Business Plan Project
CLEAN UP
PUT FEEDBACK/NOTES IN ONE SHARED DOCUMENT
Resource Links:
businessplanassignmentproject-updatedfall2011
Collins_2.1_Bus_Plan_Introduction.doc
Collins_2.1_Bus_Plan_Assignments.doc
Intro to Business Plan Directions.doc
Business-Plan-for- a-Startup SCORE.docx & Templates
- Group Eval
- Items from Ch 6 & appendices
The Assignment
Business Plan Project Assignment #1: Business Idea, Description, & Vision
- 10 pts
- 1-2 page report
1. This is a shorter description, but it should include the name, the type of business, the products or services offered, your target market(s), location, history.
1. Type of Company
Your fictitious company can be any type of company.
The most important decision that your team will make is what your great business idea will be. Put a lot of thought into this task. A great business idea won’t ensure a successful business plan, but you’ll find it hard to construct a workable business plan if you don’t build it around a good business idea.
4. Description of Proposed Business
Here, you present a brief description of your proposed company. The purpose of this section is to tell the reader why you’re starting your business, what benefits it provides, and why it will be successful. Some of questions to answer in this section include:
• Why are you starting your company? What market need will you meet?
• What is the basic activity of the business?
• Will the company focus on manufacturing, retail, or service?
• What goods or services will the business provide?
• Who will be your primary customers?
• Where will your company be located?
• Why will your company be successful?
Because later parts of the plan will provide detailed answers to many of these questions, this section should provide only an overview.
Business Description and Vision
- Explain the type of company and give its history.
- (Explain how you came up with a "catchy" company name.)
- General business concept/idea
- Decide a location and city.
- Keys to success
- Three or four factors that will be very important in the business’ survival
- Goals and objectives
- What are three goals you have for this business (short, intermediate, long)
- Needs
- What needs does your business satisfy
- Mission statement (business purpose).
- List of key company owners with backgrounds.
After reviewing this section the reader should know:
- Who the business is and what it stands for.
- Your perception of the company’s growth & potential.
- Specific goals and objectives of the business.
- Background information about the company.
Business Plan Project Assignment #2: Market Analysis
- 10 pts
- 1-2 page report
Use these sections from the links above and answer as many questions as you can in your report:
SBA Market Analysis help section
Definition of the Market
- Who will be your competition? (Is there anyone else doing what you’re business does? Who? How Many? How big are they? Where are they located?)
- Investigate competitors in your chosen area; try the yellow pages of yahoo.com and search the product or service. Other suggested web sites to check for industry research are Hoover's Online and Industry at a Glance.
- Describe your business industry and outlook.
- Define the critical needs of your perceived or existing market.
- Who is the target market? The target market is based upon age, gender, income, and location, just to name a few
- Provide a general profile of your targeted clients.
- Describe what share of the market you currently have and/or anticipate.
After reviewing this section the reader should know:
- Basic information about the industry you operate in and the customer needs you are fulfilling.
- The scope and share of your business market, as well as who your target customers are.
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5. Industry Analysis
In developing this section of your business plan, the team’s first challenge will be to identify the industry in which its company will compete. Next, you’ll need to learn as much as possible about that industry. The industry analysis section of your plan should provide an overall assessment of the industry. It should answer such questions as:
• How large is the industry? What are total sales for the industry in volume and dollars?
• Is the industry mature or are new companies successfully entering it?
• What opportunities exist in the industry? What threats?
• What factors will influence future expansion or contraction of the industry?
• What is the overall outlook for the industry?
• Who are your major competitors in the industry?
• How does your product differ from those of your competitors?
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E. Competition. (You’ll need to visit your competition’s store(s) to analyze the competition better.
1. Identify your competition.
-Who is the competition?
-Where is the competition located?
-What is the competition’s image?
-What types of products does the competition sell?
-What are its strengths and weaknesses?
-How might you succeed in beating the competition?
Business Plan Project Assignment #3: Organization and Management
- 10 pts
- 1-2 page report
Some of the items you've already done, like the organization chart. Make sure everyone is participating in writing the report. Use these sections from the links above and answer as many questions as you can in your report:
Organization and Management
Type of legal structure the ownership will take. (Will the company be a sole proprietorship, partnership, or corporation?)
- Identify the key people who will direct and manage the company.
- (Will you choose your family or friends? Will you do the hiring yourself? Or, will you use an outsourcing service to do the hiring?)
- How the employees will be recruited.
- Provide a description of how your company is organized as well as an organization chart, if available.
- Identify necessary or special licenses and/or permits your business operates with.
- Provide a brief bio description of key managers within the company.
After reviewing this section the reader should know:
- The legal form of ownership for your business.
- Who the leaders are in your business as well as their roles.
- The general flow of operations within the firm.
The team should submit a written report describing the qualifications of the management team members. It should indicate the compensation to be earned by each member. To find out what information should be included in this report, see the document entitled “Introducing Your Business Plan” and review the “Management Plan” section. Be sure to provide information about the qualifications of your management team members (education, experience, expertise, etc.) and to indicate the estimated annual salary to be paid to each member of the team.
Management makes the key decisions for the business, such as its legal form and organizational structure. This section of the business plan should outline these decisions and provide information about the qualifications of the key management personnel.
A. Legal Form of the Organization. Report the legal form of business ownership chosen by your company, along with the rationale for your choice.
B. Qualifications of Management Team and Compensation Package. (Note: In describing management qualifications, pretend that all team members graduated from college 10 years ago.) Provide information about the qualifications of the management team members (education, experience, expertise, etc.). Also indicate the estimated annual salary to be paid to each member of the management team.
C. Organizational Structure. Describe the relationships among individuals within the company, listing the major responsibilities of each member of your management team. Present these relationships graphically by including an organization chart (either in the body of the document or as an appendix).
I. Management and Organization
Who will manage the business on a day-to-day basis? What experience does that person bring to the business? What special or distinctive competencies? Is there a plan for continuation of the business if this person is lost or incapacitated?
If you’ll have more than 10 employees, create an organizational chart showing the management hierarchy and who is responsible for key functions.
Include position descriptions for key employees. If you are seeking loans or investors, include resumes of owners and key employees.
Professional and Advisory Support
List the following:
· Board of directors
· Management advisory board
· Attorney
· Accountant
· Insurance agent
· Banker
· Consultant or consultants
· Mentors and key advisors
Business Plan Project Assignment #4: Description of Products, Services, and (If Applicable) Production Process
- 10 pts
- 1-2 page report
The team should submit a written report that provides a description of all goods and services to be provided, indicates the advantages that they have over those offered by competitors, and explains how the team intends to obtain or produce the products that it’s going to sell. The information in your report will vary depending on whether you’ve established a service company, a retailer, or a manufacturer. For details on the information required, see the document entitled “Introducing Your Business Plan” and consult the section headed “Goods and/or Services.”
8. Goods or Services and (If Applicable) Production Process
This section provides a detailed description of all goods and services to be provided to the marketplace. You should identify the characteristics of your goods or services, such as appearance, features, quality, reliability, durability, usability, and ease of maintenance. Explain why your proposed goods or services have advantages over those offered by your competitors. In other words, be sure to answer the question: What competitive advantage will your company have over similar goods or services now on the market?
This section should also indicate how the company intends to obtain or produce the products that it will sell. Your write-up will depend on whether your company is a service company, a retailer, or a manufacturer.
A. Service Companies. For each service offered, indicate how the service will be provided. Also furnish information about the number and qualifications of people that the company will employ.
B. Retail Companies. Explain where the company will purchase the products that it will resell. Who will be your key suppliers?
C. Manufacturers. Furnish information about product design and production process. Be sure to address the following questions: How will products be designed? What technology will be needed to design and manufacture products? Will the company run its own production facilities, or will products be manufactured by subcontractors? Where will production facilities be located? What type of equipment will be used? What are the design and layout of the facilities? How will the company ensure that its products are of high quality?
- Specifically describe all products and/or services.
- (Describe the product in detail, such as the color(s), size, etc. Describe the type of service.)
- Point out any unique features. (Is the product or service new or improved?)
- Explain why people will buy the product or service. (What is the motivation that people will buy the product? For example, is the motivation based on personal gain, economy, health, comfort and convenience, safety and protection, affection and love, prestige and recognition, and variety and recreation?)
- Explain how your products and services are competitive.
- If applicable, reference a picture or brochure of your products, which would be included in the plan’s appendix.
After reviewing this section the reader should know:
- Why you are in business.
- What your products and services are and how much they sell for.
- How and why your products & services are competitive.
Describe in depth your products or services (technical specifications, drawings, photos, sales brochures, and other bulky items belong in Appendices).
What factors will give you competitive advantages or disadvantages? Examples include level of quality or unique or proprietary features.
What are the pricing, fee, or leasing structures of your products or services?
Business Plan Project Assignment #5: Marketing Plan
- 10 pts
- 1-2 page report
Make sure everyone is participating in writing the report. You will need to conduct market research and include it in the appendices section of your plan. You will need to create an advertisement as part of your final business plan project. Use these sections from the links above and answer as many questions as you can in your report:
SCORE Business Plan Template - Pay attention to the market research and location under marketing
Your team should submit a written report that gives an overview of your marketing plan, including target market, customer needs, product characteristics, pricing, distribution, and promotion. Your report should also describe any proposed uses of the Internet to promote or sell your products. For details on what you should include in the report, see the document entitled “Introducing Your Business Plan” and consult the section headed “Marketing.” Also consider two other issues:
a. Customer Needs and Product Characteristics
Identify your customers’ needs or wants and link them to the product characteristics (appearance, features, quality, reliability, durability, usability, ease of maintenance) that you described in your products and production group report.
b. E-Business: Internet Promotion and Sales
In addition, if you intend to use the Internet to promote or sell your products, this section should provide answers to the following questions:
• Will your company have a Web site? Who will visit the site?
• What will it look like? What information will it supply?
• Will you sell products over the Internet?
• How will you attract customers to your site and entice them to buy from your company?
This section should focus on your target market and customer needs as well as product characteristics, pricing, distribution, and promotion. Each of these items is briefly described below:
A. Target Market. Provide a profile of your intended customers (age, gender, income, interests, etc.). If your company plans to sell to other companies, profile the typical business customer who will purchase your products.
B. Customer Needs and Product Characteristics. Identify your customers’ needs or wants and link them to the characteristics (appearance, features, quality, reliability, durability, usability, ease of maintenance) you described in your “Goods or Services and Production Process” section.
C. Pricing. Describe your proposed pricing strategy for each product and indicate why you selected that particular pricing option. Compare your pricing strategy to that of your competitors.
D. Distribution. Describe the means by which your goods or services will be distributed to customers. Will you sell to customers directly, over the Internet, or through retailers or wholesalers? How will you get your products from your suppliers, subcontractors, or manufacturing facilities to your customers? Will you have your own warehouse?
E. Promotion. Outline a promotion strategy for your company. How will you tell people about your product and persuade potential customers to buy it? What types of advertising will you use? How will you maintain positive relationships with your customers?
F. E-Business. If you intend to use the Internet to promote or sell your products, also provide answers to these questions:
• Will your company have a Web site? Who will visit the site?
• What will it look like? What information will it supply?
• Will you sell products over the Internet?
• How will you attract customers to your site and entice them to buy from your
company?
Marketing and Sales Strategy
- Identify and describe your market – who your customers are and what the demand is for your products & services.
- Who will your customers be?
- What makes the company unique?
- What need does your business satisfy?
- Marketing mix (product, place, price, promotion)
- What types of promotion will be used (i.e., slogans, logos, billboards, brochures, print ads, and commercials).
- Explain your sales strategy, specific to pricing, promotion, products and place (4Ps).
- Include all items of the mix
- Describe your channels of distribution.
After reviewing this section the reader should know:
- Who your market is and how you will reach it.
- How your company will apply pricing, promotion, product diversification and channel distribution to sell your products and services competitively.
HOW WILL YOU USE SOCIAL MEDIA???
Business Plan Project Assignment #6: Financial Plan
- 10 pts
- 1-2 page report
Make sure everyone is participating in writing the report. You will need to research the numbers you use for this financial section and include a justification or reference. In this section I want you to focus on projected sales, expenses, start-up costs, and financing for the first year. Use these sections from the links above and answer as many questions as you can in your report:
- How much start up money do you need?
- Break it down: employees (salary), building/rent, supplies, merchandise, cash flow, marketing, other
- Where will the money come from?
- (Will you finance with your own start-up money? Will it come from friends and family? Or, will you get a loan from a bank or an association such as Small Business Association? Or, will you finance your company with venture capitalists?)
- What revenue and expenses will you have?
- Break it down: revenue & expenses
Collins_2.1_Bus_Plan_Sales.doc
- use competitors financial reports
- determine competitors gross profit margin as an estimate for your COGS
- break yearly amounts up over 12 months
Profit_and_Loss_Projection_1yr_0_0.xls
- complete these two spreadsheets as completely and accurately as possible
- you should be able to justify or have an explanation for why you used each number
- these will be included in the appendix section of your business plan
- don't worry about Cost of Sales
Send me the completed spreadsheets and a written report that summarizes the financial information and how you determined your figures.
Business Plan Project Final Version & Final Project (10% of Course Grade)
We have reached the end of the road and now you must revise and finalize the business plans you've been working on throughout the semester. This is meant to be a cumulative project and will be weighed as a final (10% of course grade). We will watch the Shark Tank video to give you an example of a business plan presentation or 'pitch'. Use the rubric and links below to finalize your project.
Resources: