THE BUSINESS PLAN Dimitris Diamantatos BA, MSC
Why Prepare a Business Plan? • Todefineandfocus onyour business objectives. • To uncover omissions&weaknesses of the business idea. • As aselling toolwhendealing with banks or investors. REMEMBER • Each business plan is unique. • Write it first for yourself.
What is a Business Plan? • A writtenoutline that evaluates all aspects of the economic viability of your business ventureincluding a description and analysis of your business prospects.
Business Plan Format 1. Introduction 2. Business profile 3. Economic assessment 4. Strategic planning 5. Financing strategy
1.Introduction I. Cover page : -make explicit that this is a business plan -logo & full name of the company II. Introductory page : -address, phone numbers, email III. Table of contents IV. Executive summary: -the business plan outlined in a few words
2.Business Profile 2.1 Description of the business - vision statement (purpose and goals) - description of product / service - type of business (new, personal, franchise) 2.2Targeted Market & Customers - describe customer profile and why customers want or need your product / service
2.Business Profile 2.3 Premises - very important for your success It has to be “close” to customers Important questions: • Space requirements (apartment, office?) • Future requirements (will I need storage room?) • Accessibility (close to subway / bus stop?) • Demographics
2.Business Profile 2.4 People • Previous working experience • Education • Personal interests 2.5 Professional consultants • List names of lawyer, accountant, insurance agent etc.
3. Economic Assessment 3.1Growth trends in this business -Size of market -A growing orshrinking market? -Profitability 3.2 Pricing policy explain the unique qualities or circumstances concerning your product / service that will enable youto maintain profitable pricing
3. Economic Assessment 3.3 The competition -describe your competitors’ strengths & weaknesses -how do you intendto compete? (cost structure, product differentiation) 3.4 Environment how is your product affected by changes in: • Technology • Economy • Culture • Demographics • Government regulation (licence?)
4. Strategic Planning 4.1 Product strategy - uniqueness of product / service 4.2 Marketing plan - Pricing (discounts, monthly installments) - Marketing methods: • Traditional off line (direct mail, advertising) • On line techniques (search engine marketing, opt inemail, banners) • Distribution channel (DHL, simple mail service)
4. Strategic Planning 4.3. Sales projection - assessment of future sales (1 – 3 yrs) must be realistic (not too optimistic) 4.4. Business organization - chain of command - duties - need for personnel - cost of personnel - training
5. Financial Strategy • A chart of your start up capital. • Explain any government funding / loan you intend to apply for. • Include FS (income statements, balance sheets). • Breakeven analysis • Forecasts, Projections
TOP 5 DO’S • Prepare a complete business plan for anybusiness you are considering. • Include strategies on how to handle adversities. • Ask for the experts’advice. • Include a monthly 1 year cash flow projection. • Modifyyour business plan frequently.
TOP 5 DON’TS • Be too optimistic about future sales. • Undervalue future costs. • Disregard weaknesses in your plan. • Proceed without financial & accounting know – how. • Skip the step of preparing a business plan before starting a business.
Useful Links • www.bplans.com • www.bootstrapper.com • www.onlinewbc.org • www.oaed.gr • www.eommex.gr THIS PRESENTATION IS JUST A STARTING POINT GOOD LUCK!