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One-hour presentation by Mark Engle, Director, Maricopa SBDC, Phoenix, Arizona August 22, 2012
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Writing a Winning Business Plan Workshop
Presented by:
Mark Engle, Director
MCCD Small Business Development Center
2400 N. Central Avenue, #104
Phoenix, AZ 85004
480-784-0590
Before We Get Started
• Introductions of Site SBDC staff
• Questions can be posed through moderators
• www.maricopasbdc.com
• Plan and Workbook
Why Do A Business Plan?
• Failure to Plan is like Planning for Failure
• Roadmap to chart path to success
• Goals lead to success
• Decision making tool
Why Do A Business Plan?
• Educate and Motivate Others
• Failure to Plan is like planning to fail
• Forces you to think it through
• Avoid costly mistakes!
Who Is The Plan For?
• For a banker
• For an investor
• For an insurance policy
• For employees & family
• For YOU!
Authorship Issues
• Neat, typed & free of errors
• YOU need to do the plan
• Not too slick or polished
• Not too long
Authorship Issues
• Avoid the “trust me” or too many generalizations
• Use facts & figures to make points
• SBA Guideline for what to have for an SBA loan
Authorship Issues
• Protecting the Confidentiality of Your plan
• Non-disclosure statements
• Loaning vs. giving
What Do Lenders Want?
• What is your background? Years in industry, experience factors
• Answer the lenders questions:• What you will use funds for
(schedule if possible), source of repayment (show in projection), collateral (schedule if possible), your equity (sources & uses schedule), and backup repayment plans
What Do Investors Want?
• Must believe in you, first and foremost
• Answer the investors questions:
• How soon can you buy them out? What is the potential for future deals? What will you do if things don’t turn out as expected?
The Physical Plan• 3-ring Binder for your
plan• Not too fat for the banker
or investor• Use your plan as a tool, to
evaluate progress over time
• Name, address, phone #’s, email, website all on the front.
The Business Plan
EXECUTIVE SUMMARY• Write last• Concept/mission
statement• Summary statements and
results
Management & Operations
• Organization structure
• Key management personnel (resumes attached)
• Other management & organizational matters
The Industry Analysis
• The Name and information
• The Industry
• The Company
• Products and/or services
The Marketing Strategy
• Market research• Who is your customer?• Competitive Analysis• Market evaluation & trends
The Marketing Plan
• Show marketing objectives and goals – overall strategy
• Pricing strategies
• Sales tactics
• Advertising & other methods
• Service & warranty issues
• Show timelines & Budget
Critical Risks & Problems
• Shows forethought and planning
• Murphy’s Law
• Product improvement and new products
• Costs of improvements or startup costs
The Financial Plan
• The financial history is shown – three years financials
• A projection for three to five years of:– Balance sheet– Profit and Loss– Cash Flow– Ratios– Breakeven & other analysis
The Financial Plan
• Show “reasonable” assumptions• For financing or investors, show them:
– Need for financing– Use of funds– Sources & Uses Statement– Collateral?– Repayment– Debt coverage ratio– Breakeven analysis
The Financial Projections
SBDC Excel Workbook
• Either on your own or with our help• Download from
www.maricopasbdc.com go to Free Downloads section and save to hard drive (before loading)
Where do we go from here
• Getting “hopping” on the plan• Do like the Nike slogan “Just Do It”• Using other organizations resources
– SBDC– SCORE– Accountant/Attorney/Banker– Employees/Associates
Thank you for attending!
Building Your Winning Business Plan Workshop
Presented by:Mark Engle, Director
Maricopa Community Colleges Small Business Development Center
2400 N. Central Avenue, #104Phoenix, AZ 85004
480-784-0590www.maricopaSBDC.com
Satellite locations – Paradise Valley, Scottsdale, Mesa, Chandler,
Avondale, Glendale, Surprise & Online!