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Copyright Curators of the University of Missouri, 10/2003. Revised 2008. 1
The Basics of Writing a Business Plan
Seminar for Current and Future Business Owners
Copyright Curators of the University of Missouri, 10/2003. Revised 2008. 2
Writing A Business Plan
The decision to treat your own wasteDo the research before you make a
decision
Copyright Curators of the University of Missouri, 10/2003. Revised 2008. 3
Objectives
Teach key components of a basic business plan
Provide guidelines for style and appearance of a business plan
Copyright Curators of the University of Missouri, 10/2003. Revised 2008. 4
Agenda
1. Introduction2. The Importance of a Business Plan3. Key Elements of a Business Plan4. Writing Styles and Tools5. Wrap-up/Questions and Answers
Copyright Curators of the University of Missouri, 10/2003. Revised 2008. 5
Housekeeping
Class MaterialsRestroomsBreaksParticipationQuestions and Comments
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The Importance of a Business Plan
Why Bother?Gives you a better chance
of success
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What is a Business Plan?
Written document that:Defines your businessIdentifies your goals and missionServes as your company’s “resume”
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Who Needs a Business Plan?
Business OwnersLending InstitutionsOthers
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Why is the Business PlanImportant?
1. Obtain Financing2. Planning3. Communication4. Promotion/Marketing5. Education
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Elements of the Business Plan
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What’s in the Business Plan
Cover Page
Table of Contents
Executive Summary
Supporting Documents
Management &Organizational Plan
Business Description
Marketing Plan
Financial Plan
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The Beginning and the End
Title PageCover PageTable of ContentsExecutive SummarySupporting Documents
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Four Key Sections
1. Business Description2. Management and Organizational
Plan3. Marketing Plan4. Financial Plan
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1. Business Description
Explains what your business is:What you doHow you do itWho you do it forWhere you do it
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Business Description: Contents
Company nameProducts/ servicesBusiness conceptHistory, present status, and future plansLegal structureLocation
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Business Concept
• Your product or service should fit one of these criteria:
Something newSomething betterReach an underserved or new marketSome unique feature
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Business Concept Activity
Answer the following questions for your business:
1. What does your product/ service do?2. How is it different from others?3. Who will buy it?4. Why will they buy it?5. Where will you sell it?6. How will you promote it?
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Always Follow the Money
Initial Cost for the EquipmentSite Selection / AccessibilityEngineering / Planning & ZoningPermittingFinancing
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Operational Cost
LaborElectricPolymer / ChemicalsMaintenanceDisposal of SolidsOther---Gallons to Process, Properties of Liquid Sludge of Dewatered Sludge
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The Revenue Stream
Who is going to pay you?How are you going to get paid?How long does it take to get paid?What are the working capital requirements?
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2. Management & Organizational Plan
How the company will be managedOrganizational roles & responsibilitiesManagement/Human Resource policies
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Management and Organizational Plan: Contents
Management teamOrganizational roles & responsibilities Board of directors/ advisory councilPersonnel requirements Employee incentivesOutside professional services usedOwner and manager compensation
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3. Marketing Plan
Provides insight about marketplace environment Provides competitive strategies
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Marketing Plan: Contents
Market research/Industry analysisCustomer baseCompetitionPricing strategyAdvertising/promotional planSales potentialFeatures & benefits of product/serviceDistribution plan
Copyright Curators of the University of Missouri, 10/2003. Revised 2008. 25
Researching Your Marketing Plan
Where do you get all this information?Free sources
Internet or libraryPaid sources
Trade Association reports or booksIndependent research
Other businessesConsumers/ customers
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4. Financial Plan
What you currently haveWhat you needWhere you’re going to get itHow you’re going to spend it
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Financial Plan: Contents
Financial needs Revenue & cost assumptionsProjected financial statements
Income statementBalance sheet Cash flow statement
Break-even analysis & ratios
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The Beginning & The End:Supporting Documents
Financial documents Personal resumePersonal financial statementCopies of contracts, leases, other legal documentsLetters of referenceOther…
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The Beginning & The End:Executive Summary
A one-page overview of your business ventureServes as the “introduction” to your business planPlaced in the front, but done last
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Executive Summary: Contents
Brief overview of business strategyList of owners & other key peopleBusiness structureWhat the company doesCompany objectivesWhy you’ll be successfulWhat you’re asking for
Copyright Curators of the University of Missouri, 10/2003. Revised 2008. 31
Executive Summary: Activity
1. Work in teams2. Use information from one person’s
company3. Write responses to the items on the
list of Executive Summary Contents4. Share with the class
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Writing Styles and Tools
Copyright Curators of the University of Missouri, 10/2003. Revised 2008. 33
A Professional Look
People judge you by your lookImpacts your credibility
Copyright Curators of the University of Missouri, 10/2003. Revised 2008. 34
Writing Styles
Complete InformationAccuracy
Check math & spellingSimple & DirectProof your work
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Language
Be “realistically” optimisticProvide specifics and factsDon’t be flamboyantUse appropriate business termsExplain unique industry termsNo acronyms or slang wordsWrite in third person
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Appearance
FormatNumbers for impactBullet points for focusWhite space
Type/FontSerif versus San SerifNo more than 2 type faces12pt. minimum
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Appearance
ALL CAPITAL LETTERS ARE A NO-NO Page Numbers
Number and date all pagesPrinting
Laser qualityBind so document can lay flat
Cover should convey quality
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Length
Depends on complexity of business & amount of financing needed
Usually between 15 – 30 pages
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Wrap-up and Close
Copyright Curators of the University of Missouri, 10/2003. Revised 2008. 40
Remember the Purpose
Remember what readers want to know:
Is your business solid?Is there sufficient market?Are financial projections healthy and realistic?
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Agenda
1. Introduction2. The importance of a Business Plan3. Key Elements of a Business Plan4. Writing Styles and Tools5. Wrap-up/ Question and Answer
Copyright Curators of the University of Missouri, 10/2003. Revised 2008. 42
Where to Start?
Create an outline with what you knowAdd charts & graphs
Research what’s missingWrite the formal plan
Complete sentencesFocus on results not methods
Review examples if possible
Copyright Curators of the University of Missouri, 10/2003. Revised 2008. 43
Objectives
Know the key components of a basic business planHave style & appearance guidelines
Copyright Curators of the University of Missouri, 10/2003. Revised 2008. 44
Products and Services offered by the SBTDC
One-on-One ConsultingOther Training Seminars: Business Planning, Accounting, Finance, Human Resources, Marketing, Branding, Sales Strategic Planning, Business Structure & International Trade Small Business Resource LibraryTrademark SearchesSMART (Strategic Management Assessment Review Tool)Financial Analysis Tools (fisCAL)And More
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Congratulations!
You’re On Your Way!
Copyright Curators of the University of Missouri, 10/2003. Revised 2008. 46
Thank You!
Copyright Curators of the University of Missouri, 10/2003. Revised 2008. 47
Presented By:
Ron Mueller636-928-77145988 Mid Rivers Mall DriveSuite 205Saint Charles, MO. [email protected]
