Professional Documents
Culture Documents
to Briefcases.
How to develop your
own business plan.
Hank Jordan, CMC
www.atl.devry.edu/hjordan
BusinessPlanningPresentation: 1
Outline of a Business Plan
I. Executive Summary
II. Company Description
A. Legal Form of Business
B. Company’s Mission
C. Names of Top Management
D. Location and Geographic Information
E. Company’s Development Stage
F. Company’s Products or Services
G. Specialty Business Information
BusinessPlanningPresentation: 2
Outline of a Business Plan continued
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Outline of a Business Plan continued
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Outline of a Business Plan continued
V. The Competition
A. Competitive Position
B. Market Share Distribution
C. Barriers to Entry
D. Future Competition
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Outline of a Business Plan continued
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Outline of a Business Plan continued
VII. Operations
A. Plant and Facilities
B. Manufacturing/Production Plan
C. Equipment and Technology
D. Variable Labor Requirements
E. Inventory Management
F. Supply and Distribution
G. Order Fulfillment and Customer Service
BusinessPlanningPresentation: 7
Outline of a Business Plan continued
BusinessPlanningPresentation: 8
Outline of a Business Plan continued
BusinessPlanningPresentation: 9
Outline of a Business Plan continued
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Outline of a Business Plan continued
BusinessPlanningPresentation: 11
Outline of a Business Plan continued
BusinessPlanningPresentation: 12
Financial Flow Chart
Sales Plan
Production Plan
Staffing Plan
BusinessPlanningPresentation: 15
Considerations for Your Business
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Common Factors of Service Businesses
1. Intangible product;
2. Subjective judgment of Quality;
3. Relatively few barriers to entry;
4. Perishable product;
5. Time lapses between use;
6. Quality depends on the actual service provider.
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Trends in Business
Branching out/franchises
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Strategies for Improving Your Business
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Internal Planning for Existing
Businesses & Corporations
Define specific objectives such as:
Total revenues
Sales per employee
Revenues per customer
Profit margin
Inventory levels and Production time
Collection activity
BusinessPlanningPresentation: 21
Performance Objectives
BusinessPlanningPresentation: 22
Problem Solving Plan
BusinessPlanningPresentation: 23
Customer Analysis - current customers
Products/Services purchased?
Number of units purchased?
Sales $ this year?
Sales $ last year?
Sales $ prior year?
BusinessPlanningPresentation: 24
Customer Analysis - new customers
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Customer Analysis - lost customers
Products/Services purchased?
Reason for loss?
Potential for regain?
Last annual purchase $?
Previous $ high annual?
BusinessPlanningPresentation: 26
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I - The Executive Summary
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I - The Executive Summary (continued)
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II - Company Description
Names:
Legal or corporate name
Doing business as ...
Brand or trade names
Subsidiary companies
BusinessPlanningPresentation: 31
Company Description (continued)
Legal form:
Legal form of business
State incorporated
County for business license
Owners or major stakeholders
BusinessPlanningPresentation: 32
Company Description (continued)
Management/Leadership:
Chairperson of the board
President
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Advisory board members
BusinessPlanningPresentation: 33
Company Description (continued)
Location:
Company headquarters
Place of business
Branches
Geographic area served
BusinessPlanningPresentation: 34
Company Description (continued)
Developmental stage:
When company was founded
When product or service introduced
Milestones reached
Significant developmental indicators
BusinessPlanningPresentation: 35
Company Description (continued)
Financial status:
Last year’s total sales
Last year’s pretax profit
Current number of employees
Amount of funds sought
Basic use for funds sought
Major financial obligations
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Company Description (continued)
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III - Industry Analysis
BusinessPlanningPresentation: 39
Your Economic Sector
Service
Manufacturing
Retail
Distribution
BusinessPlanningPresentation: 40
Size and Growth Rate
BusinessPlanningPresentation: 41
Industry Maturity
Introduction
Growth
Mature
Decline
BusinessPlanningPresentation: 42
Sensitive to Economics
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Seasonality
Holidays
Summer
Winter
Spring
Fall
BusinessPlanningPresentation: 44
Technological Change
your products
your services
your costs
your business
BusinessPlanningPresentation: 45
Regulation and Certification
National
State
County
BusinessPlanningPresentation: 46
Plan Preparation Form
Industry description
Industry trends
Strategic opportunities
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IV - The Target Market
Demographic
Geographic
Psychographic
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Market Size and Trends
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Strategic Opportunities
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V - The Competition
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Customer Perception Factors
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Internal Operational Factors
• Financial resources
• Marketing program
• Economies of scale
• Operational efficiencies
• Strategic partnerships
• Company esprit de corps
BusinessPlanningPresentation: 55
Market Share Distribution
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Barriers to entry
Patented process
Trademarks
High start up costs
Substantial expertise required
Lack of suppliers or distributors
Market already saturated
Sophisticated machinery
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VI - Marketing and Sales Strategy
BusinessPlanningPresentation: 59
Financial Flow Chart
Sales Plan
Production Plan
Staffing Plan
BusinessPlanningPresentation: 61
The Five F’s of Customer Wants
BusinessPlanningPresentation: 62
Marketing Vehicles
BusinessPlanningPresentation: 63
Strategic Partnerships
BusinessPlanningPresentation: 64
Sales Process and Productivity
BusinessPlanningPresentation: 65
Financial Flow Chart
Sales Plan
Production Plan
Staffing Plan
BusinessPlanningPresentation: 68
Financial Flow Chart
Sales Plan
Production Plan
Staffing Plan
BusinessPlanningPresentation: 70
Facilities Selection Considerations
Location
Lease versus Purchase
Improvements
Utilities/Maintenance
Exit clauses
Other key factors
BusinessPlanningPresentation: 71
Inventory Management and Control
BusinessPlanningPresentation: 72
Order Fulfillment and Customer Service
BusinessPlanningPresentation: 73
Order Fulfillment and
Customer Service continued
1. Who specifically processes orders?
2. How are orders checked?
3. What percent are incorrect?
4. How and when do you ship?
5. Who is responsible for extra costs?
6. What service programs do you offer?
7. What is your return policy?
8. How do you solicit customer feedback?
BusinessPlanningPresentation: 74
Assessing your production plan
BusinessPlanningPresentation: 75
Staffing Chart or Plan
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Research and Development
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Other Operational Issues
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Start Up Costs
Facilities: Initial rent/Purchase
Equipment: Furniture, Equipment, Telephones,
Vehicles, Other
Materials: Initial inventory
Supplies: Production materials, Packaging
supplies, Brochures, Samples, Other
Fees: Permits, Inspections, Licenses
Other Costs: Accounting, Legal, Insurance,
Marketing, Salaries, Unanticipated costs
BusinessPlanningPresentation: 79
Financial Flow Chart
Sales Plan
Production Plan
Staffing Plan
BusinessPlanningPresentation: 82
Financial Flow Chart
Sales Plan
Production Plan
Staffing Plan
BusinessPlanningPresentation: 84
Management Compensation
and Incentives
Salary
Bonuses
Commissions
Profit sharing
Equity
Stock
BusinessPlanningPresentation: 85
Consultants and other Specialists
Management consultants
Marketing consultants
Designers and Engineers
Industry specialists
Attorneys
Accountants
BusinessPlanningPresentation: 86
Management Structure and Style
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Financial Flow Chart
Sales Plan
Production Plan
Staffing Plan
BusinessPlanningPresentation: 90
Financial Flow Chart
Sales Plan
Production Plan
Staffing Plan
1. Steady provider?
2. Innovator?
3. Quality leader?
4. Industry leader?
5. Niche leader?
6. Exploiter?
BusinessPlanningPresentation: 92
Growth Strategies
1. Market penetration
2. Promotion and support
3. Expansion
4. Increase focus
5. Diversify
6. Refocus
Plan - Do - Check - Act
BusinessPlanningPresentation: 93
Milestones
BusinessPlanningPresentation: 94
Risk Evaluation
BusinessPlanningPresentation: 95
Exit Plan
BusinessPlanningPresentation: 96
Financial Flow Chart
Sales Plan
Production Plan
Staffing Plan
BusinessPlanningPresentation: 99
Financial Flow Chart
Sales Plan
Production Plan
Staffing Plan
BusinessPlanningPresentation: 101
Can I use my Visa card to
pay for my MasterCard bill?
BusinessPlanningPresentation: 102
What do you mean I’m broke?
BusinessPlanningPresentation: 103
Getting control of your finances
BusinessPlanningPresentation: 104
Types of Financial Forms
BusinessPlanningPresentation: 105
General Financial Terms you should know
BusinessPlanningPresentation: 106
General Financial Terms continued
Net profit
Net worth
Other or Intangible assets
Profit
Pro forma
Others?
BusinessPlanningPresentation: 107
Guidelines for Preparing Your Financials
1. Be conservative
2. Be honest
3. Use standard terminology
4. Get realistic advice
5. Follow practices in your industry
6. Choose the appropriate accounting method
7. Be consistent
BusinessPlanningPresentation: 108
Income or P & L Statement
Income:
Gross Sales - Returns & Allowances = Net Sales
- Cost of Goods = Gross Profit
Expenses: -
Salaries & wages; Employee benefits; Payroll taxes
Sales Commissions; Professional Services; Rent;
Maintenance; Equipment Rental; Furniture &
Equipment; Depreciation and Amortization; Insurance;
Interest; Utilities; Telephone; Office supplies; Postage and
Shipping; Marketing & Advertising; Travel; Other.
Net income before taxes
- Provision for taxes on income
Net Income After Taxes (Net Profit)
BusinessPlanningPresentation: 109
Cash-Flow Projections
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Cash-Flow Items
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The Balance Sheet
BusinessPlanningPresentation: 112
Sources and Use of Funds
BusinessPlanningPresentation: 113
Assumption Sheet
BusinessPlanningPresentation: 114
Break Even Analysis
BusinessPlanningPresentation: 115
Financial Flow Chart
Sales Plan
Production Plan
Staffing Plan
BusinessPlanningPresentation: 118
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