Business Paper

BUSA 1105 BUSINESS PLAN ASSIGNMENT

IMPORTANT: Read BUSA 1105 Business Plan Basics document starting this project.

GRADING Criteria:

This project will count 100 points to be distributed as follows:

Description	Points
Creativity	15
Neatness and Accuracy	15
Use of Graphs and Charts	25
Cohesive Business Writing	25
Presentation	20

For your start-up business plan, write a Five – Seven (5 - 7) page double-spaced document covering the following sections of the Business Plan Project below:

1) Define your Business & Vision 2) Write down your Goals 3) Understand your Customer 4) Learn from your Competition 5) Financial Matters

BUSA 1105 - Business Plan Project How is your business unique, and why will your goods or services appeal to customers? What are the primary differences between your company and your competitors? What are the driving factors to choose your business over another?

In other words, what is the underlying reason a customer would do business with your company?

1) Define your Business & Vision.

Defining your vision is important. It will become the driving force of your business. Here are questions that will help you clarify your vision:

· Who is the customer?

· What business are you in?

· What do you sell (product/service)?

· What is your plan for growth?

· What is your primary competitive advantage?

2) Write down your Goals.

Create a list of goals with a brief description of action items. If your business is a start up, you will want to put more effort into your short-term goals. Often a new business concept must go through a period of research and development before the outcome can be accurately predicted for longer time frames.

Create two sets of goals:

1. Short term: range from six to 12 months.

2. Long term: can be two to five years.

Explain, as specifically as possible, what you want to achieve. Start with your personal goals. Then list your business goals. Answer these questions:

· As the owner of this business, what do you want to achieve?

· How large or small do you want this business to be?

· Do you want to include family in your business?

· Staff: do you desire to provide employment, or perhaps, you have a strong opinion on not wanting to manage people.

· Is there some cause that you want the business to address?

· Describe the quality, quantity and/or service and customer satisfaction levels.

· How would you describe your primary competitive advantage?

· How do you see the business making a difference in the lives of your customers?

3) Understand your Customer.

It is not realistic to expect you can meet the needs of everyone, no business can. Choose your target market carefully. Overlook this area, and I guarantee you will be disappointed with the performance of your business. Get this right and you will be more than pleased with the results.

· Needs: what unmet needs do your prospective customers have? How does your business meet those needs? It is usually something the customer does not have or a need that is not currently being met. Identify those unmet needs.

· Wants: think of this as your customer's desire or wish. It can also be a deficiency.

· Problems: remember people buy things to solve a specific problem. What problems does your product or service solve?

· Perceptions: what are the negative and positive perceptions that customers have about you, your profession and its products or services? Identify both the negative and positive consequences.

You will be able to use what you learn when you start marketing and promoting your business.

4) Learn from your Competition.

You can learn a lot about your business and customers by looking at how your competitors do business. Here are some questions to help you learn from your competition and focus on your customer:

· What do you know about your target market?

· What competitors do you have?

· How are competitors approaching the market?

· What are the competitor's weaknesses and strengths?

· How can you improve upon the competition's approach?

· What are the lifestyles, demographics and psychographics of your ideal customer?

5) Financial Matters

How will you make money? What is your break-even point? How much profit potential does your business have? Take the time to invest in preparing financial projections.

These projections should take into account the collection period for your accounts receivables (outstanding customer accounts) as well as the payment terms for your suppliers. For example, you may pay your bills in 30 days, but have to wait 45-60 days to get paid from your customers.

A cash flow projection will show you how much working capital you will need during those "gaps" in your cash position.

Before inquiring about financing, ask yourself the following:

· Do you need more capital or can you manage existing cash flow more effectively?

· How do you define your need? Do you need money to expand or as a cushion against risk?

· How urgent is your need? You can obtain the best terms when you anticipate your needs rather than looking for money under pressure.

· How great are your risks? All businesses carry risks, and the degree of risk will affect cost and available financing alternatives.

· In what state of development is the business? Needs are most critical during transitional stages.

· For what purposes will the capital be used? Any lender will require that capital be requested for very specific needs.

· What is the state of your industry? Depressed, stable, or growth conditions require different approaches to money needs and sources. Businesses that prosper while others are in decline will often receive better funding terms.

· Is your business seasonal or cyclical? Seasonal needs for financing generally are short term. Loans advanced for cyclical industries such as construction are designed to support a business through depressed periods.

· How strong is your management team? Management is the most important element assessed by money sources.

Perhaps most importantly, how does your need for financing mesh with your business plan? If you don't have a business plan, make writing one your first priority. All capital sources will want to see your plan for the start-up and growth of your business.