©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™™

Business Plan

Management and Organization Plan • Management team

• Compensation and ownership

• Contracts and franchise agreements

• Board of directors/advisory council

• Infrastructure

• Insurance

• Employee stock option plan and other incentives

• Organization chartsBP.1 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™™

Business Plan

Product/Service Plan

• Purpose of the product or service

• Unique features

• Stages of development

• Future research and development

• Proprietary or intellectual property

BP.2 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™™

Business Plan

Product/Service Plan

• Governmental approvals

• Product/service limitation

• Product/service liability

• Related services and spin-offs

• Production

• Facilities

BP.3 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™™

Business Plan

Marketing Plan• Industry profile

Current sizeGrowth potentialGeographic locationsIndustry trendsSeasonal factorsProfit characteristicsExisting distribution networksBasis of industry competitionProfile of competition

BP.4 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™™

Business Plan

Marketing Plan

• Customer profile

• Target market profile

• Pricing profile

• Gross margin on products

• Break-even analysis

• Distribution channels

• Sales representativesBP.5 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™™

Business Plan

Marketing Plan

• Direct-sales force

• Direct mail/marketing

• Advertising and promotion

• Packaging and labeling

• Services and warranties

• Trade shows

• Future marketsBP.6 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™™

Business Plan

BP.7 © 2004 Ewing Marion Kauffman Foundation

Financial Plan

• Budget worksheets

• Assumptions

• Cash flow statements

• Income statements

• Balance sheets

©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™™

Checklist

Explain Financial Projections

In addition to projected financial statements, the body of the Business Plan includes an explanation of:

Sales projections

Income projections

Cash requirements

Sources of financing

BP.8 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™™

Checklist

Explain Financial Projections

The Appendix includes support documents:

Historical balance sheet and payoff schedule for existing businesses

Start-up funding and expenditures for new businesses

Worksheets and assumptions for three years–sales, inventory, operating expenses, capital budget, equity & debt

BP.9 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™™

Business Plan

BP.10

Operating and Control Systems Plan

• Administrative policy, procedures, and controls

Receiving ordersBilling customersPaying suppliersCollecting accounts receivableReporting to management Staff development

© 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™™

Business Plan

BP.11 © 2004 Ewing Marion Kauffman Foundation

Operating and Control Systems Plan

• Administrative policy, procedures, and controls

Inventory controlHandling warranties and returnsMonitoring the company budgetsSecurity systemsDocuments and paper flow

©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™™

Business Plan

Operating and Control Systems Plan• Planning Chart

Product/service developmentManufacturingFinancial requirementsMarketing flow chartMarket penetrationManagement and infrastructure

• Risk analysis

• Salvaging assets

BP.12 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™™

Business Plan

Growth Plan

• New offerings to market

• Capital requirements

• Personnel requirements

• Exit strategy

BP.13 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™™

Business Plan

Appendix• Three-year budgets and financial projections

• Research documentation

• Product and location photos

• Operating/control systems

• Customers’ letters of intent

• Industry studies, demographics, magazine articles

• Detailed descriptions of high-tech products

BP.14 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™™

Business Plan

Appendix• Map showing location of business

• Credit reports

• Personal financial statements

• Tax returns

• Management team resumes

• Employee contracts, stock option plans, and the like

BP.15 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™™

Business Plan

Appendix• Patent, trademark, and/or copyright documents

• Business agreements

• Product/service brochures and advertising samples

• Company logos

• Reference letters, recommendations, endorsements or testimonials

BP.16 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial Leadership PLANNING AND GROWING A BUSINESS VENTURE™™

Presenting Your Business Plan

1. Obtain referrals

2. Make the appointment

3. Submit business plan for review

4. Prepare for the interview

5. Present your business plan

6. Close the deal

BP.17

Key: Match your business with the appropriate money source.

© 2004 Ewing Marion Kauffman Foundation