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MultiMedia by Stephen M. Peters 2001 South-Western College Publishing

Chapter1Planning aBusiness

Introduction to


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Learning Objectives

Identify the key stakeholders that are involved in

a business.

Describe the key functions of business.Explain how to develop a business plan.


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Owners:Organize, manage, and assume risk of starting a business.

Creditors:

Provide loans to start businesses.

Employees:

Hired to conduct the business operations.

Suppliers:

Provide the materials needed for production.Customers:

Buy products which satisfy their needs.

Five Key Stakeholders in a Business


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Welcome to Wal-Mart

Everything we do is designed to build

shareholder value over the long haul.

Business Online

Wal-Mart
http://www.wal-mart.com/http://www.wal-mart.com/


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Goal of Managers

Maximizing the

firms value.


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Five Key Functions of Business

FUNCTIONS

Management Marketing

Accounting Finance

Information

Systems


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Three Common Business Decisions

Management Decisions

Marketing Decisions

Finance Decisions


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Steps for

Creating a Business Idea

Identify Consumer Needs:

Market research.

Assessment of The Business Environment:

Industrial, economic, and global environments.


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Business Plan

Who is it for?

For the Entrepreneur.

For Investors and Creditors.

What does it provide?

Detaileddescription of the proposed business,including types of customers, competition,and facilities needed for production.


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Possible Business Plan Sections

Business Online

Cover Letter

Section 1 Executive Summary

Section 2 Company Background

Section 3 Management TeamSection 4 Financial Plan

Section 5 Marketing Plan

Section 7 Location Analysis

Section 8 Manufacturing Plan

Section 9 Appendix

Can be between 25 and 50

pages and take up to six

months to complete.
http://www.sba.gov/


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Business Plan: Management Section

Organizational structure

Identifies roles and responsibilities of each

employee in the firm.

ProductionDecisions about production process, location,

and facilities.

Human resources

Set up work environment that will motivate

the employees to help the business succeed.


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Business Plan: Marketing Section

Target Market: Profile of the target customer.

Product Characteristics: Detailed description of

product.

Pricing: Proposed price of the product(s).

Distribution: How products will get to the customer.

Promotion: How products will be communicated to

the target market.


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Business Plan: Financial Section

Feasibility

Estimate costs and benefits of the business,

including sales forecasts and all expenses.

Financing the Business

Summary of the initial outlay needed to start the

business.


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Potential revenue.

Demand for product or service.

Expense of production.

Overall potential for profitability.

Considerations in Assessing

a Business Plan

Small

Business

2000

Business Online
http://www.sb2000.com/http://www.sb2000.com/http://www.sb2000.com/http://www.sb2000.com/http://www.sb2000.com/

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