Write an Effective Business Plan…

(and how the Stony Brook Small Business Development Center can help!)

presented byRonni Rosen, Senior Business Adviser

Stony Brook SBDC

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What is the Small Business Development Center?

• Part of a national organization of Resource Centers with 24 campus-based centers in New York State.

• NYS certified business advisers from varied backgrounds with the skills to help with specific needs of current and potential business owners.

• SBDCs are funded through the State and Federal Government and offer one-on-one counseling – free of charge!

Stony Brook SBDC

Research and Development Park (off of Stony Brook Rd.)

Research and Support Services, Bldg. 17, Rm. 146

(Past the CEWIT and AERTEC Buildings)

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Why do we do it for FREE?

Helping entrepreneurs to start or grow their businesses leads to increased:

productivity

profitability

job growth

“Small businesses are the engines of economic growth.”

-Barack Obama

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SBDC Services:

• One-on-One Counseling

• Start-Up Assistance

• Business Plans

• Access to public and private sources of capital

• Market Research through Research Network

• Workshops/Seminars

• Import/Export Assistance

• Procurement

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Additional Resource Partners

• Small Business Administration (SBA)

• Empire State Development

• NYBDC

• NYSERDA

Stony Brook University

• School of Business

• LIHTI, Sensor CAT, Bio CAT, CEWIT, AERTC & Calverton Open Kitchen

• Local Town Governments and IDAs

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SBDC Special Projects/Initiatives

• Start Up NY

• Hispanic Initiative

• NY Rising (Help for Hurricane Sandy)

• WMBE (Women, Minority, Business Enterprise) Certification

• Technology and Innovation Grants Resources (TIGR)

and also SBIR/STTR

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What is a business plan and why do I need one?

A business plan is an analysis of your company. It explains -• the industry

• company goals and objectives • your plan to meet these goals

• A business plan can help you obtain financing

• A business plan organizes and formalizes your business thinking process

• A business plan is a management tool that allows you to measure your success and assess whether you are meeting your goals.

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…and more about a Business Plan

A business plan…

• is like a road map. You need to plan your route and then follow you plan!

(But remember: sometimes there are detours – your plan needs to be somewhat flexible.)

• forces you to think about the business as a business.

• is a sales pitch – convince the reader that your idea is well thought out and makes financial sense.

• is not about you! It is written in the 3rd person.

(No - “I think”, “Everyone tells me”, “I believe”.)

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How long should my plan be?

• A concise plan will be much more effective and will yield better results. It is important to be as realistic and detailed as possible without being overly repetitious.

• The plan should be long enough to convey all the pertinent information but should be short enough to be certain that the reader does not get lost in unnecessary detail.

• You need to write the plan! The Advisers at the SBDC can help you edit and organize your plan.

Our services are free of charge!

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What financial information you will need to include?

• Past three income tax returns

• Three years of projections

• Personal net worth statement

If you are already in business:

• An interim income statement and balance sheet (less than 2 mos. old)

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Parts of a Business Plan

Cover Sheet• Table of Contents

• Statement of Purpose• Executive Summary

• Business Description and History• Products and Services

• Management and Operations• Market Plan (customers, competition, plan for marketing)

• Financial Analysis and Projections (with assumptions)• Supporting Documentation (resumes, awards, articles,

contracts, patents, permits/licenses, DBA Certificate/Incorporation, etc.)

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Funding Your Business

No government grants for small business start-up capital -

Usa.gov (benefits & grants)

SBA is not a direct lender – it provides guarantees to banks

Financing requirements:• 2 yrs. tax returns from the business

• Excellent credit (FTC.com or annualcreditreport.com)

• Experience in the business

• 25% - 30% contribution from business owner

• Collateral to cover the remainder

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Do Your Research!

Small Business Administration - Sba.gov

Middle Country Public Library (Miller Business Center) http://www.millerbusinesscenter.org/

http://www.dos.ny.gov/

http://www.tax.ny.gov/

Entrepreneur.com

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Make an Appointment at the SBDC

Main Office: 631-632-9837

or contact:

Ronni Rosen 631-632-1407 email: ronni.rosen@stonybrook.edu

http://www.stonybrook.edu/commcms/sbdc/

(for events, workshops, directions to the Center)

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