Developing your business plan

© 2012 CAPBuilder Network Group All rights reserved
WRITING YOUR BUSINESS PLAN

Marc Parham, Radio Show Host, MC/Speaker, Infopreneur
2

The 6 basic steps to business plan development
Answering the basic questions
Developing the business idea
Tools for writing the plan
How to research for the plan
The business plan outline
Developing business plan content
How to develop basic financial budgets and projections
Summary
Workshop Agenda

1. Answer the basic questions (Who, What, When, Where, Why)
2. Research the type of business
3. Research the demographics of the service area
4. Research for other similar businesses and business plans
5. Develop the business plan outline
6. Write the business plan
THE 6 BASIC STEPS

• WHO
• Who are you and the name of your business
• WHAT
• What type of business and what are you selling?
• WHEN
• When are you selling it?
• WHERE
• Where are you going to sell it?
•WHY
•And Why are you in business?
The Basic Questions

Developing The Business Idea

Develop Your Business Idea Template Business Name:
6-What are the cost to make and deliver 1
unit of your product?
Labor -
Materials -
Total -
7 The Price– What are you going to charge
for 1 unit of your product?
Price -
Cost -
Net -
1 - The Problem - Top 3 problems your business will solve
1. - People need business plans
2. -
3. -
3 - The Solution - Top 3 products to solve the problems
1. -
2. -
3. -
4 Unique Selling Proposition –A compelling message that
states why you are different and why buy from you
1. -
5 Marketing - How will you market and
sell your products?
2 - Your Customers-Who are the people that have the problem
1. -
2. -
3. -
www.capbuildernetwork.com
 Internet
 Social Media
 Advertising
 Direct Sales
 Flyers
 Inbound Mkt
 TV/Radio
 Marketing Company
 ________________
 ________________
8 Revenue Projections- What will be the gross revenue target per month
Qty Per Wk - X 4 Wks = x Price = Gross Monthly Revenue

Tools for writing the plan

• There are many tools for helping to write a business plan
• You may find tools online by using a search engine (i.e.
google, bing, etc) to find tools by entering “write a business
plan”
• You will find many websites offering different tools and
programs to help write the plan
• Some are templates and others actually write the plan
• The next slide lists a few popular sites
Tools For Writing The Plan

• Business Plan Software
• www.bplans.com
• Business Plan Templates
• Do a search online for business plan templates
• SBA Online Business Plan Template
• www.sba.gov
• Wells Fargo Works
• www.wellsfargoworks.com
• CAPBuilder Network
• www.capbuildernetwork.com
Tools For Writing The Plan

• It is recommend that you do research before
you start writing your plan
• Unless you have a very unique business idea
there are existing businesses that you can
research to learn more about your business
idea
• You can find out information about your
potential customers
• The there areas of research on the next slide
will help you answer some important
questions.
Research For The Plan

• Demographic Research
• Use Google/Bing to search the zip code area
• Competition Research
• Use Google/Bing to search the zip code by
businesses of the same type
• Go to the websites of similar businesses
• Business Plan Research
• Go to www.bplans.com to find a similar plan
• Review it to get ideas on what to put into yours
Research For The Plan

• The information on the next slides covers
what is contained in the basic business plan
• You will start with the business plan outline
• The outline contains the headings for each
important section in the business plan
• The actual plan is developed by working on
developing the content for each section of
the plan
• The following slides will show you what
information is contained in each section
The Business Plan
Outline

• Executive Summary
• Business Description and Vision
• Definition of the Market
• Description of the Products and Services
• Organization and Management
• Marketing and Sales Strategy
• Financial Management
The Business Plan Outline

• Start writing your plan one heading at a time. Use your own words.
• It is you that is selling the idea. You will have someone read it later to
see how well it reads.
• Research, Research! Yes I said it!
• You will have to do some research to fully develop your plan. Use the
internet to do this research.
Writing the Plan

DEVELOPING THE BUSINESS PLAN
CONTENT

• The information for the following slides come directly from the SBA
website on how to write a business plan
• It is recommend that you use the SBA.gov website to help you
develop your plan
• The site has many tools, articles, templates and assessment to help
you write the plan
• The next slides will tell you what information should be in each
section and what the reader of the plan should come away with.
Developing The Business Plan Content

• This section should:
• Be written last.
• Provide an enthusiastic snapshot of your company,
explaining who you are, what you do and why.
• Be less than 2 pages in length.
• After reviewing this section the reader should:
• Want to learn more about your business.
• Have a basic understanding about your company.
Executive Summary

• This section should include:
• Mission statement (business purpose).
• Company vision (statement about company growth).
• Business goals and objectives.
• Brief history of the business.
• List of key company principals.
• After reviewing this section the reader should know:
• Who the business is and what it stands for.
• Your perception of the company’s growth & potential.
• Specific goals and objectives of the business.
• Background information about the company.
Business Description and Vision

•What will be the objective of your business? For
example if you are starting a restaurant, what
will be the main reason people will come to you.
The best wings, great food at a good price, a
place where I can bring my family.
Business Objectives

• Describe your business industry and outlook.
• Define the critical needs of your perceived or existing market.
• Identify your target market.
• Provide a general profile of your targeted clients.
• Describe what share of the market you currently have and/or anticipate.
• Basic information about the industry you operate in and the customer needs
you are fulfilling.
• The scope and share of your business market, as well as who your target
customers are.
Definition of the Market

• Specifically describe all of your products and services.
• Explain how your products and services are competitive.
• If applicable, reference a picture or brochure of your products,
which would be included in the plan’s appendix.
• After reviewing this section the reader should know: Why you are in
business.
• What your products and services are and how much they sell for.
• How and why your products & services are competitive.
Description of Products and Services

• Provide a description of how your company is organized as well as an
organization chart, if available.
• Describe the legal structure of your business (proprietorship, partnership,
corporation, etc.).
• Identify necessary or special licenses and/or permits your business operates
with.
• Provide a brief bio description of key managers within the company.
• The legal form of ownership for your business.
• Who the leaders are in your business as well as their roles.
• The general flow of operations within the firm.
Organization and Management

• What type of legal business structure do you plan on
using? A Sole-proprietorship, an LLC or a corporation.
• Is it going to be a retail business where people come
to you to buy your product or service (i.e. store,
restaurant, cleaners, etc) or will you take your product
or service to the customer? (Lawn care, handyman,
house painter, etc.).
Organizational Structure

 Why can you be successful in this particular business?
 What is your or your key person’s background and experience in this
area of business?
◦ Using the home painting business as an example, maybe you have been
working painting homes for other companies for 15 years and you learned
from your grandfather who has been doing it all of his life.
 Who will do the bookkeeping, ordering of supplies, and invoicing.
 This might be you, but you will need to show that you are aware that
this is important and someone will be doing it.
Management Team

• Identify and describe your market – who your
customers are and what the demand is for your
products & services.
• Describe your channels of distribution.
• Explain your sales strategy, specific to pricing,
promotion, products and place (4Ps).
• Who your market is and how you will reach it.
• How your company will apply pricing, promotion,
product diversification and channel distribution to sell
your products and services competitively.
Marketing and Sales Strategy

• How will you market your business?
• The internet, local newspapers, flyers,
coupons, etc.
• How will you get the message out?
• You might attend neighborhood meetings to
announce your company.
• If you are a restaurant you might even supply
the food for a neighborhood meeting.
Marketing Plan

 You will need to do research for similar
companies in your area that area.
 This will also help you create differences
in how you will sell your product.
 A simple internet search will give you
loads of information. For example, you
want to start a take -out wings restaurant.
 Use Google or another search engine and
search for “take-out wings in 30303(your
zip code)”.
The Competition

 Using Google again just enter the zip code for
the area you want to service and you will find
a report in the return hits that contains the
demographic information for this area.
 There will be different reports. Find the one
that has the information you need to support
your idea.
◦ Using the Take-out Wings restaurant, you might
find that there is a college, sports stadium, or park
in the area. You might also find that there are a lot
of young people that live in the area and we know
who eats a lot of wings….
The Customer

• This section should include:
• For a New Business
• Estimate of start-up costs.
• Projected balance sheet (1 year forward).
• Projected income statement (1 year forward).
• Projected cash flow statement (12 months forward).
• For an Existing Business
• Balance sheets (last 3 years).
• Income statements (last 3 years).
• Cash flow statement (12 months).
• If Applying for a Loan (in addition to the above)
• Current personal financial statement on each principal.
• Federal tax return for prior year.
Financial Management

• After reviewing this section the reader should:
• Have a good understanding regarding the financial capacity and/or
projections for your company.
Financial Management

Develop basic financial budgets
and projections

 What will it cost to start and run your business
for at least the next two years.
 There will be fixed cost or cost that will pretty
much stay the same (i.e. rent, utilities,
equipment, insurance, etc).
 There also will be variable cost that will change
as your business changes.
 For example if you are starting a home painting
business you might create a cost sheet for how
much it will cost to paint a average 3 bedroom
house. (I.e. paint, labor, supplies).
Financial Plan

• Enter the est. cost
• Use other plans
• Research
• Research
• Research
STARTUP
BUDGET
Startup Budget
June 8, 2010
Cash Needed
to Start
Monthly Costs
Salary of owner-manager $6,000
All other salaries and wages 7,000
Rent 1,000
Advertising 2,000
Delivery expense 400
Supplies 500
Telephone 500
Other utilities 500
Insurance 600
Taxes, including social security 1,000
Interest 500
Maintenance 300
Legal and other professional fees 3,000
Miscellaneous 500
Subtotal $23,800
One-Time Costs
Fixtures and Equipment $10,000
Decorating and remodeling 1,000
Installation charges 500
Starting inventory 5,000
Deposits with public utilities 1,000
Legal and other professional fees 500
Licenses and permits 500
Advertising and promotion for opening 500
Cash 750
Other 200
Subtotal $19,950
Totals $43,750

• Use this worksheet to project business cash flow.
CASH FLOW PROJECTIONS
Starting date May-10
Cash balance alert minimum 0 0 0 0 0 0 0 0 0 0 0 0
Beginning May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 Total
Cash on hand (beginning of
month) 0 787 4,334 7,881 11,428 14,975 18,522 22,069 25,616 29,163 32,710 36,257
CASH RECEIPTS
Contract Service 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 28,800
Call out fees 800 800 800 800 800 800 800 800 800 800 800 8,800
Service Calls 2,560 2,560 2,560 2,560 2,560 2,560 2,560 2,560 2,560 2,560 2,560 28,160
Misc Parts 0
Product/Service 5 0
Misc Revenue 0
TOTAL CASH RECEIPTS 2,400 5,760 5,760 5,760 5,760 5,760 5,760 5,760 5,760 5,760 5,760 5,760 65,760
Total cash available 0 2,400 6,547 10,094 13,641 17,188 20,735 24,282 27,829 31,376 34,923 38,470 42,017
CASH PAID OUT
Advertising 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Commissions and fees 0
Contract labor 0
Employee benefit programs 0
Insurance (other than health) 250 250 250 250 250 250 250 250 250 250 250 250 3,000
Interest expense 0
Materials and supplies (in COGS) 0
Meals and entertainment 0
Mortgage interest 0
PCA Small Business Cash Flow Projection

• The plan is a living document. It will change as you and your
business changes
• Start writing your plan one heading at a time. Use your own
words. It is you that is selling the idea.
• Research, Research!
• Use all available resources
• Have someone read it later to see how well it reads.
Summary

• Use spell check and other tools to help correct the basic
errors in your plan.
• Remember they will not catch everything.
• You must read it yourself and have other read it as well.
• Don’t get all sensitive if they come back with changes and
corrections.
• You would rather have them find them then your potential
investor or bank.
Review the Plan

• Google / Bing
• www.google.com
• www.bing.com
• Bplans.com – Sample Business Plans
• http://www.bplans.com/
• Small Business Administration
• www.sba.gov
• http://web.sba.gov/busplantemplate/BizPlanStart.cfm
• Internal Revenue Service
• www.irs.gov
• http://www.irs.gov/businesses/index.html?navmenu=menu
1
• CAPBuilder Network Group
• www.capbuildernetwork.com
Useful Resources

Developing your business plan

More Related Content

What's hot

Viewers also liked

Similar to Developing your business plan

More from Marc Parham

Recently uploaded

In this document

Developing your business plan