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Simplifying Small Business Strategies for Growth and Success
Importance of a Business Plan
Copyright RK Fischer & Associates, 2010
All Rights Reserved.
What is a Business Plan?
Abusinessplanisaformal
guideforhowyouplanto
createorgrowabusiness.

Itwilladdresseveryareaof
yourbusinessespeciallythose
relatedtoexpensesand
income.

Itisusedtodemonstratethe
valueandprofitabilityofyour
ideaandapproachtoyour
business.
Copyright RK Fischer & Associates, 2010
All Rights Reserved.
When Do You Usually Need a
Business Plan?
Whenabusinessisstarted
Whenabusinessrequiresstart-uporgrowthfunding
Grants,Loans,Investments
WhenabusinessisplanninganIPO
Whenabusinessislookingatamergeroracquisition
Whenabusinessislookingtobesold
Copyright RK Fischer & Associates, 2010
All Rights Reserved.
Why do you need a business plan?
Abusinessplanprovidesclaritytoyourbusiness

Abusinessplandocumentsyourcurrentbusinessand
goforwarddirection

Abusinessplanarticulateshowyoumakemoneywith
yourbusinesstoothers
Copyright RK Fischer & Associates, 2010
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Difference in a Business Plan and
Business Case
Abusinesscaseisforparticularbusiness-relatedproject
andgoalistoshowthatitispracticalandprofitable
whereabusinessplanisforyourwholebusiness
Examples:
BuyingNewEquipment
AddingaNewProduct
AddingaNewDepartmentorPersonwithinCompanythatneeds
tobejustified

Example:Atruckingcompanyneedingtobuynewtrucksfortheirbusiness
Copyright RK Fischer & Associates, 2010
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Difference in a Business Plan and a
Financial Plan
Afinancialplanisonlyacurrentand
futureviewofyourfinancial
statementsanddoesnottakeinto
accounthowyougottothenumbers.

Afinancialplanisonlyasgoodas
theinformationaboutyourbusiness
thatistheretobackitup.
Example:Yourfinancialplancan
statethatyouaregoingtomake$2M
inrevenueandyourmarginis50%,
butifyoucannotshowhowyougot
tothisinabusinessplanthe
informationisnotreallyofanytrue
value.

Copyright RK Fischer & Associates, 2010

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Key to a Good Business Plan
Understandallaspectsofyourbusinessandeitherbean
expertyourselforhaveateamorsetofadvisorstohelp
definealloftherequirementstostartorgrowyour
business.
Howcanyouexpectinvestorsorlenderstoprovidefundingfora
businessthattheownerandorstakeholdersarenotableto
articulateindetailandshowhowtheyplantobeprofitableand
when?
Copyright RK Fischer & Associates, 2010
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What are Investors and Lenders
Looking For In a Business Plan?
Thoroughandarticulatewrittenplanwhichmakes
senseandshowsyouhavethoughtthroughallaspects
ofyourbusiness.
Marketing,Sales,Operations,HumanResources,andFinance
Thisisminimumcertainindustriesmighthaveadditional
sectionssuchasDevelopmentorManufacturingbrokenout.
Experienceandunderstandingofthemarketand
industrybythebusinessowner
Ifmorethansoleproprietorship,ateamofpeople
thathaveskillsandexperiencetomakebusiness
asuccess

Copyright RK Fischer & Associates, 2010

All Rights Reserved.
What are Investors and Lenders
Looking For In a Business Plan?
Allofyourfinancialsandothermodelswithinyourplanneedto
makesense.
Iftheycannotseethistheywillnotseeareturnontheirinvestment
orhowtheloanwillbepaidback.
ExampleBusinessModel
Youhaveaproductpricedat$30,000.00
Youhaveasalescycleof3monthsfortheproduct
Youhave2salesrepswhenyoustart
YouhaveshownsalesinQ1ofYear1of$150,000.00
WhyThisDoesNotLookFeasible
Yoursalesrepswillhavealearningcurveandwill
nothitthegroundrunningDay1
Thechancesof2salesrepswithasalescycleof3
monthsand5salesbetweenthemisunlikely

Copyright RK Fischer & Associates, 2010

All Rights Reserved.
What are Investors and Lenders
Looking For In a Business Plan?
Youneedtobeclearabouttheamountrequiredandwhyyouare
askingforfundingorinvesting
Theyhavetounderstandhowthefundingwillbeusedindetail

Theywanttoseewhatyourinvestmenthasbeeninyourbusiness
Whywouldothersinvestorlendyoumoneyifyouhavenotinvested
yourselfinyourbusiness?
Itshowsalackofcommitmentonyourpart

Youneedtoshowthatyouareagoodcredit
risk.
Whatassetsdoyouhaveanddoyouhaveagood
creditrating?

Copyright RK Fischer & Associates, 2010

All Rights Reserved.
Components of a Business Plan
ExecutiveSummary
Thissectionshouldsummarizeyouroverallplanataveryhigh
level.Certainindividualsatthelenderorinvestorwillonlyread
thissection.Shouldbeafewpageswhereitcouldalmoststand
alone.
Introduction
MarketOverview
ProductsandServices
FinancialSummary
ObjectivesofBusinessPlan
KeystoSuccessforYourBusiness
Copyright RK Fischer & Associates, 2010
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Components of a Business Plan
CompanyOverview
Thissectionshouldprovideanoverviewofyourbusiness.
ExistingBusiness
Shouldincludealsoahistoryofthecompany.
Start-up/Expansion
Shouldincludeanoverviewofthefundsrequiredandhowtheywillbe
usedinthebusiness(ExpensesandAssets)
Copyright RK Fischer & Associates, 2010
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Components of a Business Plan
ProductsandServices
Thissectionprovidesanoverviewofeachoftheproductsand
servicesyousell.
KeyFeaturesandBenefits
HowTheyAreDeveloped
PricingModel
HowTheyWillbeSold
ValueTheyProvide
CustomerTargetMarket
Copyright RK Fischer & Associates, 2010
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Components of a Business Plan
MarketAnalysis
Thissectionprovidesanoverviewofthemarketforyour
productsandservicesandtheindustryofyourbusiness.Itisin
thissection,youwillneedtoshowthereaderthatyou
understandyourmarket,yourindustry,andyourtargetmarket.
MarketSelectionandReasoning
MarketSegmentation
MarketAnalysisandSizeofAddressableMarket
TargetMarketBreakdown
IndustryAnalysis
CompetitionandBuyingPatterns
Copyright RK Fischer & Associates, 2010
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Components of a Business Plan
OnlinePresenceStrategy
Thissectionprovidesanoverviewofyouronlinepresenceand
howyouwilluseanonlinepresencetopromoteyourbusiness.
Anonlinepresenceiskeytodayasmostbuyingdecisionsare
researchedonthewebpriortopurchase.
CurrentandGoForwardStrategy
Examples
Web
Blog
SocialMedia
OnlineNewsletters
DevelopmentRequirements

Copyright RK Fischer & Associates, 2010

All Rights Reserved.
Components of a Business Plan
MarketingandSalesStrategy
Thissectionprovidesanoverviewofhowyouplantoimplementyour
productandservicestrategybygeneratingleadsandprospectsand
thenmakingandclosingsales.
SWOTAnalysis
Strengths,Weaknesses,Opportunities,Threats
WhatisYourCompetitiveEdge
MarketingStrategy
ProductStrategy
PricingStrategy
BrandingStrategy
CommunicationStrategy
PromotionalStrategy
SalesStrategy
GoToMarketStrategy
MarketingandSalesAssumptions
Forecasts
Milestones
Copyright RK Fischer & Associates, 2010
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Components of a Business Plan
OperationalStrategy
Thissectionprovidesanoverviewoftheoveralloperationsforyour
companyandhowthecompanyrunsfromabackofficepointofview.
OrderManagement
ServiceandDelivery
QualityAssurance
CustomerCare
Copyright RK Fischer & Associates, 2010
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Components of a Business Plan
ManagementandHumanResourceStrategy
Thissectionfocusesonthemanagementteamandpersonnel
thatexistcurrentlyandplannedinthefutureforthecompany.
ManagementTeam
ProvideDetailofBackgroundandHowTheirExperienceProvides
Strength
OrganizationalChart
HiringStrategyandPersonnelStaffingCharts

Copyright RK Fischer & Associates, 2010

All Rights Reserved.
Components of a Business Plan
Financials
Thissectionfocusesontheoverallfinancialsforthecompanybasedoff
therestoftheplan.Thissectionmaydifferalittledependingon
whetheryouareastart-uporabusinesswithexistingfinancials.
GeneralAssumptions
Provideinterestrates,taxrates,economyinformationandothermeasuresthat
affectyourbusiness
BreakEvenAnalysis
Providesoverviewofriskinvolvedinyourbusiness
CashFlow
Cashinandoutofyourbusiness
BalanceSheet
Financialstatementofassetsandliabilities
ProjectedIncomeStatement
Measuresperformanceovertime
BusinessRatios
Showshowyourbusinessisperforming

Copyright RK Fischer & Associates, 2010

All Rights Reserved.
Downfalls of a Poor Business Plan
Financingwillnotbeapproved
Onceafinancialinstitutionevaluatesandturnsdownyourbusiness
plan,youarefinishedwiththatinstitution.Thesameistruewith
investors.
Yourcreditratingwillbeaffectedbygoingtootherfinancialinstitutions
withthesameplanasacreditcheckwillbedoneeachtime.

Stuntedgrowthdowntheroad
Ifyouarenotabletoarticulateyourbusinessandhowyouaregoingto
movethebusinessforward,youmayberunningyourbusinessona
dailybusinessandmissingthebigpictureandlosingoutongrowing
yourbusiness

Lackofvalue
Ifyouarelookingtosellyourcompanyanddidnot
cannotarticulateyourbusinessproperly- buyers,
youmaynotreceivetruevalueofyourbusiness

Copyright RK Fischer & Associates, 2010

All Rights Reserved.
Contact Us

RKFischer&Associates
SmallBusinessConsultants
www.asmallbusinessconsultant.ca
(855)460-7500(TollFree)
(647)302-1563(Local)
sales@rkfischer.com