Create a Business Plan

© Expressive Business Strategies 2008- All Rights Reserved

Rick Grimm

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Divide into groups of 2 or 3 people

We will give you a question

• You will have 2-5 minutes to discuss and answer the question

• At the end of the question we will either discuss it, or give you the next question

At the end…a business plan!

Let’s go!

How has God made me – 5 minutes• What is my “bent”?

• What do I like? Dislike?

• What do I enjoy doing?

• What do I know?

• What is fun for me?

• What do I get excited about?

• What skills do I have

• What could I do “forever” and enjoy it?

Select a product or service – 3 minutes

• It needs to be a business you know something about

• You don’t need to be an expert, just know enough to get through this exercise

• Write down the name of your product or service

Select a name for your business – 4 minutes

• A business name should be:

– Short

– Memorable

– Descriptive

Do I need to obtain any additional education or training to do this business – 2 minutes• Is there something I don’t know

• Do I need specific training

• Do I need a license

• Are there government requirements

Describe your customers – 4 minutes• Who are they

• What are they like

• What do they need

• What do they want

• Why do they want your product

• Where do they live

What do you need to make/provide your product – 5 minutes

• Materials

• Equipment

• Process

• People

How much does it cost to make/provide your product – 5 minutes

• Cost of materials

• Cost of labor

• Cost of special equipment

• How would you calculate the cost per unit

What will be the price of your product/service – 4 minutes

• What is the normal price?

• Do you want to compete on price?

• Do you want to offer a “premium” service/product that costs more?

• How do you justify a premium price?

Who are your competitors – 3 minutes

• List all the competitors you can think of

• How long have they been around

• What do they do well?

• How could they do better?

How will you market your business – 4 minutes• What ways can you reach your customers?

• What is the best way to advertise?

How much will it cost to build your product/service – 5 minutes• Cost of materials

• Cost of labor

• Capital costs (equipment, building)

Do you need special or expensive equipment? – 3 minutes

• What do you need?

• Can you get used equipment or do you need new?

• Where can you get used equipment?

• How much will it cost

• How do I finance it?

How much will you sell the first day, week, month, quarter, year – 5 minutes

• Estimate how much you will sell each day.

• Calculate how much you will sell each week, for a month, for a year

• Determine if some parts of the year are busier or slower than others. Make adjustments

Where will you locate your business – 3 minutes

• Central location needed?

• Special location (boat marina)

• Location doesn’t matter

• What are the potential locations?

How long will it take become profitable – 5 minutes

• Can you be profitable quickly, or will it take some time?

• If it takes some time, what are your ideas for earning a living during that period?

Should you borrow money to start your business – 5 minutes

• What are the dangers of debt

• What happens if you don’t sell as well as you hoped?

• How could you get started without debt?

How will you conduct business when you want to take a vacation – 2 minutes

• Can you just close your business?

• Do you need someone to take over?

• Will your partner be available to cover?

How will you launch your business – 5 minutes

• How will you generate customer interest

• Will you have promotional pricing

• Do you need special advertising

That’s it!

• You now have a business plan

• When you do it for real, write it down

• Think about it

• Share it with others

• Refine, refine, refine