BMGT 1391The Business PlanUnit 1What Business Do You Want to Start?

Chapter 3 – Creating Business from Opportunity How do you define your business? Can you articulate

your core beliefs your missions your vision

What is your competitive advantage?

Business Definition Who will the business serve? What will the business offer the

customers? Tangible Intangible

How will the business provide offerings? Buying, developing, manufacturing product Identifying customers – selling to them Producing & delivering product or service Getting payment

Business Definition The Offer

What you’re selling Pricing

Target Market Who you’re selling to - specific, precise Focus of marketing efforts

Production & Delivery Capability How to produce and deliver

What Sort of OrganizationDo You Want? Core Values

Ethical & moral philosophy & beliefs Decision-making guiding principles

What Sort of OrganizationDo You Want? Mission

Passion for business Commitment to customer satisfaction

What Sort of OrganizationDo You Want? Vision

Broader – more comprehensive View of future Compelling across the organization

OC’s – to be the best community college in the nation

See Pages 95-96

Mission Statements http://mousepad.mouseplanet.com/archive/index.php/t-15585.html

http://www.businessplans.org/Mission.html

http://www.mindtools.com/pages/article/newLDR_90.htm

http://www.missionvisionstatement.com/

What Sort of OrganizationDo You Want? Culture

Shaped by leadership Determined by actual practices

Competitive Advantage Strategy for beating the competition Six Factors

Quality Price

Location Selection

Service Speed/turnaround

Competitive Advantage Large & growing market Competition makes a profit Competition is succeeding but not a

barrier Product/service solves problems Competitive pricing

Research – check out the competition

The Most Chocolate Cake Company Example Business Definition page 102 Competitive Advantage page 103 Comparative Analysis page 104

Competitive Strategy Definition + Competitive Advantage

Must be sustainable Tactics

Specific “hows”

Feasibility Define Unit of Sale page 106 Cost of Goods Sold Gross Profit

Business Value Asset Valuation

Book Adjusted book Liquidation Replacement

Business Value Earnings Valuation

Historical Future w/current owner Future w/new owner

Cash Flow ValuationProjected future cash flow/time value of $

Assignment BizBuilder Business Plan Questions pg 116

Executive Summary Name Products/services

Mission, Vision, Culture Mission statement includes competitive

advantage, strategy and tactics Vision Core beliefs/culture Plan to be socially responsible