Developing a Business Plan

What is a Business Plan?

A business plan is a document that outlines your plan for initiating and operating a business

Why Create a Business Plan?

It provides a path to follow It makes it easy to let your banker, attorney, and accountant evaluate your goals and objectives It can serve as a communications tool for informing salespeople, suppliers, and others about your operations and goals It can help you develop as a manager

Source: Going into Business pamphlet, Chamber of Commerce, Southhaven, MS

A Business Plan Structure

Cover Sheet

business name, address, and phone number principals date

Executive Summary Table of Contents I. The Business Concept, The Opportunity (analysis of industry), The Company, Potential Market Share II. The Marketing Plan

overall marketing strategy four Ps

A Business Plan Structure (Continued)

III. The Operations Plan

location and facilities regulatory considerations labor availability processes equipment annual expenses financial summary organization key management personnel ownership structure

IV. The Management Team

A Business Plan Structure (Continued)

V. Implementation Time Schedule VI. Potential Risks VII. Conclusion References Financial Appendices

income statements and notes of explanation balance sheets and notes of explanation cash flow statements and notes of explanation breakeven analysis financial ratio analysis

Tips for Making Your Plan Work

Appearance

Your plan must look good

Structure

Your plan needs a sound structure

Impression

Your plan must convey the impression that you know what you are talking about

Content

Your plan must have the nuts and bolts to support your idea

Organizing Your Business

Sole Proprietorship

The individual is the sole owner of all assets, bears all profits and losses, and is personally liable for all debts and obligations of the business. Outside assets such as a home, car and personal bank account are subject to claims of business creditors. Similar to a proprietorship, but consisting of two or more owners. A separate legal entity with limited liability. Formed when a transfer of either money or property, or both, takes place by prospective shareholders in exchange for capital stock in the corporation.

Partnership

Corporation

Source: Going into Business pamphlet, Chamber of Commerce, Southhaven, MS