BUSINESS PLANNING 2004 The Entrepreneur Certificate Program is

BUSINESS PLANNING © 2004 The Entrepreneur Certificate Program is a product of the New Jersey Small Business Development Center. All rights reserved.

Business Plan Formulation The Key Elements For Success Overview Ø This session covers all the components of a business plan (business description and focus, location selection, knowledge of the competition, marketing strategy, financial plan, personnel/management needs, strategic plan for business growth) to help entrepreneurs and small business owners get off to a fast start. © 2004 The Entrepreneur Certificate Program is a product of the New Jersey Small Business Development Center. All rights reserved.

Business Plan Formulation The Key Elements For Success Overview Ø Ø Ø Ø Description of the business Selecting business location Identifying the competition Detailing a marketing strategy Laying out a financial plan Describing personnel/management needs Designing a strategic plan for the present and future © 2004 The Entrepreneur Certificate Program is a product of the New Jersey Small Business Development Center. All rights reserved.

Business Plan Formulation The Key Elements For Success Description of the Business Ø Focus on the business concept and why such a business opportunity exists as well as the products and services being offered, the pricing system to be used to meet costs and profits, distinguishing your business products/services from others in the industry (lower prices, faster delivery, longer warranties etc. ) and identifying potential customers and suppliers. © 2004 The Entrepreneur Certificate Program is a product of the New Jersey Small Business Development Center. All rights reserved.

Business Plan Formulation The Key Elements For Success Selecting an Appropriate Business Location Ø Consideration of location choices on the basis of business customers, accessibility and security and whether the location is conducive to the business specific industry needs. © 2004 The Entrepreneur Certificate Program is a product of the New Jersey Small Business Development Center. All rights reserved.

Business Plan Formulation The Key Elements For Success Identifying the Competition Knowledge of who the competition is with reference to the length of time in business, reputation, quality of products and services, customer service, number of employees, image and strengths and weaknesses. © 2004 The Entrepreneur Certificate Program is a product of the New Jersey Small Business Development Center. All rights reserved.

Business Plan Formulation The Key Elements For Success Detailing a Marketing Strategy Ø Development of marketing/research techniques to help promote your business market using various advertising tools such as television, news, trade shows, telemarketing, sales programs, internet, radio, magazines, direct mail, long-term sponsorships, public relations (web presence, events, press releases), and other referral mechanisms (yellow pages). Ø Use of networking activities such as memberships or leadership positions and strategic alliances to bolster your business market. © 2004 The Entrepreneur Certificate Program is a product of the New Jersey Small Business Development Center. All rights reserved.

Business Plan Formulation The Key Elements For Success Laying out a Financial Plan Ø Assessment of the financial feasibility and profitability of a business (break-even analysis), identification of funds needed and how the funds will be spent, the potential sources for funding (personal resources, banks, venture capital, angel investors, public agency loan programs), the business sense of a loan or investment and how it will be repaid, capital equipment list, revenue/expense assumptions, three year profit and loss statements (projections), three year cash flow summaries, balance sheets (assets/liabilities/net worth), and providing for supporting documents relevant to the plan (personal financial history, legal documents, leases, etc. ) © 2004 The Entrepreneur Certificate Program is a product of the New Jersey Small Business Development Center. All rights reserved.

Business Plan Formulation The Key Elements For Success Describing Personnel/Management Needs Ø Description of the human capital skills and experience needed for a particular business, pay methods, fringe benefits, payroll taxes and the use of independent contractors versus employees. Ø Division of tasks/ reporting hierarchy / final decision makers. Ø Creation of an advisor group and Board of Directors. © 2004 The Entrepreneur Certificate Program is a product of the New Jersey Small Business Development Center. All rights reserved.

Business Plan Formulation The Key Elements For Success Designing a Strategic Plan for the Present and Future Ø Establishment of business priorities and goals, including branding, benchmarking, timetables for action, anticipated plans to retain and expand current markets and having an exit strategy. © 2004 The Entrepreneur Certificate Program is a product of the New Jersey Small Business Development Center. All rights reserved.

Business Plan Formulation The Key Elements For Success Major components of a business plan I. III. IV. Executive Summary Business Profile Market Section Financial Statements © 2004 The Entrepreneur Certificate Program is a product of the New Jersey Small Business Development Center. All rights reserved.

Business Plan Formulation The Key Elements For Success I. Executive Summary Ø Keep It Short! Ø A page and one-half emphasizing your professional background (and other principals in the business), the business concept, products, customer base, marketing approach, competition and past (if any) or projected sales/income. Ø What contingencies do you have in place if the plan fails? © 2004 The Entrepreneur Certificate Program is a product of the New Jersey Small Business Development Center. All rights reserved.

Business Plan Formulation The Key Elements For Success II. Business Profile Ø One page that states: Legal structure of the business (e. g. , proprietorship, subchapter S, corporation, etc. ) as well as the educational and professional background of management and principle stake holders. Brief past company history (if any), or related history of principals. © 2004 The Entrepreneur Certificate Program is a product of the New Jersey Small Business Development Center. All rights reserved.

Business Plan Formulation The Key Elements For Success III. Marketplace ØProduct/Service, Price, Place & Promotion ØWrite a primary objective that is both quantitative and qualitative and can be reasonably accomplished in a given time frame. ØWhat makes this product/service desirable? Develop strategies that cover the four P’s of marketing (above). Market analysis should cover both sales and industry market potential in dollars and volume. © 2004 The Entrepreneur Certificate Program is a product of the New Jersey Small Business Development Center. All rights reserved.

Business Plan Formulation The Key Elements For Success IV. Financial Statements Ø Start-up costs: licenses, equipment, inventory, remodeling, deposits, etc. Ø Show a break-even analysis: how many units must be sold to cover fixed and variable costs. Ø Produce pro-forma income statements: anticipated sales, expenses, and net profit or loss projected over the next three years. Ø Pro-forma balance sheets should cover: anticipated assets, liabilities and net worth of business.