EntrepreneurshipEntrepreneurship

Business Plan Writing Business Plan Writing InstructionsInstructions

I. Executive SummaryI. Executive Summary

II. Company II. Company DescriptionDescription Business Plan Writing InstructionsBusiness Plan Writing Instructions

Original Business NameOriginal Business Name What type of business are you What type of business are you

starting?starting?– Retail-walk-in customersRetail-walk-in customers– E-tail-selling to customers onlineE-tail-selling to customers online– Service-do something for customers Service-do something for customers

rather than sell them a productrather than sell them a product– Manufacturing-making productsManufacturing-making products

Mission StatementMission Statement– Short term business goalsShort term business goals

Less than five yearsLess than five years

– Long-term business goalsLong-term business goals Over five yearsOver five years

These include things that the business These include things that the business wants to achieve including sales figures, wants to achieve including sales figures, earning a profit, or a minimum customer earning a profit, or a minimum customer base.base.

Product or service descriptionProduct or service description– If you are creating a new product is If you are creating a new product is

a patent required.a patent required.

LocationLocation– City, stateCity, state– Find an available location by Find an available location by

searching real estate Web sitessearching real estate Web sites– What other types of businesses are What other types of businesses are

located within a 5-10 mile radiuslocated within a 5-10 mile radius

Project costs associated with that Project costs associated with that locationlocation– Rent or mortgage paymentRent or mortgage payment– RenovationsRenovations– LicensesLicenses

Competitive advantageCompetitive advantage– What makes your business better What makes your business better

than your competitorsthan your competitors Unique products / servicesUnique products / services Extended hoursExtended hours

Success factorsSuccess factors– Identify personal talents / abilities Identify personal talents / abilities

that will help you run the business that will help you run the business successfullysuccessfully

– Describe personal assetsDescribe personal assets Similar to talents but do not have to Similar to talents but do not have to

directly relate to running the businessdirectly relate to running the business– College degreeCollege degree

Financial statusFinancial status– Current amount savedCurrent amount saved– Current incomeCurrent income

– These amounts may be fictional yet These amounts may be fictional yet realistic.realistic.

III. Market AnalysisIII. Market Analysis

Business Plan Writing InstructionsBusiness Plan Writing Instructions

Target MarketTarget Market

Identify demographics, Identify demographics, psychographics and niche market psychographics and niche market specificsspecifics– AgeAge– GenderGender– OccupationOccupation– LifestyleLifestyle– IncomeIncome

Pricing StrategyPricing Strategy

Explain the pricing strategy used to Explain the pricing strategy used to sell your product or servicesell your product or service– Skimming pricing-high at first then monitor the Skimming pricing-high at first then monitor the

market to see when you need to adjust the market to see when you need to adjust the priceprice

– Penetration pricing-low at first to get Penetration pricing-low at first to get customers interested and then raise price after customers interested and then raise price after demand has increaseddemand has increased

– Competition pricing-find out what your Competition pricing-find out what your competitors are charging and charge a similar competitors are charging and charge a similar priceprice

CompetitionCompetition

List major competitorsList major competitors– StrengthsStrengths– WeaknessesWeaknesses

List these for each of at least List these for each of at least three competitors.three competitors.

Market TrendsMarket Trends

Identify customer trendsIdentify customer trends– Eating healthier foodEating healthier food– Going on vacationsGoing on vacations– Getting in shapeGetting in shape

Marketing StrategyMarketing Strategy

General description of your marketing General description of your marketing plan with approximate budget plannedplan with approximate budget planned– How will customers know about your How will customers know about your

businessbusiness– How much will it cost to inform your How much will it cost to inform your

customers about your businesscustomers about your business Describe your method of sales and Describe your method of sales and

distributiondistribution– MallMall– StoreStore– KioskKiosk– OnlineOnline

Marketing StrategyMarketing Strategy

Explain your sales strategyExplain your sales strategy– Direct salesDirect sales– Direct mailDirect mail

Describe your advertising strategiesDescribe your advertising strategies– SlogansSlogans– AdsAds– Web sitesWeb sites– PromotionsPromotions– CouponsCoupons

IV. Management and IV. Management and OrganizationOrganization

IV. Management and IV. Management and Organization Organization ContinuedContinued

StructureStructure

Create an organizational chart that Create an organizational chart that displays the hierarchy of the displays the hierarchy of the employees of your business and their employees of your business and their job title.job title.

You still need to create this even if You still need to create this even if you plan to be the only employee of you plan to be the only employee of the business.the business.

You must also include their You must also include their responsibilities and salariesresponsibilities and salaries

PersonnelPersonnel

Describe Describe – the positions they will hold and how many of the positions they will hold and how many of

each employee you will hireeach employee you will hire– necessary qualifications for each job titlenecessary qualifications for each job title– the training processthe training process– hours each job title will be workinghours each job title will be working

Number and length of shiftsNumber and length of shifts– Future labor needsFuture labor needs

If you are starting with fewer employees If you are starting with fewer employees than your ideal amountthan your ideal amount

Development and Development and ProductionProduction Describe your production processDescribe your production process Identify possible suppliers and Identify possible suppliers and

materials needed to produce your materials needed to produce your product or serviceproduct or service

Describe the necessary Describe the necessary equipment, how much it costs, equipment, how much it costs, and whether you will rent or buy and whether you will rent or buy itit

Explain your inventory processExplain your inventory process– ManualManual– PerpetualPerpetual– FrequencyFrequency

Describe your delivery proceduresDescribe your delivery procedures– If applicableIf applicable

Government regulationsGovernment regulations– LicensesLicenses– PermitsPermits– Zoning requirementsZoning requirements– Copyrights or trademarksCopyrights or trademarks

InsuranceInsurance– Describe potential business risks Describe potential business risks

and what insurance you should and what insurance you should purchase to protect the business purchase to protect the business from those risksfrom those risks

V. Financial V. Financial InformationInformation

Operating Costs WorksheetOperating Costs Worksheet Start Up Capital / Expenses Start Up Capital / Expenses

WorksheetWorksheet– Itemized list of items / expensesItemized list of items / expenses– Possible sources of fundsPossible sources of funds

Projected Income StatementProjected Income Statement Templates found on my Templates found on my

Entrepreneurship pageEntrepreneurship page– Use the PDF file as a guideUse the PDF file as a guide– Fill in templates with customized Fill in templates with customized

informationinformation

VI. Supporting VI. Supporting DocumentsDocuments

Include these threeInclude these three

RésuméRésumé– Personal – items can be fictionalPersonal – items can be fictional– Templates available in WordTemplates available in Word

Floor planFloor plan– Drawn to scaleDrawn to scale– Electronic format (Word)Electronic format (Word)

Business CardBusiness Card– Business name, address, phone #, email, Business name, address, phone #, email,

and logo or sloganand logo or slogan