The document provides an overview of key components to include when creating a business plan, such as an executive summary, company description, products/services, industry analysis, marketing plans, financial projections, and exit strategies. It emphasizes that a business plan serves as a strategic guide for business owners and is important for obtaining funding from lenders and investors. The document outlines the main sections to cover and key information to include in each section, such as market opportunities and trends, competitors, customers, management team, operations, and financial assumptions.

1. Business PlansBusiness Plans
For The Real World
Barry Williams
Delaware SBDC

2. Why a Business Plan?Why a Business Plan?
 Strategic Guide
 Lenders
 Investors

3. Strategic GuideStrategic Guide
 Where Do You Want To Go?
 How Are You Going to Get There?
 What Market Niches?
 How Much is it Going to Cost?
 Greatest Profit Opportunity?

4. Lender ExpectationsLender Expectations
 Good Business Track Record
 Ability to Repay
 Staying Power
 Collateral

5. Investor ExpectationsInvestor Expectations
 Competitive Advantage
 Huge Market
 Strong Management Team
 Strong Marketing and Sales Plan
 Some Skin in the Game
 Obscene Return
 Exit Strategy

6. Entrepreneurs Start Businesses:Entrepreneurs Start Businesses:
 To Capitalize on an Invention
 To Pursue a Passion
 To Be Their Own Boss
 To Get Rich
---All Need an Exit Strategy

7. Exit StrategiesExit Strategies
 Selling the Business
 Transferring the Business to a Family Member
 Taking the Company Public
 Being Acquired by a Larger Company

8. Funding Sources:Funding Sources:
 Savings
 Friends and Family
 Financial Institutions / Banks
 Angel Investors
 Venture Capital

9. Business Plan ContentBusiness Plan Content
 Executive Summary
 Company Description
 Product/Services Description
 Industry Overview
 Market Analysis
 Competitors

10. Business Plan ContentBusiness Plan Content
 Customers
 Marketing and Sales Plans
 Development
 Operations
 Management

11. Business Plan ContentBusiness Plan Content
 Personnel
 Financial Summary
 Financials
 Offering
 Appendices

12. Executive SummaryExecutive Summary
 A mini-business plan in one or two pages
 Highlights the most important points of your
business plan
 It is NOT an introduction to the plan
 It must grab your reader, and entice him/her to
read further

13. Executive SummaryExecutive Summary
 Identify the company, its background, structure
and location
 Describe what the company does, and the market
it serves
 Describe the market potential for the company’s
products and services, market trends, etc.

14. Executive SummaryExecutive Summary
 Outline the backgrounds and experience of the top
management team
 Describe the funding required, the purposes for
which it will be used, the collateral available (if
for a lender), and the expected outcomes

15. Company OverviewCompany Overview
 Brief Company Introduction
– Mission statement
– Location, size, history
– Market and products
– Overview of company capabilities
– Objectives

16. Products/ServicesProducts/Services
 Products / Services
– What does it do?
– Uniqueness
– Competitive Advantage
 Technology
– Brief description
– Applications
 Commercialization Status
– Brief overview

17. Industry OverviewIndustry Overview
 Set The Stage
 Industry Definition and Description
– Major players within the industry
– Factors driving dynamics
– New products and developments
 Legislation and Policies Driving the Industry
 Historical and Future Trends

18. Market AnalysisMarket Analysis
 Market Definition
– Primary Market
– Secondary Markets
 Market Size and Trends
– Current total revenues
– Predicted annual growth rate

19. CompetitorsCompetitors
 Direct Competitors
– Who are they?
– Size and product breadth
– Revenues and profitability
– Strengths and weaknesses
– Market shares
 Indirect Competitors

20. CustomersCustomers
 Customer Characteristics
– Who are they?
– Why do they buy?
– Need satisfied by the product/service
– How is the need currently filled?
– What are the alternatives?
– Who makes the decision to buy?
– How frequently do they purchase?

21. Marketing and Sales PlansMarketing and Sales Plans
 Statement of Opportunity
 Marketing and Sales Objectives
 Existing Customers
 Potential Customers
– Prospects targeted
– How prospects will be targeted and qualified

22. Marketing StrategiesMarketing Strategies
 Product/Service Strategy
 Pricing Strategy
 Distribution Strategy
 Advertising and Promotion Strategy
 Sales Strategy
 Marketing and Sales Forecasts

23. Marketing and Sales PlansMarketing and Sales Plans
 Marketing Programs
– Direct Mail
– Trade Shows
– Advertising
– Internet
– Publicity/Public Relations
– Marketing Budget
 Pricing
– Basis for targeted price point
– Margins and profitability by volume levels

24. Marketing and Sales PlansMarketing and Sales Plans
 Sales Plan
– Sales force structure – (direct or reps)
– Sales expectations/quotas
– Margins given to intermediaries
– Service and warranties
– Sales Budget
– Organizational chart indicating planned growth

25. DevelopmentDevelopment
 R & D Plan
– Objectives
– Milestones and current status
– Difficulties and risks
– Staffing
– R & D Budget and assumptions

26. OperationsOperations
 Manufacturing/Production Plan
– Objectives
– Facilities
– Staffing
– Subcontractors
– Quality Control
– Budget / Operating Expenses

27. ManagementManagement
 Company Organization
 Management Team
 Administrative Expenses

28. Management TeamManagement Team
 President
 VP Finance
 VP Sales
 VP Marketing
 VP Manufacturing
 Board of Advisors

29. PersonnelPersonnel
 Human Resource Plan
– Staffing Objectives
– Organizational Structure
– 3-5 year growth plan
– Budget

30. Summary of FinancialsSummary of Financials
 Financial Objectives
– Time to Cash Flow Positive
– Time to profitability
 Financial Assumptions
 Capital Requirements
 Exit Scenario

31. FinancialsFinancials
 Pro-forma Cash Flow Projections
 Pro-forma Profit & Loss Statements
 Pro-forma Balance Sheet

32. OfferingOffering
 Investment Requirements
 Pro-forma Valuation of Business
 Offer

33. AppendicesAppendices
 Resumes of Key Management
 Patent Information
 Customer List
 Testimonials
 Supplemental Financial Spreadsheets
 References

34. Investment ClimateInvestment Climate

35. Questions?Questions?