COLLEGE STUDENT ENTREPRENUERS
GUIDELINES FOR GETTING STARTED ON YOUR BUSINESS PLAN
San Diego City College
March 12, 2004
Terri L. Fraser, MBA
Fraser & Associates
619-501-3759
1. Make sure you include all of the information your business plan will be evaluated on. Please review SIFE website at http://www.sdsife.com for details about the business plan competition.
2. The due date to submit your business plan is April 16, 2004. Allocate enough time over the next five weeks to write your business plan. Have your business plan reviewed by others before you submit it. Their feedback may be useful.
3. If you do not have a business planning resource, I recommend that you use the Interactive Business Planner located at http://www.cbsc.org to develop your business plan.
4. Write your own business plan. Do not borrow from sample business plans . Use sample business plans to make sure you understand what you should include in each section of the business plan.
5. Before you begin the business planning process , you need to decide what your goals and objectives in business are . Without knowing where you are going, it's not really possible to develop your business plan . You need to start with the end, first.
Let's do a creative visualization exercise. Creative visualization is a process of imagining things. Imagine it is March 2007 and you have been in business for three years. Describe in a letter to your best friend all that you have accomplished and how it came about. What products/services did you initially sell? Now what are you selling? Where are your products/services being sold? Are your customers local, regional, national, or international? Are you a one-person operation or do you have several employees? Where was your business initially located? Where is it located now? Describe your location. What kind of furnishings do you have? What type of equipment do you have? Who are your customers? How well known are you in the San Diego business community? What college degrees and business awards do you see hanging on the wall? What are your sales revenues now? How much are you now earning annually?
6. Business Planning Process . Business plans are structured in sections. Each section includes a number of topics. You will usually see the following sections included in a business plan: executive summary, company overview, products and services, industry overview, market analysis, competitor analysis, marketing strategy, operations, management and staffing, risks, implementation plan, financial plan, and supporting documentation (appendix). By going through each section and writing about each topic, you will identify the activities you will need to complete to start and operate your business.
Before you start writing your business plan, be sure you know what the purpose of each section is. Outline the key points you want to make in each section before you start writing. Complete the narrative and then work on your financials. Then go back and make changes and additions to your narrative. Write the executive summary last. Here's an overview of each section and the topics usually included in each of the sections.
Company Overview . This purpose of this section of the plan is to introduce the reader to your business . This section of your business plan usually includes the following topics; business description; business history; vision and mission statement; business objectives; and funds required/use of funds. For new businesses that that do not have any history, in the business history subsection highlight some of the reasons why you want to start this specific business.
Products and Services . The purpose of this section is to introduce the reader to the products and services you will be selling . This section of your business plan usually includes the following topics: description of products and services; key features and benefits; intellectual property (copyrights, trademarks or patents); production of products or services; comparative advantages in production; and future products or services. You can download photos of your products into this section.
Industry Overview. The purpose of this section is to describe the industry in which your business will be operating . Topics usually included in this section, include the following: research resources; description of industry; key product segments; key market segments; purchase process and buying criteria; regulatory issues (licenses and permits); description of industry participants; key industry trends; and industry outlook. See http://members.cox.net/terrifraser for more information on how to find the information you need to understand your industry, market and competitors.
Market Analysis. The purpose of this section is to show your reader that you understand the market, and to prove there is a demand for your product/services . Topics usually included in this section, include: target market and characteristics (customer profile); market size and growth potential; and sales projections.
Competitor Analysis . The purpose of this section is to show the reader that you are fully aware of your competitors . Topics usually included in this section include competitor's profile; product service comparison; and comparison of strengths and weakness.
Marketing Strategy . The purpose of this section is to explain to the reader how you plan to position, price, promote, and distribute your products and services . Topics usually include the following: positioning strategy; pricing strategy; promotion strategy; and distribution strategy.
Operations . The purpose of this section of your business plan is to explain to the reader how you plan to produce your products or services . This section of the business plan usually includes the following topics: location; facilities and equipment; manufacturing process or service operations; and labor considerations.
Management and Staffing . The purpose this section of your business plan is to show the reader that your management team and staff have the necessary expertise and experience to be able to implement your business plan . Topics usually included in this section include organizational structure; management team; staffing; and labor market issues.
Risks : The purpose of this section of your business plan is to show the reader that you are well aware of the risks associated with your business.
Implementation Plan : The purpose of this section of your business plan is to show the reader that you are well aware of the activities you need to complete in order to start and operate your business . See Rhonda Abrams website for Startup Checklist http://www.rhondaonline.com
Financial Plan . The purpose of this section of your business plan is to explain to the reader your financial requirements and profit potential. A good financial plan will also let your reader know that you understand the business . The financial plan section usually includes the following: pro forma cash flow statement (Monthly for 1 st year, and projected annually for 1 st , 2 nd & 3 rd years); pro forma income statement (projected annually for 1 st , 2 nd & 3 rd years); pro forma balance sheet (projected annually for 1 st , 2 nd & 3 rd years); and list of assumptions.
Executive Summary : The purpose of this section of your business plan is to highlight the major points in your business plan . It should be less than two pages long.
Supporting Documentation : Here's a list of exhibits you may want to include in your appendix: photos of your products, copies of intellectual property documents, copies of legal agreements, letters of intent, resumes of key people, organizational chart (may want to include in business plan if not too big), and other exhibits as appropriate.
7. Finishing Touches . Be sure to create a title page for your business plan. Business plans are usually bound with spiral binding. You will be able to have this done at Office Depot, Staples or Kinko's. Make sure you include a table of contents and use at least 20 lb. paper when you print out your business plan.