Creating a Professional Business Plan Based on chapter 5 entrepreneur project

1. Creating a Professional Business PlanBased on chapter 5 entrepreneur project

2. Starting A Business– you won’t be doing these steps, but this is what it would take • Step 1: File articles of incorporation with the state (skip if sole proprietorship) • Step 2: Obtain Federal Employer Identification Number (SS-4 Form) • Step 3: Register your fictitious business name with your county if different from your name (FBN Statement) • Step 4: Obtain a local (City) tax registration certificate (Business License) • Step 5: Obtain a state seller’s permit from Board of Equalization (to collect sales taxes for tangible goods- Form BOE-400-MIP) • Step 6: Obtain special licenses or permits

3. Business Plan Written Assignment – Due Fri • Presentation Folder • Cover Page (page 1) • Table of Contents (page 2) • Business Plan including 5 sections with unified font style, font size, margins, headings, double spacing, etc. and page header to include company name and page number • Do not include questions - responses should be in paragraph form – subsection headings can be used • Begin each of the 5 sections on a new page • Each section should be 1-2 pages long (pages 3-7 minimum)

4. Business Plan Presentation – next week • Prepare a visual, PowerPoint or Alice presentation for the class that includes a picture of your product(s). • Briefly explain your business plan to the class – give highlights from each section. • Consider the audience to be a group of potential financial investors and you are making your business pitch. • After all students have presented, the class will vote on the top 3 business plans for the class to conduct business simulations.

5. The Business Plan • Products and Services • Operating Plan • Marketing Plan • Financial Plan • Industry, Competition, and Market (some sections may have a bit of overlap with content)

6. 1. Products And Services • What is your business? What is your vision for your business? • What are your products and services? What are the product’s and service’s features and benefits? Include diagrams, photographs, prototypes, etc.

7. 2. Operating Plan • What is your company’s location (city/address), facilities, equipment, staffing requirements (number of employees), hours of operation, etc.? • Describe the day to day operations of your business including anticipated customer traffic flow. Give a list of staff positions and their responsibilities, salaries, etc.

8. 3. Marketing Plan • Describe your product in as much detail as possible. • What is your product’s price and how did you decide on the price? • How are you going to promote your products to the customers? Will you use advertising, personal selling, public relations, sales promotions or events, etc.? How will you know if the promotional plan is successful? • What place do you plan to market your products and services? What is your target market (demographics, geographics, psychographics)?

9. 4. Financial Plan • What are the different sources of revenue? What are the prices of your products and/or services? How much do you expect to sell? • What are your expenses? Include cost of goods sold, payroll, lease, utilities, supplies, advertising, insurance, depreciation, interest, taxes, etc.? How did you derive these figures? • What loan amount will you need to seek? • Create a 6 month projected income statement for your business using excel - include your revenue and expense assumptions. (see handout that lists formulas to use) • Create appropriate charts and graphs to help communicate your financial plan.

10. 5. Industry, Competition, and Market • Who are your top 2 competitors? Describe them - How close in proximity are they to your business location? How established is their business/customer base? • What are the product, price, place, and promotion advantages that your products and services have over your competition? How will you capture your competitors market share (convince their customers to come to you)?