EntrepreneurshipChapter 6 – Business Plan

Chapter 9Slide 1

THE BUSINESS PLAN

• A business plan is a written document that describes all the steps necessary in opening and operating a successful business.

Chapter 5Slide 2

What a Business Plan Does

• Describes what your business will produce, how you will produce it, and who will buy your product or service

• Explain who will run your business and who will supply it with goods

Chapter 5Slide 3

What a Business Plan Does

• States how your business will win over customers from competitors and what your business will do to keep customers.

• Provides detailed financial information that shows how your business will succeed earning a profit.

Chapter 5Slide 4

PURPOSES OF A BUSINESS PLAN

• Explains the idea behind your business and spells out how your product or service will be produced and sold.

• Must prove that your idea is/has:• Solid

• New

• Better

• Less Expensive

• Target Market

Chapter 5Slide 5

PURPOSES OF A BUSINESS PLAN

• Sets specific objectives and describes how your business expects to achieve them.

• Includes:

• Sales Projections

• Short Term – 1st Year

• Medium Term – 2-5 years

• Long Term – 5+ years

• What new products will be introduced Chapter 5

Slide 6

PURPOSES OF A BUSINESS PLAN

• Describes the background and experience of the people who will be running the business.

• Personal History

• Compared to a resume of the individuals involved in this business.

Chapter 5Slide 7

IMPORTANCE OF A BUSINESS PLAN

• Makes you think about all aspects of your business.

• May help you secure financing for your business.

• Helps you communicate your ideas to others.

• Can serve as a tool for managing your business.

Chapter 5Slide 8