opportunity recognition chapter 6 section 1 - what is a business plan

Opportunity Recognition

Chapter 6 Section 1 - What is a Business Plan

What is a Business PlanBusiness Plan - is a statement of your business goals, the reasons

you think these goals can be met, and how you are going to achieve them

● BP forces you to figure out how to make your business work● Shows investors that you carefully thought out your

business● The more explanation, the more money investors will

invest

What is a Business Plan

● BP becomes a decision-making tool● BP tracks whether the company is meeting its

goals● BP is always changing

Depending on type of business changes are made when necessary

For-profit - BP will typically focus on your financial goalsNonprofit - BP will typically focus on your mission and services

What is a Business PlanBPs have no set formatBPs are based on the audienceFour main types of plans for a start-up business

Quick SummaryOral PresentationInvestor’s Business PlanOperational Business Plan

What is a Business Plan

Quick Summary - synopsis lasting from 30 seconds to three minutes

Oral Presentation - short, colorful and entertaining - interest investors

Investor’s Business Plan - typically what investors are looking for

Operational Business Plan - operational plan

What is a Business PlanThe Three C’s

Concept - What is your product or service and how is it different from similar products or services

Customer - Who will be buying your product or service and why?

Capital - How will you locate the money your business will need? What will be your costs and what kind of profit can you expect?

What is a Business PlanBPs

● are no longer than 20 pages● should require no more than 1 hour of reading

Business IdeaOpportunity & Market Analysis

Financial StrategiesOrganizational Structures

Legal StructuresBusiness Management

Plan for Growth

What is a Business Plan

Executive SummaryOne or two page summary of highlights,

including the key selling points of the investment opportunity

www.sba.gov

What is a Business Plan

Executive SummaryMission StatementBusiness Name & LocationDate Business Will BeginOwner’s Name, Function, & Contact InformationOpportunityProducts or ServicesEconomics of One Unit (EOU)Future Plans