DEVELOP A BUSINESS PLAN. 5.1 Why Do You Need a Business Plan? 5.2 What Goes into a Business Plan? 5.3 Create an Effective Business Plan. Lesson 5.1 WHY DO YOU NEED A BUSINESS PLAN?. Explain the purpose of writing a good business plan. Describe the importance of a business plan. GOALS.
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Chapter 5 DEVELOP A BUSINESS PLAN 5.1 Why Do You Need a Business Plan? 5.2 What Goes into a Business Plan? 5.3 Create an Effective Business Plan
Chapter 5 Lesson 5.1WHY DO YOU NEED A BUSINESS PLAN? • Explain the purpose of writing a good business plan. • Describe the importance of a business plan. GOALS
Chapter 5 THE BUSINESS PLAN • A business plan is a written document that describes all the steps necessary in opening and operating a successful business.
Chapter 5 PURPOSES OF A BUSINESS PLAN • Explains the idea behind your business and spells out how your product or service will be produced and sold. • Sets specific objectives and describes how your business expects to achieve them. • Describes the background and experience of the people who will be running the business.
Chapter 5 IMPORTANCE OF A BUSINESS PLAN • Makes you think about all aspects of your business. • May help you secure financing for your business. • Helps you communicate your ideas to others. • Can serve as a tool for managing your business.
Chapter 5 Lesson 5.2WHAT GOES INTO A BUSINESS PLAN? • Study the seven basic elements of a business plan. • Recognize what additional elements may be needed. GOALS
Chapter 5 SEVEN BASIC ELEMENTS OF A BUSINESS PLAN • History and background • Goals and objectives • Products or services • Form of ownership • Management and staffing • Marketing • Current and projected financial statements
Chapter 5 HISTORY AND BACKGROUND • Describing how you came up with your idea can help lenders, investors, and others understand how your business will operate.
Chapter 5 GOALS AND OBJECTIVES • Your business plan should outline your goals—short-term, medium-term, and long-term.
Chapter 5 PRODUCTS OR SERVICES In this section your business plan should: • Explain how your products or services differ from those already on the market. • Describe the industry you will operate in. • Describe the location of your business.
Chapter 5 FORM OF OWNERSHIP • Identify your form of ownership • Provide information relevant to your form of ownership
Chapter 5 MANAGEMENT AND STAFFING • Demonstrate that you and the people working for you have the experience, maturity, and common sense to manage your business.
Chapter 5 MARKETING The marketing section should: • Identify your prospective customers • Describe the size of the market for your product or service. • Explain how you plan to enter the market. • Explain how you plan to deal with competition
Chapter 5 CURRENT AND PROJECTED FINANCIAL STATEMENTS The financial section has three elements: • Identification of risks • Financial statements • Funding request and return on investment
Chapter 5 ADDITIONAL ELEMENTS OF THE BUSINESS PLAN Some businesses need to provide additional information in their business plans related to: • Licensing • Legal restrictions • Regulations
Chapter 5 Lesson 5.3CREATE AN EFFECTIVE BUSINESS PLAN • Research your business plan. • Organize your business plan. GOALS
Chapter 5 RESEARCH THE BUSINESS PLAN • Print resources • Online resources • People resources • Additional resources
Chapter 5 PUT YOUR BUSINESS PLAN TOGETHER • Introductory elements • Cover letter • Cover sheets • Table of contents • Statement of purpose • Executive summary • Main body of your plan • Appendix