how to write a business plan
TRANSCRIPT
Effectively
developing a
Business Plan
Lorenzo Orlando Caum
@lorenzocaum
―Know where you want the company to go and
spell out a route to get there.‖
-Melvin J. Gordon
Business Plan
Finances
Ideas
Research
What is the purpose of a business
plan?
A business plan
acts as a
roadmap for
establishing and
developing new
businesses.
A
challenge!
A thorough business plan is
necessary for raising capital.
What does a business plan consist
of?
Is a business plan necessary?
A business plan illustrates:where the owners currently are
where the business currently stands
where the owners and the business
want to be
Also serves as a safety net between
the now, the future, for the times when
the road gets bumpy.
Are there companies that have been successful with a minimal business plan or none at all?
Yes
What's the catch?
These companies either had an idea that changed the world or were really lucky.
Is it worth the risk?
Not unless you are independently wealthy.
A closer look at the parts of a
business plan
Cover Page
Important contact information should be placed here.
Legal business name
Owners
Addresses
Telephone number
Email Address
Table of Contents
A table of contents serves as a
reference for quickly identifying
and finding portions of business
plan.
All portions of the business plan
should be listed.
Executive Summary
Should be written last.
General Company Description
Mission statement
Company goals and objectives
Business philosophy
Brief description of products and the market
Short description of the industry
Legal form of ownership
Products and Services
Briefly describe how
products or services will
be priced.
Describe the products or services that the
business will provide.
Highlight competitive advantages/disadvantages.
Marketing Plan
Conduct intense market research
Economics – market size,
demand, trends, growth potential,
barriers to entry?
Describe the features and benefits
of the major products or services.
Who are my customers?
Identify your company’s strengths
and weaknesses. Do the same for
the competition.
Marketing Plan (Continued…)
Identify your company’s market niche.
Strategize:
Promotion
Pricing
Location
Distributing
Sales Forecast – create two forecasts: a realistic guess
(what you expect) and a worst case scenario.
Operational Plan
Production
Inventory
Suppliers
Location
Legal
Employees
Management and Organization
Organizational chart
Professional supportBoard of directors, attorney, accountant,
insurance agent, mentors, etc.
Employees
Personal Financial Statement
Personal assets to finance the business.
Startup Expenses and Capitalization
Research and illustrate startup
expenses.
Research – talk to others who have started
similar businesses
Research – read books, get statistics and
properly interpret them
Research some more!
Always overestimate. You don’t want to be
short in the midst of launching a new
business!
How is ownership divided?
Financial Plan
12-month profit and loss projection
Future profit projection
Projected Cash Flow
Businesses have to pay bills or be forced to close their
doors!
Opening Day Balance Sheet – shows assets and
debts (liabilities)
Break-Even Analysis – the minimum about of sales
needed to cover operating costs.
Appendices
Include in-depth studies for your business plan:
Blueprints
Photos
Equipment need/owned
Assets available as collateral for a loan
Brochures and advertising materials
Does a business plan require
anything else?
Yes!
Now we need to customize your business plan. How do
you intend to raise capital?
Bankers or Investors?
Revisions
Why not revise while creating the plan?
This only seeks to hinder your judgment and slow you
down.
By constantly altering parts you are hurting full
development of other sections. Remember that every part
is equally important.
Executive Summary
Explains the fundamentals of the business.
This is your best opportunity to make the sale to the banker
or investor.
Therefore, an executive summary ought to be concise,
professional, and enthusiastic!
References
Michaels, Nancy. ―Entrepreneurship—An Alternate Career Choice.‖ Reading Room. 17 March 2003. SCORE. 4 March 2008.
U.S. Small Business Administration. ―Plan Your Business.‖ Small Business Planner. 12 February 2008. SBA. 3 March 2008. <http://www.sba.gov/smallbusinessplanner/plan/index.html>
SCORE. ―Business Plan for a Startup Business.‖ Business Tools. 3 March 2008. < http://www.score.org/business_toolbox.html>
+
Bill Harkell – Tampa SCORE advisor (Local)
Resources
U.S. Small Business Administration – www.sba.gov
SCORE ―Counselors to America’s Small Business‖ –
www.score.org
Entrepreneur.com – www.entrepreneur.com
Trend Magazine – www.floridasmallbusiness.com
USF Libraries – www.lib.usf.edu
Lorenzo Orlando
CaumEntrepreneur, marketer, and more…
http://lorenzocaum.com
Connect with me