How To Write A Business Plan For Entrepreneur StudentBus 352

The ChallengeAs group of an Entrepreneur Student’s can be asked a number of pitch ideas and develop business plans for new Venture. The best

proposal wins the contract. The idea worths 2 marks

What do we have to do?

In your team you must create and innovate a new Idea for a product or service to earthier established market or to a new market. At the end of the project, you will present your idea to the investors. The teams with the best ideas AND presentations will win prizes!

Preparing the Business Plan:

Now that you have collected all the information on your Product, you need to prepare a folder that contains your business plan. The plan should contain:

1. Name, logo of your Business and your Team Name2. Executive Summary 3. General Company Description 4. Products and Services5. Marketing Plan 6. Competitive Plan7. Financial Plan 8. Appendices (Questioner and another question you had used)9. Refining the Plan (The original source) – it worths 10 marks

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Presentation: Prep 7-10 minutes.it worths 8 marks In business it is very important to have good communication and presentation skills. When preparing for a presentation you must remember the 4 PS.

1. Positive thinking2. Preparation (Start early, develop your ideas, know your

audience, and work in drafts)3. Practice (Know your material, rehearse)4. Performance

O GOOD LUCK! SHOW ME YOUR CREATIVITY I BELIEVE ON YOU ALL

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TABLE OF CONTENTS

1. What is A Business Plan?

2. Executive Summary

3. General Company Description

4. Products and Services

5. Marketing Plan

6. Competing Strategy

7. Financial Plan

8. Appendices

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What is a business plan?

A business plan is a document that describes an idea for a new product or service. The plan includes details about the idea, the cost, how the product will look and its price. The real value of creating a business plan is not in having the finished product in hand; rather, the value lies in the process of researching and thinking about your business in a systematic way. The act of planning helps you to think things through thoroughly,Study and research if you are not sure of the facts, and look at your ideas critically. It takes time now, but avoids costly, perhaps disastrous, mistakes later.

USEFUL TERMS

Teamwork: the ability of a group of people to work well together

Brainstorm ideas for a new venture: Remember that brainstorming means that you come up with as many ideas as possible for your new product.

Executive Summary: Explain the fundamentals of the proposed business such as, what will your product are? Who will your customers be? Who are the owners? What do you think the future holds for your business and your industry?

Business Philosophy: What is important to you in business? Market: A market is a set of actual and potential buyers

and sellers of goods.

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Entrepreneur: A person who is skilled at identifying new products setting up operations, marketing the products and arranging the financing of the operations.

Enterprise: A business or organization Brand: A name, term, sign, symbol or design, intended to

identify the goods or services of one seller and to differentiate them from those of competitors.

Packaging: The designing and producing of the container or wrapper for a product. Unique Selling Proposition: It is one thing that makes a product very different

Promotion: Promotion is a firm’s sales efforts that includes informing, persuading and influencing the purchase decision of current and prospective customers

Advertisement: It is any paid form of non-personal presentation and promotion of goods, services or ideas

Teamwork:

You will need to work as a team. Decide what roles each person should do.

1. Name: Role/s:

2. Name: Role/s:

3. Name: Role/s:

4. Name: Role/s:

5. Name: Role/s:

Leaders help to take direction of a project

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Creators and innovators are good at coming up with new ideas (A Creative Role)

Organizer’s are good at coordinating resources and people (An Organizer Role)

Evaluators are good at evaluating information and finding solutions (An Evaluator Role)

Finishers are good at attention to detail and ensuring targets are met (A Completer Role)

TEAM ROLES

Finding information:

In this Project you must search the Internet and use other sources for details about your project and what is your Venture mission and vision statement objectives and other details.

1. PROVIDE SOME INFORMATION ABOUT your Venture (Product or Service)________________________________________________________

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______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ _____________________________________________________________ ______________________________________________________________ ______________________________________________

Idea Generation: Brainstorm ideas for a new venture. Remember that brainstorming means that you come up with as many ideas as possible for your new product. Write them all up on the flip chart.

Question Answer Advantage Disadvantage

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What kind of product you

have?

What style of your project

e.g. diet, Green, fashion etc.

What is the price of your

product?

Who is your target

audience?

Who are your main

competitors?

What is your selling strategies

What makes you choose this

product?

Ideas for names?

EXECUTIVE SUMMARY

1. Write this section last.

2. We suggest that you make it 1-2 pages or fewer.

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3. Include everything that you would cover in a five minute interview.

4. Explain the fundamentals of the proposed business: What will your product be? Who will your customers be? Who are the owners? What do you think the future holds for your business and your industry?

5. Make it enthusiastic, professional, complete, and concise.

6. If applying for a loan, state clearly how much you want, precisely how you are going to use it, and how the money will make your business more profitable, thereby ensuring repayment.

GENERAL COMPANY DESCRIPTION

Business Description – What kind of business are you in? What do you do? A short description will do.

Vision – What’s the big picture for you and your business? What do you see in your future? Where do you want to be in one year, five years, and ten years? Short is okay, as long as your answer digs deep into the things that really turn you on. We’ll dive deeper and write more about future plans later.

Mission Statement – A mission statement is usually a couple of sentences explaining your business purpose and Business

Philosophy: What is important to you in business?

A well-crafted, authentic mission statement provides a strong foundation for your business plans and marketing efforts.

MISSION STATEMENT, CONSIDER THESE QUESTIONS:

If you are an artist/crafter/thing-maker/designer, what inspires you? 10

How did you get started doing the thing you do? What do you love about the things you make/design? What is important to you in your business? What do you hope your customers will find in your product/service?

Company Goals and Objectives: Goals are destinations—where you want your business to be. OBJECTIVES are progress

markers along the way to goal achievement. For example, a goal might be to have a healthy, successful company that is a leader in

customerService and that have a loyal customer following. Objectives might be annual sales targets and some specific measures of

customer satisfaction.

To whom will you market your products? (State it briefly here—you will do a more thorough explanation in the Marketing

Plan section).

Describe your industry Trends? Is it a growth industry?

Strengths and Challenges – What are your strengths and weaknesses regarding your business? How will you use your strengths to your best advantage? What will you do to develop your areas of weakness? By using the following SWOT Analysis

SWOT Analysis

Analyze the strengths and weaknesses of the business and product or service, the opportunities that exist in the marketplace, and the threats to the viability of the project. This is best done in a matrix diagram as follows:

Strengths

Weaknesses

Opportunities

Threats

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Products and Services

Describe in depth your products or services (technical specifications if any, drawings, photos, sales brochures, and other bulky items belong in Appendices).

What factors will give you competitive advantages or disadvantages? Examples include level of quality or unique or proprietary features.

What are the pricing, fee, or leasing structures of your products or services?

Are the pricing, fee, or leasing structures of your products or services?

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Market Research

Market research is when a company takes an idea for a product or service and tests it out on potential customers. This is done through questionnaires, interviews or other activities. The purpose is to see if the idea is attractive to the target market

Market research has several aims:

To see if the product will sell. Potential customers will say if they would be interested in buying the product.

To get opinions that may improve the product. To see what price the customer is willing to pay. When you are undertaking market research, you

must think about what you want to ask, who you want to ask and how you want to ask.

ACTIVITY : Carry out some market research for your Product or Service. You may ask tutors, students or people working in PNU or any acceccbale plac. A minimum of 8 questions must be asked.

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WHO ARE YOU GOING TO ASK?

Question Answer What do you learn from this?

For example, if you plan to publish a magazine, you need to know about publishing trends, online competitors, other publications that cover your market (including their circulation, advertising rates, reader profiles) and identify a viable gap to fill. Make sure you include:

Who will buy your product or service Where your market is located: local, regional, state,

national or international The state of the market: is it growing, declining,

segmented?

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Market influences such as seasonal price fluctuations or trends

From the market research information, are there any changes you need to make to your product?

MARKETING 1:

A brand is a name, term, sign, symbol or design that is intended to identify the goods or services of a company

A logo is an icon, which represents a company’s brand. It is used so that customers recognise a product or service as being from a particular company.

6. DESIGN YOUR LOGOS ON THIS PAGE. HOW ARE THEY UNIQUE? HOW DO THEY RELATE TO YOUR COMPANY OR PRODUCT?

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MARKETING 2: MARKETING STRATEGY

A marketing strategy outlines how you are going to attract customers and sell your product. Marketing can be online or offline for example through social media like Twittering, posters on buildings, television or radio advertisements etc.

In the case of your venture:

How will your customers hear about your new Venture? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

What will you do online to attract customers? ________________________________________________________________

________________________________________________________________ _____________________________________________________________

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___ ________________________________________________________________ ________________________________________________________________

What will you do offline to attract customers? ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ _______________________________________________________________

Competition

List details about your competitors including: 1. Who and where they are 2. How you'll position your product or service against

them3. Your product/service features against theirs and what

gives you a competitive edge 4. The benefit/s of your service/product to the consumer

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Pricing and Finance1. Pricing

On the Internet, find the price of three competitors’ for your ventures if any?

_________________________________________________________

How much will you charge? How does your pricing compare to your competitors?

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________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________

2. Costs per Unit – What will be the cost of making each product?

Estimate each expense for making the product for a month and divide your total expenses by the number of products you aim to produce in that month, as follows:

COST PER PRODUCT = TOTAL EXPENSES / NUMBER OF PRODUCTS TO BE MADE

Work it out!

3. Profit – how much money you will make on each sale after expenses are subtracted

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PROFIT = INCOME – EXPENSES

Sale price of 1 unit=Cost of 1 Unit to produce= Profit per Product=

How many products do you estimate to produce in one year?

Products per year _____________x Profit per item= Profit for 1 year

. FUTURE FINANCE PLANS

What will you do with the profit you make? More marketing? New products? New supplies?

________________________________________________________________ ________________________________________________________________ ______________________________________________

AppendicesThis section is used to provide the detailed data on which the main text of the business plan is based, and to provide extra information of interest to the readers of the business plan. Items for inclusion in appendices vary from business to business, but normally include some of the following:

• Brochures and advertising materials

• Industry studies

• Blueprints and plans

• Maps and photos of location

• Magazine or other articles

• Detailed lists of equipment owned or to be purchased

• Copies of leases and contracts

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• Letters of support from future customers

• Any other materials needed to support the assumptions in this plan

• Market research studies

• List of assets available as collateral for a loan

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