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Most books and templates for building a business plan are overwhelming in the information they need. Learn to filter down to the necessary planning items you need to run your business, a practical business plan that you will use.
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Sigma FreePresents…
Provided by Sigma College of Small Business, Inc.
Creating a Practical Business Plan
Sponsored by:
Vantage Economics
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
2Creating a Practical Business Plan
Copyright 2009 Sigma College of Small Business, Inc.
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 _____________________________________
3Creating a Practical Business Plan
Copyright 2009 Sigma College of Small Business, Inc.
Sponsored by:
4
Product
Market Need
Match
Value
How Much Can or Needs to be Made
Product, Need and ValueThe Core Planning Process
Creating a Practical Business PlanCopyright 2009 Sigma College of Small Business, Inc.
Sponsored by:
Execution:
Specific Actions
for
Desired Outcomes
ExecutionThe Essential Element
5
Product
Market Need
Match
Value
How Much Can or Needs to be Made
Creating a Practical Business PlanCopyright 2009 Sigma College of Small Business, Inc.
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 __________________________________________
6Creating a Practical Business Plan
Copyright 2009 Sigma College of Small Business, Inc.
Sponsored by:
Types of Business Plans
Investor Plans• Communicate business
concept to others
• Primarily to raise capital– Debt or Equity
– Find Partners
• Selling “The Business”– Not necessarily the
product
Business Management Plans• Used to run the business• Communicates business
decisions to managers• Process for guiding business
decisions– Consolidates information– Facilitates decision making– Decision history and reasoning– Execution
• Links actions todesiredoutcomes
7
Get Money vs. Make Money
Sponsored by:
The Practical Business Plan
8
Core Elements
Market OpportunityMatch Product to Need
BudgetOpportunity Value and Cost
Marketing and SalesMethod for Exchanging Product
for Cash
Creating a Practical Business PlanCopyright 2009 Sigma College of Small Business, Inc.
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
9Creating a Practical Business Plan
Copyright 2009 Sigma College of Small Business, Inc.
Sponsored by:
Budget
• Revenue– Market Potential Approach– Break Even Approach
• Expenses– Cost to build– Cost to market, sell and manage
• Cash Flow• Profitability
10Creating a Practical Business Plan
Copyright 2009 Sigma College of Small Business, Inc.
Sigma FreePresents…
Provided by Sigma College of Small Business, Inc.
Creating a Practical Business Plan
Sponsored by:
Vantage Economics
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
12Creating a Practical Business Plan
Copyright 2009 Sigma College of Small Business, Inc.
Sponsored by:
Business StrategyVisionMission
ObjectivesLegal Structure
Operations DetailProceduresOrganizationHR Plan
DevelopmentFacilities
Building on the Business Plan
13
Core Elements
Market OpportunityMatch Product to Need
Budget and ForecastOpportunity and Cost
Marketing and SalesMethod for Exchanging Product for Cash
‐ New Opportunities
‐ Financial Plan
‐Marketing Plan
Creating a Practical Business PlanCopyright 2009 Sigma College of Small Business, Inc.
Sponsored by:
142009 Planning for the Small Business
Owner
Investment
Sponsored by:
Critical Business Areas
Business Planning
Marketing and Sales
Accounting and Finance
Operations and Quality
Leadership and Administration
Technology and Innovation
Sigma College of Small Business
• Business Management Education
• Transition from Owner to CEO
– Equip business owners to grow their business
– Make sure the owner isn’t limiting the opportunity
15Dedicated to the Learning Needs of Small Business!
Sigma FreePresents…
Provided by Sigma College of Small Business, Inc.
Creating a Practical Business Plan
Sponsored by:
Vantage Economics
