Your mission is to create a Business Plan for a business idea you will develop. It
can be any product or service that YOU are interested in. Obviously, creativity is
not only encouraged, but necessary. That said, your business idea must be
feasible, however some information will be fictional (ie: Website address. etc.).
Be creative! I would also suggest you browse the Small Business Administration (US Government) website
on Business Plans. (www.sba.gov).
AS ALWAYS, I will applaud and enjoy your original work. Plagiarism in any form
will result in your earning NO CREDIT for the project. As this constitutes 20% of
your grade, DO NOT RISK IT!
Your Business Plan MUST contain AT A MINIMUM the following sections.
REQUIRED PARTS OF YOUR BUSINESS PLAN:
I Cover Sheet
Include your name, your company name, email and website address and your
company logo and slogan. This should be a separate page.
II Business Summary
This will be a three or four paragraph statement that will serve as a BRIEF
introduction to your business. The key elements of this section should include:
Your company’s mission (statement)
The product(s) and or service(s) you sell (briefly)
Where you will operate your business (location(s), on-line, etc.)
Staffing needs (number of employees, their positions, etc.
III Product/Service Details
This section will describe in detail what your product or service is and how it will
meet the needs of your customers. (Drawing, photos, etc. are welcome). You will
explain the benefits of your product or service and the advantages it has over
your competition (what is your “competitive advantage”).
This section should also include a discussion on pricing – how much you will sell
your product for, as well as costs – what your product will cost to produce and
sell, and then, your anticipated profit per unit.
IV Marketing Plan
In this section you will provide detailed information to show that you have a solid
understanding of the industry within which your business will operate. It should
answer the following questions:
Who is your target market (customer base)?
Who is your competition?
How will you “sell” (market) your product or service?
How will you “advertise” your product/service to your potential customers?
Why should your customers buy your product or service versus that of your
competitors?
A RESEARCHED statement of the present and future growth potential for
your business and your industry (why you decided to enter this particular
business)
V The Financial Plan
This section is key to attract investors and satisfy lenders because it shows that
your company is built on thoughtful planning. There will be considerable fiction in
this section, albeit I will be looking for REASONABLE numbers. For example, rent
on a storefront in Nassau County will not be $1,000,000 a month, nor will it be
$200 a month. DO SOME RESEARCH!
At a minimum, you need to answer the following questions:
How much money will you need to start your business?
What will you do with these funds? (This requires a schedule of numbers).
How do you intend to raise your start-up capital? From what sources?
The foregoing is also called your “Sources and Uses” statement.
This section should also include at least the three financial statements as
indicated below. I would refer to your textbook – Chapters 12 through 15 for
guidance.
Profit and Loss Projection (Income Statement): This statement answers
the questions
How much will I sell in my first year of operations?
What will my costs be?
Will I have a profit or a loss?
Projected Balance Sheet: This should be done for DAY 1 of Operations
and PROJECTED for the end of your first year of operations. This
statement estimates the resources your business will need, and how they
will be financed.
Breakeven Analysis: This shows when your business will be able to cover
all of its expenses and begin making a profit based on your costs and the
numbers of units “sold”.
VI Appendicies
This is a “catch-all” section. You can include anything to “flesh-out” your plan.
This can include advertising copy, product information, store layouts, etc.
