powerpoint presentation section 5.2 pages 80-87

PowerPoint Presentation

Section 5.2Section 5.2 Pages 80-87Pages 80-87

What you’ll learnWhat you’ll learn Why it’s important to do a Why it’s important to do a business planbusiness plan

What are the parts of a What are the parts of a business planbusiness plan

How to make a business planHow to make a business plan

5.2 The Business Plan

Why it’s importantWhy it’s important Once a feasible business Once a feasible business

plan has been developed, it’s plan has been developed, it’s important to make a important to make a business plan.business plan.

A business plan will help A business plan will help turn a concept into a turn a concept into a business, rather than just a business, rather than just a product or service.product or service.


Key TermsKey Termsbusiness planbusiness plan

visionvision executive summaryexecutive summary distribution channeldistribution channel direct channeldirect channel

indirect channelindirect channel Small Business Administration (SBA)Small Business Administration (SBA) trade associationstrade associations



Springboard

In planning a road trip to a destination you have never visited, what would you do?

I. THE PURPOSE OF A I. THE PURPOSE OF A BUSINESS PLANBUSINESS PLAN

A.A. A A business planbusiness plan is a is a document that describes a document that describes a new business.new business.


B. B. It explains to lenders and It explains to lenders and investors why a new investors why a new business deserves business deserves financial support.financial support.


II. WHY MAKE A II. WHY MAKE A BUSINESS PLAN?BUSINESS PLAN?A.A. To obtain financing. To obtain financing.

B.B. To serve as a living To serve as a living guide to the business.guide to the business.

C.C. To provide a start-up To provide a start-up blueprint.blueprint.



III. CONVEY YOUR VISIONIII. CONVEY YOUR VISION

A.A. VisionVision is the main concept of is the main concept of a business. This body of ideas a business. This body of ideas includes what your business includes what your business is, what it will become, and is, what it will become, and how you should run it.how you should run it.


B.B. Making and keeping a Making and keeping a visionvision

1.1. Keep the vision broad enough to Keep the vision broad enough to last through changing times.last through changing times.

2.2. If your vision changes when If your vision changes when something happens, then it’s something happens, then it’s not really a vision.not really a vision.


3.3. Don’t confuse your vision Don’t confuse your vision with a mission. A mission is with a mission. A mission is an allotted or self-imposed an allotted or self-imposed duty or task.duty or task.


IV. THE PARTS OF THE IV. THE PARTS OF THE BUSINESS PLANBUSINESS PLANFormulating a business plan Formulating a business plan involves a great deal of involves a great deal of research.research.


V. GETTING STARTED V. GETTING STARTED

A.A. A business plan typically has A business plan typically has nine features.nine features.

1.1. An An executive summaryexecutive summary is is a brief recounting of key a brief recounting of key points contained in a points contained in a business plan.business plan.


2.2. Product or service plan Product or service plan

33. Management team plan. Management team plan

4.4. Industry/market analysis Industry/market analysis


5.5. Operational plan Operational plana.a. A A distribution channeldistribution channel is the means for is the means for

supplying the product to the customer.supplying the product to the customer.

b.b. A A direct channeldirect channel delivers goods or services delivers goods or services directly to the customer.directly to the customer.

c.c. An An indirect channelindirect channel delivers goods or delivers goods or services to a wholesaler who finds retail services to a wholesaler who finds retail outlets to carry the product.outlets to carry the product.


6.6. Organizational plan Organizational plan

7.7. Marketing plan Marketing plan

8.8. Financial plan Financial plan

9.9. Growth plan Growth plan


Discussion Starter

If you were planning to open a restaurant, whom would you ask to be part of the advisory board?


VI. HOW TO MAKE A VI. HOW TO MAKE A BUSINESS PLANBUSINESS PLAN

A.A. Gather data. Gather data.

B.B. Organize your data. Organize your data.

C.C. Set up a notebook. Set up a notebook.

D.D. Write a draft. Write a draft.


VII. SOURCES OF VII. SOURCES OF INFORMATIONINFORMATION

A.A. Find agencies whose Find agencies whose primary purpose is to primary purpose is to assist entrepreneurs.assist entrepreneurs.


B.B. Contact agencies and firms Contact agencies and firms with whom entrepreneurs with whom entrepreneurs do business.do business.


1.1. The The Small Business Small Business AdministrationAdministration is a federal is a federal agency that provides agency that provides services to small businesses services to small businesses and entrepreneurs.and entrepreneurs.


2.2. Service Corps of Retired Service Corps of Retired Executives (SCORE)Executives (SCORE)

3.3. Small Business Small Business Development Centers Development Centers (SBDCs)(SBDCs)

4.4. Chambers of Commerce Chambers of Commerce


5.5. Trade associationsTrade associations offer offer technical and general technical and general assistance to entrepreneurs assistance to entrepreneurs in a specific profession or in a specific profession or industry.industry.


Critical Thinking

Could SCORE’s help be effective? Why or Why not? Why might a retiree volunteer counsel others?


VIII. WHAT TO INCLUDE IN VIII. WHAT TO INCLUDE IN THE BUSINESS PLANTHE BUSINESS PLANA. A. Cover pageCover page

1. 1. Company nameCompany name

2.2. The words The words Business Business PlanPlan


3.3. Name of the contact person Name of the contact person

4.4. Address and phone number of Address and phone number of the companythe company


B.B. Table of Contents and Table of Contents and HeadingsHeadings

C.C. Supporting DocumentsSupporting Documents


End of Section 5.2End of Section 5.2