PowerPoint Presentation

Section 5.2
 Pages 80-87
5.2
The Business Plan
What you’ll learn
 Why
it’s important to do a
business plan
 What are the parts of a
business plan
 How to make a business plan
5.2
The Business Plan
Why it’s important


Once a feasible business
plan has been developed, it’s
important to make a
business plan.
A business plan will help
turn a concept into a
business, rather than just a
product or service.
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The Business Plan
Key Terms
business plan
vision
executive summary
distribution channel
direct channel
indirect channel
Small Business Administration (SBA)
trade associations
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The Business Plan
Springboard
In planning a road trip
to a destination you have
never visited, what
would you do?
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The Business Plan
I. THE PURPOSE OF A
BUSINESS PLAN
A. A business plan is a
document that describes a
new business.
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The Business Plan
B. It explains to lenders and
investors why a new
business deserves
financial support.
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The Business Plan
II. WHY MAKE A
BUSINESS PLAN?
A. To obtain financing.
B. To serve as a living guide
to the business.
C. To provide a start-up
blueprint.
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The Business Plan
III. CONVEY YOUR VISION
A. Vision is the main concept of
a business. This body of ideas
includes what your business
is, what it will become, and
how you should run it.
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The Business Plan
B. Making and keeping a
vision
1. Keep the vision broad enough to
last through changing times.
2. If your vision changes when
something happens, then it’s
not really a vision.
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The Business Plan
3. Don’t confuse your vision
with a mission. A mission is
an allotted or self-imposed
duty or task.
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The Business Plan
IV. THE PARTS OF THE
BUSINESS PLAN
Formulating a business plan
involves a great deal of
research.
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The Business Plan
V. GETTING STARTED
A. A business plan typically has
nine features.
1. An executive summary is
a brief recounting of key
points contained in a
business plan.
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The Business Plan
2. Product or service plan
3. Management team plan
4. Industry/market analysis
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The Business Plan
5. Operational plan
a.
A distribution channel is the means for
supplying the product to the customer.
b. A direct channel delivers goods or services
directly to the customer.
c. An indirect channel delivers goods or
services to a wholesaler who finds retail
outlets to carry the product.
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The Business Plan
6. Organizational plan
7. Marketing plan
8. Financial plan
9. Growth plan
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The Business Plan
Discussion Starter
If you were planning to
open a restaurant, whom
would you ask to be part
of the advisory board?
5.2
The Business Plan
VI. HOW TO MAKE A
BUSINESS PLAN
A. Gather data.
B. Organize your data.
C. Set up a notebook.
D. Write a draft.
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The Business Plan
VII. SOURCES OF
INFORMATION
A. Find agencies whose
primary purpose is to
assist entrepreneurs.
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The Business Plan
B. Contact agencies and firms
with whom entrepreneurs
do business.
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The Business Plan
1. The Small Business
Administration is a federal
agency that provides
services to small businesses
and entrepreneurs.
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The Business Plan
2. Service Corps of Retired
Executives (SCORE)
3. Small Business
Development Centers
(SBDCs)
4. Chambers of Commerce
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The Business Plan
5. Trade associations offer
technical and general
assistance to entrepreneurs
in a specific profession or
industry.
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The Business Plan
Critical Thinking
Could SCORE’s help be
effective? Why or Why
not? Why might a retiree
volunteer counsel
others?
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The Business Plan
VIII. WHAT TO INCLUDE IN
THE BUSINESS PLAN
A. Cover page
1. Company name
2. The words Business
Plan
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The Business Plan
3. Name of the contact person
4. Address and phone number of
the company
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The Business Plan
B. Table of Contents and
Headings
C. Supporting Documents
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The Business Plan
End of Section 5.2