Creating a Practical Business Plan

Creating a Practical Business Plan

• 1.
  Sigma Free Presents… Creating a Practical Business Plan Sponsored by: Vantage Economics Provided by Sigma College of Small Business, Inc.
• 2.
  Sponsored by: Agenda • Introductions • Keynote Topic – Creating a Practical Business Plan • Vantage Economics – Economic analysis for the tough decisions • Break – Refreshments and Networking – Compliments of Regina at Coffee and Cake Café • Keynote Conclusion – Creating a Practical Business Plan – Questions and answers Creating a Practical Business Plan Copyright 2009 Sigma College of Small Business, Inc. 2
• 3.
  Sponsored by: Survey Question One • Which answer best describes how YOU decided to  go into business? – I had a product or skill and decided to build a market for it. – I saw a specific need in the market and built a product or  skill to fill the need – I bought into a business where there was already a defined  market and product/services. – The whole thing was thrust upon me! – Other _____________________________________ Creating a Practical Business Plan 3 Copyright 2009 Sigma College of Small Business, Inc.
• 4.
  Sponsored by: Product, Need and Value The Core Planning Process Product Value Match Market  How Much Can or  Need Needs to be Made Creating a Practical Business Plan 4 Copyright 2009 Sigma College of Small Business, Inc.
• 5.
  Sponsored by: Execution The Essential Element Product Value Execution: Specific Actions Match for Desired  Outcomes Market  How Much Can or  Need Needs to be Made Creating a Practical Business Plan 5 Copyright 2009 Sigma College of Small Business, Inc.
• 6.
  Sponsored by: Survey Question Two • Choose the answer that BEST matches your  company's business plan. – I use my written business plan daily in the operation of my  business. – We review and update parts of our written plan periodically  as a guide to planning decisions – We have a plan that we hire someone to update every year  or so. – I have one somewhere that we did a few years ago. – Business Plan? ‐ It's all up here baby! – Other __________________________________________ Creating a Practical Business Plan 6 Copyright 2009 Sigma College of Small Business, Inc.
• 7.
  Sponsored by: Types of Business Plans Business Management Plans • Used to run the business • Communicates business   Investor Plans decisions to managers • Communicate business  • Process for guiding business  concept to others decisions • Primarily to raise capital – Consolidates information – Debt or Equity – Facilitates decision making – Find Partners – Decision history and reasoning – Execution • Selling “The Business” • Links actions to – Not necessarily the  desired product outcomes Get Money    vs.    Make Money 7
• 8.
  Sponsored by: The Practical Business Plan Core Elements Market Opportunity Match Product to Need Budget Opportunity Value and Cost Marketing and Sales Method for Exchanging Product  for Cash Creating a Practical Business Plan 8 Copyright 2009 Sigma College of Small Business, Inc.
• 9.
  Sponsored by: Market Opportunity • Gap in the Market – The specific need or desire – Potential buyers and users – Reason for Gap • Product Definition – Basic description – How it fills the gap • Match Product and Need with Value – Describe how the match will create value in the  market Creating a Practical Business Plan 9 Copyright 2009 Sigma College of Small Business, Inc.
• 10.
  Sponsored by: Budget • Revenue – Market Potential Approach – Break Even Approach • Expenses – Cost to build – Cost to market, sell and  manage • Cash Flow • Profitability Creating a Practical Business Plan 10 Copyright 2009 Sigma College of Small Business, Inc.
• 11.
  Sigma Free Presents… Creating a Practical Business Plan Sponsored by: Vantage Economics Provided by Sigma College of Small Business, Inc.
• 12.
  Sponsored by: Marketing and Sales • Packaging – Sizes, combinations, service levels • Price – Strategy for pricing the product portfolio • Message – Key points to communicate for each product and  segment – Show value and differentiate • Promotion and Communication – Methods and media for communicating the  message – Includes advertising, discounts, promotion events,  etc… • Sales and delivery Creating a Practical Business Plan 12 Copyright 2009 Sigma College of Small Business, Inc.
• 13.
  Sponsored by: Building on the Business Plan Core Elements Market Opportunity Operations Detail Business Strategy Match Product to Need Procedures Vision ‐ New Opportunities Organization Mission Budget and Forecast HR Plan Objectives Opportunity and Cost Development Legal Structure ‐ Financial Plan Facilities Marketing and Sales Method for Exchanging  Product for Cash ‐ Marketing Plan Creating a Practical Business Plan 13 Copyright 2009 Sigma College of Small Business, Inc.
• 14.
  Investment Sponsored by: 2009 Planning for the Small Business  14 Owner
• 15.
  Sponsored by: Sigma College of Small Business Critical Business  • Business Management Education Areas • Transition from Owner to CEO Business Planning – Equip business owners to  Marketing and Sales grow their business Accounting and  Finance – Make sure the owner isn’t  Operations and  limiting the opportunity Quality Leadership and  Administration Technology and  Innovation 15 Dedicated to the Learning Needs of Small Business!
• 16.
  Sigma Free Presents… Creating a Practical Business Plan Sponsored by: Vantage Economics Provided by Sigma College of Small Business, Inc.