5. Writing a Business Plan

Your financial analysis must take into account any market research you have done and should restate the information used in your operational sections above. At the very least, your financial analysis should include...

...your plans for a funding stream and your projected Profit and Loss and Cash Flows tables.

What are the steps to write a basic business plan?

0. Research 1. Executive Summary (written last) 2. Company description 3. Market Analysis 4. Strategy and Implementation 5. Management Team 6. Financial Analysis

What are the three steps to writing a mission statement?

1. Describe what you do. 2. Describe how you do it. 3. Tell "why" you do it.

What are the four steps to creating a vision statement?

1. Examine your Mission Statement. 2. Dare to dream. 3. Shape your vision statement. 4. Commit to your vision statement.

If you are seeking financing, the ____ is your first opportunity to grab a potential investor's interest.

executive summary

Business Plan

A document, generally projecting three to five years into the future, about the route a company intends to take to maintain and grow revenues.

This section briefly tells your reader what stage of operation your company is at, where you want to take it, and why your business idea will be successful.

Executive Summary

often considered the most important section of a business plan

Executive Summary

should highlight the strengths of your overall plan and therefor be the last section you write

Executive Summary

usually appears first in your business plan document

Executive Summary

Pros and Cons of a Simple Business Plan

Pro: • if well informed can be a positive force throughout the life of the business • more than enough for most small businesses Cons: • may not be enough when applying for loans or lines of credit

Primary Market Research

Research done by you, not information you've found from someone else's research.

What does SMART goals stand for?

Specific Measurable Agreed Upon Realistic Times (target dates)

All of the information in the ____ should be covered in a concise fashion and kept to one page.

executive summary

What question does a mission statement answer?

Why do we exist?

Mission Statement

a brief description of a company's fundamental purpose

Simple Business Plan

can be no more than one page in length

Secondary Market Research

information others have acquired and already published

Vision Statement

the owner's picture of their company in the future, it is the framework for all their strategic planning

Market Research

the process of gaining information about your market; the specific information about your target market and the key factors that influence their buying decisions

Difference between a mission statement and a vision statement

• A mission statement answers the question, "what business is a given company in?" It needs to be clear and concise, and it explains the organization's reason for existence. • A vision statement answers the question, "what does a given company want to become?" It is very future oriented and explains where the organization is headed.

Examples of Primary Market Research

• Customer surveys- of both existing and potential customers. • Focus Groups- conversations with a small group of people. • Study Competition- their technologies used, solutions to issues, and any particular niches that they fit well.

What operational and implementation issues must you be certain to address?

• Management Structure • Product Details and Lifecycle • Employee Recruitment / Hiring • Management Style • Market Analysis Issues - Advantages and Challenges

What elements should be covered in an executive summary?

• The Mission Statement - This explains what your business is all about. It should be between several sentences and a paragraph. • Company Information - Include a short statement that covers when your business was formed, the names of the founders and their roles, your number of employees, and your business location(s). • Your Product(s)/Service(s) - Briefly describe the product(s) or service(s) you provide. • Financial Information- If you are seeking financing, include any information about your current bank investors. • Summarize Future Plans - Explain where you would like to take your business.

Sources of Secondary Market Research

• Trade associations • Government information - Federal, state, and local reports - Small Business Administration (SBA) - Small Business Development Center (SBDC) - Service Corp of Retired Executives (SCORE) - U.S. Bureau of Census • Educational resources • Chambers of Commerce • Market research firms - General market profiles - Specific information