Intro to ent&wht_bus_plan-website

Introduction to Entrepreneurship &

What is a Business Plan?

MRS. LOGAN

Today’s  Agenda  

•  What  Will  I  Do  This  Year?  •  Introduc9on  to  Entrepreneurship  •  What  is  a  Business  Plan?  

What  Will  I  Do  This  Year  ?  

•  You  will  assume  the  role  of  a  teen-­‐based  business  owner.  

•  The  form  of  business  ownership  you  will  assume  is  that  of  a  sole  proprietorship.  

•   A  sole  proprietorship  is  a  business  owned  and  operated  by  one  person.  

Ups  and  Downs  of  a    Sole  Proprietorship  

Advantages   Disadvantages  1.  Work  long  hours  2.  Provide  the  necessary  

startup  money,  known  as  CAPITAL  

3.  Responsible  for  money,  owed,  known  as  DEBT  

4.  Dependent  on  your  health  and  ability  to  operate  

WHAT  IS  AN  ENTREPRENEUR?    

•  An  entrepreneur  is  an  amazing  person  who  organizes,  operates,  and  assumes  the  risk  for  a  business  venture.  

•  To  start  a  new  business  entrepreneurs  need  a  business  plan,  which  we  will  discuss  next.  

What  is  a  Business  Plan  and  Why  Have  One?  

•  A  business  plan  is  a  series  of  documents  that  serves  as  a  blueprint  for  star9ng  a  business.  

•  A  business  plan  includes  informa9on  about  –  the  business  –  the  industry  in  which  it  competes  –  its  products  and/or  services  –  its  customers  –  its  compe9tor,  and  –  its  finances  

What  is  a  Business  Plan  and  Why  Have  One?,  cont’d.  

•  Business  plans  allow  owner  to  break  down  the  process  because  it  can  be  an  overwhelming  task.  

•  Business  plans  indicate  1.  current  status  of  the  business  2.  vision;  future  goals,  and  objec9ves  3.  a  plan  to  achieve  the  vision  

What  is  a  Business  Plan  and  Why  Have  One?,  cont’d.  

•  The  primary  func9ons  of  a  business  plan  are  1.  set  goals  and  objec9ves  2.  aYract  poten9al  investors  3.  acquire  financing  4.  aYract  quality  emloyees  5.  aYract  poten9al  new  customers  

Components  of  a  Business  Plan  

•  Cover  Page  •  Execu9ve  Summary  •  Company  Descrip9on  •  Descrip9on  of  Products  and  Services  

•  Market  Analysis  •  Marke9ng  Plan  •  Opera9ng  Plan  

•  Funds  Required  and  Expected  Uses  

•  Financial  Statements  •  Owner’s  Creden9als  

   (resume)  •  Supplemental  AYachments                

Components  of  a  Business  Plan  

•  Cover  Page  –  includes  the  company  name  and  address  informa9on,  the  author  of  the  business  plan,  and  the  date  the  business  plan  was  prepared.  

Components  of  a  Business  Plan  

•  Execu9ve  Summary  –  summarizes  all  the  sec9ons  of  the  business  plan;  it  is  to  capture  the  aYen9on  of  the  reader.  

Components  of  a  Business  Plan  

•  Company  Descrip9on  –  sec9on  that    includes  all  details  about  the    the  business  including  its  age,  history,  legal  form  of  ownership,  industry  classifica9on,  structure,  loca9on,  the  number  of  employees,  and  its  primary  func9ons.  

Components  of  a  Business  Plan  

•  Descrip9on  of  Products  and  Services  –  provides  detailed  informa9on  about  the  products  or  services  that  will  be  offered  to  customers.  

Components  of  a  Business  Plan  

•  Market  analysis  –  informs  the  reader  of  the  condi9ons  and  trends  in  an  industry  including  the  target  market  of  the  business,  demographics  of  the  target  market,  and  an  analysis  of  the  compe99on.  

•  Marke9ng  plan  –  plans  for  building  and  maintaining  the  customer  base,  benefits  that  the  customers  will  have  for  choosing  this  business  or  service  over  compe9tors,  pricing  informa9on,  and  promo9on  and  adver9sing  plan.  

Components  of  a  Business  Plan  

•  Opera9ng  Plan  –  tell  how  the  business  will  acquire  materials  and  supplies  to  how  they  will  be  distributed  to  the  customers.  

Components  of  a  Business  Plan  

•  Schedule  of  Start-­‐up  funds  Required  –  shows  the  detailed  plans  for  the  use  of  any  funds  needed  to  start  the  business.  

Components  of  a  Business  Plan  

•  Financial  Statements  –  includes  a  Statement  of  Profit/Loss,  a  Balance  Sheet,  a  Statement  of  Cash  Flow  

•  Resume  –  also  known  as  owner’s  creden9als,  provides  reader  with  the  background  and  work  experience  of  the  owner  of  the  business.  

Components  of  a  Business  Plan  

•  Supplemental  AYachments  –  Logo  and  Tagline  –  Business  Cards  –  Company  LeYerhead  –  Customer  Prospect  Database  –  Promo9onal  LeYer    –  Brochure  – Newspaper  Adver9sement  –  iMovie  (commercial)  – Website  

5  Characteris9cs  of  a  Good  Business  Plan  

•  Neat  •  Organized  •  Professional  •  Well-­‐wriYen  and  well-­‐designed  •  Highlight  important  aspects  of  the  business