Consulting
  18. 18. Advertising <ul><li>Strategy & execution </li></ul><ul><ul><li>Overview of strategy </li></ul></ul><ul><ul><li>Overview of media & timing </li></ul></ul><ul><ul><li>Overview of ad/marketing spending </li></ul></ul>06/08/09 GFG Consulting
  19. 19. Other Promotion <ul><li>Direct marketing </li></ul><ul><ul><li>Overview of strategy, vehicles & timing </li></ul></ul><ul><ul><li>Overview of response targets, goals & budget </li></ul></ul><ul><li>Third-party marketing </li></ul><ul><ul><li>Co-marketing arrangements with other companies </li></ul></ul><ul><li>Marketing programs </li></ul><ul><ul><li>Other promotional programs </li></ul></ul>06/08/09 GFG Consulting
  20. 20. Pricing <ul><li>Pricing </li></ul><ul><ul><li>Summarize specific pricing or pricing strategies </li></ul></ul><ul><ul><li>Compare to similar products </li></ul></ul><ul><li>Policies </li></ul><ul><ul><li>Summarize policy relevant to understanding key pricing issues </li></ul></ul>06/08/09 GFG Consulting
  21. 21. Distribution <ul><li>Distribution strategy </li></ul><ul><li>Channels of distribution </li></ul><ul><ul><li>Summarize channels of distribution </li></ul></ul><ul><li>Distribution by channel </li></ul><ul><ul><li>Show plan of what percent share of distribution will be contributed by each channel -- a pie chart might be helpful </li></ul></ul>06/08/09 GFG Consulting
  22. 22. Success Metrics <ul><li>First year goals </li></ul><ul><li>Additional year goals </li></ul><ul><li>Measures of success/failure </li></ul><ul><li>Requirements for success </li></ul>06/08/09 GFG Consulting
  23. 23. Schedule <ul><li>18-month schedule highlights </li></ul><ul><li>Timing </li></ul><ul><ul><li>Isolate timing dependencies critical to success </li></ul></ul>06/08/09 GFG Consulting Jan Feb Mar Apr May Jun July Sep Oct Nov Dec Task 2 Task 3 Task 4 Task 1 Milestone
  24. 24. Homework <ul><li>Due on following class day </li></ul><ul><li>Complete the Business Questionnaire to best of your knowledge for your intended business </li></ul><ul><li>Answer questions on the document (these sections will be added to your plan) </li></ul>06/08/09 GFG Consulting
  25. 25. Questions? Jackie Rouse, MHA Principal, GFG Consulting Business 773-967-3453 Cellular 773-495-7144 06/08/09 GFG Consulting
  26. 26. How to Write a Business Plan Day 2 Jackie Rouse, MHA Principal, GFG Consulting 06/08/09 GFG Consulting
  27. 27. Homework Review <ul><li>Review homework results </li></ul><ul><li>How much did you learn about your business? </li></ul><ul><li>Were you surprised of how much work is involved with researching your business </li></ul><ul><li>Do you have an understanding of level of work it will take to operate your business? </li></ul><ul><li>What questions do you have? </li></ul>06/08/09 GFG Consulting
  28. 28. Financial Plan <ul><li>Summary of Financial Needs </li></ul><ul><li>Sources and Uses of Funds Statement </li></ul><ul><li>Cash Flow Statement (Budget) </li></ul><ul><li>Three Year Income Projection </li></ul><ul><li>Break-even Analysis </li></ul><ul><li>Actual Performance Statements </li></ul><ul><li>Balance Sheet </li></ul><ul><li>Summary </li></ul>06/08/09 GFG Consulting
  29. 29. Income 06/08/09 GFG Consulting Net Revenues Net Income Earnings / Share
  30. 30. Revenue by Division 06/08/09 GFG Consulting
  31. 31. Balance Sheet 06/08/09 GFG Consulting 1999 2000 <ul><li>Assets </li></ul><ul><ul><li>Cash and short-term investments </li></ul></ul><ul><ul><li>Accounts receivable </li></ul></ul><ul><ul><li>Inventories </li></ul></ul><ul><ul><li>Other </li></ul></ul>$x,xxx xxx xxx xxx $x,xxx xxx xxx xxx Total Assets $x,xxx $x,xxx <ul><li>Liabilities </li></ul><ul><ul><li>Accounts payable </li></ul></ul><ul><ul><li>Accrued compensation </li></ul></ul><ul><ul><li>Income taxes payable </li></ul></ul><ul><ul><li>Other </li></ul></ul>$x,xxx xxx xxx xxx $x,xxx xxx xxx xxx Total Liabilities $x,xxx $x,xxx Shareholder’s Equity $x,xxx $x,xxx
  32. 32. Assets 06/08/09 GFG Consulting
  33. 33. Resource Requirements <ul><li>Technology requirements </li></ul><ul><li>Personnel requirements </li></ul><ul><li>Resource requirements </li></ul><ul><ul><li>Financial, distribution, promotion, etc. </li></ul></ul><ul><li>External requirements </li></ul><ul><ul><li>Products/services/technology required to be purchased outside company </li></ul></ul>06/08/09 GFG Consulting
  34. 34. Risks & Rewards <ul><li>Risks </li></ul><ul><ul><li>Summarize risks of proposed project </li></ul></ul><ul><li>Addressing risk </li></ul><ul><ul><li>Summarize how risks will be addressed </li></ul></ul><ul><li>Rewards </li></ul><ul><ul><li>Estimate expected pay-off, particularly if seeking funding </li></ul></ul>06/08/09 GFG Consulting
  35. 35. Supporting Documents <ul><li>Personal Resumes </li></ul><ul><li>Personal Financial Statement </li></ul><ul><li>Credit Reports </li></ul><ul><li>Copies of Leases </li></ul><ul><li>Letters of Reference </li></ul><ul><li>Contracts </li></ul><ul><li>Legal Documents </li></ul>06/08/09 GFG Consulting
  36. 36. Business Resources <ul><li>SCORE – Senior Corps of Retired Entrepreneurs or </li></ul><ul><li>www.Business.Illinois.Gov </li></ul><ul><li>Illinois Entrepreneurship Network </li></ul><ul><li>US Small Business Administration </li></ul><ul><li>Business and Community Support Services - </li></ul>06/08/09 GFG Consulting
  37. 37. Questions? Jackie Rouse, MHA Principal, GFG Consulting Business 773-967-3453 Cellular 773-495-7144 06/08/09 GFG Consulting