business plan
TRANSCRIPT
Business PlanEstablishing a Foundation
Starting a Business
• Narrative Template
• Financial Worksheet
• Research, Think, Plan
• SCORE – Counselors to America’s Small Business
Executive Summary
• Write section last
• Explain business fundamentals
• Accurate, charismatic, concise
General Company Description
• Mission Statement
• Company Goals
• Business Philosophy
• Description
Products and Services• Description
– Technical– Drawing– Photos– Specifications
• Competitive Advantage/Disadvantage– Quality– Pricing Fee
Marketing Plan
• Market Research– Why?
• Effectiveness
– How?• Primary• Secondary
Economics• Facts
– Market Size– Current Demand
• Barriers– High Marketing Costs– Training and Skills
• Impact– Changes (technology, industry)
Product and Services• Features and Benefits
– Major product and feature
• Customers– Targeted Audience
• Competition– Major Competitors
Competitive AnalysisFactors Me Strength Weakness Rival A Rival B Client’s
Preference
Product
Price
Quality
Selection
Image
Location
Good Fit?• Unique Corner
• Strategy
• Promotion
• Promotional Budget
Analysis
• Pricing
• Proposed Location
• Distribution Channels
• Sales Forecast
Sales Forecast
Forecasting sales of your product or service is thestarting point for the financial projections. The salesforecast is the key to the whole financial plan, so it is
important to use realistic estimates. Divide yourprojected monthly sales into "Categories", which arenatural divisions that make sense for your type of
business. Typical categories might be: product lines,departments, branch locations, customer groups,
geographical territories, or contracts.
Operational Plan• Production• Location• Legal Environment• Personnel• Inventory• Suppliers• Credit Policies
Accounts ReceivableTotal Current 30 days 60 days 90 days Over 90
days
Accounts Receivable Aging
Accounts PayableTotal Current 30 days 60 days 90 days Over 90
days
Accounts Payable Aging
Management and Organization• Professional and Advisory Support
– Board of directors– Accountant– Mentors– Management Advisors
• Personal Financial Statement
Startup Expenses and Capitalization
• Estimate
• Research
• Forecast
Financial Plan• Twelve Month Profit Loss and Projection
• Four Year Profit Projection
• Projected Cash Flow
• Opening Day Balance Sheet
Financial Planning
• Break Even Analysis– the sales level that is the dividing line
between operating at a loss and operating at a profit.
Break-Even Sales = Fixed Costs
1- Variable Costs
Appendices• Brochures
• Maps
• Market Research Studies
• Future Potential Support
Refining the Plan
• Raising Capital– For Bankers
• Amount of Loan
– For Investors• Short Term Funds
– For Types of Business• Manufacturing and Service
Refining the Plan
• High Technology Companies– Cutting Edge
• Retail Business– Pricing– Inventory– Customer Service Policy
SUMMARY
• Questions
• Comments
• Concerns