Criteria for Effective Business Plans Lesson Plan: BMM H3-7
23 Slides9.74 MB
Criteria for Effective Business Plans Lesson Plan: BMM H3-7
Anticipated Problems 1. What is an effective business plan? 2. What are the components of an effective business plan? 2
Terms O business plan O executive summary O exit strategy O financial plan O labor force O marketing plan O succession plan 3
Business Plan O A business plan is a carefully constructed guide for a person starting a business and is used for three basic purposes: O Communication O Management O Planning 4
Business Plan O Communication O Potential investors O Financing agencies 5
Business Plan O Management O Tracking progress O Monitoring progress O Evaluating progress 6
Business Plan O Planning O Guiding through various phases O Identifying obstacles O Establishing alternatives 7
Business Plan Components O There are 12 possible components of an effective business plan. 8
Business Plan Components O Introduction O Basic information O Statement of confidentiality 9
Business Plan Components O The executive summary is a brief but comprehensive synopsis of a business plan or an investment proposal that highlights its key points and is generally adapted for the external audience. O Overview O Justification 10
Business Plan Components O Benefits to the community O Impact on economic development O Impact on community development O Impact on human development 11
Business Plan Components O Company and industry O Background of company O Information on product(s) or service(s) O Examination of potential customers O Current competitors O Future of the business 12
Business Plan Components O Management team 13
Business Plan Components O Manufacturing and operations plan O Facilities needed O Equipment needed 14
Business Plan Components O The labor force is a group of people who are at least 14 years old and are employed or are available for employment. 15
Business Plan Components O A marketing plan is a written document that specifies an organization’s resources, objectives, marketing strategy, implementation, and control efforts to be used in marketing a specific product or product group. O Target market O Competition 16
Business Plan Components O A financial plan is a budget or investment strategy that helps an individual take the necessary steps to achieve his or her financial goal. O Investment needed O Avenues to raise funds 17
Business Plan Components O An exit strategy is the point at which and the means by which a business owner cashes in on his or her investment, such as through a buyout arrangement. 18
Business Plan Components O A succession plan is the identification and development of potential successors for key positions in an organization through a systematic evaluation process and training. O One exit strategy is going public. 19
Business Plan Components O Critical risks and assumptions O Weaknesses O Alternatives 20
Business Plan Components O Appendix O Supplementary information O Related information 21
22
Review O What are the three basic purposes of a business plan? O What is an executive summary? O What component of the business plan would include the succession plan? 23
