Be An Entrepreneur - The Business Plan (PDF)

Be an Entrepreneur Part 1: The Entrepreneur Chapters : 1,2,3,4 Part 2: The Business Plan Chapters : 5,6,7,8 Part 3: The Enterprise Chapters : 9,10,1,11,12,13  Chapter 5 THE BUSINESS PLAN © BE AN ENTREPRENEUR 2021 5 THE BUSINESS PLAN What is a Business Plan?...

Be an Entrepreneur Part 1: The Entrepreneur Chapters : 1,2,3,4 Part 2: The Business Plan Chapters : 5,6,7,8 Part 3: The Enterprise Chapters : 9,10,1,11,12,13  Chapter 5 THE BUSINESS PLAN © BE AN ENTREPRENEUR 2021 5 THE BUSINESS PLAN What is a Business Plan? Contents of the Plan © BE AN ENTREPRENEUR 2021  Chapter 5 overview Chapter 5 will : define the business plan, explain why entrepreneurs need one, who will read it, and how to go about writing the plan. We highlight the: executive summary, company summary, management profile, and risk-and-reward profile.  Learning Objectives Define a “business plan" List the readers of a business plan List the characteristics of a good business plan List the components of a business plan Know what readers look for in the executive summary Know why he should write a business plan from the point of view of the investor  What is a Business Plan? Business plan: A detailed statement of what your business is going to do in the future. The business plan is your means of communicating your vision to the world to help you attract talent and money to the business. It is a detailed statement of what your business is going to do in the future.  What is a Business Plan? The readers of your business plan are: banks, venture capitalists, and private investors. Also your management team and business partners.  What is a Business Plan? Write the plan from the point of view of the reader. It will help enormously to put yourself in the place of your prospective investor. It will help you to respond to the reader's concerns, rather than letting yourself write what interests you, the entrepreneur.  What is a Business Plan? The characteristics of a good business plan: short and simple interesting easy to understand contains no typing errors contains visuals and graphs.  What is a Business Plan? Differences between Business model and Business plan Business model Business plan The method used by the firm to create It is a roadmap that contains a detailed and achieve value. study of all aspects of the project in order to be able to implement it. It comes after the feasibility study, and It comes before the start of the project before building a business plan. The goal is to build a preliminary picture The goal is to develop a detailed plan for of the main project elements how the project will be implemented. A tool to aid in decision making A tool to aid in decision making It includes the most important elements A document with many pages containing of the project and written on one page. project creation details. It is a visual drawn method It is a narrative and explanatory method It is used for innovative projects such as It is used in traditional and innovative smart phone applications projects To answer the question: What should we To answer the question: How will we provide or do? carry out or manage the project?  What is a Business Plan? Find a Mentor: In today’s competitive world, an entrepreneur needs assistance to succeed. One way to get this type of assistance is by hiring a mentor. This will allow you to talk with individuals who are knowledgeable in the various aspects of business and learn from the success and mistakes of others – thus helping you to become more successful and avoid the same mistakes.  Contents of the Plan 1. Cover letter, title page, and table of contents 2. Executive summary 3. Mission and vision 4. Company summary 5. Market analysis 6. Marketing plan 7. Operations plan 8. Business model and financial forecasts 9. Management profile 10. Risk-and—reward profile 11. Appendix  Contents of the Plan Executive summary: The first section of a business plan covering the main points of the document. Its purpose is to convince readers that your business has merit. It encourages them to read the remaining sections.  Contents of the Plan The executive summary should explain: Purpose: intent of your business plan. Opportunity: market potential of the business. Benefits: unique selling proposition Financial requirements: much is needed Growth: how your company will grow in the next few years.  Contents of the Plan Company summary: The section of the business plan that tells the readers what the company is, who is behind it and where it is going. It provides a brief account of business operations, history, purpose and organization.  Contents of the Plan Management profile: The section of the business plan that details the backgrounds of the company’s management team.  Points to Remember The major sections in the business plan are: executive summary, company summary, management profile, risk-and-reward profile.  Points to Remember The executive summary covers the highlights of your business plan. The purpose of the summary is to convince readers that your business has merit. The company summary tells the readers what the company is, who is behind it, and where it is going. The company summary should include: names, background, history, and goals.  Points to Remember The management profile includes: organizational chart of managers, resumes, and professionals. Businesses have opportunities as well as risks. A good business plan does not skip the risks. Risk is unavoidable. Your business plan must unflinchingly confront risk in terms of potential problems and threats  Review Questions Do your Business Plan https://knowhow.ncvo.org.uk/tools-resources/business-plan-template/writing-your-business- plan https://www.princes-trust.org.uk/help-for-young-people/tools-resources/business- tools/business-plans