#5 – THE BUSINESS PLAN#5 – THE BUSINESS PLAN

Gameplan for ActionGameplan for Action Baby StepsBaby Steps Start up versus Start up versus

ExpansionExpansion Purpose of a PlanPurpose of a Plan The Business Plan ModelThe Business Plan Model

What’s In a The Business Plan ?What’s In a The Business Plan ?

What’s In a The Business Plan ?What’s In a The Business Plan ?

Why a The Business Plan ?Why a The Business Plan ?

KNOW YOUR AUDIENCE KNOW YOUR AUDIENCE

““A Business Plan is very, very A Business Plan is very, very audience and use – specificaudience and use – specific. You can . You can

actually have several versions, actually have several versions, depending on who will read it, and depending on who will read it, and

why.”why.”

… … FOR FOR FUNDINGFUNDING

Prove, justify your ideaProve, justify your idea Show the market is thereShow the market is there Orders? Letters of interest?Orders? Letters of interest? Personal resume, balance sheetPersonal resume, balance sheet Use of fundsUse of funds Ability to reimburseAbility to reimburse Minimal riskMinimal risk Business / related experience Business / related experience

… … FOR FOR PARTNERSPARTNERS

Investment sought, returns Investment sought, returns expectedexpected

Division of responsibilityDivision of responsibility Limited risk factorsLimited risk factors How you propose to access marketsHow you propose to access markets Why you are seeking partnersWhy you are seeking partners What you each bring to the tableWhat you each bring to the table Long term growth potentialLong term growth potential Window of opportunity : timing, Window of opportunity : timing,

now!now!

… … FOR FOR YOURSELFYOURSELF

Realistic, achievable goalsRealistic, achievable goals Realistic, conservative budgetsRealistic, conservative budgets Double the costs, half the revenuesDouble the costs, half the revenues Realistic market penetrationRealistic market penetration Realistic timelines, milestonesRealistic timelines, milestones Affordable marketing strategiesAffordable marketing strategies Step by step gameplanStep by step gameplan

HOW TO…. HOW TO…. Get straight to the pointGet straight to the point Don’t brag too muchDon’t brag too much Use graphics, chartsUse graphics, charts Visually pleasingVisually pleasing Quote sources of stats, Quote sources of stats,

numbersnumbers Avoid ‘motherhood’ Avoid ‘motherhood’ - - This This

will be a major force in the will be a major force in the industry, and set new industry, and set new standards for quality & standards for quality & price.”price.”

Executive SummaryExecutive Summary

This section should: This section should: Be written last. Be written last.

Provide an enthusiastic snapshot of Provide an enthusiastic snapshot of your company, explaining who you your company, explaining who you

are, what you do and why. are, what you do and why. Be less than 2 pages in length. Be less than 2 pages in length.

Business Description and VisionMission statement (business

purpose). Company vision (statement about

company growth). Business goals and objectives.

Brief history of the business. List of key company principals.

Definition of the MarketDefinition of the Market

Describe your business industry and outlook. Describe your business industry and outlook. Review the market research done, and what the Review the market research done, and what the

conclusions are.conclusions are.Define the critical needs of your perceived or existing Define the critical needs of your perceived or existing

market. market. Identify your target market. Identify your target market.

Provide a general profile of your targeted clients. Provide a general profile of your targeted clients. Describe what share of the market you currently have Describe what share of the market you currently have

and/or anticipate. and/or anticipate.

Description of Products and ServicesDescription of Products and ServicesSpecifically describe all of your Specifically describe all of your

products and services. products and services. Explain how your products and Explain how your products and

services are competitive. services are competitive. If applicable, reference a picture or If applicable, reference a picture or brochure of your products, which brochure of your products, which

would be included in the plan’s would be included in the plan’s appendix. appendix.

Organization and ManagementOrganization and ManagementProvide a description of how your company is Provide a description of how your company is organized as well as an organization chart, if organized as well as an organization chart, if

available. available. Describe the legal structure of your business Describe the legal structure of your business

(proprietorship, partnership, corporation, etc.). (proprietorship, partnership, corporation, etc.). Identify necessary or special licenses and/or Identify necessary or special licenses and/or

permits your business operates with. permits your business operates with. Provide a brief bio description of key managers Provide a brief bio description of key managers

within the company. within the company.

Marketing and Sales StrategyMarketing and Sales Strategy

Identify and describe your market – who your Identify and describe your market – who your customers are and what the demand is for your customers are and what the demand is for your

products & services. products & services. Describe your channels of distribution.Describe your channels of distribution.

How you plan to reach your clients / customers.How you plan to reach your clients / customers.Why your products / services will be able to compete Why your products / services will be able to compete

well, and meet the need of the market. well, and meet the need of the market. Explain your sales strategy, specific Explain your sales strategy, specific to pricing, to pricing,

promotion, products and place (4Ps). promotion, products and place (4Ps).

Financial ManagementFinancial ManagementFor a For a New BusinessNew Business

o Estimate of start-up costs. Estimate of start-up costs. o Projected balance sheet (1 year Projected balance sheet (1 year

forward). forward). o Projected income statement (1 year Projected income statement (1 year

forward). forward). o Projected cash flow statement (12 Projected cash flow statement (12

months forward). months forward).

Financial ManagementFinancial ManagementFor an For an Existing BusinessExisting Business

o Balance sheets (last 3 years). Balance sheets (last 3 years). o Income statements (last 3 years). Income statements (last 3 years). o Cash flow statement (12 months). Cash flow statement (12 months).

If Applying for a Loan (in addition to the If Applying for a Loan (in addition to the above) above)

o Current personal financial statement on Current personal financial statement on each principal. each principal.

o Federal tax return for prior year. Federal tax return for prior year.

Operational PlanOperational PlanFacilities and location.Facilities and location.

Business license, registration.Business license, registration.Staffing requirements.Staffing requirements.

How you propose to operate How you propose to operate your business.your business.

ConclusionsConclusions

This section should include: This section should include: Timelines to get startedTimelines to get started

Window of opportunity?Window of opportunity?Identified risks, and how they will be Identified risks, and how they will be

dealt with.dealt with.Restate your ability to run this Restate your ability to run this

business, and your contributions business, and your contributions (skills, funds) to get this business (skills, funds) to get this business

going. going.

AppendicesAppendices

This section should include: This section should include: Resume on yourself.Resume on yourself.

Evidence of cash / equity to put into the Evidence of cash / equity to put into the business.business.

Letters of support.Letters of support.Estimates for any outside contractors Estimates for any outside contractors

you may be using, builders, etc.you may be using, builders, etc.If you have done up any brochures, add If you have done up any brochures, add

these in. these in.

‘‘FRESH EYES REVIEW’ FRESH EYES REVIEW’ Qualified third party, not family or Qualified third party, not family or

friendsfriends Do they understand the business?Do they understand the business? Does it answer most of their Does it answer most of their

questions?questions? Do they think you have been Do they think you have been

realistic?realistic? Do they think you are qualified?Do they think you are qualified? Do they believe your #s, $ needs, Do they believe your #s, $ needs,

uses?uses? Have you explained yourself well Have you explained yourself well

enough?enough? Are there any ‘black holes’/gaps?Are there any ‘black holes’/gaps?

MOREMORE ‘FRESH EYES’ ‘FRESH EYES’ Have you identified what you are Have you identified what you are

selling?selling? do they see who your customers do they see who your customers

are?are? Do they feel your research is Do they feel your research is

adequate?adequate? Do they feel you have presented the Do they feel you have presented the

risks?risks? Would they recommend this to Would they recommend this to

investors?investors? If they were in a position to do so, If they were in a position to do so,

would they participate, invest, would they participate, invest, partner, etc?partner, etc?

DO THIS AGAIN, WITH MORE FRESH DO THIS AGAIN, WITH MORE FRESH EYES !! EYES !!

GETTING PERSONAL GETTING PERSONAL Personality fit with this Personality fit with this

business? Does that come across business? Does that come across in your Plan?in your Plan?

Enthusiasm?Enthusiasm? Confidence?Confidence? Passion?Passion? Live with what you have Live with what you have

presented?presented? Patience demonstrated in Patience demonstrated in

gameplan?gameplan? Ability to deliver, without Ability to deliver, without

causing undue hardships to causing undue hardships to family, spouse?family, spouse?

INSPIRED CRAZINESS INSPIRED CRAZINESS

“ “ We entrepreneurs We entrepreneurs are a bit (or more) are a bit (or more) crazy. That should crazy. That should reflect in the Plan. reflect in the Plan.

That spirit is That spirit is infectious. This is our infectious. This is our

moment to shine!”moment to shine!”

FOR NEXT WEEK..FOR NEXT WEEK..1.1. Based on your own business, Based on your own business,

do up a brief summary of do up a brief summary of what you might include in what you might include in your Business Plan. Bullets your Business Plan. Bullets are fine. are fine.

2.2. This is a quick overview only This is a quick overview only to assure you grasped the to assure you grasped the Business Plan, and why you Business Plan, and why you need it. need it.

3.3. Share the results. Feel free Share the results. Feel free to email me. to email me.