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ChapterChapter77
The Business Plan:The Business Plan:Creating And Starting Creating And Starting
The VentureThe Venture
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Planning ThePlanning The Business OperationBusiness Operation
Business Plan- Document Describes Business Plan- Document Describes Internal/External Elements/Strategies Internal/External Elements/Strategies For New VentureFor New Venture
Plan (Road Map)Plan (Road Map) Short-TermShort-Term Long-TermLong-Term
Author = EntrepreneurAuthor = EntrepreneurInternet - ResourceInternet - Resource
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Business Plan AudiencesBusiness Plan Audiences
1)1) EmployeesEmployees
2)2) Investors/Venture Investors/Venture
CapitalistsCapitalists
3)3) Lenders/SuppliersLenders/Suppliers
4)4) CustomersCustomers
5)5) Advisors/ConsultantsAdvisors/Consultants
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Plan PresentationPlan PresentationI.I. Information NeedsInformation Needs
A.A. MarketMarketB.B. OperationsOperations
1)1) LocationLocation2)2) Manufacturing OperationsManufacturing Operations3)3) Raw MaterialsRaw Materials4)4) EquipmentEquipment5)5) Labor SkillsLabor Skills6)6) SpaceSpace7)7) OverheadOverhead
II.II. Financial InformationFinancial Information
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Gathering Market InformationGathering Market Information
General Environment & Demographic TrendsGeneral Environment & Demographic Trends
National Industry TrendsNational Industry Trends
Local Environmental/Demographic TrendsLocal Environmental/Demographic Trends
Local Industry TrendsLocal Industry Trends
Competition- Strengths/WeaknessesCompetition- Strengths/Weaknesses
Market PositioningMarket Positioning
Market ObjectivesMarket Objectives
GeneralGeneral
SpecificSpecific
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Plan OutlinePlan OutlineI.I. Introductory Introductory
PagePageII.II. Executive Executive
SummarySummaryIII.III. Industry Industry
AnalysisAnalysisIV.IV. Description of Description of
VentureVentureV.V. Production PlanProduction Plan
VI.VI. Operational PlanOperational Plan
VII.VII. Marketing PlanMarketing Plan
VIII.VIII. Organizational Organizational PlanPlan
IX.IX. Assessment of Assessment of RiskRisk
X.X. Financial PlanFinancial Plan
XI.XI. AppendixAppendix
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Environmental/Industry AnalysisEnvironmental/Industry Analysis
Environmental- External & Environmental- External &
Uncontrollable VariablesUncontrollable VariablesEconomyEconomy
CultureCulture
IndustryIndustry Industry DemandIndustry Demand
CompetitionCompetition
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Description of VentureDescription of Venture
MissionMissionProduct/ServiceProduct/ServiceLocation/SizeLocation/SizePersonnelPersonnelOffice EquipmentOffice EquipmentEntrepreneur’s BackgroundEntrepreneur’s BackgroundHistory of VentureHistory of Venture
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DevelopingDeveloping Entrepreneurial StrategyEntrepreneurial Strategy
Mission StatementMission Statement
ObjectivesObjectives
Strategic PlanStrategic Plan
Business PlanBusiness Plan
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ObjectivesObjectives
1.1. QuantifiableQuantifiable
2.2. ObtainableObtainable
3.3. FlexibleFlexible
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Production PlanProduction PlanHow Product Manufactured- How Product Manufactured- Complete Process vs. Complete Process vs. SubcontractingSubcontracting
Physical Plant LayoutPhysical Plant LayoutMachinery/Equipment NeededMachinery/Equipment NeededRaw Materials/SuppliersRaw Materials/SuppliersManufacturing CostsManufacturing CostsFuture Capital NeedsFuture Capital Needs
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Operations PlanOperations PlanMarketingMarketing
Market ConditionsMarket ConditionsStrategy- Distribution, Pricing, PromotionStrategy- Distribution, Pricing, Promotion
OrganizationOrganizationOwnership StructureOwnership StructureLines of Authority/ResponsibilityLines of Authority/Responsibility
Assessment of RiskAssessment of RiskPotential HazardsPotential HazardsAlternative StrategiesAlternative Strategies
Financial PlanFinancial PlanEconomic FeasibilityEconomic FeasibilityFinancial CommitmentFinancial Commitment
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Implementation Of PlanImplementation Of Plan
•Measuring Progress- ControlsMeasuring Progress- Controls• InventoryInventory
• ProductionProduction
• QualityQuality
• SalesSales
• DisbursementsDisbursements
•UpdatingUpdating
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Reasons For Plan FailureReasons For Plan Failure
1.1. Unreasonable GoalsUnreasonable Goals
2.2. Goals Not MeasurableGoals Not Measurable
3.3. No Total CommitmentNo Total Commitment
4.4. Lack Of ExperienceLack Of Experience
5.5. No Understanding Of Threats Or No Understanding Of Threats Or WeaknessesWeaknesses
6.6. Customer Need Not EstablishedCustomer Need Not Established