Business planning

1. Business planning By: Austin Faile Jesse Mason Will Matthews

2. What is a business plan?? • A businessplan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.

3. Three purposes of business planning • Formal statement of goals and why they are attainable • Financial planning – giving investors confidence in their investment • Decision-making tool - summary of those disciplinary plans

4. Audience • In order to create an effective voice throughout your business proposal you must distinguish your target audience • Are you proposing to plan to investors or to your board of directors. • You will have to determine a targeted goal before even writing your 1st draft of your business plan

5. 7 parts of business plan • Cover page • Business description • Executive summary • Industry information • Company information • Marketingplan • Financial projections • Appendix

6. 1.Business Description • The business description usually begins with a short explanation of the industry. When describing the industry, discuss what's going on now as well as the outlook for the future. Do the necessary research so you can provide information on all the various markets within the industry.

7. 2. Executive Summary • An executivesummary, sometimes known as a managementsummary, is a short document or section of a document, produced for business purposes, that summarizes a longer report or proposal or a group of related reports, in such a way that readers can rapidly become acquainted with a large body of material without having to read it all.

8. 3. Industry information • Industry information makes a layman aware of the industrial facts. This section helps your reader recognize about the general trends of the business and helps you present your company case afterwards more easily.

9. 4. Company Information • It not only contains the general information about the company but a lot of other information's like its history, its mission, vision and management brief. This is the most important parts of all as it is the section for which all the other parts of the plan are constructed.

10. 5. Marketing Plan • A marketingplan outlines the specific actions you intend to carry out to interest potential customers and clients in your product and/or service and persuade them to buy the product and/or services you offer.

11. 6. Financial Plan • A financial plan is a series of steps which are carried out, or goals that are accomplished, which relate to an individual's or a business's financial affairs. • This often includes a budget which organizes an individual's finances and sometimes includes a series of steps or specific goals for spending and saving future income.

12. 7. Appendix • This is the last part of the business plan. It contains information regarding all the terms and notes that either needed lengthy explanation or a broader definition.

13. Franchises • Franchise: A form of business organization in which a firm which already has a successful product or service, the franchisor, enters into a continuing contractual relationship with other businesses, franchises, operating under the franchisor's trade name and usually with the franchisor's guidance, in exchange for a fee.

14. Examples of a Franchise

15. Franchises • Advantages: You can avoid the unnecessary trial and error in starting a new business, lower financial risk, They give you a ready-to-go franchise unit, the opportunity to work for a big-name company which already has customers

16. Franchises • Disadvantage: Franchise fees are sometimes ridiculous, You have to do exactly what the franchisor says including products, policies, and procedures, reduced corporate profit margin due to payment of royalties and levies

17. How Franchises are Taxed • Franchise Fee: franchise requires you to pay an initial fee, Most fees are between $20,000-$50,000, • Legal Fees: You need a franchise attorney which can be anywhere from $1,500-$5,000 • Royalty Payments: fees you have to pay the franchisor which is based on based on a percentage of your weekly or monthly gross income

18. Process of buying a Franchise • 1. Choosing the Right Franchise • 2. Acquire a Franchise attorney • 3.Obtain Financing to buy Franchise • 4. Construct a Business Plan

19. Our Abbreviated Business Plan • Our Product: Recycled Soybean oil • Product Name: “Green Soybean”

20. Description and Customers • Description: Our final product is comprised of the recycling of soybean oil to create new reusable soybean oil. • Uses: Soybean oil is the world's most widely used edible oil. Our recycled oil is much cheaper & healthier than other cooking oil companies. • Customer: Our main Client for Soybean distribution will be China. China’s main usage for soybean oil focuses on the aspect of Chinese cooking.

21. Works Cited • http://managementhelp.org/businessplanning/index.htm • http://en.wikipedia.org/wiki/Business_plan • http://tutor2u.net/business/strategy/business-plan-contents.html • http://en.wikipedia.org/wiki/Content_of_a_business_plan • http://franchises.about.com/od/buyingafranchise/tp/buying-a-franchise.htm • http://en.wikipedia.org/wiki/Franchising