Creating Your Business Plan

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Write a Business Plan
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A business plan is also a road map that
provides directions so a business can plan its
future and helps it avoid bumps in the road.
The time you spend making your business
plan thorough and accurate, and keeping it
up-to-date, is an investment that pays big
dividends in the long term.
What is a Business Plan?

Reasons People
• Inadequate Starting Capital
• Lack of Sufficient Knowledge of
Marketplace
• Underestimated Competition
• Poor Management
• Inadequate Management - 98% of Failures
• Poor Quality Product or Service
• Unrealistic Pricing

Why Do You Need a Business Plan

Getting Started

•Write to Sell Yourself on the
Business
•May Save You Grief and
Expense
•May Show You Another
Alternative
•First Plan Is the Toughest
Plan Benefits

Assessing the Idea
•What Would a Lender or Investor Want to
Know About - Owner, Business, Community?
•When Circles Converge There Is Synergy for
a Good Business Idea
•Planning Process Starts
with Goals Both Business
& Personal
Phase

Initial Research
•Libraries
•Chambers of Commerce
•Government Agencies
•Other Businesses
• Trade Associations & SBC
• Internet
•Demographics of Marketplace
•Occupancy Statistics for Area, Industry
•Industry Trends
•Start Up Expenses, Projections & Location
• License, Tax Certificate, Zoning, Insurance
• Competition
Phase

Decisions
•Legal Structure
•Management Team
•Collateral and Equity
•Source of Funds
•Operation
•Schedule
•Theme
•Services Being Offered
Phase

Writing the Plan
•Statement of Purpose / Executive
Summary
•Description of the Business / History
•Market Information and Strategy
•Competition
•Management and Personnel
Phase

Other Pointers
•Anticipate Questions
•Limit Access to Your Plan
•Get Feedback from Others
•Share Plan with Employees and Others
•Make Sure That It Is Dynamic / Updated Often
•A Business Plan is a road map for the business, a
road map for success. It says where you are,
where you want to go, and how you’re going to
get there.

Executive Summary
•Company profile
•Nature of product/service offered
•Size and growth trend of market
•Make-up and background of
management team
•Financing requirements
•Key projections (sales, gross profit, net
• income)
•Proposed use of funds
•Proposed exit strategy and ROI

Business Description
•Mission Statement
•History behind idea or current business
•Company’s current or proposed legal
form
•Proposed entry strategy and time line
of events
•Description of initial product/ service
•Competitive advantages
•Product research and development

Market Analysis
Objective to convince reader of
explosive market opportunity:
•Description of industry
•Targeted markets
•Marketing research
•Competition
•Barrier (or ease) of entry

Management Team
The strength of management is key to decision to
fund or invest. Entrepreneur and team can make
the venture successful:
•Background and primary responsibilities of team
members
•Organizational structure
•Board of directors/ advisors
•Ownership

Operations
Strategy for implementing the business plan. Use
assumptions developed here in the financial
sections:
•Marketing Strategy
•Production Plan
•Personnel
•Customer Support
•Future research and development plans
•Plan to stay technically current

Critical Risks
Potential problems that could have a significant
affect on the new company:
•External risks
•Internal risks
•Insurance provisions
•Contingency plans

Financial Projections
Does the venture make sense from a financial
prospective? Should Address:
•Procurement
•Allocation
•Return on investment
•Cash management
•Should include actual performance
data if available.

Additionl Finances
Financial Data
•Projected income statement
•1st year by month
•2nd and 3rd year by quarter
•Balance Sheet
•At opening
•Projected for end of 1st, 2nd and 3rd years
•Cash Flow
•1st year by month
•2nd and 3rd year by quarter
•Break-even Points

Appendix
•Provide supporting documents
•Provides more detailed information
•Details explaining tax advantages
•Copies of patents, trademarks or copyrights
•Reviews by independent firms, publications or outside
agencies
•Letters expressing interest to buy the product or service
•Questionnaires used to collect data
•Detailed results of marketing studies that support assumptions
•Non-compete agreements signed by the management team
and key contributors
•Resumes of key management team & key technical advisors
•Price list of competitors
•Promotional brochures or advertisements

Strategic Plan
•Honest, objective and critical appraisal of your business
as it exists today
•Where it is heading in the future
•Competitive strengths and weaknesses
•Risks and hurdles
•Industry Trends
•Assessment of the market
•Profitability and cash flow requirements
•Resource planning and HR issues

Resources
•Public Libraries have excellent resources and more
importantly people to help you find and gather the
information that you need
•Small Business Assistance organizations:
•GTCC SBC 336.334.5211
•SBTDC 336.334.7005
•SCORE 336.333.5399
•SBA www.SBA.gov
•NOLO www.nolo.com

GTCC
Small Business Center
1451 S. Elm Eugene Street Greensboro, NC 27406
To Request Counseling (free counseling)
www.ncsbc.net/center.aspx?center=75230
Mark Hagenbuch – 336.334.4822 x 62003
DarLinda Finch 336.334.4822 x 62001

Share your Show Up &
Show Out! Moment of
the Night!
Chisa D. Pennix-Brown, MBA
Info@LadyBizness.com
Fin me online @LadyBizness

Creating Your Business Plan

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