Business Plan Definitions and Class Breakdown FCHS Bakery Project Business Plan Templates Informal SBA Simple Model 1. Identity 2. Problem 3. Our Solution 4. Target Market 5. The Competition 6. Revenue Streams 7. Expenses 8. Marketing Activities 9. Team & Key Roles 10. Milestones Semi-formal Formal Traditional B.P. Lean B.P./Canvas 1. Executive Summary 1. Key Partnerships 2. Company Description 2. Key Activities 3. Market Analysis 3. Key Resources 4. Organization and 4. Value Proposition Management 5. Customer Segments 5. Service/product Line 6. Channels (BTC & BTB) 6. Marketing and Sales 7. Customer Relationships 7. Funding Request 8. Financial Projections 8. Cost Structure 9. Appendix 9. Revenue Streams SBA Simple Model Wooden Grain Toy Company Example Identity Problem Wooden Grain Toys manufactures high-quality hardwood Parents and grandparents are looking for high-quality, toys for children aged 3-10. durable toys that will entertain kids and foster creativity. Our solution Our handcrafted toys are made from solid hardwoods, and are designed with sufficient moving parts to engage young children without limiting imagination. Target market The target audience is adults, specifically parents and grandparents who wish to give toys to their children or grandchildren. The competition Wooden toys are part of a niche market with companies of all sizes. Large companies include Plastique Toys and Metal Happy Toys, which sell internationally. Smaller companies sell locally in shops, craft fairs, or online. Revenue streams Wooden Grain Toys will sell directly to customers at craft fairs and online. Marketing activities Wooden Grain Toys will communicate with customers with an email newsletter, targeted Google and Facebook ads, social media, and in person at craft fairs. Expenses Materials for toys including wood, steel, and rubber Craft fair fees and travel costs Inventory space for products Team and key roles Currently, the only team member is the owner, Andrew Robertson. As profits increase, Wooden Grain Toys will look to add an employee to assist with social media and online marketing. Milestones As business grows, Wooden Grain Toys will advertise in target markets—especially in advance of the holiday season. Lean BP/Canvas Lean B.P./Canvas Definitions Key Partnerships: Note the other businesses or services you’ll work with to run your business. Think about suppliers, manufacturers, subcontractors and similar strategic partners. Key Activities: List the ways your business will gain a competitive advantage. Highlight things like selling direct to consumers, or using technology to tap into the sharing economy. Key Resources: List any resource you’ll leverage to create value for your customer. Your most important assets could include staff, capital, or intellectual property. Don’t forget to leverage business resources that might be available to women, veterans, Native Americans, and HUBZone businesses. Value Proposition: Make a clear and compelling statement about the unique value your company brings to the market. What is different about your product that will earn consumer purchases over your competition? Customer Relationships: Describe how customers will interact with your business. Is it automated or personal? In person or online? Think through the customer experience from start to finish. Customer Segments: Be specific in identifying your target market. Your business won’t be for everybody, so it’s important to have a clear sense of who your business will serve to drive marketing and product development decisions. Channels (BTC & BTB): List the most important ways you’ll talk and market to your customers. Most businesses use a mix of channels and optimize them over time based on analysis on channel effectiveness. Cost Structure: Will your company focus on reducing cost or maximizing value? Define your strategy, then list the most significant costs, challenges, and bottlenecks you’ll face pursuing it. Revenue Streams: Explain how your company will actually make money. Some examples are direct sales, memberships fees, and selling advertising space. If your company has multiple revenue streams, list them all but spend the most time on the core business revenue. Formal Business Plan Definitions Executive Summary: covers the highlights from the following sections in such a manner that sparks intrigue and makes the reader want to dive into the details. Typically written/formalized after all other sections are completed. Company Description: your pitch for the company, what it stands for, and its core activities Market Analysis: a quantitative and qualitative assessment of a market. It looks into the size of the market both in volume and in value, the various customer segments and buying patterns, the competition, and the economic environment in terms of barriers to entry and regulation (SWOT analysis, Porter’s 5 Forces, etc) Organization and Management: defining roles and responsibilities of the organizational and management structure that complements and enables the goals, directives, and essence of the business Service/product Line: the determination of what goods will be sold and what services (if any) complement the product. (This is also where a baseline determination of supply chain and be included such as where raw materials are sourced to produce organic, gluten free, or other specific product characteristics) Marketing and Sales: Segmenting, Targeting, and Positioning (STP) the industry market, deciding on how youll convey your product, promotions, price, and place (4P’s of marketing). Think of avenues of advertising on local, digital, and social media to maximize product awareness and sales. Funding Request: What funds are available now, what needs to be resourced, and general cost structure description to identify quantity of funding needed at different stages and what is needed to become operational Financial Projections: accounting for costs and expenses while determining a realistic trajectory of sales that matches expectations from marketing and initial consumption. Appendix: Addendums that show in detail how analysis, projections, and specifics were calculated or derived. 3 = Classes by order; first lesson is teaching, second is group work Informal Business Plan Templates Semi-formal Formal SBA Simple Model Traditional B.P. Lean B.P./Canvas 1. Identity 1. Executive Summary 1. Key Partnerships 1 2. Problem 2. Company Description 7 2. Key Activities 2 8 3. Our Solution 3. Market Analysis 3. Key Resources 4. Target Market 4. Organization and 4. Value Proposition Management 5. The Competition 3 5. Customer Segments 5. Service/product Line 4 6. Revenue Streams 9 6. Marketing and Sales 10 6. Channels (BTC & BTB) 7. Expenses 8. Marketing Activities 7. Customer Relationships 7. Funding Request 8. Financial Projections 8. Cost Structure 5 9. Team & Key Roles 11 6 12 9. Appendix 9. Revenue Streams 10. Milestones Notes for the Pitch • FCHS founded on Christian values of character, leadership, and service • Leadership and service • Focus on soft skills • Create a portion of school (bakery) that helps special education students • We are getting increasing number of students that have some type of challenge, learning disability, or social issues • Most special education students are not set to live independence lifestyle • Makes students independ upon graduation and integrates mainstream students into that progress to create relationships • How to do this: our guiding functions are we want a program that helps special ed students be integrated into the local economy and community, we would like to have some tuition offset to help with hiring special teachers. We don’t get state funding because of non-profit and catholic/Christian values • We would like the special education students would be the cornerstone of the program and focal point, but everyone would benefit from it. • What is next step? Create business plan but we want the students to create it, but before the semester is up we want our students to prepare a briefing of a part of whole of the business plan to pitch you for feedback or for assistance. Hopefully an agreement to sell those products that is fail. • This is my pre-pitch. If you say no to partnering, we still ask if you would receive the students brief. • Ryan will be busy during march/April. Last 2 weeks in mnarch and first week in April.
