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Chapter

The Business Plan: Creating And Starting The Venture

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Planning The Business Operation

Business Plan- Document Describes PlanInternal/External Elements/Strategies For New Venture Plan (Road Map)
ShortShort-Term LongLong-Term

Author = Entrepreneur Internet - Resource

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Business Plan Audiences

1) Employees 2) Investors/Venture Capitalists 3) Lenders/Suppliers 4) Customers 5) Advisors/Consultants
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Plan Presentation
I. Information Needs
A. Market B. Operations
1) 2) 3) 4) 5) 6) 7) Location Manufacturing Operations Raw Materials Equipment Labor Skills Space Overhead
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II.

Financial Information

Gathering Market Information

General General Environment & Demographic Trends
National Industry Trends Local Environmental/Demographic Trends Local Industry Trends CompetitionCompetition- Strengths/Weaknesses Market Positioning Market Objectives Specific
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Plan Outline
I. II. III. IV. V. Introductory Page Executive Summary Industry Analysis Description of Venture Production Plan VI. Operational Plan VII. Marketing Plan VIII. Organizational Plan IX. Assessment of Risk X. Financial Plan XI. Appendix
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Environmental/Industry Analysis

Environmental- External & EnvironmentalUncontrollable Variables

 Economy  Culture

Industry
 Industry Demand  Competition
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Description of Venture
Mission Product/Service Location/Size Personnel Office Equipment Entrepreneurs Background History of Venture
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Developing Entrepreneurial Strategy

Mission Statement

Objectives Strategic Plan Business Plan

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Objectives
1. Quantifiable 2. Obtainable 3. Flexible

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Production Plan
How Product ManufacturedManufacturedComplete Process vs. Subcontracting Physical Plant Layout Machinery/Equipment Needed Raw Materials/Suppliers Manufacturing Costs Future Capital Needs

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Operations Plan
Marketing
Market Conditions Strategy- Distribution, Pricing, Promotion Strategy-

Organization
Ownership Structure Lines of Authority/Responsibility

Assessment of Risk
Potential Hazards Alternative Strategies

Financial Plan
Economic Feasibility Financial Commitment
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Implementation Of Plan Measuring Progress- Controls Progress Inventory Production Quality Sales Disbursements

Updating
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Reasons For Plan Failure

1. 2. 3. 4. 5. Unreasonable Goals Goals Not Measurable No Total Commitment Lack Of Experience No Understanding Of Threats Or Weaknesses 6. Customer Need Not Established
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