2.09 Describe entrepreneurial planning considerations

1. 2.09 Describe entrepreneurial planning considerations

2. Entrepreneurship Basic Structure • Entrepreneurs discover an entrepreneurial opportunity when they find a compelling solution to an unsolved problem or unsatisfied need. • The 1st step in an entrepreneurial venture is to identify a real opportunity. • 2nd step is to create a plan to address that opportunity. • 3rd step is to execute that plan. http://www.dukeven.com/Home

3. Business Planning: • Process of setting goals, explaining the objectives &mapping out a document to achieve these goals and objectives. • Effective business planning is critical to success &the ability to raise capital & grow. • Effective business planning requires a considerable amount of time

4. Types of Business Planning • Strategic planning • Setting and enforcement of goals • Road map of strategies on “what” the business intends to do to meet the goals and objectives • Effective entrepreneurial planning consists of: • Tactical planning • Contains the details of executing your strategies • Describe “how” you plan to meet the objectives

5. Business Plan A proposal that describes a new business. It is presented to potential investors and lenders. • A Business Plan is the explanation of: • whythe plan for building the company makes sense, • what resources it will need to implement the vision, • who the team will be that will have the skills and leadership to execute the vision, and what path they will follow to get there.

6. The components of a business plan • Executive summary • Product/service plan • Management team plan • Industry/market analysis • Operational plan • Organizational plan • Marketing plan • Financial plan • Growth plan

7. Executive Summary • Brief recounting (summarizing) of the key points contained in a business plan. • Investors & lenders rely on this to decide if the concept interests them • Should be no longer than two pages. • Include the most important information from each section of the plan. • Written last

8. Product/Service Plan • Mission Statement • Presentation of the product or service you’re offering. • Nature of your business • Unique features of your product/service • Any possible spin-offs • Additional products or services that might be offered once the business is established

9. Management Team Plan • Present entrepreneur’s qualifications & those of any partners involved in the business venture. • Analyze expertise you’re missing & how you will solve that problem • Describe any advisory board members/Board of Directors that will assist in getting the business started

10. Industry/Market Analysis • Convince the reader that an explosive market opportunity exists • Presents research into the industry & market • Analyze customers, competition, & industry • Information about the prospective geographic location, economic, & demographic data

11. Operational Plan • Includes all processes involved in producing and/or delivering the product or service to the customer. • Status of product development • Equipment, inventory, production • Time & money needed • Distribution plans (Channels of Distribution) • Direct channel – delivery directly to the customer • Indirect channel – product sold to someone before it reaches the customer (wholesaler)

12. Organizational Plan • People aspects of the business. Includes: • Management philosophy • Legal form of the company • Key management personnel • Key employment policies

13. Marketing Plan • How your company makes its customers aware of its products or services • Market segment • Pricing policy • Company image • Marketing strategies • Promotional plan • Marketing budget

14. Financial Plan • Presents the forecasts for the future of the business • Includes assumptions made when calculating your forecast figures • Usually in the form of financial statements

15. Growth Plan • Looks at how the business will expand in the future. • Investors & lenders look to see if the business has the potential & the plans to grow over its life