ࡱ> 4>3 2-bjbj|:|: 'TPP#nn/////CCCC8{<TC  4????] i-/q??qu//??y/?/?q//Q+}CFm$0%,RRQ/Qqqqn :   QUICK START BUSINESS PLAN Description of the nature and purpose of your business Give a lot of thought to your business vision. It supports the development and planning of your business. Background of this business concept Next, where did your idea come from? Outline the factors that helped you come up with the idea. What can you do to increase your credibility? Building Credibility The more credibility you have, the better. Customers are more likely to believe you, suppliers are more likely to be on time, and you will find it much easier to market by attracting new business and retaining the old. Strengths of this business concept Why will the idea work? Assume that some people think the idea is unrealistic. Convince a cynic why it's such a great idea. How much of the vision is already in place? Describe where your business is at present. What have you achieved to implement your vision so far? What do you still need to do to achieve your vision? Give an outline of what needs to be done: Competitive advantage of your business concept It can be hard to survive in business if you cannot differentiate your business from the competition. As you write your plan, avoid general words like 'quality,' service, or 'price.'' Everyone uses these terms. Be specific about why customers should deal with you and not others. Past experience, abilities, and expertise What have you achieved that will convince people that you know what you're doing? Consider past experience and your expertise. The industry Describe briefly the characteristics of your industry. For example, is your industry in a fast-growth cycle or mature? Is it labor-intensive (such as landscaping work) or knowledge-intensive (such as software programming)? If it helps, contact your local industry association, which may hold a range of industry specific information to help your analysis. Complete an Internet search for industries relevant to you. Every type of business is likely to have an industry association. The process How are your products or services produced? If you have physical products, outline how you make them or who you order them from. If you're selling a service, outline how you will do the work. Remember that the people who you need to impress with your business plan, such as potential lenders, don't necessarily understand your industry as well as you do Market research evidence What evidence do you have? Outline the evidence that supports the feasibility of your idea. For example, industry market research, overseas trends, or potential customers you've spoken with. Be realistic. Top-down market analysis such as, 'There are 8.2 million people in New York City and if only 10% of them buy from me'' is not realistic. Use bottom-up analysis instead: Work from what you know from research or have achieved in the way of sales or test marketing. Jot down some initial ideas here. Market potential Estimate the market potential for your product or service. Explain exactly how you've arrived at this estimate (such as market research, your trading history or trial marketing). Key targets Who are your key targets? Outline the main types of people or businesses that will buy from you. Be specific. Rather than saying, 'Everyone in my city,' say, 'Mothers within a 15 mile radius of my location The competition Who is your competition? Describe businesses that are likely to compete with you for customers. Promotional methods How are you going to promote your business? Outline your promotion ideas to make potential customers aware of your business. Explain why you think these will work. Channel to market Describe your distribution channels to market? In other words, how are people or businesses going to buy from you? Do they contact you directly, do you sell to a wholesaler or is it a retail business? Will you also sell from a Web site? What business structure have you chosen? Business structure Sole proprietor Partnership Corporation Limited Liability Corporation (LLC) Other Legal protection What legal protection do you have? What patents, brands and trademark protection do you have? How do you know others won't copy you? Factors outside our control What is outside your control? Consider factors that could affect your business. These could include major trends, international changes, changes to the tax code, and technology. Use of technology How will you use technology? How can you use technology including e-mail, Web sites, and e-commerce to lower your costs, speed up your business and make it more efficient? Personnel My skills and achievements Here you describe your business skills and experience, or what you're doing to gain both of these. Then describe the skills and experience of your staff, and also your support network, such as accountant, lawyer, business mentor, friends, partners, etc. What have you achieved so far? List your skills and achievements or your preparation to be in business Staff skills and experience Do you have anyone else helping you? Outline any staff you already have. What skills and experience do they have to help your business succeed? Other help, partners and advisers Who else will help you? Outline any other advisors, consultants or people (and their skills) who will be helping you in this venture. Remember to include your local SCORE counselor: Business support network Do you belong to any business organizations or groups that could provide support and assistance? The financials Potential profit of this venture What's the potential profit? How much can you make? Does your business have the potential to pay you a reasonable salary and also have funds left over for further development Charge-out rate has been calculated by How have you calculated a charge-out price for your time? Even though you may be selling products, you need to determine how much you need to make each hour to cover your own time and expenses in addition to an expected profit. Measuring your progress What you can measure, you can manage. It is important to measure your progress towards your business goals. Outline here what key performance indicators (KPIs) you will use to make sure that you are on track to your goals: Expert tip Ask your accountant to tell you if your financials are realistic, and also to help you identify the key performance indicators for your business. Not all KPIs are financial. Some might relate to factors such as staff turnover or absenteeism that indicate staff motivation. Sales revenue How did you work your monthly sales estimate? Outline why certain months may vary. Salary Include details of how much you need each month to live, and why this might fluctuate over the year. Wages How did you calculate the wages (these can be yours or your employees)? Marketing What will you spend money on, and how are the ideas relevant to the customers you have in mind? Other payments If you have a number of smaller expenses, they tend to be entered as 'other.' If the amount starts to add up, you'll need to explain exactly what the payments are. Other assumptions Is there any other information that needs to be explained to help a reader understand how the cash will flow in your business? Volume of products or services needed to break-even each week What sales do you need to break even each week? You need to calculate exactly how much you need to sell each week to cover your costs. Can you actually do this amount of work? Conclusion Add items to your action plan Identify other businesses that you can ally yourself with Attend training courses to improve your management skills Contact local government support Develop terms of trade to reduce the chance of bad debt Develop a customer newsletter Have a customer retention plan Outline where future growth will come from Construct a customer feedback loop Join your local business association Join your local industry association Develop a strength and weakness analysis of your business Gather testimonials from customers Identify your key competitive advantage Research all the relevant laws for your business Check your business activities are legal Run your idea past an accountant Get a lawyer to form your business Benchmark prices with the competition Final note A business plan is never complete. Regard it as a living document that you will need to monitor and adjust at regular intervals to reflect changing circumstances such as market changes or indeed changes in your own goals and business vision. Remember plans fail because they are: ( Incomplete: For example, they lack market research or financial forecasts " ( Too vague and lack specific detail on how the plan will be achieved. " ( Too optimistic and lacking in realism. " ( Fail the 'reasonableness' test.( At the same time it's important to keep the business plan as simple, practical, and uncomplicated as possible.  EMBED Word.Picture.8  East Central Ohio Score 25 Walnut Street, P.O. 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