Preparing a Business Plan
SET YOURSELF APART FROM THE CROWD
WHAT IS A BUSINESS PLAN?

your firm's resume for potential
investors.

the management and financial blueprint
for a business start-up and profitable
operation.

Explains:
– how the business will function
– its operational characteristics.
– capitalization and management
It Starts With A Good Idea!
Brainstorm several ideas
around a business
concept.
 Evaluate and select the
idea.
 Develop the business
plan.

Why Is A Plan Important?

In order to gain insight into the future,
you must be able to identify yourself in
the present.

A well thought out business plan
provides specific and organized
information about your company and
how you will repay borrowed money.
Why Is A Plan Important?

A good business plan is crucial to any
loan package.

Helps tell sales personnel, suppliers,
and others about your operations and
goals.

Can be used as a performance
benchmark.
Business ideas can include:
Extension of an existing business.
 Response to a change in the
market.
 Exploitation of a competitive
advantage.
 Inventions.
 Becoming an agent or distributor.
 Service/Retail.

Elements of a Business Plan

The Cover Sheet
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Name, address, phone of the company
Name, etc. of owners/corporate officers
Month/year plan was prepared
Name of the preparer
Copy number of the plan

Executive Summary
(Statement of Purpose)

Table of Contents
Executive Summary
States the business plan objectives
 Uses key words to summarize:

– Your company (who, what, where, when)
– Your management and their strengths
– Your objectives and why you will succeed
– Financing need:

Why and how much; how you will repay the
investor
Major Components

The Organizational Plan

The Marketing Plan

The Financial Plan

Supporting Documents
The Organizational Plan

Summary Description of the Business
–
–
–
–
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Mission
Business model
Strategy
Strategic relationships
Risks

Products of Services

Intellectual Property
– Copyrights, trademarks, patents
The Organizational Plan

Location
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Legal Structure
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Where and at what cost?
If it also pertains to Marketing, add info in your
Marketing Section, too
Why is this structure appropriate?
Who owns/corporate officers?
Management


Who runs the company?
Describe responsibilities, abilities, salaries
The Organizational Plan

Personnel

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Accounting and Legal


Who and how
Insurance

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How many employees?
Qualifications, schedules, wages
Future needs
Property & Liability, Life & Health
Costs and carriers
Security

Inventory control and theft of information (online and
offline)
The Marketing Plan

Overview and Goals of Your Marketing
Strategy

Market Analysis

Target market
– Demographics, psychographics, niche markets

Competition
– Assess their strengths & weaknesses

Market trends
– Industry trends, customer trends

Market research
– Methods of research, database analysis, results
The Marketing Plan

Marketing Strategy
– General description (% online v. offline)
– Method of sales & distribution

stores, offices, kiosks, catalogs, website, direct
mail
– Packaging
– Pricing
– Branding
– Database marketing
Marketing Strategy

Sales Strategies
– Direct sales, direct mail, email, affiliate, reciprocal,
viral marketing…

Sales Incentives/Promotions
– Samples, coupons, online promo, rebates…

Advertising Strategies
– Traditional radio, tv and print; web/new media,
long-term sponsorships…
The Marketing Plan

Marketing Strategy
– Public Relations

Online presence, events, press releases, interviews with
the press
– Networking

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Memberships and leadership positions
Customer Service
– Activities and outcomes

Implementation of the Plan
– In-house, out-sourced responsibilities
The Financial Plan
Pro formas
 Balance sheet
 Profit & Loss statements
 Cash flow analysis
 Break even analysis

Supporting Documents

Everything you can include to make you
and your business look terrific….
Resources

Online information – for example:
www.state.nj.us/njbiz/s_step1_elements.shtml

NJ-Small Business Development
Centers (SBDC)
– 800-432-1565
– www.yourbizpartner.com
Guidelines

Define your objectives for the plan.

Do your research.

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industry, potential customers, competitors, sales, and costs
Outline the key points for in each section.
Write the plan.
Generate believable financial projections.
Do the executive summary last.

highlights what is important in your plan while getting the
reader excited about your business
Sample Plans
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Http://www.sba.gov/starting/wideindexbuspl
an.html
www.bplans.com
http://www.businessplans.org/MootCorp.html
http://www.state.nj.us/njbiz/s_step1_sample
.shtml
http://www.sb.gov.bc.ca/smallbus/workshop
/download/samplebp.html
http://153.91.1.141/sbdc/centsbdc/BUSPLAN
.HTM
GOOD LUCK
EVERYTHING BEGINS AS
SOMEONE’S DAYDREAM.
- Larry Niven