_____Company

 Business Plan

 (date)
 (contact information)

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 1 © 2016 Pearson Education, Inc.
 Executive Summary
 Business definition
 Target market
 Key marketing strategy
 Goals
 Ownership
 Financing request
 Use of funds & exit strategy
Entrepreneurship: Starting and Operating A Small Business, 4e
Mariotti and Glackin 2 © 2016 Pearson Education, Inc.
 Overview
 Mission
 Vision
 Culture

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 3 © 2016 Pearson Education, Inc.
 Company Description
 Industry
 Type of firm (manufacturing/wholesale/service)
 Strategic advantage
 Legal structure
 Physical location & geographic reach
 Ownership structure

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 4 © 2016 Pearson Education, Inc.
 Opportunity Analysis
 Industry analysis
 Size
 Trends
 Characteristics
 Target market
 Size
 Trends
 Characteristics

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 5 © 2016 Pearson Education, Inc.
 Opportunity Analysis II
 Environmental analysis
 SWOT analysis
Strengths Weaknesses

Opportunities Threats

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 6 © 2016 Pearson Education, Inc.
 Opportunity Analysis III
 Competitive Analysis
 Key competitors (analysis on next slide)
 International competitors
 Competitive advantage or Unique Selling
Proposition (USP)
 Tactics to support the strategy
 Barriers to entry

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 7 © 2016 Pearson Education, Inc.
 Competitive Analysis
Your Company Competitor #1 Competitor #2 Competitor #3
Weighted Weighted Weighted Weighted
Rating Rating Rating Rating
Quality

Price

Location

Selection

Service

TOTAL

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 8 © 2016 Pearson Education, Inc.
 Market
 Segmentation strategy
 Geographic scope
 Size of total market
 Size of target market
 Customer profile

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 9 © 2016 Pearson Education, Inc.
 Marketing – Products/Services
 Products/services to be sold
 Customer needs to be met
 Features and benefits
 Product life cycle stage(s)
 Intellectual property protection

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 10 © 2016 Pearson Education, Inc.
 Marketing - Pricing
 Strategy
 Structure
 Profit margins
 Discounts
 (Optional – Economics of One Unit Slide)

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 11 © 2016 Pearson Education, Inc.
 Economics of One Unit
Definition of one unit
Selling price per unit $
Direct labor $
Materials $
Total COGS per unit $
Other variable costs $
Total variable costs $
Gross profit per unit $
Entrepreneurship: Starting and Operating A Small Business, 4e
Mariotti and Glackin 12 © 2016 Pearson Education, Inc.
 Marketing - Promotion
 Advertising
 Branding
 Marketing materials
 Publicity
 Customer service

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 13 © 2016 Pearson Education, Inc.
 Marketing - Place
 Location
 Advantages
 Disadvantages
 Surrounding businesses & access routes
 Vehicular traffic
 Work force availability

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 14 © 2016 Pearson Education, Inc.
 Marketing - Philanthropy
 Philanthropic strategy
 Organizations to support
 Rationale

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 15 © 2016 Pearson Education, Inc.
 Management Team

President/CEO

Marketing Operations Finance

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 16 © 2016 Pearson Education, Inc.
 Employees/Associates
Full-time employees Part-time employees
 Present needs  Present needs

 Future needs  Future needs

 Benefits

 Training

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 17 © 2016 Pearson Education, Inc.
 Research & Development
 Types of research in which engaged
 Industry research in progress
 Intellectual property protection

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 18 © 2016 Pearson Education, Inc.
 Location & Facilities
 Type of building and equipment
 Technological tools
 Access to technology

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 19 © 2016 Pearson Education, Inc.
 Inventory & Production
 Supply chain (illustrate)
 Manufacturing process
 Economies of scale
 Innovations in production, inventory
management, or distribution
 Production-distribution channel(s)
 Lead times
Entrepreneurship: Starting and Operating A Small Business, 4e
Mariotti and Glackin 20 © 2016 Pearson Education, Inc.
 Quality Assurance
 Methods of defining & ensuring
product/service quality
 Critical components of quality assurance
 Value of quality assurance to customers
and the organization

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 21 © 2016 Pearson Education, Inc.
 Sources & Uses of Capital
 Amount of capital required
 Funds from personal resources
 Funds committed
 Type of funds and terms
 Uses of funds raised with timeline
 Start-up costs
 Payback period
Entrepreneurship: Starting and Operating A Small Business, 4e
Mariotti and Glackin 22 © 2016 Pearson Education, Inc.
 Cash Flow Projections
Q1 Q2 Q3 Q4 YR1 YR2 YR3

Starting Cash + $ $ $ $ $ $ $

Cash in from +
Operations
Cash out from -
Operations
Cash in from +
Investing
Cash out from -
Investing
Cash in from +
Financing
Cash out from - _______ _______ _______ _______ _______ _______ _______
Financing
Ending Cash $ $ $ $ $ $ $
Balance

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 23 © 2016 Pearson Education, Inc.
 Balance Sheet Projections
________________ Company

1Q 2Q 3Q 4Q YR1 YR2 YR3

Assets

Current Assets

Long-Term Assets

Total Assets $ $ $ $ $ $ $

Liabilities

Short-Term Liabilities

Long-Term Liabilities

Total Liabilities $ $ $ $ $ $ $

Owner’s Equity $ $ $ $ $ $ $

Total Liabilities & $ $ $ $ $ $ $

Owner’s Equity

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 24 © 2016 Pearson Education, Inc.
 Income Statement Projections
_________________ Company
For the Period Ending
1Q 2Q 3Q 4Q YR1 YR2 YR3
Net Sales Revenue $ $ $ $ $ $ $
(+)

Cost of Goods Sold

(-)
Gross Profit $ $ $ $ $ $ $
(=)

Operating Expenses
(-)
General Expenses
(-)
Other Expenses
(-)
Net Income Before $ $ $ $ $ $ $
Taxes
Taxes

Net Income $ $ $ $ $ $ $

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 25 © 2016 Pearson Education, Inc.
 26
Return on Sales
Return on Sales (ROS)
Yearly Net Profit ÷ Total Sales × 100 %

$1.00

$0.80
$1 of sales
$0.60

$0.40 Amount of $
gained/lost by
$0.20 sales

$0.00
ROS
(Double click on chart to add information)

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 26 © 2016 Pearson Education, Inc.
 Breakeven Analysis
Number of units that must be sold to
break even:

 per month: __________ units

 per year: ____________ units

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 27 © 2016 Pearson Education, Inc.
 Ratio Analysis
Ratio Company Industry Variance
Current

Quick

Debt

Debt to Equity

Times Interest
Earned

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 28 © 2016 Pearson Education, Inc.
 Ratio Analysis II
Ave. Inventory
Turnover
Receivables
Turnover
Average Collection
Period
Average Payable
Period
Total Assets
Turnover
Net Profit on Sales

Net Profit to Equity

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 29 © 2016 Pearson Education, Inc.
 Plan for Use of Funds

Working capital $
Equipment $
Fixtures $
Furnishings $
Real estate $
Other $
TOTAL $
Entrepreneurship: Starting and Operating A Small Business, 4e
Mariotti and Glackin 30 © 2016 Pearson Education, Inc.
 Funding Request
 Amount
 Type
 Terms

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 31 © 2016 Pearson Education, Inc.
 Risks & Barriers
 Key risks and assessment of impact
 Barriers to plan success
 Plans to mitigate risks and reduce
barriers

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 32 © 2016 Pearson Education, Inc.
 Exit Plan
 Options
 Option 1
 Option 2
 Option 3
 Time frame

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 33 © 2016 Pearson Education, Inc.
 Milestones
 Critical milestones listed with dates
 PERT chart

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 34 © 2016 Pearson Education, Inc.
 Opportunity Summary
 Highlight 1
 Highlight 2
 Highlight 3
 Highlight 4
 Highlight 5

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 35 © 2016 Pearson Education, Inc.
 [Company Name]
Thank you!

Entrepreneurship: Starting and Operating A Small Business, 4e

Mariotti and Glackin 36 © 2016 Pearson Education, Inc.