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The Business Plan

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SCORE Greater Cincinnati

The document discusses the importance of developing a business plan to help operate and grow a business successfully. It provides guidance on the essential components of an effective business plan, including describing the business, market, management team, marketing strategy, and financial projections. The business plan should then be used as a management tool and benchmark for progress as adjustments are made based on market conditions.

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Effectively Operate and Grow Your Business The Business Plan
The Business Plan Business Plan – Why? A plan raises your odds of success. The process forces you to take an objective, critical, unemotional look at your project. The plan communicates your ideas to others and provides the basis for your financial proposal. The finished plan becomes your operating tool and benchmark of progress. (Are you working the plan and is it working?) Business Plan - What? The business plan is a written document that describes your business and your plan for running it…. This becomes your management blueprint, with frequent updating, throughout your business life.
How is the Business Plan Used? The plan answers questions such as: Why do I want to be in business? What business am I in? Who are my customers? What is the market condition? How will I manage this business? What are my financial needs? These are key strategic issues
BP Format and Composition ESSENTIAL COMPONENTS Executive Summary Description of Products and Services The Market Marketing Strategy Competition Organization and Operations The Management Team Personnel Financial Information Timetables & Benchmarks Supporting Documentation
Executive Summary An overview of your business Business Description Market Niche Management Expertise Sales and Profit Forecast – 3 to 5 years Request for financing Use of funds and repayment
Business Description Product or Services “ Niche?” Customer Benefits Management Organization Strengths and Weaknesses
Elements of the Marketing Plan Target Market Competition Promotion / Advertising Set budget, evaluate use of various media, measure Market Research
Marketing Strategy Target Customers Who are they, where are they, what are they buying, from whom? Marketing Mix, the Four Ps: Price, Product, Place, Promotion Competitive Analysis Market Research: Market Trends Sales / Profitability Economic Interests Population Shifts
Competitive Analysis Who are your major competitors? What are their strengths and weaknesses? What are their marketing strategies? What are the major trends affecting the competitive environment? Industry, Economic, Social
Public Relations Network! Community Involvement Volunteer Involvement Event Sponsorships Send out press releases about newsworthy events (be creative about what’s newsworthy) Give a seminar or presentation to relevant business groups Submit articles to local media and to trade publications
Low-Cost Promotion Use every outgoing piece of paper, and every electronic document as business promotion (include company slogan, web address etc., email signature) Offer a newsletter on your website to collect email addresses and stay in touch with customers and prospects Use social media to advantage Measure success of the various approaches, where feasible
Management Team Experience and Quality Personal history of the principals Work experience Management experience Responsibilities
Personnel Current personnel needs Future needs Skill requirements Job descriptions Available labor pool Salaries and benefit s
Financial Information Financial Requirements How much do you need? How will you get it? Sources of Capital Income Statement Break-even analysis Balance Sheet Cash Flow
Supporting Documentation Resumes Credit Information Quotes or estimates Letters of intent from prospective customers Personal references Leases or buy/sell agreements Legal documents relevant to the business
Work the Plan To beat the odds… Select the right business [the one you know and have a passion for] Know [research, learn] the market, customers and competition Choose a viable market niche [avoid me-too and price cutting businesses] Define your marketing strategy Run a “back-of-the-envelope” break even assessment early in the game DEVELOP A BUSINESS PLAN (A good business plan helps set you apart from the crowd) Develop credible [realistic and substantiated] financial projections and a financial model Define the right legal business structure Adequately capitalize the company [equity and debt financing] Keep records and establish and accounting system from day 1 Hire develop & TRAIN good employees Manage risk [insurance] Effectively use cyberspace and conventional advertising Attract and retain customers Manage cash flow, manage cash flow, manage cash flow…daily!
Learn to Make Adjustments SCORE Counseling CONFIDENTIAL Counselors abide by a code of ethics and honor confidentiality. FAST Receive advice directly from an experienced executive. Variety of Expertise available FREE Offered free-of-charge, as a public service. No limit on number of sessions Available to all U.S. citizens & green card holders At downtown or satellite offices. Field counseling at your business' site. SCORE advice helps businesses succeed. An application for personal counseling be found on the web @ www.scoreworks.org
Step 8: Work the Plan and learn to make Adjustments Seek counseling, use mentors or sounding boards [leave pride at the door] Stay up-to-date, research, learn from your customers and competitors, continuously improve, develop an edge… Work on your business rather than just in your business
Develop an Elevator Pitch Elevator Pitch Objective: Someone who does not know your product would understand in the time it takes to ride an elevator up to the second floor (30-45 seconds) State your business concept What is it you do for customers? How does the customer benefit? Who is in your target market? How can prospects be identified?

More Related Content

The Business Plan

  • 1. Effectively Operate and Grow Your Business The Business Plan
  • 2. The Business Plan Business Plan – Why? A plan raises your odds of success. The process forces you to take an objective, critical, unemotional look at your project. The plan communicates your ideas to others and provides the basis for your financial proposal. The finished plan becomes your operating tool and benchmark of progress. (Are you working the plan and is it working?) Business Plan - What? The business plan is a written document that describes your business and your plan for running it…. This becomes your management blueprint, with frequent updating, throughout your business life.
  • 3. How is the Business Plan Used? The plan answers questions such as: Why do I want to be in business? What business am I in? Who are my customers? What is the market condition? How will I manage this business? What are my financial needs? These are key strategic issues
  • 4. BP Format and Composition ESSENTIAL COMPONENTS Executive Summary Description of Products and Services The Market Marketing Strategy Competition Organization and Operations The Management Team Personnel Financial Information Timetables & Benchmarks Supporting Documentation
  • 5. Executive Summary An overview of your business Business Description Market Niche Management Expertise Sales and Profit Forecast – 3 to 5 years Request for financing Use of funds and repayment
  • 6. Business Description Product or Services “ Niche?” Customer Benefits Management Organization Strengths and Weaknesses
  • 7. Elements of the Marketing Plan Target Market Competition Promotion / Advertising Set budget, evaluate use of various media, measure Market Research
  • 8. Marketing Strategy Target Customers Who are they, where are they, what are they buying, from whom? Marketing Mix, the Four Ps: Price, Product, Place, Promotion Competitive Analysis Market Research: Market Trends Sales / Profitability Economic Interests Population Shifts
  • 9. Competitive Analysis Who are your major competitors? What are their strengths and weaknesses? What are their marketing strategies? What are the major trends affecting the competitive environment? Industry, Economic, Social
  • 10. Public Relations Network! Community Involvement Volunteer Involvement Event Sponsorships Send out press releases about newsworthy events (be creative about what’s newsworthy) Give a seminar or presentation to relevant business groups Submit articles to local media and to trade publications
  • 11. Low-Cost Promotion Use every outgoing piece of paper, and every electronic document as business promotion (include company slogan, web address etc., email signature) Offer a newsletter on your website to collect email addresses and stay in touch with customers and prospects Use social media to advantage Measure success of the various approaches, where feasible
  • 12. Management Team Experience and Quality Personal history of the principals Work experience Management experience Responsibilities
  • 13. Personnel Current personnel needs Future needs Skill requirements Job descriptions Available labor pool Salaries and benefit s
  • 14. Financial Information Financial Requirements How much do you need? How will you get it? Sources of Capital Income Statement Break-even analysis Balance Sheet Cash Flow
  • 15. Supporting Documentation Resumes Credit Information Quotes or estimates Letters of intent from prospective customers Personal references Leases or buy/sell agreements Legal documents relevant to the business
  • 16. Work the Plan To beat the odds… Select the right business [the one you know and have a passion for] Know [research, learn] the market, customers and competition Choose a viable market niche [avoid me-too and price cutting businesses] Define your marketing strategy Run a “back-of-the-envelope” break even assessment early in the game DEVELOP A BUSINESS PLAN (A good business plan helps set you apart from the crowd) Develop credible [realistic and substantiated] financial projections and a financial model Define the right legal business structure Adequately capitalize the company [equity and debt financing] Keep records and establish and accounting system from day 1 Hire develop & TRAIN good employees Manage risk [insurance] Effectively use cyberspace and conventional advertising Attract and retain customers Manage cash flow, manage cash flow, manage cash flow…daily!
  • 17. Learn to Make Adjustments SCORE Counseling CONFIDENTIAL Counselors abide by a code of ethics and honor confidentiality. FAST Receive advice directly from an experienced executive. Variety of Expertise available FREE Offered free-of-charge, as a public service. No limit on number of sessions Available to all U.S. citizens & green card holders At downtown or satellite offices. Field counseling at your business' site. SCORE advice helps businesses succeed. An application for personal counseling be found on the web @ www.scoreworks.org
  • 18. Step 8: Work the Plan and learn to make Adjustments Seek counseling, use mentors or sounding boards [leave pride at the door] Stay up-to-date, research, learn from your customers and competitors, continuously improve, develop an edge… Work on your business rather than just in your business
  • 19. Develop an Elevator Pitch Elevator Pitch Objective: Someone who does not know your product would understand in the time it takes to ride an elevator up to the second floor (30-45 seconds) State your business concept What is it you do for customers? How does the customer benefit? Who is in your target market? How can prospects be identified?