BUSINESS PLAN BASICS 2014 PowerUP! Competition 2 AGENDA What is a Business Plan Why Write a Business Plan Feasibility: Operational & Financial Checklist The Key Elements Business Plan Outline Tips for Writing a Good Plan Q &A 3 What is a Business Plan? Definition: A business plan is a document that summarizes the operational and financial objectives of a business and contains the detailed plans, target dates and budgets showing how the objectives are to be realized. Unleash the power of a story Unleash 5 Why Write a Business Plan? • The Business Owner • Banks • Investors • BP Judges Bore them You don’t want to bore the judges! 7 Operational Feasibility Questions to ask: • Is there a demand? • Is the business viable? • Is there competition? • Is there an underserved niche market? 8 General Feasibility “We are a non-profit but we did not plan it that way” 9 Financial Feasibility Questions to consider: • • • Do I have sufficient capital to start my business? Is financing available and do I qualify for it? What’s the cost to continue to operate my business? 10 5 W’s of Feasibility Who are my potential customers? When will I launch my business? What is my product? Why is this business viable? Where will the business be located? Where are my customers? AND How will my business operate? 11 The Key Elements • Follow the outline provided by PowerUP! bklynpubliclibrary.org/locations/business/powerup/plan • Nine elements or sections with an appendix, plus financials • Sample plans can be helpful 12 Key Elements - Format • No longer that 20 one-sided pages with no less than 1.5 line spacing. • The appendix and the financial projections are not included in the 20 page limit. • It is strongly recommended that you format the financials according to the excel cash flow spreadsheet provided in the Financial Projections class. For easy uploading, the Financial spreadsheet is uploaded as a separate document in Review Room. 13 Key Elements - Format • Font size between 10 and 12 points. Recommended fonts include: Times New Roman, Arial and Helvetica. • Margins no less than .75 not including the header or footer. • All pages must have either a header or footer stating the name of the business. • Submit your plan in PDF format including the appendix. Available Sources: pdfonline.com, primopdf.com, createpdf.adobe.com. 14 Most People Don’t Use “Spellcheek” They are Carless and do things at the lost moment This Causes Unnecessary Errrs 15 The Key Elements Cover Sheet & Table of Contents (with page numbers) 1. Executive Summary 2. Business Description 3. Market Analysis and Target Market 4. Industry Analysis and Trends 5. Competitive Analysis and Your Strategic Position 6. Marketing Strategy 7. Operations 8. Management and Organization 9. Financials: Startup Costs and Cash Flow - separate document Appendix 16 Cover Page Identify the following: • Name of the company • Company address • Company phone number (include area code) • Logo (if you have one) • Purpose of Document • Date plan was completed • Names, addresses, phone numbers, email of owners • Name of preparer Brooklyn Business, Inc 11 West 24th Street Brooklyn, NY 11238 www.Bklynbus.com PowerUP! Business Plan Competition September 13, 2010 Plan prepared by: John Doe 520 St. James Place Brooklyn, NY 11238 Phone: 555.555.5555 [email protected] Jane Smith 15 Fourth Avenue Brooklyn, NY 11215 Phone: 555-555-5555 [email protected] 17 1. Executive Summary Write this summary last. The Executive Summary contains the highlights of your plan. Assume your most important readers will read only this section. 18 1. Executive Summary The Executive Summary should touch on most of the areas of the business plan, including a description of: • Products and/or services • Market Analysis (highlight the market opportunity) • Management team and operations • Financial history and projected sales • Funding request (How much and what for?) 19 2. Business Description What are you selling, where are you located and where are you in the process of starting up? • Make sure to explain the market opportunity & potential for profitability • Describe product/service • Where will you be located • Legal structure and other legal status if applicable: EIN, Trademarks, Copyrights • Milestone chart • Financing Requirements: - How much money is needed and how the money will be used - Expected sources of funds: Savings, Loans, PowerUP! winnings 20 Business Description: Products or Service • List all of the products/services you offer; • Describe what they do and how they work; • Highlight their key features and benefits; • Avoid technical jargon and use plain English. 21 Product or Service (example) Finestkind provides premium quality seafoods to both wholesale and retail customers. Our goal is to provide the freshest seafood at competitive prices to customers within 25 miles of Anytown. We make promised deliveries on time and at the agreed upon price. 22 Business Description: Opportunity You must understand and be able to describe why customers will buy your product/service. • Why is there demand? • What need does it fill? • What problems does it solve? 23 Business Description: Legal Structure • What is or what will be the legal structure of your business? • Existing companies should describe business’s history. 24 Business Description: Milestones Milestones set the plan into practical and concrete terms. They include: -real budgets -deadlines -management responsibilities, -and measurable activities. 25 Business Description: Milestones Set milestones and give each milestone: • • • • A Name A Start Date and End Date Person/Department who will be responsible A budget 26 Business Description: Milestones 27 Business Description: Milestones You can use a graphic to display milestones to give the reader a quick assessment of accomplishments 28 3. – 6. MARKETING Your Market Analysis and Marketing Strategy are found in the following sections of the business plan which will be covered in the PowerUP! Marketing Class • Target Market • Industry Analysis • Competitive Analysis • Marketing Strategy 29 7. Operations • HOW will you make and distribute your product or service? • What internal processes make or break your business? • Describe your staff, equipment and space requirements. • Flow charts & time lines can be useful 30 Operations Requirements Retail Service Manufacturing Location Personnel Skilled labor Lay out Location Space Packaging Billing Equipment Suppliers Suppliers Sales terms Location 31 Operations: Location • What are your location needs? • What kind of building do you need? • Why is this a desirable area or desirable building? • How do you plan to keep an eye on demographic shifts in your area? 32 Operations: Space Requirements • Space and location are important to stores, restaurants, manufacturing and other types of businesses. • Describe the neighborhood or desired location and its importance. • Describe the space; will you remodel, will you rent or buy, what will it cost? • Research the costs of remodeling! • Know the prevailing rates – cost per square foot. 33 8. Management and Organization • Management team: Describe the duties / roles of each member. What are their qualifications and relevant background experience? • Identify weaknesses in management, positions that need to be filled and how / when you will secure the right people. • List advisory board members. 34 Management: Personnel • What are your current personnel needs? • What skill sets do your employees need now? In the future? • What will be your wage scale - salary or hourly? Overtime? Fringe benefits? Taxes? • How do you plan to train personnel for both operations and management? 35 9. FINANCIALS The following will be included in the Financials section of your plan and will be covered in the PowerUP! Financials Class. • Startup Costs • Sales projections (reported in a cash flow statement) Monthly statements for the 1st year of operation Quarterly statement for the 2nd year • Notes and Assumptions (Specs) 36 Appendix: Supporting Documents Include any documents that support the main body of the business plan: • Include your Resume! • Photos of products or location • Sample marketing materials • Letters of intent from prospective customers •Estimates or invoices for start up costs • Copies of leases, floor plans, renovations 37 Avoid Common Mistakes Missing contact info Incomplete Table of Contents or Cover Sheet Insufficient research Poorly defined target market Incomplete competitive analysis Illogical or irrelevant numbers Inconsistencies across the plan Over reliance on Business Plan writing software Sepllnig nad Garmamr 38 Keys to a Good Plan Clearly describe your product or service Define your target market Research your industry Identify your competitive advantage Develop a strong marketing plan Set clear milestones Create realistic financial projections 39 Tips to Writing Effectively • 20 pages maximum. • Research all areas, back up your statements by referring to or quoting the source (footnotes are not essential). • Convince your reader. Answer the questions you would ask. Use compelling language to describe the unique benefits of your business • Write clearly. Use simple sentences; bullet points may be useful. • Have a friend read your plan to check for errors and to make sure it is clear. • Convert you plan to a pdf and upload it online at www.powerup.myreviewroom.com 40 Judges are looking for: • A well researched and well written plan. • A plan that is thorough and addresses all sections in the “Key Elements” outline. • A plan that is convincing and describes a business that will succeed. • A business that is realistic, focused and likely to get started. • A business with a clear need for the $15,000 award and a plan that describes how it will be used. • A business that will have a positive impact on the community which the plan outlines. 41 PowerUP! Business Plan Basics - Q & A Kobla Asamoah Isaac Roldan St. Nicks Alliance Business Center CAMBA Small Business Services 11 Catherine ST FL 3 Brooklyn, NY 11211 718.388.2233 x162 [email protected] www.stnicksalliance.org 2211 Church Avenue, Suite 207 Brooklyn, NY 11226 718.282.0108 ext. 79296 [email protected] www.camba.org The PowerUP! competition is brought to you by Brooklyn Public Library’s Business & Career Library Success Council and Citi Foundation.