Professional Documents
Culture Documents
IITR
Introduction
Farmingdale Small Business Development Center Small Business Administration
B Plan
Agenda
Welcome and Introductions Ice Breaker Business Plan Outline Writing Workshop Lunch Break Writing Workshop Questions and Appointments
Business Plan
What?
Roadmap SelfSelf-checking tool Funding tool Operating guide
Why?
1,000,001 questions Infinite number of possibilities Distractions galore
How Long?
6-9 pages for the narrative, plus financials/ appendices
General Rules
Make it an interesting read!
Bullet points Balance creativity while still getting your point across Use short (1-3 sentence) paragraphs (1Be careful with using industry jargon
6) 7) 8) 9)
Cover Sheet
Identity information
The words Business Plan Your name and business name Company logo Address Telephone number Fax Number Email Address Web Address (URL)
Executive Summary
Most important part of the plan 30-second test 30 Concise explanation
Venture objectives Market prospects Financial forecasts Sources and uses
WRITTEN LAST
Table of Contents
Include page numbers List of headings
Major Subsections
Same font!
Statement of Purpose
The business plans objectives: financing or operating guide Financing
How much money is needed? What will the money be used for? How will the funds benefit the business? Why does this loan or investment make business sense? How will the funds be repaid?
Operating guide
Who will use it? Will it layout strategy plans? How will it be updated?
Company History
Mission Statement Basic product description Names of principals and brief background on each Legalities: business type Company location Number of employees Customer highlights Your niche and unique qualities Strategic alliances Awards and merits Company milestones (business formation, opening date, hiring employees, revenue levels/ growth) 1-3 year plan future milestones to reach (sales goals, hiring employees)
Business Description
Mission statement Legalities: business type Basic product or service description New, takeover, expansion, franchise General strategy plan
List of planned milestones (business formation, opening date, hiring employees, reaching certain revenue goals)
Market Analysis
Industry analysis Customers: individual, business Competition Marketing Strategy Cite Sources!
Competition
Rule of Three for Competitive Study
Why your company is superior Trends in competitive companies Similar and dissimilar SWOT (strengths, weaknesses, opportunities, threats) Lessons learned Advertising Eye on the future
Sample: Competition (1 of 2)
The main competitors in the retail coffee segment are Cafe Paradisio, Full City, Coffee Corner and Allann Bros. These businesses are located in or near the downtown area, and target a similar segment to JavaNet's (i.e. educated, upwardly-mobile students and business people). upwardlyCompetition from online service providers comes from locallylocally-owned businesses as well as national firms. There are approximately eight, local, online service providers in Eugene. This number is expected to grow with the increasing demand for Internet access. Larger, online service providers, such as AOL and CompuServe are also a competitive threat to JavaNet. Due to the nature of the Internet, there are no geographical boundaries restricting competition.
Sample: Competition (2 of 2)
Due to intense competition, cafe owners must look for ways to differentiate their place of business from others in order to achieve and maintain a competitive advantage. The founder of JavaNet realizes the need for differentiation and strongly believes that combining a cafe with complete Internet service is the key to success. The fact that no cybercyber-cafes are established in Eugene, presents JavaNet with a chance to enter the window of opportunity and enter into a profitable niche in the market. JavaNet will be the first Internet cafe in Eugene. JavaNet will differentiate itself from the strictly-coffee cafes strictlyin Eugene by providing its customers with Internet and computing services.
Competitive Grid
Competitor Offerings Bobo Salon and Styling Mens/women's cut/styles/color perms Starts at $38 100% markup High traffic, highly visible 20+years, up-to-date up-totrends Set hours, little schedule flexibility Low 11 active chairs Over 4000 Johnnys Hair Mens cuts only BEST CUTS Mens/ womens cut/ style/ color/ perms Starts at $30 75% markup High traffic, not visible 13+ years, up-to-date up-totrends Custom hours to suit clients needs Sole stylist 1 active chair Over 300
Service Prices Retail Prices Location Expertise Service Turnover Capacity Client Base
Starts at $50 100% markup Moderate traffic, highly visible 15+ years, young hairstylists Manager never there High 8 active chairs ?
Marketing Strategy
Obtaining a profitable share of the entire marketplace
Product: sellable aspects, brand image Pricing: cost-plus or economic value cost Placement Promotion
Management
Job descriptions of the decision makers I do everything! Compensation, benefits Contribution and background as leverage to perform Advisory board
Sample: Management (1 of 2)
Mr. Jarvis was born in Anytown, USA, and has lived there all his life. After graduating from local schools and serving in the US Navy for three years, he became a self-employed carpenter, selftaking night courses in small business management and sales at the University of California, with the aim of owning and managing a retail store. He currently serves on the local zoning board. He and his wife (a medical secretary) live in Anytown with their two children. Mr. Bo was born in Utah, attended schools in Texas, Nebraska, and New York, and served four years in the Marines (rank upon separation: E-3). He test-drove motorcycles for a Etestyear, then served as parts manager for Wheely Cycles, Inc. before joining the Fatback Fish Division of Tasty Foods as a packer in March 1989 in their East Machias, Maine, plant. In June 1996, he resigned as line foreman of the Frozen Food Filleting Department to join Mr. Jarvis in Finestkind. He is unmarried and lives in Anytown.
Sample: Management (2 of 2)
Both men are healthy and energetic. They believe their energies complement each other and help make Finestkind a success. In particular, Mr. Bo knows all of the fishermen while Mr. Jarvis is a well-known member wellof the community. Because Mr. Bo has had experience in cost control and line management, he will be responsible for the store and inventory control. Mr. Jarvis will be primarily responsible for developing the wholesale business. They will set policies together. Personnel decisions will be made jointly. Salaries will be $1,500/ month for the first year to enable the business to pay off start-up costs. Mr. Jarvis wife earns enough to support their startfamily; Mr. Bos personal expenditures are low because he shares a house with five other men. In the second year they will earn $2,000/ month; in the third year $2,500/ month with any profits returned to the business. In order to augment their skills, they have enlisted the help of Harris and Wakeman (CPAs), James, Garvey, and Kippers (attorneys), and Jake Stemmer, a retired banker who will be on their advisor board. Other advisory board members are Steven Tessus, business consultant; the University of Californias Venture Incubator Centers John Lawrence; and Peter Shortt of FFFR (First For Fish Retailers). This board will provide ongoing management.
Production/ Operations
Logistics
plant location, facilities needed, space requirements, capital equipment needed, labor requirements If applicable: purchasing policy, quality control program, inventory control system, production cost breakdown, subcontracts
Environmental and other issues Further research and development What is done vs. what is TO BE done
Cost of construction: 7.8 million francs ($1.5 million). Weight of foundations: 277,602 kg (306 tons). Size of base area: 10,281.96 square meters (2.54 acres). Suppose one of you wants to Pressure on foundation: 4.1 to 4.5 kg per square centimeter build a Total weight: 8.56 million kg (9441 tons). first sit tower. Will he not Maximum and estimate the cost to downsway at top caused by metal dilation: 18 cm (7 inches). Weight of elevator systems: 946,000 kg (1042.8 tons). see if he has steps to the top. money to enough 1671 15,000 iron pieces (excluding rivets). complete? Maximum sway at top caused by wind: 12 cm (4.75 inches).
- Luke 14:28
2.5 million rivets. Maximum sway at top caused by metal dilation: 18 cm (7 inches). 40 tons of paint.
Financial Plan
THE PRIMARY EVALUATING TOOL
Support all information Make conservative projections
Start-up Budget: amount needed to open Start Operating Budget: ongoing expenses once open Sources and Uses Sheet
Methods of Financing
Personal funds Family/ friend loans and gifts Angel investor Venture capital Grants Personal loan Business loan
Year One 4
10
11
12 Total
Appendices
Supplemental materials
Resumes of management team Past three years of tax returns Current bank statements Copies of existing loans or notes Interim income statement and balance sheet Personal financial statement Copies of legal documents Copies of potential contracts Letters of reference
Summary Slide
planning
Resources
Free One-on-One Counseling: One-on SBDC Farmingdale, Hempstead, CW Post, Stony Brook: call 631.420.2765 for appointment www.sba.gov (small business resources) www.incorporate.com, www.incorporatenow.com, www.mycorporation.com (information on incorporating, LLCs, sole proprietorships) www.census.gov (Market research) www.bplan.com (to browse sample plans for free) www.farmingdale.edu/sbdc
Resources
Dmnews.com (statistics on direct marketing, trends, consumer behavior) Clickz.com (online behavior stats) Competia.com/express/index.html (trade association database) Hoovers.com (info on industries, specific companies) Proquest.com (article search) Findarticles.com (article search) http://sbdcnet.utsa.edu (marketing research) NY Department of Labor Statistics www.score.org (Service Corps of Retired Executives)
Thank you for working so hard today! Call the office anytime! 631.420.2765, mark.wan@farmingdale.edu