Business Plans
Part 3
Taken from http://www.bplans.com/hurdleonline
http://www.sba.gov/starting/indexbusplans.html
Assignments to Date
• Preliminary Mini Plan
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Mission/Objectives
Keys to success
Target Market
Competitive Advantage
Basic Strategies
Initial break-even chart
• Company Summary & Product Description
Simplified Business Plan Outline
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Executive Summary
Company Summary
Product Description
Market Analysis Summary
Strategy and Implementation Summary
Management Summary
Financial Plan
Management Summary
“If it isn’t a good place to work, it won’t be successful”
• Important to have to quality of the workplace in
mind and to find ways to communicate this in the
plan
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Commitment to and enjoyment of work
Integrity (honesty)
Competence
Personal connection
Balance
Fun
Management Summary
Basics
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How many employees
How many are managers
How many are founders
Summary views of strengths of personal (resumes
should be attached to back of plan)
• Management gaps
– Does organizational structure seem appropriate
– Missing members
– How you intend to fill them
Management Summary
• Organizational Structure
– Include
organizational chart
• Job Descriptions
– Are organizational lines clearly drawn?
– Is authority properly distributed?
– Do you have jobs that include responsibility without authority?
• Other considerations
– Noncompete agreements with competitors
Management Summary
Develop numbers for Personnel Plan
Management Summary
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More detailed Personnel Plan
– Organized by department
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Include personnel burden
– payroll taxes and benefits
– This should be in either simple or
detailed personnel table and
assumptions included in your
general assumptions
• Payroll assumptions will be
used elsewhere
– Profit and loss statement
Knowing Your Market
• Need to describe the general state of your industry
and the nature of the business
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- Industry participants
number and market share
trade associations, conventions, publications
- Distribution patterns
to distributors, to retail stores, directly?
- Competition
main strengths and weaknesses
Knowing Your Market
• Resources (on our website)
– http://www.bplans.com/qa/
– http://www.sba.gov/
– http://dir.yahoo.com/Business_and_Economy/small_business_infor
mation/
– http://www.quicken.com/small_business/
– http://www.knowthis.com/general/marketplan.htm
– http://www.score.org/
– http://www.census.gov/
– Trade associations and business publications – use favorite search
engines
Knowing Your Market
Practical Market Research
• Study Similar Businesses
– Find similar but non-competing businesses that will share
experiences
– Look for people selling similar businesses
– Shop the competition
• Talk to Customers
– Do direct market research (ask a credible number of people what
they want)
– Use online surveys
• Assess Potential Customers
– Average age, income & education levels, buying patterns, values,
etc.
Knowing Your Market
Forecasting Your Sales
• Experience is important here – more of an art than
science
• Simple Sales Forecast
Knowing Your Market
Forecasting Your Sales
• Detailed Sales
Forecast
Knowing Your Market
Forecasting Your Sales
• Use graphics for monthly and annual sales
Knowing Your Market
Forecasting Your Sales
• Charts and tables must be described in text
– Summarize and highlight numbers in sales forecast tables
• Are anticipated questions answered
– Give the sales strategy behind the forecast
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How and when to close sales prospects
How to compensate sales people
How to optimize sales processing
How to maneuver price, delivery, and conditions
How are sales people trained
Are details of sales programs given with milestones, responsible
persons, and budgets
– Provide and justify the assumptions used
Knowing Your Market
Market Segments
• Segmentation concept is crucial to market
assessment and market strategy
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Ex.
http://www.dell.com/us/en/gen/default.htm
http://www.ashling.com/
http://www.nordictrack.com/nt/v4/index.html
Knowing Your Market
Market Segments
• Analysis using tables and charts
Knowing Your Market
Market Segments
• Charts and tables must be described in text
– Begin with a summary
• Define the groups
• Justify them as targets
• Be concise
– Explain your segmentation
• Display you wisdom and understanding of industry
• Discuss what characteristics distinguish different groups
• Discuss the strategy behind the segmentation
“strategy is focus; it is creative and it doesn’t follow pre-written
formulas”
– Explain market needs, growth, and trends