Entrepreneurship SAE’s Creating A Business Plan
Who is an Entrepreneur? • An Entrepreneur is a person who organizes and manages a business, assuming a risk for the sake of profit. Any person (any age) who starts and operates a business is an entrepreneur.
What is an Ag Entrepreneurship? • The Entrepreneur plans, implements, operates, and assumes financial risks in a farming or agricultural business. In Entrepreneurship programs, the student owns the materials and other required inputs, and keeps financial records to determine profits.
Entrepreneurship Examples Service Product Raise & Sell Fish Bait Vegetable Farm Goat Soap Wool Products • Lawn mowing • Pet Sitting • Fishing Guide • Equipment Repair
Entrepreneurship Advantages Disadvantages Need to put in long hours Start up money is necessary May loose money the first few years Must be self-motivated • You are your own boss • Enjoy the profits from your efforts! • Sense of pride in your business • Flexibility in your work schedule
Why do you need a strong business plan? • To see if your business ideas will work. • To outline each area of the business. • To set up milestones. • To learn about the market. • To determine your financial needs. • To monitor your business. • To help attract customers.
7 Parts of a Business Plan • Executive Summary • Product Description • Market Analysis • SWOT • Marketing & Sales • Goal Setting • Financial Plan
Part 1: Executive Summary • Your business name & location • A brief explanation of customer needs and your product or services • Your Businesses Vision or Mission • An introduction of yourself (and your team if you have one)
Part 2: Product Description • Research & Development • What do you still need to learn to be able to create your product or offer your service? • Do you need to experiment with a “magic formula” to make your product perfect? • Details about your products or services • What will you be selling? List all products and services • What products do you use to create your final product?
Part 3: Market Analysis • Research, which should focus on: • The industry- What are the current trends? • The Target Market- Who are you trying to sell your product to? • The competition in the target market- Who else is offering your product/service? This can be done by surveying future customers, performing phone interviews, etc.
Part 5: Marketing & Sales • Advertising Strategy • Where are you going to advertise? • Sales Strategy • How do you plan on making sales? • Identify & Create forms of communications: • Flyers, Newspaper/Radio Ads, Business Cards
Part 6: Goal Setting • Set SMART Goals for your business • How many items do you want to sell? By when? • What skills do you want to learn through your business? • When do you want to run advertisements?
Part 7: Financial Plan • Projected Expenses & Incomes • What money will you need to spend to create an inventory? • What equipment do you need to purchase or lease? • How much do you plan on selling each year? (You should create at least a three year plan) • Provides a budget for all marketing plans (including how much money it will cost to print your flyers/ business cards and run any ad’s) • Will you require a loan? • If yes, from whom? What is your plan for paying the loan back?
Now What?!?! • If you plan on having an Entrepreneurship SAE, it is required to create a business plan! • Starting in January, Mrs. Knowlton will have after school hours to help students who want to have an entrepreneurship, begin writing their business plans! • Every Tuesday in January (except exam week); from 2:30-4:00pm • All hours spent writing and researching for your business plan count as SAE hours! • If you want to learn more about becoming an entrepreneur, complete the webquest for SAE Exploratory hours!