BUSINESS PLAN INTRODUCTIONEntrepreneurship 30

Together Everyone Achieves More•Examples: Car company, software company•Team goals•Appreciation and recognition for each team members’ contributions

WHAT IS A BUSINESS PLAN?

• Goals of the business

• Products or services it will sell

• Target customers

• How the business will be financed

• How it will sell the products or services

• How it will make decisions and solve problems

• To estimate income and expenses

“If you fail to plan, you plan to fail!”

WHY A BUSINESS PLAN?Strategic GuideLendersInvestors

STRATEGIC GUIDE What do you hope for? Where do you want to go? How are you going to get there? What market niches? How much is it going to cost? Greatest profit opportunity? Growth and Flexibility

LENDER EXPECTATIONS AND INVESTOR EXPECTATIONSGood Business Track RecordAbility to RepayCollateral

Competitive AdvantageHuge Market Strong Management Team

Strong Marketing and Sales Plan

Some Skin in the GameExit strategyReturn

BUSINESS PLAN COMPONENTS

Title Page Table of Contents (sections – we don’t need page by page) Executive Summary Mission Statement and Goals Management Team and Human Resource Product/Service Description Marketing and Sales Production Information Technology Finance and Budget Forecast Environmental, Health and Safety Risks and Conclusions Appendix: photos, documents, publications, media

TIPSOrganizationStructureLogicalFormat (pg. numbers, headings, section intro)

Report/Essay format vs heading and smaller sections

Pictures

Consistency between sections.

Google Document JA Book Sample Business Plans

RESOURCES Management Team Jobs – page 48

Other JA jobs – page 49

Action Plan – page 57-58

Checklist for business plan – page 59-62

Finances – page 65-67

Sales Help – page 74-76

Monitoring Company Progress – page 82-84

TITLE PAGE Company Name/Logo

Junior Achievement

Initial Business Plan

Date

Group Picture

Company Members

EXECUTIVE SUMMARY – CATCH ATTENTIONBusiness Concept/Industry (retail, manufacturing, wholesale, etc.), the market you will service, and your competitive advantage

Differentiation from competitors – what sets you a part

Name creationWhat has your market research told you about the viability of your business?

Who is involved in your venture? Overall experience and credentials – brief since HR will cover this in more depth.

How much money has been invested in the business to date? Shares?

Summarize your projected financial performance. Goals!

MISSION STATEMENT/GOALS/VALUESState your mission statement and valuesLocation, sizeState your product name and any logoState the company’s goals, and how you will measure them.

Plans for profit and charity information – communication

Objective – learn about business/ja/teamwork …

MANAGEMENT TEAMOrganizational chartWho is on the management team? Background – strengths and weaknesses for each person.

Two personal goalsCompany goalsAre you reliable, organized, professional?Why are you the best team to make this idea work?What else has your team done successfully?

HUMAN RESOURCES Summary of shareholder certificates Decision Making Model Compensation/Incentive/Salary Information Attendance and Performance expectations. What can be done to improve attendance.

Course of action for attendance and lack of performance and work ethic.

Plans to keep employees busy and productive. Is company moral high? What can be one to improve company spirit?

Minutes of Meetings List of proposed events and work schedules – hours put in

PRODUCT/SERVICE OVERVIEWProduct – what is it? Is it needed? What makes you think the time is right for your product? How is it similar or different to other products potential customers have already have?

Include pictures/recipes/etc.Benefits of buying your product? Does it do any harm to people or to the environment? Product features that set your product apart (odourless candles – don’t bother people with allergies)

Will the product be produced in-house or by outsiders?Product Development – new products or ideas?Environmental, health and safety issues identified and how they will be dealt with.

MARKETING AND SALES Market Definition: Primary Market and Secondary Market

Who needs your product? Age? Gender? Educational Level? Income? Occupation? Why do they need it it? How do you know?

Market Size and Trends How will you attract customers? Will you sue posters? Social Media? The internet?

Who are your five nearest direct competitors? What have you learned from their operations? From their advertising? Strengths and weaknesses? Why will people by from you instead of your competition? How does their product or service differ from yours? What makes your product or service better?

How will you promote your product or service? Marketing strategy cost?

How will your prices compare with competitors?

MARKETING AND SALESSales Goals (individual and company goals) – track inventory

How will you sell your product? Direct sales, retail, wholesale, or consignment

How will you motivate employees?How will you train your sales people?Will you be trying to make corporate sales?Promotions (3 for $25, 1 for $10)Telephone script and Sales script – How will you train everyone?

Sales package (business card, brochure, order form, etc.)

PRODUCTION Facilities (where, when, why) Production goals Suppliers, cost? Do you have alternative suppliers if one doesn’t work out? Terms and conditions? Donations? Sponsorships?

Equipment needed to get started? Where will you get them from? Permissions

Will you make or buy the components necessary for the production of your product or service? Why?

Assembly line? Unit basis? Production process? Labeling and packaging of product How long does it take to produce your product? Turn around time.

PRODUCTIONWhat will you do if the demand for your products or services fluctuates?

How will you keep track of inventory Will this be computerized or manual? Charts?

OHS points, quality control measuresTrain employees to assist with productionWhat kinds of problems might come up and what might you do to avoid them?

INFORMATION TECHNOLOGY Strategies – company and personal

networks

Schedules and reminders - HR

Communication within the company, how and can it be improved

Communication with customers

E-Commerce? Web presence?

Email/Social Media – does everyone have access to company accounts?

Software or apps being used? Electronic Forms?

Supporting other departments?

FINANCE AND BUDGET FORECAST Financial Objectives

How much money do you have?

Initial Investment (Shares and start-up capital)

Start up costs?

What type of accounting system will you use? Paper or spreadsheets?

What will your sales and profit goals be? Sales Goals/Financial Goals

Cost per unit for each product

Opening Balance Sheet

Projected income statements

What charitable donations are appropriate and which prospective charities match he values and norms of the company?

Receipts – training?

Bank – control over accounts and writing cheques

How will you track money and prepare floats for events?

ENVIRONMENTAL, HEALTH AND SAFETY Product – What issues? How to control them? Solutions? Pre-cautions

Employees – How do you keep everyone staff? Issues? Concerns? Solutions? Training?

RISKS AND CONCLUSIONS What if the demand for your goods or services decreases?

What if the number of competitors increases?

What risks do you face in producing your product or service?

What risks do you face with the marketing plan you have outlined?

What if your major ad campaign fails?

What human resources risks do you face?

What if your key employees quit?

What if you run out of cash? Where else would you go?

What if your major supplier is no longer able to supply you ? What other suppliers exist?

What if any, environmental risks does your product or service face? Do they conform to environmental rules?

APPENDIX (COULD INCLUDE THE FOLLOWING ITEMS):

Notes from company de-brief – challenges met, successes etc. Comments from employees, satisfied customers etc. Photos of the company in operation Product notes, samples, photos Sales package, sales script, phone script Samples of advertising, company stationery etc. Copies of local media coverage List of Shareholders Sales records (may include charts or graphs) Meeting minutes (may choose to include only key meetings if the minutes are

extensive) Letters of commendation from sponsor teachers, mentor team, community

contacts etc. Thanks and recognition to company mentors/sponsors