Stephanie,+Julia

=ENTREPRENEURSHIP =

Business Plan Guidelines
= = = = ==Cover letter   == This letter explains or provides more information about a document or set of documents. It should include your name, the name of your business, the company address and the company telephone number. It should briefly describe the business and its potential success. It also needs to tell how much capital is needed to open and operate the business.

= Cover page  = Should include the company name, the company address, the company phone number, the company Web site address, the company e-mail address and the company logo. =Title page = Should include the company name, the owner’s names, the owner’s title and the address of the owners, the date the business plan will be issued and the name(s) of the person who prepared the plan.  = Table Of Contents     = Includes the details of the components included in the business plan and the page numbers where the documents can be found within the business plan. Make sure the sections are in the correct order and that the page numbers coincide with the correct sections.

= <span style="color: rgb(243, 22, 178)">Statement of Purpose = Briefly describe why you are asking for a loan and what you plan to do with the money if it is received. Identify how the business will operate - sole proprietorship, partnership, etc. **(Pages 136 – 147).** It should be no more than one or two paragraphs.<span style="color: rgb(255, 20, 229)"> = <span style="color: rgb(255, 20, 229)">Executive Summary  = This is a summary of what is written in the business plan. The executive summary is to be **__written last__**. Be sure it includes the **__most persuasive points__** you have made. This section should be no more than two pages. The executive summary should include -describe the business concept and communicate what is unique about the idea -include the projections for sales, costs and profits -identify the needs (inventory, land, building, equipment, etc.) -state the amount you are interested in borrowing

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This section is to be included as part of the Executive Summary. The vision statement establishes the scope and purpose of a company and reflects its values and beliefs. The vision should be broad enough to last through changing times. ===== = =

<span style="color: rgb(244, 26, 208)">**Mission Statement.** The mission statement expresses the specific aspirations of a company, the major goals for which it will strive. = = = <span style="color: rgb(250, 30, 212)">Goals and Objectives = What do you want to achieve? What are the specific results you wish to accomplish? Important because they provide direction and focus for your activities. Should be insightful, realistic and concise when writing goals and objectives. Set both short-term and long-term goals (1 year, 5 year, 10 year) concerning financial and personal interests. Review, re-evaluate and re-establish goals and objectives at least once a year to keep the business venture on the path to success.

=<span style="color: rgb(245, 36, 231)">__ Management Team Plan __ <span style="color: rgb(245, 36, 231)"> =
 * Key Executives.** List the qualifications of all partners. The management team plan should highlight practical exposure to the intended business. Relevant volunteer work, leisure pursuits, and employment may provide valuable experience that could be helpful in running the business. Also tell what expertise each partner is missing and how this will be overcome. Include an organization chart of all employees’ title and job description. The chart is to be designed in PowerPoint and included in the Appendix. The detailed description of each partner and his/her job description should be included in the plan.


 * Key Advisors.** Outline the advisory board/key advisors in policy decisions. The chart is to be designed in PowerPoint and included in the Appendix. The detailed description of each board member and his/her expertise, skill sets and personal traits.

<span style="text-transform: uppercase; font-size: 14pt; color: rgb(245, 5, 201)">Company Description
 * Service Providers.** Purchasing and inventory activities – who will you purchase products/supplies from, how will you account for the inventory, supplies and equipment? When will the inventory be conducted? Production and distribution activities – how will the product or service be produced/distributed/sold to customers<span style="font-size: 14pt; text-transform: uppercase; font-family: 'Times New Roman','serif'">
 * Motivations**. Explain the reasons and motivation you have for starting or expanding this business.


 * Entrepreneurial Opportunity**. Describe the unique selling proposition your company will have to capitalize on the opportunity.

-What is the product or service being offered? - give a detailed and specific description of the product or service being offered.
 * Business Concept**. Explain the products and services your company will provide and the markets you will target to sell them. **(Pages 94 – 95)**
 * Answers the questions**:

-Who is the customer?

-What is the benefit you are providing? - Point out how the product or service is different from or better than existing products or services.

-How will you get the product or service to the customer?. Idea history. Summary of experience.

-When, how, and why the potential entrepreneur developed the idea for the business?

=<span style="color: rgb(248, 27, 227)"> __Product/Service Plan__   =

**Products and Services . How will the products be created/produced and who will manufacture them. Describe the process of the creation/production. **
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**Unique Selling Proposition . Describe the features, benefits and unique selling proposition of your products/services. **
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 * Competitive Products or Services . Describe the features, benefits and unique selling proposition of your competitors’ products/services. Explain how your products and services will be unique and positioned in the market. **=====

**Product Development Milestones . Explain the steps you will take to conceive, design, text and evaluate your products and services. **
= = =<span style="text-transform: uppercase; font-size: 14pt; color: rgb(255, 20, 244)">Industry Overview = Research of the industry and market you plan to target. It analyzes your customers, competition and industry.


 * Projected Industry Sales and Profits**. Explain the projected growth in sales and profits for your industry sector.


 * Competitive Set**. Describe your company’s competitive set including direct and indirect competitors.


 * External Environment**. Describe external factors that may impact your economic sector.


 * Product Life Cycle**. Describe the product life cycle for you products/services. Explain what strategies will be taken as they go through the life cycle.

= = =<span style="color: rgb(244, 31, 213)"> __Market Analysis__  =
 * Barriers to Entry**. Are there any barriers to entry – economies of scale, economics, legal or political, regulatory, brand loyalty, proprietor technology, access to distribution channels? Detail the strategies you will use to counteract the barriers. **(Page 125)**

**Target Market Opportunity** **.** How will your business capitalize on the demographic and psychographic characteristics of your target market?
= = = = =<span style="text-transform: uppercase; font-size: 14pt; color: rgb(248, 22, 215)">Competitive Analysis =

**Direct and Indirect Competitors** . Describe your competitors.
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**Sustainable Competitive Advantage** **.** Describe the competitive environment in your market and describe your company’s advantage.
= = <span style="font-size: 14pt; text-transform: uppercase; font-family: 'Times New Roman','serif'"> =__<span style="text-transform: uppercase; font-size: 14pt; color: rgb(249, 26, 246)">Marketing Plan __ =


 * Total Product Experience**. Include the primary, tangible and intangible features as well as the auxiliary dimension of your products/services.


 * Place Strategy**. Explains why the business will be located at the given address. Explain the building requirements or needs and what type of utilities will be needed. Describe the distribution strategy


 * Promotion Strategy**. Write promotional goals and explain how you will implement the goals. Describes how you will promote the product prior to the opening and after the business is established.


 * Promotion Plan**. Examples of advertising include: television (press release), radio, newspaper, telephone directory, direct-mail, magazine, outdoor, transit, billboards, etc. How will you monitor and evaluate the medias effectiveness.

Set the pricing objectives first. Examples of pricing objectives include: maximize sales, discourage competition, maintain an image, increase profits, attract customers, etc. Secondly, select the pricing strategy. Product pricing strategies include demand-based pricing, cost-based pricing or competition-based pricing. Service pricing strategies include time-based pricing, bundling pricing or breakeven point pricing.
 * Pricing Plan**. Describes how you will set prices for the product or service being offered.

=<span style="color: rgb(250, 30, 250)"> Operational Plan =
 * Location Criteria**. Explain the criteria used to determine the location(s) of your business.


 * Facilities and Equipment**. Describe the facilities and equipment required to operate the business.


 * Product Development Process**. What is the process you will use to design and create your products/services? How will you obtain any materials necessary to perform your service.

= = =<span style="color: rgb(230, 25, 187)"> ORGANIZATIONAL PLAN  =
 * Operational Logistics**. Describe the inbound and outbound logistics of your company. Also, describe the order fulfillment process and customer service policies.

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 * Legal Structure** . Describe the legal structure for the business and why it was chosen . Explain any legal agreements (partnership agreements) and government regulations that will affect your business =====

**Insurance** . What are the insurance needs for the company? Who will provide the coverage?
= = = Financial Plan (page 105) = The financial forecasts for the future of the business. Should include:


 * Sources and Uses of Funds.** The cost of starting the business and maintaining it for a specified period of time. List the sources and the uses of the funds required. Explanation and reference to the initial capitalization plan (//Initial Capitalization Plan - included in the appendix).// **(Page 99)**
 * Cash Flow.** Summarize your cash flow projections for the firsts three years. //(Cash Flow Projection – included in the appendix.//


 * Income Statement.** How much income do you plan to generate from sales for the first three years from the product/service? Explanation and reference to the projected operating statement. //(Projected Operating Statement – included in the appendix).// How much do you plan to spend for the first three years for expenses (cost of producing the product/service)? Explanation and reference to the projected income statement //(Projected Income Statement - included in the appendix//). How much do you plan to generate for profitability of the operation for the first three years?


 * Balance Sheet.** Summarize the assets, liabilities and owner’s equity of the business for the first three years of operation. //(Balance Sheet – included in the appendix).//


 * Break-Even Analysis.** Explain the point at which the operation will break even. //(Include a graph depicting this point – included in the appendix).//


 * Financial Analysis.** Summarize the key financial measures for the first three years of operation compared to industry standards.


 * Product Development Costs.** Describe the expenses associated with developing your product or service before manufacturing it.


 * Manufacturing Costs.** If applicable, describe the expenses associated with manufacturing your product.


 * Sales Revenue.** Explain the rationale for the sales projections for the first three years of operation.


 * Cost of Goods Sold.** Summarize the cost of goods sold for the first three years of operation.


 * Capital Equipment.** Summarize the cost of capital equipment that will be required and explain the method for depreciation.


 * Salary and Wages.** Summarize the cost of salaries and wages for the first three years of operation.


 * Selling and Marketing Expenses.** Summarize the cost of selling and marketing for the first three years of operation.


 * Operating Expenses.** Summarize the operating expenses for the first three years of operation.


 * Other Expenses.** Explain any additional expenses associated with the business.


 * Assumptions.** List your assumptions used to create the pro forma financials.

= <span style="color: rgb(240, 10, 218)">Growth Plan = What growth strategy has been selected and how it will be implemented? What challenges will have to be overcome and how will they be handled?
 * Growth Strategy**.

What effects will the growth have on the company? What resources are needed to fund the growth? How will this growth affect operational and strategic issues? Explanation of how the growth will be funded.
 * Effects of Growth**.

=<span style="text-transform: uppercase; font-size: 14pt; color: rgb(254, 32, 252)">Contingency Plan =
 * Risks**. What are the risks associated with this business? What are the course(s) of action you will take to minimize the risks? What will happen if your business plan does not work out? How will you liquidate the inventory, equipment, etc.? What will be the next plan?

<span style="font-size: 12pt; font-family: 'Times New Roman','serif'"> =<span style="color: rgb(225, 25, 179)"> Appendix A =