Académique Documents
Professionnel Documents
Culture Documents
Chapter 08
McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
Objectives
Business plan
– A document designed to detail the major
characteristics of a firm— its product or
service, its industry, its market, its manner
of operating (production, marketing,
management), and its financial outcomes
with an emphasis on the firm’s present
and future.
8-3
Business Plan Background
External legitimacy
– The extent to which a small business is
taken for granted, accepted, or treated
as viable by organizations or people
outside the small business or the owner’s
family.
8-4
Business Plan Background
Internal understanding
– extent to which employees, investors, and
family members in the business know the
business’s purposes and operations
8-5
Starting Small and Building Up
Figure 8.1
8-6
The Vision Statement
Vision statement
– A very simple 5–10 word sentence or tagline
that expresses the fundamental idea or goal
of the firm.
Tagline
– Memorable catchphrase that captures the
key idea of a business, its service, product, or
customer.
– also known as a slogan
8-7
Question
8-8
The Mission Statement
Mission Statement
– A paragraph that describes the firm’s
goals and competitive advantages
– Talks in terms of how it will make a
difference in for the customer or the
industry
8-9
The Elevator Pitch
8-10
The Executive Summary
Executive summary
– A one- to two-page (250–500 words)
overview of the business, its business
model, market, expectations, and
immediate goals.
– Typically put at the start of a business plan
and is the most popular summary form for
a business plan.
8-11
Strategizing for the Business Plan:
5-M Model
Mantra
Mechanics Mission
Method Measures
8-12
Janexia Waterproofing:
A 5-M Model Example
Figure 8.2
8-13
Business Plan Outline
Table of
Cover Letter Title Page
Contents
Executive The
The Market
Summary Company
8-14
Business Plan Outline
Cover letter
– A one-page document on business
stationery that introduces the business
plan and the business owner to the
recipient and indicates why the recipient
is being asked to read the plan.
8-15
Business Plan Outline
Title Page
– contains introductory information
– Company name
– Contact information
– Date this version of the plan was
completed
– Proprietary statement to protect your
ideas
8-16
Business Plan Outline
Table of contents
– Lists major section headings
• Boldface type
– Sections underneath major sections
• Normal type
– Put page numbers on every page of the
business plan
8-17
Business Plan Outline
Company background
– brief description of the company, the
firm’s current status, and the history of the
business
– Vision statement / mission statement
– Specific goals, Business’ competitive
advantage
8-18
Business Plan Outline
8-19
Business Plan Outline
8-20
Business Plan Outline
8-21
Business Plan Outline
8-22
Marketing Strategy
Preselling
– Involves introducing your product to
potential customers and taking orders for
later delivery.
Research and development
– The part of a business that is focused on
creating new products or services and
preparing new technologies, ideas, products,
or services for the firm’s market.
8-23
Business Plan Outline
8-24
Business Plan Outline
8-25
Business Plan Outline
8-26
Business Plan Outline
8-27
Financials Layout for a
Typical Business Plan
Exhibit 8.2
8-28
Business Plan Outline
The Appendices
– one-page version of owner’s resume
– Product or service pictures or
specifications
– Copies of signed contracts
– Results from marketing studies or pilot
sales efforts
– Industry reports
8-29
Focusing Your Business Plan
Pioneering business
– A firm whose product or service is new to
the industry or is itself creating a new
industry.
Test marketing
– Selling your product or service in a limited
area, for a limited time.
8-30
Focusing Your Business Plan
8-31
Question
8-32
Focusing Your Business Plan
Informational plans
– Give potential customers or suppliers
information about the company and its
product or service.
Proof-of-concept Web site
– An Internet-based type of business plan
providing information or demonstration of
a product or service designed to solicit
information on customer interest.
8-33
Focusing Your Business Plan
8-34
Focusing Your Business Plan
Invention plan
– A business plan that provides information
to potential licensees. Invention plans
focus on the details of an invention,
including intellectual property rights.
8-35
Focusing Your Business Plan
Operational plan
– Business plans designed to be used
internally for management purposes.
Private placement memorandum
– A specialized legal form of business plan
crafted by lawyers for the purpose of
soliciting formal investments.
8-36
The Most Common Critical
Risks in a Plan
Risks
– The parts of a business or business plan
that expose the firm to any kind of loss—
profits, sales, reputation, assets, customers,
and so on.
8-37
The Most Common Critical
Risks in a Plan
Overstated numbers
Uncertain sales
Overlooked competition
Experience deficits
Inadequate cushion
Inadequate payback
8-38
Presenting Your Plan
8-39