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