Business Plans:
The Roadmap to Your Success
Presented by:
Edward S. Balian, Ph.D.
Q-Stat Management Consulting
Silver Sky, Incorporated
--Since 1977--
Q-Stat Management Consulting
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Started in 1977 (as a Division of Silver Sky, Inc.)
Over 80 clients to date
Consulting in:
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Entrepreneurship
Marketing Research
Quality Systems (ISO, TQM, etc.)
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
So---Where Do We Start?
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A long journey, with a few speed bumps.
The quality of your shock absorbers?
You will learn a lot, no matter what happens.
Is a map or “Plan” really necessary?
What’s in it?
What’s NOT in it?
“Hey, why can’t I just use a software template and
forget it?”
The Bottom-Line: Your credibility!
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
The Preliminary Stuff
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Your Goals: What do you REALLY want
directly from this venture?
Your Vision: In 1 year, 5 years, 10 years?
Can your significant other survive it? (we
already know we entrepreneurs are half-crazy.)
Is entrepreneurship for everybody and
anybody? (You already know THAT
answer!)
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
$$ Money-Money-Money $$
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Your Funding Source Options:
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Loans (Bankers)
Investors (Venture Capitalists)
Family and Friends (Good Luck…!)
Yourself
Mixture of all the above sources (most common)
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
Entrepreneur Fears and Concerns Over
Funding Options
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Typical entrepreneurial concerns with any of the
usual funding options:
 The “100% of Nothin’” Foolish Greed Theory
 The “…But It’s My Baby” Ownership-Anxiety
Syndrome
 The “They Will Steal My Idea” Paranoia
Corollary
 The “I Want to be My Own Boss and Answer
to Nobody” Neurosis
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
ARE YOU STILL WITH ME?
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Q&A: Let’s talk for a moment…
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
10 Sections to a Business Plan
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OK, let’s GO.
Here are the 10 Sections of a typical Business
Plan, in order:
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
Your Business Plan:
Section I: Basic Information
(Talkin’ ‘Bout YOU!)
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Name and address of business
Nature of business
Financing sought (how much $$ and over what
suggested time frame?)
Confidentiality statement
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
Section II.
Executive Summary
or…”Dude, I’m just too busy
to read your pitch.”
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Summarize the entire Business Plan here!
Believe it or not, this just may be the only
section your audience reads---complete it
carefully!
Have this reviewed by respected peers or a pro
in the field before presenting it.
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
Section III.
Industry Analysis
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SWOT Matrix of Your Proposed Business:
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Strength
Weakness
Opportunities
Threats
S & W in the present
O & T in the future
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
Section IV.
Description of Your Venture
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What is it? (EXAM #1: Can you explain your
venture idea in less than three minutes to a
complete stranger?)
Size (projected in 1, 3, 5 years, in $$ gross
revenue)
Personnel required
Equipment/space required
Background of the Entrepreneurs involved
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
Section V.
Production Plan
(only as needed; service industries can skip this Section—
lucky you!)
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Manufacturing process
Physical plant description
Machinery and equipment
Proposed suppliers of raw materials and/or
support help
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
Section VIa
Marketing Plan
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The FOUR P’s of Marketing, Explained for
Your Venture:
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Product (or service) (you might also include The Boston
Consulting Group Quadrant chart here)
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Price (retail/wholesale, estimates)
Placement (aka, distribution)
Promotion (includes both advertising and
publicity—two different things)
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
Section VIb.
Marketing Plan
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Marketing Research, either before, after or during the
development of The Four P’s.
Field-Testing or Pilot-Testing a prototype. Use primary or
secondary hard data or focus groups or both.
On-going market research takes place in all established
corporations.
Caution: Don’t assume a “need” for your venture in the
marketplace— demonstrate it.
Can you afford not to do at least some market research?
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The advantages of doing your homework
The chance of potential flop without research
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
Section VII.
Organization Plan
(Sorry, it was inevitable:
Time to bring on the Lawyers and the Accountants)
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Form of Ownership
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C-Corp
S-Corp
LLCompany
Partnership
Sole Prop
Why that form of ownership was chosen?
Liability and tax issues tend to prevail here.
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
Section VIII.
Contingency Plan
(or: If things don’t work out, can I split to
South America with the investors’ money?)
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“What if” scenarios: altering the Plan as, if,
and when necessary.
Changes in the roadmap direction depending
upon specific benchmarks: what indicators and
when? (Usually financial, but could be other
indicators)
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
Section IX.
Financial Plan
(Yeah—all the FUN stuff!)
Pro Forma Income Statement (1, 3, 5 and 10
years)
 Cash Flow Projections
 Pro Forma Balance Sheet:
(Assets=Liabilities + Shareholder Equity)
 Break-Even Analysis
 Sources and application of funds over time
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(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
Section IX (con’t)
Financial Plan Tips
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The MOST COMMON error for all
entrepreneurs? GUESS:
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__________________ sales revenue
__________________ expenses
Keep your salary at 15% or less of total fiscal
year expenses, but indicate to your
investors/bankers how you intend to survive
the time period(s).
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
Section X.
Appendix
(For the real detail hounds…)
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Market Research Data
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Analysis of data (REAL analysis or just cute
graphs and pie charts?)
Database(s), primary and/or secondary
Findings
Contracts, leases, etc.
Price lists from primary suppliers
Product detail photos, worksheet details, etc.
Reference sources/bibliography
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
Are You Still With Me?
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Q/A
OK, let’s talk (again).
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
Q-Stat Management Consulting
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Corporate Basic Rate
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no basic rate increases since 1994
$20,000 retainer @ $290 per hour.
“Start-Up” Entrepreneur’s Special Rate
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(individuals only)
Initial 18 consulting hours @ $1600 retainer.
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.
Thank You and Best of Luck!
Edward S. Balian, Ph.D.
San Diego, California, USA.
Since 1977:
Q-Stat Management Consulting
A Division of
Silver Sky, Incorporated
www.Q-STAT.com
www.SilverSkyIncorporated.com
760-809-9778 (PST)
esbalian@gmail.com
(c)2007 Edward S. Balian, Ph.D.
ALL RIGHTS RESERVED.