Why A Business Plan!Why A Business Plan!

Jerry Pradier, AInstIB

Of

Progressive Business Development Network, LLC

Presented by

Uses of a Business Plan

To acquire fundingTo attract partnersTo train and motivate employeesTo guide managementTo define and refine the business conceptTo win the MARKETING WAR

The most important role of any business owner is to market the business!

The most important tool for marketing is

THE BUSINESS PLAN!

Marketing

The process of planning and executing the [creation], pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. - AMA

Importance of Planning

Story of the night

Cross-country

Plans help you respondto change

Importance of Planning

Quick planning saved the

day!

Importance of Planning

Proper Planning Leads to Success

Have a vision (end state) Know your mission Establish your goals

(strategies) Create Objectives (tactics) Perform Market Research

(Know your enemy) Create Financial Plan

(logistics) Inchon

Faulty Planning Creates Failure

Failure to planNot using your planNot updating your

planIgnoring the

landscape

Waterloo

Half the unhappiness in the world is due to the failure ofplans which were never reasonable, and often impossible. - Edgar Watson Howe

The Entrepreneur as Leader

VisionaryMotivatorDirectorTrainerManager

Common Questions Who should plan?

What is the difference between planning for a big and small business?

How does planning help management? Who should write the plan? How can I know all the answers? How often should I plan? What if I never complete the plan?

Why does it fail?Correct the problem or issue

Planning Benefits

6. Develops proactive attitude & practice

7. Tracks performance8. Stimulates future development9. Attracts capital, partners,

employees10.Improves chances of success

Planning Benefits

1. Focuses on entire business

2. Asks important questions

3. Clarifies and communicates goals

4. Develops priorities

5. Improves management decisions

Create a Vision (ID the end state)How will your company look in the future?What will say about you?What will your company be if it is all that it can

be?“A computer on every desk, MS Windows on every

computer”-MS“Communities investing in success for ALL

students!”-DoDEA

How To Plan

How To Plan

Create a VisionDefine the Mission

A statement that expresses the purpose, business and values of the organization.

Must be applicable to all components (parts, members, divisions, stakeholders) of the organization.

If the values are not explicitly stated, they must be, at least, Implied in what the organization does.

Should be practical and short enough to be memorable

How To Plan

Create a Vision Define the Mission Set Goals & Objectives

Short-term Goal:To become a millionaire within 12

monthsObjectives:

1. Work hard everyday2. Find a good bank3. Save as much money as I can

Goal Setting

Correct Goal SettingShort-term Goal:

To become a millionaire within 6 months

Objectives:

1. Identify 11 banks within 35 miles of GJ to case by 5 Aug 2005 (Pradier)

2. Select the five most vulnerable banks and create their floor plans and operational schedules by 30 Aug 2005 (Pradier)

3. Interview and hire three accomplices: A driver, a safe cracker, and a lookout by 15 September 2005 (Pradier)

4. Plan five robberies within a two-day period by 30 Nov (Driver)

5. Order plane ticket to Argentina by 5 December (Lookout)

6. Rob Banks and get out of the country, 24 & 25 Dec 2005 (All)

How To Plan

Create a Vision Define the MissionSet Goals & ObjectivesAnalyze the Market

Is there a market?Who is your competition?

•Where are they?•What is their market share?•What are their strengths & weaknesses•How can you capitalize•What are your SWOT?

How To Plan

Create a Vision Define the Mission Set Goals & Objectives Analyze the MarketAssess your Finances

Personal tax statementsIncome StatementsCash Flow StatementsBalance SheetPro-forma Income and Cash Flow

Plan

Act

View Results

Measure Results

ComparePlan to Actual

Explain Delta

Make Adjustments

When To Plan

Once you say you are going to settle for

second,that's what happens to

you. - John F. Kennedy

The difference between running a business and

ruining a business is "i". - Frank Tyger

Questions?

www.probusdev.net