So I've been going back to school and its been surprisingly fun. I've been learning a lot about business, more than I could ever find on the internet.
I've also got a full time job to start saving up to open my own bakery business. I never knew how much money a bakery would be be to open 0_0 It's rather eye opening lol BUT DO NOT BE DISCOURAGED! I've seen so many money figures I don't know which ones are true. So far a lot of my baking instruments have come at my birthday, holiday, random gifts, auctions, or at some other discounted price (FYI I love the clearance aisle at walmart! ^-^) which I don't think a lot of those figures figure in. So if you are wanting to start a business, just know it takes time!
Sunday, June 17, 2012
The Business Plan
To start a small business, the owner (you) must write a business plan. A business plan is a carefully constructed guide for you (the owner). The plan should answer four questions investors and banking officials are most interested in:
(1) What exactly is the nature and mission of the new venture?
(2) Why is this new enterprise a good idea?
(3) What are the businessperson's goals?
(3) How much will the new venture cost?
You should make your business plan easy to read, uncluttered, and complete.
Components of a Business Plan
Intro - Basic information such as the name, address, and phone number of the business; the date the plan was issued; and a statement of confidentiality to keep important information away from potential competitors.
Executive Summary - A one to two page overview of the entire business plan, including a justification why the business will succeed.
Benefits to the Community - Information on how the business will have an impact on economic development, community development, and human development. (Is your company "green" such as running on solar power?)
Company and Industry - The background of the company, choice of the legal business form, information on the products or services to be offered, and examination of the potential customers, current competitors, and the business's future.
Management Team - Discussion skills, talents, and job descriptions of management team, managerial compensation, management training needs, and professional assistance requirements.
Manufacturing and Operations Plan - Discussion of facilities needed, space requirements, capital equipment, labor force, inventory control, and purchasing requirements.
Labor Force - Discussion of the quality of skilled workers available and the training, compensation, and motivation of workers.
Marketing Plan - Discussion of markets, market trends, competition, market share, pricing, promotion, distribution, and service policy.
Financial Plan - Summary of the investment needed, sales and cash-flow forecasts, breakeven analysis, and sources of funding.
Exit Strategy - Discussion of a succession plan or going public. Who will take over the business if you die or decide to retire?
Critical Risks and Assumptions - Evaluation of the weaknesses of the business and how the company plans to deal with these and other business problems.
Appendix - Supplementary information crucial to the plan, such as resumes of owners and principal managers, advertising samples, organization chart, and any related information.
Ok, so I know a lot of that is confusing but it is all important if you want to start a business because it makes you, as the owner, think critically about opening a business. This plan is not only for investors or banking officials, it is for you! When businesses open, they can soon lose track of where they want their business to go, this plan helps you keep on track later on in your business's future. You also need this if you want to get a loan for the business or open a brick-and-mortar residence. City officials might need this to see how you will help the community economy.
Do not skip sections but also do not over exaggerate. GOOD LUCK!
(1) What exactly is the nature and mission of the new venture?
(2) Why is this new enterprise a good idea?
(3) What are the businessperson's goals?
(3) How much will the new venture cost?
You should make your business plan easy to read, uncluttered, and complete.
Components of a Business Plan
Intro - Basic information such as the name, address, and phone number of the business; the date the plan was issued; and a statement of confidentiality to keep important information away from potential competitors.
Executive Summary - A one to two page overview of the entire business plan, including a justification why the business will succeed.
Benefits to the Community - Information on how the business will have an impact on economic development, community development, and human development. (Is your company "green" such as running on solar power?)
Company and Industry - The background of the company, choice of the legal business form, information on the products or services to be offered, and examination of the potential customers, current competitors, and the business's future.
Management Team - Discussion skills, talents, and job descriptions of management team, managerial compensation, management training needs, and professional assistance requirements.
Manufacturing and Operations Plan - Discussion of facilities needed, space requirements, capital equipment, labor force, inventory control, and purchasing requirements.
Labor Force - Discussion of the quality of skilled workers available and the training, compensation, and motivation of workers.
Marketing Plan - Discussion of markets, market trends, competition, market share, pricing, promotion, distribution, and service policy.
Financial Plan - Summary of the investment needed, sales and cash-flow forecasts, breakeven analysis, and sources of funding.
Exit Strategy - Discussion of a succession plan or going public. Who will take over the business if you die or decide to retire?
Critical Risks and Assumptions - Evaluation of the weaknesses of the business and how the company plans to deal with these and other business problems.
Appendix - Supplementary information crucial to the plan, such as resumes of owners and principal managers, advertising samples, organization chart, and any related information.
Ok, so I know a lot of that is confusing but it is all important if you want to start a business because it makes you, as the owner, think critically about opening a business. This plan is not only for investors or banking officials, it is for you! When businesses open, they can soon lose track of where they want their business to go, this plan helps you keep on track later on in your business's future. You also need this if you want to get a loan for the business or open a brick-and-mortar residence. City officials might need this to see how you will help the community economy.
Do not skip sections but also do not over exaggerate. GOOD LUCK!
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