Business

Plan
Defined
January 2020
What is a
Business
Plan?
 Business Plan
A business plan is a written document that
describes in detail how a business—usually a
startup—defines its objectives and how it is to go
about achieving its goals. A business plan lays
out a written roadmap for the firm from
marketing, financial, and operational
standpoints.
“ management’s
guide
“
securing
lenders and
investors
The Plan
as a
Guide
 Plan as a Guide
In the course of writing the business plan,
the small business operation (SBO) is afforded
sufficient time to consider all
factors relevant to operating
the business.
⋆ Environment
⋆ Expected
to
happen
“ Planned
vs
achieved
 Plan as a Guide
Discrepancies will provide the
bases for implementing changes
or making adjustments in the
business plan.
Time
table
Tool for
Securing
Funds
 Tool for Securing Fund
When the SBO needs initial or
additional funding for his business
venture, the business plan is a handy
means for convincing lenders
and investors.
Financial
projections
 Tool for Securing Fund
The business plan will serve as a
means of providing some assurance
that the investor will place these
funds in a worthwhile
investment.
Revising
the Plan
 Revising the Plan
A business plan is prepared in
consideration of the current and expected
situations. In the process of implementing
the plan, however the expected
development or changes in the environment
may not happen fully or even partially.
revision
⋆ Well-
informed
⋆ Adjust to
changes
8Factors
that Make a
Good
Business Plan
“ It fits the
business
need
 It’s
“ realistic. It
can be
implemented
 It’s specific.
“ You can track
results
against plan.
 It clearly
“ defines
responsibilities
for
implementation
“ It clearly
identifies
assumptions
 It’s
“ communicated
to the people
who have to
run it
“ It gets people
committed
 It’s kept alive
“ by follow up
and planning
process
 PROJECT 1: Interview
Interview a small business owner in your
community about his/her choice of product or service
Guide Questions:
1. how did the entrepreneur decide to sell this
particular product?
2.What research did he/she do?
3.Has it been a successful choice?
 PROJECT 1: Interview
Interview a small business owner in your
community about his/her choice of product or service
Write a one page summary describing the product
ideas that this entrepreneur considered when
establishing his/her business. Include a section
on the entrepreneur’s happiness or regrets about
the product he/she is selling as well as any advice
he/she would give to a young entrepreneur.
 PROJECT #2 –
Industry Trend
Choose one of the newspapers or periodicals
and locate an article or reference to an industry
trend. Summarize the information you read and
attach a copy of your source.