Your Business Resume

What is it? • What• A written document that describes all the steps necessary

for opening and operating a successful business.

• You plan should provide the following:• What/ how you will produce and for whom• Who will run biz and who will supply you• How will you win customers and keep them• Detailed financial info and how you will earn profit• Future plans for growth (economies of scale)

Why Do You Need It?

• It can make or break your business!

• Purpose of a Business Plan• Explains your idea• New product, better one, or less expensive alternative• Target customer

• Sets specific objectives and how to achieve them• Sales Projections• Short Term (Year One)• Medium Term (Years 2-5)• Long Term (Year 5-?)

• Future Products

Why? (continued)• Background and Experience of leadership team• The better qualified, more likely bank will make loans

Importance of Business Plan• Makes you think about all aspects of business

• Strategies• Recognize limits• Identify Problems

• Helps you secure financing• Bank Loans• Family• Investors• Private/Angel Investors

• Communicate Ideas to Others• Any stakeholder in your business will believe• Suppliers, Employees, Renters

• Tool for Managing Business• Use plan for decision making

What Goes Into Plan• Introductory Materials• Main Body• Time and Effort• Compiled before other two• Composed of:• Introduction• Marketing• Financial Management• Operations• Concluding Statement

• Appendix

Main Body (Introduction)• Contains important details about biz idea• Should include the following:• Detailed description and goals¹• Ownership and legal structure²• Skills and experience³• Advantage(s) over competitors⁴

Detailed Description¹• How you came up with idea• Outline short/medium/long term goals

Ownership and Legal Structure²

• Ownership• Sole Proprietorship• Just you

• Partnership• You and at least one more

• Corporation• Many owners that hold stock in business

• Who makes up team and how many shareholders you have.

Skills and Experience³• Emphasize all experience that relates • Paid work experience• Volunteer Experience • Hobbies that relate

• All parties included• Managers • Leadership team

Advantages⁴• What do you have that they don’t• Performance• Quality• Reliability• Distribution• Price• Promotion• Public Image or Reputation• Features

Main Body (Marketing)• Description of Products you offer¹• Who the market is²• The industry³• Location⁴

Products/Services¹• Description of product• How it differs from competition• Highlight unique features• Explain benefits

Market²• Who are your prospective customers• How large is this market• How will you enter market• How you will deal with competition

Industry³• External factors affecting business• High competition• Lack of suppliers

• Growth potential of industry/Growth forecasts• Economic trends of industry• Technology Trends

Location⁴• Where will you be:• Suburbia• Rural area• City• Street Corner• In a strip mall• Stand alone• Online• Kiosk

Main Body (Financial Management)• Three Elements

• 1. Identification of Risks• All businesses have risks• Investors want to know you have thought them through and

have developed strategy• Some typical risks include: competitors cutting prices, costs

exceeding projections, demand declining over time• 2. Financial Statements• Projected financial statements• Pro Forma Statement

• 3. Funding Request and Return on Investment• Indicate how much you need to borrow• How you plan on using money• How much investor can expect to earn• How much are you investing

Main Body (Operations)• How business will be managed• Hiring and Personnel Procedures• Insurance• Lease and Rental agreements• Equipment needed• Production• Delivery• Develop Harvest Strategy

Harvest Strategy (or Exit Strategy)• How entrepreneur intends to extract his/her

money from a business after it is operating successfully• Selling business to someone else or another company• Passing business to family• Merging• Going Public• Closing down and selling assets

Main Body (Concluding Statement)• Summarize goals and objectives• Emphasize commitment to business

Introductory Elements• Cover Letter• Explains and introduces accompanying document or set of

documents

• Title Page• Name of company, Date, Owner, Title of Owner, Address and

Phone number

• Table of Contents• Shows what each page covers

• Statement of Purpose• A brief explanation of why you are asking for a loan and

what you plan to do with it

• Executive Summary• A Short statement of the report