Writing a Business Plan

If you fail to plan, then you plan to fail ± Harvey Mackay the plan is useless, but planning is essential - Dwight D. Eisenhower

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About the speaker 
Mohd

Fadhilullah Tudun Bin Haji Hassan @Mohd Hasbolah Bobby  Entrepreneur, Computer Trainer and Business Counsellor  Interests: IT, Biz and Education  Contact:
Phone: +673 8651632  E-mel: bobbyofbrunei@yahoo.com 

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Introduction 
Getting  Name  From

to know each other

Where  Hobby and Interests  Occupation/Employment/Business  Reason for Attending Workshop

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Business Plan Series Dates 

Session 1 (24 June 2011) 
 

Introduction to Business Plan Business Plan Structure Company Profile and Startup Table Products and Services Market Research, Analysis and Strategy Human Resource Management Financial Analysis Making a Business Plan Using IT Presentation
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Session 2 (1 July 2011) 
  

Session 3 (8 July 2011) 
 

What is a Business Plan? 
It

is a medium to communicate your business idea  It is a document that shows the inner workings of the business.  Business Blueprints and Roadmap

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Business Plan Crash Course 
Business

Plan Structure  Business Profile  Products and Services  Market Research and Market Strategy  Organization  Operation Strategy  Financial Strategy  Winning Strategy
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What¶s the Purpose of a Business Plan? 
  

Business Profile ± To convince investors/bankers of the business feasibility. The Business Roadmap ± To clarify the structure of the business and how it will be managed. Operations Manual ± To communicate to employees on their responsibilities in relation to the company objectives. The Style of the Business Plan will differ with different purposes.
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What Biz Ideas Can You Plan? 
 



Conventional but Feasible e.g. restaurant, stall, bakery, workshop, retail shop, School Simple evaluated by the business plan writing, and how you can make it different. 

 



Innovative but Unproven e.g. new franchise, technology company, new inventions Challenging evaluated by the Business idea and its feasibility
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The Perfect Business Idea
Expertise

Passion

Business Model

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Where to learn to create a Biz Plan? 
Books 

± Bookstores, Libraries  Internet ±
www.bplans.com, www.sba.gov, www.shelllivewire.com, www.livewire-brunei.com, www.howstuffworks.com, www.soyouwanna.com, www.entrepreneur.com, www.google.com. 

Courses

Sinaut Entrepreneurial Development Centre  LiveWIRE ± Business Plan Series  iCentre - Think Big Biz Plan Workshops 

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Formal Business Plan Structure 
      

Cover Table of Contents Executive Summary Business Profile Products and Service Operations Strategy Marketing Analysis Market Strategy 

   

Organization Strategy Operation Strategy Financial Analysis and Forecasts Milestones, Future Plans and Exit Strategy Appendices

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Executive Summary

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Executive Summary 
Often

Written Last, Shown First.  Make it interesting for the reader.  Make the reader want to read more.  Make it simple point form for every section, or a simple abstract summary.  1 or 2 pages Maximum.  E.g. 30 second Movie Preview
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Business Profile 


Introduce the business Legal Structure of Business 

Sole Proprietor, Partnership, Sendirian Berhad, Koperasi Food, Service, Manufacturing, IT, 

  

Nature of business 

Mission and Objectives Startup Cost Milestones/Achievements
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Products and Service 
What

is it?  Who are you going to sell it to?  What problem is it solving?  How much will it cost them?  What makes it unique?  Intellectual Property Involved?  Sales Forecast
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Market Analysis 
   

Who are you going to sell to? Who are your competition? What do they do? SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats) What are the Market Forces that affects you? Political, Economic, Social, Technological (PEST) ± Factors for Success

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Market Strategy 
How

are you going to tell your customers that you are there?  4 P¶s
Product  Price  Place and Distribution  Promotion 

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Human Resource Management 
    

Who are involved? Organization Chart Personnel Roles and Responsibilities Personnel Qualifications Key Roles/Management Payroll Cost

Manager Admin Worker 1 Worker 2 Assistant Worker 3

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Operations Strategy 
     

How is the business going to run? How is the business making money? Location and Working hours Product Life Cycle - e.g. Agricultural vs Retail Production Process 

Input Process

Output

Technology/equipment Involved Sales Forecast in relation to Operations or Season (can also be in product section)
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Financial Analysis and Forecast 
     

Start up costs Sales Forecast Personnel/Payroll Cost Profit and Loss Cash flow Forecast Balance Sheet Break-even analysis

90 80 70 60 50 40 30 20 10 0 1st Qtr 2nd 3rd Qtr 4th Qtr Qtr

nett income Expenses nett

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Future Plans and Exit Strategy 

What are you going to do with the business in the long-term: 
   

Expand Sell Handover to family member Go Public Get Merged or Acquired If Bankrupt or unsuccessful what will you do? 

or if anything goes wrong. 

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Appendices 
Marketing 

Materials

Research Materials and Results  Sample of Advertisements  Survey  Results 
Full 

Financial Tables

2-5 years

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Business Profile

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Business Profile 
 

Introduce the business and its history ³Biodata´ of the Business 

Name, Location, Contact no., Year Started, etc. Sole Proprietor, Partnership, Sdn Bhd, Cooperative Food, Service, Manufacturing, IT, etc

Legal Structure of Business  



Nature of business 

Startup Cost or Milestones/Achievements
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Vision and Mission 
Vision 

vs Mission

Mission ± What is the desired Goal  Vision ± How you see the future 
Why

does the Business Exist?  The Purpose of the Business.  Usually Intangible, Broad, and Abstract

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Examples of Mission
- to organize the world's information and make it universally accessible and useful.  Rich Dad Company¶s - to elevate the financial well-being of humanity  Microsoft¶s - To help people and businesses throughout the world realize their full potential 
Google's
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Objectives 


What you need to do to achieve the mission Objectives are SMART: 
   

Specific Measurable Attainable/Achievable Relevant Timely 

This might be clearer after the biz plan is done

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Examples 
To

earn $1 million dollars in revenue in the 2nd Year  to sell 1000 units in the first year  to achieve 50% market share in the 2nd year.

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Exercise 
Create 

you Business Profile

Business Name  Legal Structure  Nature of Business  Products and Services  Mission and Objectives

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Startup Costs ± Accounting Terms 
   

Capital ± money that was put in by the owner. Liability ± money put in by banker/investor to be paid back. Assets ± property that can be turned to cash Expenses ± purchases or payments that cannot be redeemed for cash Income ± Money coming in from business operations or sales.

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Startup Costs ± Assets and Expenses 

Assets  

Expenses 

Assets Purchase 
 

Legal Expenses 


Equipment Furniture Building Cash in hand Raw materials Work In Progress

Registration Business License  

Current Assets 
 

Initial Operation Expenses 
  

Rental Deposit Utilities Marketing Employees 

Intangible Assets (IP) 

Decorations and Design
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Exercise 
Create  

your Startup Table

Assets
Fixed Assets  Current Assets  Intangible Assets 

Expenses
Legal  Initial Operation  Renovations 

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Products or Services

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Know your product or service 
What

do you provide?  What are the Features and Benefits.  What makes it unique?  To who do you provide?
Business to Business (B2B)  Business to Customer (B2C) 

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Features vs Benefits 


What you offer E.g. 
     



What customers get E.g. 
    

Food Phone House Hotel Room Furniture Gym

Satisfaction/Full Communications Home Rest/Sleep Comfort Health/Look Good

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Intellectual Property Rights  

 

Copyright ± Books, Software, Audio, Video Trademark ± Logo, Signage Patent ± Inventions, Mechanisms Design ± Physical Appearances 

E.g. Android OS, iOS 

 

Android Logo, Apple Logo The combination of the chips and circuits The look and feel of the phone.
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What to Who? Product to Consumer Matrix
PC Consumer Student Professionals Office Geeks/Gamers  High End Medium      Low End 

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Market Research

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Resources on Marketing 

Books 


Ziglar on Selling ± zig ziglar Salesdogs ± Blair Singer Smallbusiness.yahoo.com, bnet.com, salesdogs.com, howstuffworks.com, en.wikipedia.org LiveWIRE BSOM EDC ± Pemasaran yang berkesan, Jurujual Profesional
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Websites  

Courses 


Why is Market Research Necessary? 

To know your customers  

To know your competitors 
  

See what type of people or how many would be interested? Where can you get your customers? How much people will want to pay? 

Who they are What they do/provide? What are their Pros and Cons 

To see how feasible your biz idea is.
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What you need to know first 
Understand 

your products or service

Its benefits, quality 

Your 

basic operations and product life cycle e.g. farming, manufacturing, etc
Seasonality (weeks, months, years) 

Your 

Product¶s History

Price, Promotions, Distribution

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Where can you get Market Research? 
Primary

Research ± research you get and analyze yourself  Secondary research ± research that has already been done

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Primary Research 
   

Phone Call SMS Interview Survey Letters  

Design, Print, Photocopy, Gather, Data entry and Analyze Use Internet e.g. Facebook and Survey Poll.

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Secondary research 

www.depd.gov.bn ± Department of Economic Development and Planning 


Perancangan Kemajuan Jangka Panjang NBD Brunei Statistical Yearbook 2004 



Other Government Newsletters Internet 


Internet statistics www.internetworldstats.com Cia world factbook www.cia.gov

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What you need to Ask? 
How Big is the market?  Market Segmentation. Who 

are your Customers? (Don¶t say everyone)
Age group, Geographic Location, Employment, Income Level, etc. 

Who 

are your Competitors/Allies

What they do well or badly. 

What 

your targets wants in your product/service?
Price, quality, feature, benefits.
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PEST factors
Factors ± how does the government affect your market.  Economic Factors ± how does the economic status affect your market.  Social Factors ± cultural and social trends.  Technological Factors ± technology that affects the market. 
Political
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SWOT 

Internal 
 

External 


Strength Weakness

Opportunities Threats

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Porter¶s 5 Forces

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Exercise 
Product 

and Market Research

What are your Product(s) or Service(s)  Who do you Sell to? Market Size? Segmentation e.g. Age, Income, Occupation  Who else is trying to get your customers?  How does the market affect your business? 

PEST, or porter 5 forces 

What are your SWOT¶s

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Market Strategy
³Getting someone, who has a need, to know, like and trust you´ ± John Jantsch (Duct Tape Marketing)

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Why do you need a Marketing Strategy? 
Focuses

your Marketing efforts more effectively  So you can decide how and when are you going to Market yourself.  So you can allocate the Budget for Marketing Strategies

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How do you choose a strategy? 
Choose 

those

That focuses on your target market  Affordable  Effective
Not energy consuming  Not time consuming 

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What is your Marketing Mix? 
The 

4 P¶s

Product ± Unique Selling Advantage, Packaging and Value added services  Price ± Pricing of the products compared to competitors.  Place ± Location of your business or/and Distribution of your products  Promotion ± Advertising, Public Relations, Word of Mouth, Point of Sale.
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What Promotion Strategies can you do? 
        

Fliers Posters Newspaper Brochures Business Cards Exhibition TV Radio Letters/faxes Stationery and gifts

Referrals  Word of Mouth  Direct Selling  New Technologies  

   

E-mail Website Web advertising Social networking Blogs 

And Many More!!!

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Market Strategy Implementation 
Marketing 

Calendar ± when are you going to implement the strategies?
Look at your production capacity  Look at the market seasonality 

Marketing

Budget ± how much will it cost during those times.

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Marketing Costs
Month Fliers Business Card Online Exhibition Total 1 2 3 4 5 6 7 8 9 10 11 12 Total

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Marketing Costs Pie Chart

$500.00 , 5%

Fli P O li ibi i
$200.00 , 10% $1,000.00 , 50% $300.00 , 5%

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Exercise Marketing Strategy 
Keep 

in mind

What is are your products?  Who do you sell to?  Who is also trying to sell to them? 
How 

are you going to reach your customers?
What are your 4P¶s  What does your marketing cost you?
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Organization Strategy/ HR Management

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Why do you need an organization strategy? 
Judges

see this as how strong your team can build the business  Investors see this as how good the people are that can make their money.  To calculate costs for Personnel / Payroll  To see any management gaps

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Management Team and Gaps 
Briefly

describe who are in your team (who you already have)  A summary of each team member¶s CV  Also mention what gaps you may have (Team member you may lack)  Mention advisors you may have  Include CV in appendices

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Organization Chart
CEO

Admin

Products/ Service

Sales And Marketing

Finance

HRD

Front Desk

Back Desk

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Roles and Responsibilities 
  

Roles or positions Responsibilities Qualifications Salary
Responsibilities Manages Company Manages Finances Manages IT Manages Department Qualifications Degree, MBA Degree, MBA ND or Degree ND or MBA Salary $2,000 $1,500 $1,500 $1,200

Roles CEO CFO CIO MD

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Payroll/Personnel Cost
Month 1 CEO CFO CIO MD TAP SCP Total 2 3 4 5 6 7 8 9 10 11 12

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Operations Strategy

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Operation Strategy 
   

What is your business model? 

How does your business make money? Cash or Credit/Accrual What do you do? Services or products? When do you produce your products/service What are the monthly running costs?
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How do you receive your payment? 

What are your business activities? 

What is the business/product cycle? 

What are the overhead costs? 

Sales Forecast Table
Month Units Sold Sales Price Cost Price Total Sales Total Cost Gross Profit
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1

2

3

4

5

6

7

8

9

10

11

12

Total

How to base the Sales
By Supply/Capacity  How much you can handle and when  Services like restaurants or internet cafe± look at capacity (number of chairs)  Products ± look at how much or when it can be produced, stored, or how fast it can be reordered. By Demand  How much people often want to use your service or buy your product, this can be derived from market research.  Services like restaurants or tailoring look at seasonal behavior of customers  Products look at customer¶s use of products. E.g. addiction to cigarettes
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Overhead Costs
Fixed Costs that are related to running the operations.  May be Unrelated to costs such as: 
 

Examples:  Stationery  Rental  Utility Bills 

Cost of goods (COGs) Variable Marketing costs Payroll costs

Electricity, Water, Phone, Internet Access 

   

Maintenance Loan Repayments License Fees Insurance Taxes
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Financial Analysis

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Resources 
Financial 

Books

Accounting for non accountants, accounting for dummies, 

Internet  Courses

LiveWIRE ± BSOM  EDC ± Accounting Courses  BICPA-FTMS ± certified accounting courses 

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Why do you need Financial Analysis? 
To

see that the business is feasible in terms of cash  To see that you are making money  So you can plan your expenditures more carefully

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Financial Analysis 
Break-even

analysis  Profit and Loss  Cash Flow Forecast  Balance Sheet

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Break-even analysis   

Units S ld Fixed C sts Unit Sales Unit C st Fixed C sts + Variable C st

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What is the purpose?  To see how many units need to be sold to make money. What you need to know?  Units Sold  Sales per unit  Cost per unit  Fixed Costs Note:  this is for a single product, for multiple products you may use average.

$7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 0
0 $2,400 0 0 $2,400

100
100 $2,400 2000 500 $2,900

200
200 $2,400 4000 1000 $3,400

300
300 $2,400 6000 1500 $3,900

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Profit and Loss Forecast 


Calculates the amount of money going in (from sales) and out (from operations cost) Factors 


Income from Sales of Goods or other items Expenses from 

Direct Cost of Goods Expenses , Controllable and Fixed Costs Gross Profit and Gross Margin Net Profit 

Calculate 


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Profit and Loss Forecast Sample
1 Gross Sales Direct Cost of Goods Gross Profit Expenses Nett Profit
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2

3

4

5

6

7

8

9

10 11 12 Total

Cash Flow forecast 

Similar to Profit and Loss, But it looks at: 

Other factors of money going in or out other than monthly business operations. 
 

In-flow ± additional loans, owner¶s capital, Out-flow ± business taxes, assets purchase, renovations, expansion, owner¶s draw/dividends Nett-flow (profit or loss) and accumulated cash (money in bank) Especially useful if you are buying/selling by using credit. 

Actual Money going in or out  

Ensuring there is money in the bank.
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Cash Flow forecast sample
Month In-Flow Out-flow
Overhead Payroll marketing

1

2

3

4

5

6

7

8

9

10 11

12 Total

Nett Flow Accumulated Cash

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Sample Cash-flow Chart
15000 10000 5000 0 1 -5000 -10000 Nett Flow Accumulated ash 2 3 4 5 6 7 8 10 11 12

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Balance Sheet 

Assets  

Liabilities 

Current Assets 

Current Liabilities 

Stocks, Cash, Accounts Receivable Equipment, Furniture, Land, Building, Vehicles Patents, Copyrights, Goodwill

Accounts Payable, Taxes, 

Fixed Assets  

Long-Term Liabilities 

Mortgages, Contract Payments 

Intangible Assets  

Net Worth = Assets Liabilities
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Balance Sheet Sample
Assets Current Assets
Stocks and WIP Cash Accounts Receivable

$ 500 5,000

Liabilities Current Liabilities
Accounts Payable Taxes

$ 500 200 10,000 1,000 11,700

500 Long-Term Liabilities
Bank Loan, Mortgages

Fixed Assets
Furniture Equipment

2,000

Contract payment

5,000 Total Liabilities 500 13,500 Net worth
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Other Assets
Trademark

Total Assets

1,800
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Using IT

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Using the IT to create a biz plan 

Using Word 


Templates, styles and TOCs, Header and Footer, Page number Inserting Graphics, Organization Chart, Tables Using Formulas and relative addresses, importing into word Creating Cash flow and Graphs Slide Design, Animation Schemes, Footers and Printing 

Using Excel 
  

Using PowerPoint 

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Writing and Presentation Tips

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Plan to Make Your Business Plan 
Allocate 

the time you need to do certain parts of the Business Plan
Use Calendar/Planner/Diary/Journal  Create a deadline for specific tasks 

If

you are doing in a group (highly recommended) allocate specific tasks for a specified person

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Writing Tips 
    

Clear Concise Organized Well Laid Out Natural Positive 

    

Well interpreted facts Do not jump to conclusions Show Sources Proofread Make it Perfect Well written executive summary

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Presentation Tips 
     

10-15 slides 10-15 minutes Keep it Simple Make it to the point Tell a Story Dress Professionally Practice 


In front of mirror In front of someone

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Tell a Story 
Introduction

(breaking the ice)  Existing Problem/Pain/Situation  Solution (Product/Service) your are providing  Market Research and Strategy  Who are involved  How you can succeed
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10 tips from David S. Rose 
        

Do not look at the screen Do not read your speech Do not do a Live Demo Always use a Remote control Remember handouts are not your presentation Do not tell Jokes.. Ever Do not stroll or fidget Pace the presentation smoothly and evenly Check equipment, own laptop and projector Only the CEO give the money pitch
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Quick Tips 

Your idea doesn¶t just make money, but helps people: 

Creates jobs, or provides a service, or provide a solution, alleviates a pain/discomfort 

  

Its not just an idea, but a work in progress. You have the numbers to back you up. You have qualified people (employees or partners) involved. Be passionate in your presentation
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Your Mission
1. 2. 3. 4. 5. 6. 7.

Start and Complete Your Business Plan! Choose a business Idea Plan to create biz plan Create a draft Biz plan or exec summary Design and implement market research Analyze Market Research Adapt Biz Plan Strategy to meet Market Analysis

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Thank You, Good bye, and Good luck!

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