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Many small businesses don't have a business plan because it seems too complicated to build one and then it is too complicated to actually use. They need a more simple method and a practical planning process that they will actually use to run the business. Most books and templates for building a business plan are overwhelming in the information they need. Learn to filter down to the necessary planning items you need to run your business, a practical business plan that you will use. - Defining the market for your business - Evaluate changing market conditions - Create a practical business plan for daily decisions
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Sigma FreePresents…
Provided by Sigma College of Small Business, Inc.
Build a Practical Business Plan for Your Business
Tuesday, April 6, 2010
6pm – 8pm
Sigma College of Small Business
6611 Jefferson St.
Haymarket, VA 20169
Copyright 2010 Sigma College of Small Business, Inc.2
Introductions
Keynote TopicBuild a Practical Business Plan
for Your Business
Keynote ConclusionBuild a Practical Business Plan
for Your Business
Break – Refreshments and Networking
Ask Questions Any Time
Agenda
Build a Practical Business Plan for Your Business
Copyright 2010 Sigma College of Small Business, Inc.
Going Into Business
Which answer best describes how YOU decided to go into business?– I had a product or skill and decided to build a market for it.
– I saw a specific need in the market and built a product or skill to fill the need
– I bought into a business where there was already a defined market and product/services.
– The whole thing was thrust upon me!– Other _____________________________________
3Build a Practical Business Plan for Your Business
Copyright 2010 Sigma College of Small Business, Inc.
Product, Need and ValueThe Core Planning Process
4
Product
Market Need
Match
Value
How Much Can or Needs to be Made
Build a Practical Business Plan for Your Business
Copyright 2010 Sigma College of Small Business, Inc.
Execution:
Specific Actions
for
Desired Outcomes
ExecutionThe Essential Element
5
Product
Market Need
Match
Value
How Much Can or Needs to be Made
Build a Practical Business Plan for Your Business
Copyright 2010 Sigma College of Small Business, Inc.
Your Business Plan
Choose the answer that BEST matches your company's business plan.– I use my written business plan daily in the operation of my business.
– We review and update parts of our written plan periodically as a guide to planning decisions
– We have a plan that we hire someone to update every year or so.
– I have one somewhere that we did a few years ago.– Business Plan? ‐It's all up here baby!– Other _______________________________________
6Build a Practical Business Plan for Your Business
Copyright 2010 Sigma College of Small Business, Inc.
Types of Business Plans
Investor Plans• Communicate business
concept to others
• Primarily to raise capital– Debt or Equity
– Find Partners
• Selling “The Business”– Not necessarily the
product
Business Management Plans• Used to run the business• Communicates business
decisions to managers• Process for guiding business
decisions– Consolidates information– Facilitates decision making– Decision history and reasoning– Execution
• Links actions todesiredoutcomes
Build a Practical Business Plan for Your Business 7
Get Money vs. Make Money
Copyright 2010 Sigma College of Small Business, Inc.
The Practical Business Plan
8Build a Practical Business Plan for Your Business
Core Elements
Market OpportunityMatch Product to Need
BudgetOpportunity Value and Cost
Marketing and SalesMethod for Exchanging Product
for Cash
Copyright 2010 Sigma College of Small Business, Inc.Build a Practical Business Plan for
Your Business9
Investment
Copyright 2010 Sigma College of Small Business, Inc.
Market Opportunity
• Gap in the Market– The specific need or desire– Potential buyers and users– Reason for Gap
• Product Definition– Basic description– How it fills the gap
• Match Product and Need with Value– Describe how the match will create value in the market
Build a Practical Business Plan for Your Business10
Copyright 2010 Sigma College of Small Business, Inc.
Budget
• Revenue– Market Potential Approach– Break Even Approach
• Expenses– Cost to build– Cost to market, sell and manage
• Cash Flow• Profitability
Build a Practical Business Plan for Your Business11
Copyright 2010 Sigma College of Small Business, Inc.
Marketing and Sales
• Packaging– Sizes, combinations, service levels
• Price– Strategy for pricing the product portfolio
• Message– Key points to communicate for each product and
segment– Show value and differentiate
• Promotion and Communication– Methods and media for communicating the
message– Includes advertising, discounts, promotion events,
etc…• Sales and delivery
Build a Practical Business Plan for Your Business 12
Copyright 2010 Sigma College of Small Business, Inc.
Business StrategyVisionMission
ObjectivesLegal Structure
Operations DetailProceduresOrganizationHR Plan
DevelopmentFacilities
Building on the Business Plan
Build a Practical Business Plan for Your Business 13
Core Elements
Market OpportunityMatch Product to Need
Budget and ForecastOpportunity and Cost
Marketing and SalesMethod for Exchanging Product for Cash
‐ New Opportunities
‐ Financial Plan
‐Marketing Plan
Copyright 2010 Sigma College of Small Business, Inc.
Critical Business Areas
Strategy and Planning
Marketing and Sales
Accounting and Finance
Operations and Quality
Leadership and Administration
Technology and Innovation
Sigma College of Small Business
• Upcoming SigmaFree Classes– 4/13 – What’s In a Name? The Power of Your Brand
– 4/20 – There’s Gotta be a Better Way! Happier Customers and Higher Profits
• Focus Workshop– Leveraging the Online Social Network
• Tuesday, May 4, 2010
• 10am – 2pm, $199
14Dedicated to the Learning Needs of Small Business!
