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BUSINESS PLAN FOR SUCCESS
The document discusses the importance of developing a business plan for new businesses. It notes that business plans can help guide business strategy, obtain funding from lenders and investors, and increase chances of success. The document outlines key sections of a business plan including an executive summary, company description, products/services, industry and market analysis, marketing and financial plans, management team, and financial projections. It stresses that a good business plan demonstrates a company's competitive advantages, market potential, and ability to achieve financial objectives.
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BUSINESS PLAN FOR SUCCESS
- 1. Business Plans Professor Jose Cintron, MBA-CPC http://mba4help.com http://www.linkedin.com/in/josecintron
- 2. Why Start aBusiness? To Capitalize on an Invention or Idea To Pursue a Passion To Be Their Own Boss To Get Rich $$$ www.mba4help.com
- 3. A Business Planis the key to Success Statistics have shown that those who develop and implement a business plan tend to survive and those who do not, fail. www.mba4help.com
- 4. Funding Sources Savings Friends and Family Financial Institutions Angel Investors www.mba4help.com
- 5. What are thechances??? Statistics show that 8 out of 10 new businesses fail within the first three years. ?????????????????????? 80% of new businesses fail within their first year. www.mba4help.com
- 6. Why business failure 1. You start your business for the wrong reasons 2. Poor Management 3. Insufficient Capital 4. Location, Location, Location 5. Lack of Planning 6. No Social media and internet marketing www.mba4help.com
- 7. What is aBusiness Plan? to look ahead allocate resources focus on key points prepare for problems and opportunities www.mba4help.com
- 8. Why a BusinessPlan? Strategic Guide Lenders- borrow money Investors-partnership www.mba4help.com
- 9. Strategic Guide Where Do You Want To Go? How You Get There? What Market Niches? How Much Cost? Greatest Profit opportunity! What Exit Strategy? www.mba4help.com
- 10. Lender Expectations Good Business Track Record Ability to Repay Staying Power Collateral www.mba4help.com
- 11. Investors Expect More! Competitive Advantage Huge Market Strong Management Team Strong Marketing and Sales Plan and strategies High ROI and Exit Strategy www.mba4help.com
- 12. What is ina Business Plan? Executive Summary Company Description Product / Services Industry Overview Market Analysis Competitors www.mba4help.com
- 13. What is ina Business Plan? Customers Marketing & Sale Plan Marketing Strategies Marketing Program Research & Development Operations www.mba4help.com
- 14. What is ina Business Plan? Management Personnel Financial Financial Summary Appendices www.mba4help.com
- 15. Executive Summary A mini-business plan on one/two pages Highlights the most important points of your business plan It is NOT an introduction to the plan It must grab your reader’s attention www.mba4help.com
- 16. Executive Summary Identify the company, its background, structure and location Describe what the company does, and the market it serves Describe the market potential and market trends. www.mba4help.com
- 17. Executive Summary Outline the backgrounds and experience of the top management team Describe the funding required, the purposes, collateral available and the expected outcomes www.mba4help.com
- 18. Company Description Brief Company Introduction – Mission statement – Location, size, history – Market and products – Overview of company capabilities – Objectives www.mba4help.com
- 19. Products or Services Products / Services – What does it do? – Uniqueness – Competitive Advantage Technology – Brief description – Applications www.mba4help.com
- 20. Industry Overview Legislation and Policies Driving the Industry Historical and Future Trends Industry Definition and Description – Major players within the industry – New products and developments www.mba4help.com
- 21. Market Analysis Market Definition – Primary Market – Secondary Markets Market Size and Trends – Current total revenues – Predicted annual growth rate www.mba4help.com
- 22. Competitors Direct Competitors – Who are they? – Size and product breadth – Revenues and profitability – Strengths and weaknesses – Market shares Indirect Competitors www.mba4help.com
- 23. 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 purchase? www.mba4help.com
- 24. Marketing and SalesPlans Statement of Opportunity Marketing and Sales Objectives Existing Customers Potential Customers – How prospects will be targeted www.mba4help.com
- 25. Marketing Strategies Product or Service Strategy Pricing Strategy Distribution Strategy Advertising and Promotion Strategy Sales Strategy Marketing and Sales Forecasts www.mba4help.com
- 26. Marketing and SalesPlans: Marketing Program Conventional marketing Internet Marketing Social Media Marketing Search Engine Optimization Networking /Public Relations/email Marketing Budget www.mba4help.com
- 27. Marketing and SalesPlans: Pricing Basis for targeted price (cost analysis) Margins and profitability by volume levels Competitors Add value www.mba4help.com
- 28. Marketing and SalesPlans: Sales Plan Sales force structure – (direct or reps) Sales expectations/quotas Margins given to intermediaries Service and warranties Sales Budget www.mba4help.com
- 29. Research & Development Research & Development Plan – Objectives – Milestones and current status – Difficulties and risks – R & D Budget www.mba4help.com
- 30. Operations: Manufacturing/Production Plan Objectives Facilities Staffing Subcontractors Quality Control Budget / Operating Expenses www.mba4help.com
- 31. Management Company Organization Management Team Administrative Expenses www.mba4help.com
- 32. Management Team President VP Finance VP Sales VP Marketing VP Manufacturing General Manager www.mba4help.com
- 33. Personnel Human Resource Plan – Staffing Objectives – Organizational Structure – 3-5 year growth plan – Budget www.mba4help.com
- 34. Summary of Financials Financial Objectives – Time to Cash Flow Positive – Time to profitability Capital Requirements Repayment Exit Scenario www.mba4help.com
- 35. Financials Pro-forma Cash Flow Pro-forma Profit & Loss Statements Pro-forma Balance Sheet Break Even Point Business Ratios www.mba4help.com
- 36. Appendices Resumes of Key Photographs Patent Information Customer List Testimonials References www.mba4help.com
- 37. Market Research foryour Business Plan Primary market Research Secondary Market Research – Existing customers Trade associations – Potential customers Government information – Vendors – Federal, state and local government reports Your competition – Small Business Administration – SBA Software – Small Business Development Center – SBDC Equipment – U.S. Bureau of Census Niche Chambers of Commerce Market research firms ($$$$$$$) www.mba4help.com
- 38. Small Business owner… www.mba4help.com
- 39. Your Business Plan Most be; Real Achievable Believable Marketable Flexible www.mba4help.com
- 40. Conclusion Business Plan NO Business Plan! www.mba4help.com
Editor's Notes
- #2 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.
- #3 Do you have a new Idea or invention like “facebook “, Microsoft, Google or any other small like chicken recipe (Kentucky fried chicken)Do you always have a passion for something and you are good and you can sell it. Go for. Ask a business consultant.Do you like to start your own business , be your own boss and do what you like the best ( teaching and consulting in social media marketing)You realize that you will never be rich working for someone else’s dreams so you as a business consultant to start your own business.
- #5 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
- #8 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.
- #9 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.
- #10 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.
- #11 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)
- #12 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)
- #13 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?
- #14 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
- #15 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
- #17 Describe the market potential and market trends.for the company’s products and services
- #23 The product breadth is the variety of product lines offered by a retailer.
- #24 It is the customersneed satisfy by product or service or they have to travel or buy on internet some place else.
- #25 Statement of opportunity: how big is your industry, How much $$$ spend , how many , revenues and profits …
- #29 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
- #35 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.
- #37 Supporting documents used to enhance your business proposal.
- #38 Primary market research is research that you conduct yourself, rather than information that you find already published Customer surveys