Business Plan Outline ENTREPRENEURSHIP CLASS Plesanton High School, Pleasanton, NE

Developed by Mr. Bednar to assist students in becoming successful business

owners in the future

Business  Plan  Outline  Content:

1)  Executive  Summary

2)  Mission,  Vision,  Culture

3)  Company  Description

4)  Opportunity  Analysis  and  Research

A)  Industry  Analysis

B)  Environmental  Analysis

C)  Competitive  Analysis

5)    Marketing  Strategy  and  Plan

A)  Products  /  Services

B)  Pricing

C)  Promotion

D)  Place  /  Location

6)  Management  and  Operations

  A)  Management  Team;  B)  Research  and  Development;  C)  Physical  Location;  D)  Facilities;  E)  Inventory,  Production,  and  Quality  Assurance;  F)  Inventory  Needed

7)    Financial  Analysis  and  Projections

A) Sources  and  uses  of  capital;  B)  cash  Tlow  projections;  C)  Balance  Sheet  Projections;  D)  Income  Statement  Projections;  E)  Breakeven  Analysis;  F)  Ratio  Analysis;  G)  Risks  and  Assumptions;  H)  Tables,  Graphs,  Trends

8)    Funding  Request  and  Exit  Strategy

  A)  Amount  of  Type  of  Funds  requested;  B)  Exit  Plan  C)  Milestones

Appendices:    

Resumes;  

Sample  Promotional  Materials;  

Product  Illustrations  and  Diagrams;  

Detailed  Financial  Projections

Your Business Plan should include all eight items on the right.

Business Plan Tips / Directions: Your  Plan  should  be  documented  in  a  Keynote  Presentation,  later  to  be  converted  to  a  written  paper  presentation.

Write  for  your  audience  (loan  ofTicers,  real  estate  agents,  investors)

Demonstrate  your  personal  interest  (passion,  enthusiasm,  experience,  emotional  investment)

Be  Clear  and  Concise  –  simple  direct  language  without  too  many  adjectives  and  unnecessary  words

Use  current  data,  pictures,  tables,  graphs  and  reports  to  back  up  your  plan

Choose  a  voice  and  stick  with  it  –  use  a  third  person  voice,  not  Tirst  person

Use  a  consistent,  easy  to  read  format

Key  Terms  to  Include  in  A  Business  Plan

Feasibility  analysis  –  a  study  to  assist  in  making  a  go  /  no  go  decision  based  upon  a  close  examination  of  product  /  service,  market,  industry,  and  Tinancial  data

Potter’s  Five  Forces  Analysis  –  Tive  industry  forces  that  impact  businesses:    A)  bargaining  power  of  supplier  (supplier  power);  B)  threat  of  new  entrants  (barriers  to  entry);  C)  Competitive  Rivalry  among  Existing  Firms;  D)  Threat  of  substitute  products;  E)  Bargaining  Power  of  Customers  (Buyer  Power)

Competitor  Rivalry  –  number  of  Tirms  competing;  size  of  Tirms;  industry  size;  differentiation

Barriers  to  Entry  –  capital  requirements;  cost  advantage,  economies  of  scale  or  scope;  brand  loyalty;  distribution;  public  policies

Threat  of  Substitutes  –  convenience;  substitute  pricing;  supply  of  substitutes;  switching  costs;  public  policies

Supplier  Power  –  Brand  reputation;  substitutes  of  supplies;  switching  costs;  impact  of  individual  supplier  on  costs

Buyer  Power  –  buyer  size;  number  of  buyers;  product  importance;  delivery  demands;  switching  costs;  product  differentiations;  information  availability

Financial  feasibility  –  cost  factors  evaluated,  helping  to  product  proTit  projections

Business  Plan  –  a  document  that  thoroughly  explains  a  business  idea  and  how  it  will  be  carried  out;  proving  to  investors,  bankers,  loan  ofTicers,  real  estate  agents,  that  your  business  idea  will  be  proTitable

Two  purposes  for  Developing  a  Business  Plan  –  the  key  to  raising  capital;  a  guide  to  operations  at  the  business

Mission    –  a  concise  communication  strategy  including  a  business  deTinition  and  explanation  of  competitive  advantage

Mission  Statement  –  a  brief  written  statement  that  informs  customers  and  employees  what  an  organization’s  goal  is,  and  describes  the  strategy  and  tactics  to  meet  it

Vision  –  a  broader  and  more  comprehensive  perspective  on  an  organization  than  its  mission,  built  on  the  core  values  and  belief  systems  of  the  organization

Business  Culture  –  the  beliefs,  values,  and  behavioral  norms  of  an  organization

Industry  analysis  -­‐  a  critical  view  of  industry  deTinition,  industry  size  and  growth  (or  decline)  product  and  industry  life  cycle,  and  any  current  or  anticipated  legal  or  regulatory  concerns

Environmental  analysis  -­‐    a  review  that  addresses  the  roles  of  the  community,  region,  nation,  and  the  rest  of  the  world,  as  they  relate  to  a  business

Proof  of  Market  –  an  investigation  that  provides  evidence  of  a  market  opportunity

Target  Market  –  the  groups  that  are  deTined  by  common  factors  such  as  demographics,  psychographics,  age,  or  geography  are  of  primary  interest  in  business

Target  Audience  –  the  proTile  of  customers  that  your  business  will  market  to

Crowdsourcing  –  analyzing  the  current  market  conditions  of  what  people  are  interested  in

Competitive  Analysis  –  research  that  compares  an  organization  with  several  direct  and  indirect  competitors  by  name  in  a  manner  that  is  meaningful  to  targeted  customers

Competitive  Analysis  –  research  that  compares  an  organization  with  several  direct  and  indirect  competitors  by  name  in  a  manner  that  is  meaningful  to  targeted  customers

Marketing  Plan  –  a  statement  of  the  marketing  goals  and  objectives  for  a  business  and  the  intended  strategies  and  tactics  to  attain  them

Advertising  –  paid  promotion  through  media  outlets

Public  Relations  –  community  activities  designed  to  enhance  an  organization’s  image

Direct  Marketing  –  a  method  that  includes  telemarketing,  direct  mail,  in  person  selling,  and  other  personalized  marketing  to  the  target  audience

Cash  Flow  Statement  –  a  Tinancial  statement  showing  cash  receipts  less  cash  disbursements  for  a  business  over  a  period  of  time

Balance  Sheet  –  a  Tinancial  statement  summarizing  the  assets,  liabilities  and  net  worth  of  a  business

Asset  –  any  item  of  value  

Liability  –  a  business  debt

Net  worth  –  the  difference  between  assets  and  liabilities

Owner’s  equity  –  net  worth

Income  statement  –  a  Tinancial  document  that  summarizes  income  and  expense  activity  over  a  speciTied  period  and  shows  net  proTit  or  loss

ProTit  and  loss  statement  –  an  income  statement

Breakeven  Point  –  when  the  volume  of  sales  exactly  covers  the  Tixed  costs

Ratio  Analysis  –  compare  your  business  projections  from  one  month  to  another,  from  one  period  of  time  to  another,  according  to  industry  norms  (http://www.rmahq.org)

Risks  and  Assumptions  –  an  evaluation  of  the  risks  and  the  projections  to  overcome  those  risks,  based  on  current  assumptions  about  your  assets  and  liabilities

Initial  Public  Offering  (IPO)  –  Tirst  offering  of  corporate  stock  to  investors  on  the  open  public  market

Elevator  Pitch  –  a  15  to  30  second  presentation  that  conveys  in  an  engaging  way  what  a  business  is  proposing  and  why  the  listener  should  be  interested