Introductions

1. Agri-Tourism Workshop Kearney, NENebraska EDGE (Enhancing, Developing, Growing Entrepreneurs)Joy Marshall, Regional Coordinator

2. Introductions

3. Experiential Learning Cycle EXPERIENCE REFLECTION “Tell me & I forget Show me & I remember Involve me & I understand” - Confucius EXPANSION APPLICATION

4. Business Expansion Opportunities Where Do the Ideas Come From? • Un-met or under-met needs • Study, read and study (MORE) • New uses for old things • New markets-track trends • Become part of a “virtual corporation”

5. Questions About Business Planning “What’s in it for me…?” • Isn’t planning for “big business” only? • How does planning help management? • Can’t I hire someone to do this for me? • How can I know all the answers? • How often do I have to do this? • What if I don’t complete the process?

6. Keys to a Successful Planning Process • Owner assumes the lead in the process • Involves everyone • Reflects reality • Contingency plan • Goals and objectives are achievable • Flexible • Reviewed “often”

7. Ten Reasons to Prepare a Business Plan • Look at the whole business • Attention to important questions • Clarifies and communicates goals and objectives • Assigns priorities • Framework for daily decision-making • Maintains “proactive” attitude • Benchmark to track performance • Stimulates new/future business opportunities • Tool to access capital, acquire business partners, attract employees • ROAD MAP

9. Business Plan Outline Cover Page Table of Contents Section I: Executive Summary Section II: Mission Goals, and Objectives Section III: Background Information Section IV: Organizational Structure Section V: The Marketing Plan Section VI: The Financial Plan Appendix

10. Section II. Mission, Goals & Objectives • General Description of the Business • Mission Statement • Goals and Objectives

11. Section III. Background Information • Background Industry Information • Current and Future Trends • The Business “Fit” in the Industry

12. Section IV. Organizational Matters A. Business Structure, Management & Personnel Business Structure Management Personnel Outside Services / Advisors Risk Management B. Operating Controls Record – Keeping Functions Other Operation Controls

13. Types of Legal Structures • Sole Proprietorship • General Partnership • Limited Partnership • C – Corporation • S – Corporation • Limited Liability Company

14. Which Impacts YOUR Business? General Business Taxation • Personal Income Tax • Business Income Tax • Sales Tax • Property Tax • Business License Fees Employee Regulations • Payroll Tax/Withholding • Employee vs. Independent Contractor • Wage and Hour Regulations • Hiring Regulations • OSHA

15. Other Legal Items to Research • Contracts • Leases • Ownership and Protection of Ideas

16. Management • Philosophy • Management Team • Key managers Outside Services Such as lawyers, accountants, bankers, insurance broker, marketing, maintenance Personnel Non–management personnel needs • Recruiting new employees • Screening process • Finding qualified recruits • Training procedures • Re-training exiting personnel Advisors Family members, business professionals, customers, interested observers and even Competitors

17. Risk Management Types of Insurance • Business • Employees • Insurance Specific to Your Business Scheduled regular insurance check-ups for health, life, casualty

18. Succession Planning Ask the tough questions… • Are family members capable of running the business? • Can family members work together? • Do any family members want the business?

19. Marketing Definition • Marketing is EVERYTHING you do to promote your business, from the moment you conceive of it to the point at which customers buy your product or service and begin to patronize your business on a regular basis. Jay Conrad Levinson

20. Overview of “Marketing” • Research • Analysis • Strategies and Tactics

21. Section V. The Marketing Plan • The Products/Services Products/ Services Description Features / Benefits Life Cycles / Seasonality Products / Services Growth Description

22. Section V. The Marketing Plan (Cont.) • The Market Analysis Customer Analysis Competitive Analysis Market Potential Current Trade Area Market Size and Trends Market Potential

23. Section V. The Marketing Plan (Cont.) • Marketing Strategies Location / Distribution Price / Quality Relationship Promotional Strategies Packaging Public Relations Advertising Customer Service

24. Section VI. The Financial Plan • Worksheets Sales Forecast Cost of Projected Product Units Sold Fixed Assets Growth (or Start-up) Expenses Existing Debt Miscellaneous Expenses

25. Sales Forecast Example Henry’s Appliance Shop

26. Growth (or Start-up) Expenses

27. Other Financial Worksheets • Salaries/Wages & Benefits (including payroll taxes) • Outside Services • Insurance • Advertising Budget • Occupancy Expense • Miscellaneous Expense

28. Section VI. The Financial Plan B. Cash Flow Projections Break–Even Analysis Monthly Cash Flow Projections – Year one Annual Cash Flow Projections – Years Two & Three

29. Section VI. The Financial Plan C. Financial Statements Projected Income Statements Balance Sheet Statement of Owner’s Equity

30. Section VI. The Financial Plan • Additional Financial Statements Summary of Financial Needs Personal Financial Statement

31. Section I. Executive Summary One or two page summary representing the various sections of your Business Plan

32. To Complete Your Plan Add: Cover Page Table of Contents Appendix

33. Ready, Set Charge!!!

34. QUESTIONS

35. NebraskaEDGE Joy Marshall, Regional Coordinator PO Box 57 Arthur, NE 69121-0057 308-764-2252 / 800-328-2851 jmarsha@neb-sandhills.net http://nebraskaedge.unl.edu http://cari.unl.edu