The document discusses how to write an effective business plan, noting that it should include details about the business owner and team, the product or service, the target market and marketing strategy, financial projections, and an operations plan. It provides tips for each section, emphasizing the importance of clearly outlining expenses, revenues, cash flow, and other financial metrics to test the feasibility of the business. Resources for free business plan templates and samples are also listed.

1. Business Plan Writing

2. Business Plan Writing
About Kevin
 Business Consultant
 Director of Entrepreneur Center at
Ohio Northern University (ONU)
 Adjunct Lecturer at ONU on
Principals of Entrepreneurship
 Adjunct Professor at Bristol
University (online learning)

3. Business Plan Writing
Now what?

4. Business Plan Writing
Now what?

5. Business Plan Writing
Now what?

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8. Business Plan Writing
Now what?
You write a business plan.
 My idea is…
 People will buy because…
 I’ll do it like this….
 My future plans are…

9. Business Plan Writing
Why Write a Business Plan?
It’s a diagnostics tool to test the feasibility
of the business, not the idea.
It helps others, who have not had the time
you have had, to see your vision.
It makes business startup manageable
and effective.
It establishes measurable benchmarks.
It keeps you in the game.

10. Business Plan Writing
Now what?

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Now what?

15. Business Plan Writing
Now what?
Step 1. Use what you know.
If it’s Word, use it.
If it’s Google Docs, use it.
If it’s a notepad and pen, use it.
Step 2. Use one of the free templates from SCORE, the SBDC, or the SBA.
Heck, use all three! And…
answer the questions that each templates asks.
DON’T TRY TO CREATE A BIZ PLAN!
If the question or subject doesn’t make sense for you plan, ignore it.
Step 3. Start with what makes sense.
Every business needs to make money, so start with the financials.

16. Business Plan Writing
Know thy expenses

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Know thy expenses
Fixed Expenses
= What it costs to run this business
Rent
Utilities
Subscriptions
Salaries
Loan payment……..…$500
Insurance payment…$200
Total $700

18. Business Plan Writing
Know thy expenses
Variable Expenses
= What it costs to make a sale
Time to create
Raw material
Commissions
Depreciation Gasoline $10 per trip

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Know thy expenses
If making 1 takes 1 hour
Than the sale price is $7.95 + material cost.

20. Business Plan Writing
Business Plan Financials
Personal Financial Statement

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Cash Flow
• Shows timing of money coming in and timing of
money going out
• The timing is crucial to demonstrate ability to
meet obligations
• Does not relate to
profitability
• Negative cash flow
may be normal for
start-up

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Profit and Loss Statement
• AKA the Income Statement
• Measures a company’s sales and expenses
during a specified period of time.
• Shows you the money.

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Profit and Loss Statement
P&L statement contains uniform categories.
• net sales
• cost of goods sold
• gross margin
• expenses
• and net profit.

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Personal Financial Statement
What do you own?
Who do you owe?
Can we get anything out of you if you default?

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The Balance Sheet
Liabilities
+ Owner’s EquityAssets

26. Table
11.2 Kendon Corporation Balance Sheet for the Year Ended December 31, 2015

27. Table
11.2 Kendon Corporation Balance Sheet for the Year Ended December 31, 2015

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Business Plan Financials

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Business Plan Financials
Don’t be afraid to ask for help

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The Marketing Plan
Who will buy?
Identifiable
Sizeable
Obtainable

32. Business Plan Writing
The Marketing Plan
Market Research
Sources:
Secondary Primary
• Local Chamber of Commerce
• Colleges and Universities
• Libraries
• Federal and State government
• SBDC
• SCORE
• Market Research firms
• Other businesses
• Surveys
• Observations

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The Marketing Plan

34. Business Plan Writing
The Marketing Plan

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The Marketing Plan

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The Marketing Plan

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• What are the Regulations for this industry?
(Remember, it is best to error on the side of caution.)
– Licensing- Federal, State, County and City?
– Zoning - Can you operate your business where
you want?
– Insurance - Do you need special insurance?
– Taxes - Are their additional taxes on your product?
Sin taxes?
– Environmental - Toxins, proper waste disposal for
your product or by products?
– Community Standards - Will your business be
accepted?
The Operation Plan

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The Operation Plan
Ownership / Management Structure

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The Operation Plan

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The Operation Plan

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The Operation Plan

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The Operation Plan

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The Operation Plan
Risk Assessment / Disaster Recovery

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Startup Funds

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Resources
Fill in the blanks business plan
http://tinyurl.com/no4q7p5
Business plan templates (SCORE)
http://tinyurl.com/pqv8tps
Guide to writing business plans (SBA)
http://tinyurl.com/9x83dkk
Free sample business plans
http://tinyurl.com/6dl25db