Create Your Business Plan Seminar - Session 1

Agenda for the SeminarThe Operational Plan The Management Plan Supporting Partners Session 3 In depth coverage of The Financials The Executive Summary Session 4 Summarize purpose of Busi

Create Your Business Plan

A SCORE Seminar

Sponsored by Southwest Florida SCORE Chapter 219

In cooperation with Edison College

Session 1

Hartley Morey

Thirty years of Marketing and Merchandizing experience with high end fashion retailer (Macy’s), subsequently owning and operating up to four retail fashion stores on Sanibel and Captiva Islands for another 17 years.

Ray Randlett

A part owner of a Florida firm that provided cable television installers for cable, satellite and microwave firms in the southeastern United

States Prior to moving to Florida, he spent many years working in

public affairs and government relations for large industrial companies

He also worked for the U.S Department of Labor and U.S Agency For International Development.

Denny Weimer

Retired business executive with 33 years experience in Engineering, Marketing, International Sales, Manufacturing and Senior Management.

Purpose and Expectation from Seminar

Participants

Attend class.

Openly participate in class/lab work.

Complete homework assignments.

Throughout the process, you will be identifying

You should have a “first-pass” Business Plan at the

While we will be progressing through the Business Planning Process, when done, a Business Plan must be complete and

consistent.

As you progress, you will develop info that modifies/conflicts previous work Keep a current “master” and mark up as you

proceed.

Some will probably find this process too difficult

Agenda for the Seminar

The Operational Plan

The Management Plan

Supporting Partners

Session 3

In depth coverage of The Financials

The Executive Summary

Session 4

Summarize purpose of Business Plan

Monitoring and long-term use

Participants’ Business Plan presentations

The Business Plan

What is it?

It is a roadmap “If you don’t know where you are

going, how will you know when you have arrived?

A Business Plan is a document consisting of a

narrative (part 1) and several financial worksheets (part 2) which allows its author to research and think about the business in a systematic way and evaluate the feasibility of the business venture.

The Business Plan

Why do it?

To provide you, the business owner, with a

reasonable blueprint for operating a successful

business With it you will understand the Market, the opportunity, the full cost picture and the feasibility of the business becoming profitable.

A potential investor/lender, whether banks or venture capitalists, will want a complete Business Plan to

review and evaluate the risk/reward of their

investment.

It may be a useful tool to share (partial or complete) with employees to enhance understanding and

commitment.

The Business Plan

There are a variety of formats, but

content is what matters!

Some Sources:

www.score.org (Business Tools)

www.sba.gov (MP-4, MP-5, MP-9, MP-11, MP-15)

BusinessPlanPro software (>200, $)

Library/Business School Books

Business Plan Format

The Marketing Plan

The Operational Plan

The Management Plan

The Business Support Plan

Capital Equipment List Year 1 Income Projection Year 2 Income Projection Year 3 Income Projection Cash Flow Projection

Break Even Analysis

* Formats do vary Our course will use this particular one to assure completeness and consistency.

*

5 Minute Break

The Market

The most difficult part of your Business Plan

If you do this well, the rest of the Plan will seem easy.

If you can’t quantify it, then why would

anyone, including yourself, invest in a

business based on emotion or enthusiasm?

The Market

Describe the overall Market in detail and

establish some quantifiable value for its size, dollars, units, etc.

What are its segments and how big is each?

In what segment (target market) will your

company participate?

What is the current demand in this segment? Trends in target market (client preferences, growth potential, product/service

development, etc.).

The Market

Primary research means gathering your own data

Traffic count at a location.

Focus-Group interviews of client preferences

Yellow page research.

Secondary research means using published information

The Market – Research Sources

Library (ask librarian for guidance).

The Internet.

Trade Associations.

Chamber of Commerce.

Vendors who sell to the industry.

Government agencies (Economic

Development, Tax Collector).

Competition.

The Business

What business will you be in? What will you do? Where will it

be located?

Liability Company, S Corp, C Corp and why have you selected this form) More later!

Describe your most important company strengths and core

The BusinessDiscussion of Market Strategy/Order Winners

Aftermarket Service Image

The Marketing Plan

This is about knowing your clients.

This is about knowing your competition

This is about knowing your products and services.

This is about selecting a target market and establishing a Strategy that will succeed in that market.

This is about establishing the expected

market penetration over time, which

establishes your Sales (revenue) Forecast And finally, this is about clearly describing and costing how you will reach the target

The Marketing Plan – Narrative

Clients

Competition

Marketing Strategy

Why and how much you will win in the Market.

Sales Forecast (3 years by month)

Advertising & Sales Promotion

The Marketing Plan - Clients

Depending on the Market (Retail, Service,

Industrial), the questions/issues may diverge somewhat.

Create a demographic profile for each of the Markets segments (clients may have differing preferences) identifying client preferences

(why do they buy?).

The Marketing Plan – Retail Clients

The Marketing Plan – Service Clients

Type of client, e.g., commercial property,

residential, golf course.

Locations

Buying Preferences (price, quality, delivery speed, delivery reliability, product design, flexibility, aftermarket service, image)

The Marketing Plan – Industrial Clients

Industry (or portion of an industry)

The Marketing Plan - Clients

Some people will try to get fairly sophisticated

in this type of analysis by putting market size ($ volume) by segment into some form of client preference weighting to identify

“opportunity”.

The Marketing Plan - Competition

What products and companies will compete with you? List your major competitors (Names and addresses) What is their market share by market segment?

What is each one’s “Market Strategy”?

Will they compete with you across the board, or just for certain products, certain customers, or in certain locations?

Will you have important indirect competitors? (For

example, video rental stores compete with theaters, although they are different types of businesses.)

How will your products or services compare with the competition?

What can you learn from them?

The Marketing Plan - Competition

The Marketing Plan - Strategy

Armed with this information, you should

establish/reconfirm your Market Strategy Given the selected target market(s) and the strategy (price/cost, quality, delivery speed, delivery reliability, product design, flexibility, aftermarket service, image), you should be

able to project your market share

(penetration) over time.

This will generate your Sales Forecast.

The Marketing Plan – A&SP

Advertising & Sales Promotion can be

The Marketing Plan – A&SP Methods

Company name on cars

Circulars and brochures Canvassing

Personal letters Telephone marketing Signs on bulletin

boards Tee Shirts Outdoor signs Yellow Pages Loyalty Programs

Special Discussion- The Internet

From a simple informational website

presence to a full scope order thru delivery thru satisfaction survey form (“e-Business”) Online advertising – trackable.

Search engine hierarchy.

Yellow pages.com

Company blog.

The Marketing Plan – Final Points

Clothes you and employees wear

Homework Assignment – Session 1

Prepare Business Plan Narratives

The Market The Business The Marketing Plan

As a minimum, you must have a three year Sales Forecast by month!

Turn in a copy at the next session

Supplemental Material

Lee County Demographic Profile Sources and Application of Funds Worksheet

Capital Equipment Worksheet Competition Analysis Worksheet Sales Forecast Worksheet

Session 1 Lab – Time Permitting

Break into groups of three.

Network with each other about sources to investigate for input to these sections of the

Business Plan.

Seek clarification from instructors.