The document provides an overview of business planning and the business planning process. It discusses that business planning involves setting goals, forecasting the future, and organizing activities to achieve desired goals. Business plans are used both internally for management purposes and externally to obtain financing from investors and lenders. The key sections of a business plan typically include an executive summary, market analysis, value proposition, marketing/sales plan, management team, and financial projections. Developing a thorough business plan helps avoid surprises, organize complexity, align stakeholders, and improve business efficiency.

1. Business Plans That Win $$$
Presented by
Jeremy Kravetz, MBA

2.  Business Planning Process
 Business Plans

3.  Definition
 Who Plans?
 How It’s Done
 Key Sections
 Uses & Benefits
 Costs of NOT planning

4.  Types/Uses
 Differences
 Key Sections/Topics
 Work Products

5. THE
BUSINESS PLANNING
PROCESS

6. Wikipedia:
 Planning (also called forethought) is the process
of thinking about and organizing the activities
required to achieve a desired goal.
 …combines forecasting of developments with
the preparation of scenarios of how to react to
them

7.  Setting Goals
 Thinking
 Forecasting/Visualization of Future
 Organizing
 How to React – Courses of Action
 (Managing proactively is better!)

8. Both Internal and External Uses:
 Management
 Equity Financing – Investors
 Debt Financing – Lenders
 Business Development –
e.g. strategic partners, suppliers, distributors,
landlords, regulators, community groups, etc.

9.  All Levels – CEO to dishwasher
 Strategic – Long-term organizational
goals. Executive function.
 Operational/Tactical – Day-to-day
management. Managers
 Individuals – Organization of work.
Personal and career

10.  BOARD OF DIRECTORS – Key Strategies, L-Term Goals,
Policies, Values
 CEO – Competitive Strategies (Marketing), Overall Business
Development, Strategic Relationships, Exec Team-
Building/Organization/Capital Preparedness
 PRESIDENT – Overall Business/Organizational Mgt.
 VPs – Overall Departmental/Functional development and
management
 DEPT. MANAGERS, SUPERVISORS – Operations,
staffing, budgets..
Large Organizations:

11.  Owner/Managers – Wear many hats
 Both Internal and External People –
Employees/staff and external consultant,
advisors, service providers

12.  Avoid Surprises – Anticipate future events
 Prepare for what ever happens
 Cheaper to “make mistakes on paper”
 Organize Complexity
 See things more clearly – how pieces fit
together and interact

13.  Definition of goals
 Definition of assumptions
 Strategic allocation of scarce resources
 Coordination
 Alignment – Working with same concepts and
principles and goals
 Improved Efficiency

14.  Confusion
 Become reactive (instead of proactive)
 Everyone makes their own plans
 “System” deteriorates
 Unhappy customers
 Loss of competiveness

15.  Clarity, focus on key strategies
 More proactive
 Better integration/coordination
 Satisfied customers
 Greater Competitiveness

17. CUSTOMERS

18.  Customers – Acquisition, satisfaction, retention
 Other Stakeholders:
◦ Investors
◦ Lenders
◦ Employees
◦ Suppliers
◦ Community
 Company / Operation - Sustainability

19.  Plan the work of others
 Execute (manage) the work of others
 Coordinate with other functions/
departments

20. PLAN > ACT > MONITOR > PLAN ..

21.  Research > Analyze
 Visualize/ideate > Strategize
 Tactics > Resource Planning
 Economic/Financial Planning
 Develop > Operate > Manage
 Monitor > Evaluate >
Repeat..

22.  Multi-disciplinary
 Teamwork
 Systems-Thinking
 Top down – Strategic, big picture, L-Term
 Bottom-up – Tactical, operational
 Economic/financial design
 Sustainable
 Achieves LT Goals of stakeholders

23.  Everything must work
 Pieces must work together
 Cannot lack something essential
 Vision
 Resources
 Management

24.  Industry dynamics
 Product Life-Cycle
 Technology
 Availability (lack) of resources
 US & global economy
 Competition
 Government/Politics
 Terrorism
 “Acts of God”

25. BUSINESS PLANS

26.  LENDERS - Safety
 INVESTORS - Profit

27.  Survival
 Profitability / Cash Flow
 Sustainability
 Ability to pay back the loan (with
interest)

28.  Unique Value-Proposition
 Innovation > Large growth in value
 Intellectual Property
 Potential Market Size – Scalability
 Market Timing
 Value-creation milestones, sequence

29.  Market Analysis
 Competitive Strategies
 Startup budget and projections
 Sales projections
 5-year P&L and Cash Flows
 Management
 Sustainability – ability to pay off debt

30.  Market Analysis
 Value-Proposition/Innovation
 Pitch-Deck
 Executive Summary
 Brief, strategic, yet comprehensive business plan
 Team – Vision, leadership, ability to
“pivot”/adapt
 Scalable (large) value creation

31.  Executive Summary
 Market Analysis
 Value-Proposition
 Marketing/Sales

32.  Marketing
 Management Team/Organization
 External Consultants, Advisors
 Human Resources
 Operations
 Command and Control - MIS
 Finance

33.  Market research studies
 Contracts, orders
 Management Bios
 Intellectual Property
 Marketing materials
 Appraisals
 Cost Estimates
 Risk Management
 Etc.

34. ► The activity
► set of institutions
► and processes
► for creating, communicating, delivering, and
exchanging offerings
► that have value for customers, clients,
partners, and society at large.

35.  Responsibility of the managing leadership within a business, not a
separate function.
 There is only one valid definition of business purpose: to create a
customer… Because it is its purpose to create a customer, any
business enterprise has two — and only these two—basic
functions: marketing and innovation…
 Marketing is so basic that it is not just enough to have a strong
sales department and to entrust marketing to it. Marketing is not
only much broader than selling; it is not a specialized activity at
all. It encompasses the entire business. It is the whole business
seen from the point of view of its final result, that is from the
customer’s point of view. Concern and responsibility for marketing
must therefore permeate all areas of the enterprise..

36.  The function that links the consumer, customer, and public to the
marketer
 through information used to
 identify and define marketing opportunities and problems;
 generate, refine, and evaluate marketing actions
 monitor marketing performance; and improve understanding of
marketing as a process.
 specifies the information required to address these issues,
 designs the method for collecting information,
 manages and implements the data collection process,
 analyzes the results,
 and communicates the findings and their implications.

37.  Captures/specifies/organizes all projected, quantifiable assumptions
about the enterprise, including hard and soft resources, growth and
development processes, sources of income, costs, expenses,
investments, sources of capital, financial structure, and all sources and
uses of funds.
 Requires the participation/input of planners and managers most
familiar with, and responsible for, the various areas of the enterprise
 Structures and charts a systematic roadmap to meet the needs of the
organization/operation itself, and that of each and all stakeholders

38.  Aids in strategic, systems-oriented allocation of resources
 Specifies key strategic development/value-creation goals and
milestones
 Informs the architecture and key monitoring points for Management
Information Systems
 Allows for “stress tests” and other sensitivity analyses
 Allows for efficient periodic updating of plans

39.  Yields data for work products needed for fundraising and stakeholder
communications and relationship management
 Provides clear analyses for investors, lenders and entrepreneurs to
understand their investments and returns
 Thoroughly prepares entrepreneurs, owners and executives for
negotiations with others vying for a piece of the pie. Enables strategic
control of what, how much, and how financial information is shared.
 Conveys/sells the capabilities and professionalism of an entrepreneur,
business and management team.

40.  Pre-operations/organization budget
 Startup operation at a loss
 Sales projection / development
 Break-Even-Point
 Required operating loss reserves
 Continued growth development
 Running rate
 Financial structure – debt / equity
 Investor analysis
 Lender analysis
 Sustainability until next value inflection point/value
milestone/exit

41. Who
What
Where
When
Why
How

42.  STRATEGIES
 TACTICS

43.  DEMAND VS. SUPPLY = GAP?
COMPETITIVE STRATEGY:
 CUSTOMER-FOCUSED MISSION
◦ Vision/Mission
◦ Value-Proposition
◦ Raison D’etre

44. Does my business idea have potential?
What are my source(s) of finance?
Do I have experience in the field or know
someone who does?
Where will my business be located?
How many employees will I hire?

45. What is a Business Plan?
A roadmap to business success

46.  Strategic Planning
 Secure Funding
-Loan Application
-Investors
 Measure Success

47. ◦ Executive Summary (1- 2 pgs.)
◦ Product and/or Service Description
◦ Financial Plan
◦ Marketing Plan
 Analysis
 Need
 Target Market
◦ Competition

48.  What is a FICO (Fair Isaac Corp) Score?
◦ Measures Credit Worthiness (Risk)
◦ Score Range from 300 to 850
◦ Determines whether Banks will Approve or
Deny You Credit
◦ Determines Your Loan
Interest Rate

50.  Separate Personal funds from business
◦ Open a business bank account
 Obtain a Credit Card & Merchant
Account
◦ Expand Customer Base (short term supplies
- network or outreach)
◦ Increase Sales & Profits by accepting
Debit and Credit Cards

51.  Business Name or DBA (Doing Business As)
is your legal business name
 You don’t need a DBA if?
◦ Using part or all of your surname plus the
service or product description (i.e. Mr.
Jones Auto Repair versus JS Auto Repair)

52.  If you are not using your legal name you
must:
◦ Contact the County of S.D.
Assessor/Recorder/County Clerk’s Office
◦ File a Fictitious Business Name
◦ Check to Ensure the name is not already in
use

53.  Sole Proprietorship
 General Partnership
 “C” Corporation
 “S” Corporation
 Limited Liability Corporation

54. PROS CONS
 Simple Formulation
(i.e. fictitious business
name, license, permit)
 Minimal Cost (business
license, public
announcement)
 No Special Business
Income Tax Rates
 Bankruptcy – Company
& Individual
 Not Protected from
Liability

55. PROS CONS
 Partnership Pays No
Tax (Individual Return)
 Inexpensive to Create
and Maintain
 Partnership Agreement
 Partner Liable for Debt
and Legal Liabilities
 Third Party Issues –
Partnership Comes
Under Fire

56.  Identical to General Partnership
 Difference is Limited versus General
 Only Liable for Capital Investment
 No Involvement in Company Management
 Allows Shared Profits without Losing More
than their contributions

57. PROS CONS
 Legal Entity which Files
Its’ Own Taxes
 Responsible for Its’
Own Dealings (Liability)
 Unlimited Number of
Shareholders
 Expensive to Begin &
Maintain (annual fees)
 Board of Directors
 Stock Must be Issued
 Double Taxed on
Dividend Income (to
avoid roll-over)

58. PROS CONS
 Responsible for Its’
Own Dealings (Liability)
 Shareholders can
claim their share on
personal income taxes
(avoids double
taxation)
 Expensive to Begin &
Maintain (annual fees)
 Limited to a Max. of 75
Shareholders
 Not Double Taxed on
Dividend Income

59.  Hybrid of a Corporation and Partnership
 Identical Tax & Liability as a Corporation
 Same Management Structure as Partnership
 Articles of Organization are Submitted to
the State
 Operating Agreement (can be verbal)

60. Why do I need Business Insurance?
 Lawsuits, natural disasters and injuries to
you or your employees could threaten your
business at any time. Obtaining business
insurance is critical to the existence of your
business.

61.  If possible hire an
attorney to review
the contract/lease
agreement
 Read all Terms
and Conditions
(including the fine
print)

62.  The city and type of business determines
what licenses and permits you will need
 Search for your industry’s business
license and permits through the Cal gold
website:
◦ www.calgold.ca.gov

63.  There are more than 200 Regulated
Businesses
◦ State Department of Consumer Affairs
www.dca.ca.gov
◦ Police Regulated - S.D. Police Dept
www.sandiego.gov/police/

64.  Seller’s Permit
◦ Selling Tangible
Personal Property
 How to obtain a Seller’s
Permit
◦ State Board of
Equalization
www.boe.ca.gov

65.  What is an EIN Number?
 Why do I need an EIN Number?
 Where do I obtain an EIN Number?
◦ Internal Revenue Service
◦ (800) 829-3676
◦ www.irs.treas.gov

66. Logo Creation
Signage
Business Cards
Forms (i.e. invoices, etc.)
Promotional Pieces
Website

67.  Ensure the Feasibility of Your Business
 Business Research
 Business Plan Preparation
 Get Your Finances in Order
 Utilize Small Business Resources

68.  Website - http://www.growmybiz.org
 How You Can Use our Services
* Workshops * Counseling
 10-Key Steps to Starting a Business
 Business Plan Template
 S.D. SBDC Business Training Center
We are here to Serve
You!

69. SBDC Can Help You!
Our Mission is to provide superior consulting
& training to small businesses resulting in
entrepreneurial success & growth &
prosperity for California.
San Diego SBDC
Southwestern College Higher Education Center
880 National City Boulevard, Suite 103
National City, CA 91950
Tel. (619) 482-6391—Fax: (619) 216-6692
www.growmybiz.org