Business Planning Taking your ideas to the next level!

New River Community and Technical College

Getting Started! o Who am I? o What is it?

56% of start-up businesses do not survive past four years.

U.S. Bureau of Labor Statistics

You don’t plan to fail– you fail to plan.

You need to create your plan to benefit YOU and YOUR business first.

Executive Summary : •Business Unique Features •Specify what Management Team Plans to Accomplish

Industry Analysis :

•General Overview of the Industry •Background of Industry •Industry Trends •Growth Rate of the Industry •Outlook for the Future •Seasonal Factors (if applicable)

Industry – A group of businesses who sell similar products or services to a similar group of customers with similar needs.

GENERAL CLASSIFICATION •GROUP – restaurants •SPECIALIZATION – nice dinners •CUSTOMERS – upper middle class

MORE SPECIFIC CLASSIFICATION •GROUP – sit-down/dine-in restaurants •SPECIALIZATION – steak or chicken dinners priced $10-$15 •CUSTOMERS – Lewisburg families with income $40,000 - $60,000 a year

www.yahoo.com (my industry) industry news http://biz.yahoo.com/industry

Your Mission… Your Business Vision

What do you want anyone who comes in contact with your company to say about it?

Price = $10 Cost = $8

Profit = $2

Profit Margin =

20%

5 Steps to Market Research

• Information needed to fill in gaps

• Conduct a situation analysis

• Identify and plan primary research

• Conduct secondary research

• Analyze data and prepare conclusions

Conducting a Competitor Analysis

www.yellowpages.com www.whowhere.com www.anywho.com

S.W.O.T. ANALYSIS

Opportunities

Threats Weaknesses

Strengths

S.W.O.T. ANALYSIS

Opportunities

Threats Weaknesses

Strengths

S.W.O.T. ANALYSIS

Opportunities

Threats Weaknesses

Strengths

S.W.O.T. ANALYSIS

Opportunities

Threats Weaknesses

Strengths

S.W.O.T. ANALYSIS

Opportunities

Threats Weaknesses

Strengths

S.W.O.T. ANALYSIS

Opportunities

Threats Weaknesses

Strengths

S.W.O.T. ANALYSIS

Opportunities

Threats Weaknesses

Strengths

Internal External

S.W.O.T. ANALYSIS

Opportunities

Threats Weaknesses

Strengths

Strategic Action Plan

• Product/Service Objectives – 1 year – 3 year – 5 year

• Sales Objectives – 1 year – 3 year – 5 year

• Marketing Objectives – 1 year – 3 year – 5 year

Product/Service Objective

how you want your product/service to evolve

over the time period

Sales Objectives

“Coffee shop will sell x-amount of coffees during an

average month in the first year.”

“By the third year, we expect an x-percent increase for x-amount of coffees sold that

year, etc.”

Marketing Objectives

“Suzy’s Coffee House will market primarily by mail during the first year, by

spending approximately $500 a month to mail 1500

households.”

Marketing Objectives

“During the third year, Suzy’s plans to have evolved by also advertising by radio, by doing 5 commercials per week, and

continuing to mail 1500 households a month,” etc.

Summary of Production & Marketing Strategies

what you will produce how you will produce it what you will market how you will market it

Control Systems

“Suzy’s Coffee House has a person in charge of regular

inventory to make sure theft has not occurred.”

“They also have a certain

person designated to open the cash drawer and do a

bank run.”

Management! President

Sales Maintenance IT

Director

65% of office product purchasers say there are no free snacks at their place of business.

Quill Corporation

Variable

Fixed

Units

$

Y = A(x) – B(x)

Y = Fixed Costs B = Variable Costs

A = Selling Price

Y = A(x) – B(x)

Y = $500/month (fixed cost)

B = $0.25/box (variable cost) A = $0.50/box (sales price)

$500 = $0.50(x) – $0.25(x) $500 = $0.25(x) $0.25 $0.25 2,000 = x

Excellent Storage!

The Appendix

Overall Formatting and Presentation

Next Step?