Chapter 5
DEVELOP A BUSINESS PLAN
LESSONS
5.1 Why Do You Need a Business Plan?
5.2 What Goes into a Business Plan?
5.3 Create an Effective Business Plan
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Chapter 5
Slide 2
Lesson 5.1
WHY DO YOU NEED
A BUSINESS PLAN?
GOALS
Explain the purpose of
writing a good business
plan.
Describe the importance of
a business plan.
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Chapter 5
Slide 3
THE BUSINESS PLAN
A business plan is a written document
that describes all the steps necessary in
opening and operating a successful
business.
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PURPOSES OF A BUSINESS PLAN
 Explains the idea behind your business and
spells out how your product or service will be
produced and sold.
 Sets specific objectives and describes how
your business expects to achieve them.
 Describes the background and experience of
the people who will be running the business.
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IMPORTANCE OF A BUSINESS PLAN
Makes you think about all aspects of
your business.
May help you secure financing for your
business.
Helps you communicate your ideas to
others.
Can serve as a tool for managing your
business.
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Chapter 5
Slide 6
Lesson 5.2
WHAT GOES INTO
A BUSINESS PLAN?
GOALS
Study the seven basic
elements of a business
plan.
Recognize what additional
elements may be needed.
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SEVEN BASIC ELEMENTS
OF A BUSINESS PLAN
Chapter 5
Slide 7
History and background
Goals and objectives
Products or services
Form of ownership
Management and staffing
Marketing
Current and projected financial
statements
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Chapter 5
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HISTORY AND BACKGROUND
Describing how you came up with your
idea can help lenders, investors, and
others understand how your business
will operate.
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Chapter 5
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GOALS AND OBJECTIVES
Your business plan should outline your
goals—short-term, medium-term, and
long-term.
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Chapter 5
Slide 10
PRODUCTS OR SERVICES
In this section your business plan should:
Explain how your products or services
differ from those already on the market.
Describe the industry you will operate in.
Describe the location of your business.
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FORM OF OWNERSHIP
Identify your form of ownership
Provide information relevant to your
form of ownership
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MANAGEMENT AND STAFFING
Demonstrate that you and the people
working for you have the experience,
maturity, and common sense to manage
your business.
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Chapter 5
Slide 13
MARKETING
The marketing section should:
Identify your prospective customers
Describe the size of the market for your
product or service.
Explain how you plan to enter the
market.
Explain how you plan to deal with
competition
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CURRENT AND PROJECTED
FINANCIAL STATEMENTS
Chapter 5
Slide 14
The financial section has three elements:
Identification of risks
Financial statements
Funding request and return on
investment
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ADDITIONAL ELEMENTS
OF THE BUSINESS PLAN
Chapter 5
Slide 15
Some businesses need to provide
additional information in their business
plans related to:
Licensing
Legal restrictions
Regulations
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Chapter 5
Slide 16
Lesson 5.3
CREATE AN EFFECTIVE
BUSINESS PLAN
GOALS
 Research your business plan.
 Organize your business plan.
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Chapter 5
Slide 17
RESEARCH THE BUSINESS PLAN
Print resources
Online resources
People resources
Additional resources
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PUT YOUR BUSINESS PLAN
TOGETHER
Chapter 5
Slide 18
Introductory elements
Cover letter
Cover sheets
Table of contents
Statement of purpose
Executive summary
Main body of your plan
Appendix
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