artifact

Small Business Management

Business Plan

Directions:

You are an aspiring entrepreneur and want to start a new business. Create a business plan to formalize your business vision. This project gives you the opportunity to explore a venture you would enjoy owning, so be creative. A business plan is easier to write if you have some knowledge of and interest in the type of business you plan to open. 

The business must be a new business that you plan opening in (month) _______ of (year) ______ (select a date).

The business plan must be written in the third person (i.e. no first-person pronouns: “I”, “our”, or “we”). Spelling and grammar count. A grade of a 70 or less means the financial institution reviewing your business plan did not approve your loan.

Sections of the business plan will be submitted for an assignment grade (see handout). The assignment will receive a critique and suggestions may be provided, which will allow you the opportunity to update the sections prior to submitting the final business plan.  Please visit the learning center or your professor if you need assistance with the business plan.

Upon successful completion of this project, you can state in an interview that you created a formal business plan.

The majority of the information below was taken from the Small Business Development Center (SBDC) business plan guide. The information required is what actual financial institutions look for in a business plan.

Business Plan Components (50 points): The business plan must include all of the following:

1. Cover Sheet should include the company name, address, phone number, fax number, website, and company logo. Include the words “Business Plan” on the cover sheet.

1. Table of Contents should include page numbers and a list of headings and subheadings. In Word, you can select the reference tab to use a Tables of Contents template.

1. Executive Summary of the business plan. It is imperative that this section catches the reader’s attention. This section should be written last.

1. Statement of Purpose explains the objective of the business plan. State if you will use the business plan to obtain financing and/or as an operating guide. State the amount of money required to open the business.  State the company from which you will be borrowing the funds and the interest rate. This section should be written after you complete the financial section of the business plan.

1. Business Description: Include all of the following information in your post:

   1. Create a mission statement for the company.

   2. State if the company will be a sole proprietor, partnership, or corporation.

   3. List the opening date.

   4. Include the business’ industry sector (for example: Apparel Industry).

   5. Provide a brief product or service description.

   6. Include your experience in this type of business.

1. Products and Services: Describe your products and/or services in detail. Describe how the product will be distributed and packaged. Include the patents, trademarks, licensing agreements, regulations, and certifications the company will need to obtain or follow.

1. Market Analysis: This is the most important section of the business plan. It determines if there is a market for your product and/or service.

   1. Market Research—Conduct an industry analysis via the Internet using at least three sources. Summarize the history of this industry. How is the industry doing today? Provide actual data to support industry-wide trends. Government websites are a good source of information. Provide local industry information and discuss local trends. Support the statements with facts from a reliable Internet source. Do NOT use Wikipedia. Discuss the social, economic, legal, and technological issues that currently impact or may impact the industry.

   2. Customers—Individual customer demographics—describe the demographics of your customers. Business customer demographics should be included if the business sells products/services to other businesses.

   3. Competition—Complete this section for each of your three main competitors individually. Why is your company superior to each of your three main competitors? Conduct a SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats) for each of your three main competitors. Include where they advertise and their advertising philosophy. Discuss the future of each of your three main competitors.

   4. Marketing Strategy—the goal of the marketing strategy is to obtain a profitable share of the entire marketplace.

1. Product—briefly describe the product and the warranty.

2. Pricing—Stateyour competitors’ prices and your prices. Select an actual pricing strategy from the textbook and discuss why you selected the strategy.

3. Placement—discuss your channel(s) of distribution.

4. Promotions—discuss how you will promote your product or service and include institutional advertising and product advertising, or both, if the company uses them. Include the sales promotion tools the company will use.

Cite all of the websites used to conduct research (for example: customer information, competitor information, and industry analysis). The business plan will not be accepted if the websites are omitted.

1. Management: Create job descriptions for the management team. Include the compensation and benefits the company will offer employees. Include the outside assistance you will use (lawyers, accountants).

1. Production/Operations: Research actual locations online and include an actual address for the business. Discuss key location factors, such as customer accessibility and proximity to suppliers. Discuss the quality control program and the inventory control system. Discuss environmental and other issues that will affect the business. Discuss the technology the company will use.

1. The Financial Plan: Include a start-up and operating budget.Please state if an expense does not apply. Research and state the actual costs. Make conservative projections.

   1. The start-up budget states the amount of money needed to open the business. The startup budget includes personnel costs (for example: hiring costs, wages, salaries, training), occupancy (lease, rent, or mortgage), legal/professional fees, equipment, supplies, utilities, Internet, licenses/permits, insurance, and promotions.

   2. The operating budget includes the ongoing expenses incurred once the business is open. The operating budget includes personnel costs (hiring, benefits, salary/wages, training), lease/rent/mortgage, legal fees, loan payments, accounting, dues/subscriptions/fees, repairs/maintenance, supplies, utilities, Internet access, insurance, promotions, travel/entertainment, and miscellaneous expenses.