Introduction to MIS

1. Introduction to MIS Appendix 11 Creating a Business Plan

2. Appendix: Business Plan • Purposes • Help managers identify strategies and plan for future • Identify goals and concrete objectives • Provide measurement of success and identify problems • Provide detailed information to investors • Outline budget needs

3. Business Plan Structure • Introduction • Outline and summary of the company and the plan • Marketing • Competitors • Market analysis • Advertising • Sales Management • Product Management: prices and costs • Historic Analysis • Sales, profits, structural changes • Organization • Structure of the firm and management • Financing • Detailed cash needs • Projections • Estimates of sales, costs, growth with detailed data and forecasts

4. Marketing Plans • Products • Costs • Prices • Profits • Competition • Strategy • Sales Goals and Forecasts • Promotional methods • Sales Management • Distribution and Service

5. Rolling Thunder Bicycles Example Sales estimated while the firm was being formed.

6. Rolling Thunder Bicycles Estimated Sales

7. Projected Income Statement Interest rate on borrow 8.00% Interest rate on short term investments 3.00% Depreciation, 5 years, straight line 0.2 Tools purchases $250,000 $50,000 $50,000

8. Projected Balance Sheet Assumptions Receivables as percent of sales: 10% Payables as percent of material costs: 10% Inventory as percent of material costs: 12%

9. Projected Cash Flow