WHAT IS A BUSINESS PLAN? WHY DO I

NEED ONE?

EQUINE BUSINESS HOW TO: CREATE A BUSINESS PLAN FACT SHEET

As  an  equine  business  owner  a  business  plan  is  something  that  will  really  be  the  core  of  your  business.  It  is  essential  to  the  creation  of  a  new  business  or  the  expansion  of  a  current  business.  This  document  is  really  a  road  map  to  your  business’  success.  Business  plans  formally  state  your  businesses  purpose,  goals,  how  you  will  reach  those  goals,  information  about  the  business,  and  projections.  A  good  business  plan  shows  3  and  5  year  projections.  

Business  plans  are  so  important  for  new  businesses  but  established  businesses  will  find  them  useful  if  they  plan  to  expand  and  branch  out.  These  documents  are  ever  changing  and  are  living  documents.  

This  fact  sheet  will  talk  about  the  various  sections  included  in  a  business  plan,  as  well  as  some  helpful  tips  on  how  to  write  a  business  plan  for  your  business.    

There  are  several  key  sections  to  a  business  plan.  

These  key  parts  include;  the  Executive  Summary,  a  business  description,  a  market  analysis  section,  a  section  on  organization  and  management,  a  section  on  products  or  service  line,  marketing  and  sales  section,  a  section  about  funding  requests,  financial  projections,  and  an  appendix.    Not  all  business  plans  are  alike.  The  sections  listed  are  general  areas  but  some  business  plans  have  more  sections.    

HTTP://CCE.CLARK.EDU/BLOG-TAGS/BUSINESS-PLAN

WHO IS YOUR AUDIENCE?

Most  business  plans  are  for  financial  baking.  This  means  they  are  for  bankers  to  read  and  determine  if  your  business  is  something  they  want  to  invest  in.  Most  likely  your  customers  won’t  see  your  business  plan  but  they  also  play  a  role  in  the  writing.  Your  employee’s  and  the  different  people  associated  with  your  business  also  play  a  part  in  the  writing  of  the  business  plan.  

 

PARTS OF A BUSINESS PLAN

1 Building Strong and Vibrant New York Communities

Cornell Cooperative Extension of Madison County provides equal program and employment opportunities.

EXECUTIVE SUMMARY, BUSINESS DESCRIPTION, AND MARKET ANALYSIS

HTTP://THEPROFITEXPERTS.CO.UK/WP-CONTENT/UPLOADS/2012/12/BIGSTOCK_BUSINESS_PLAN_5491613.JPG

“Since  this  (the  executive  summary)  is  

considered  the  most  important  part  of  your  

business  plan,  write  it  last.  It  is  easier  to  reflect  on  what  you  have  written  and  why  it’s  

important  and  then  write  this  area.”

The  first  area  of  the  business  plan  is  the  executive  summary.  The  executive  summary  highlights  your  business,  explains  what  your  goals  for  the  business  are,  and  why  you  think  your  business  will  be  successful.  Commonly  included  areas  are  your  mission  statement,  a  brief  overview  of  the  business,  growth  information,  what  your  product  or  service  is,  any  financial  information  you  want  the  reader  to  know  off  the  bat,  and  any  ideas  about  the  future.  The  executive  summary  is  basically  an  overview  into  your  business  plan.  Since  this  is  the  first  section  of  your  business  plan  really  sell  your  business.  Talk  about  the  strengths  of  your  business  and  what  sets  you  apart  from  the  others.  Since  this  is  considered  the  most  important  part  of  your  business  plan,  write  it  last.  It  is  easier  to  reflect  on  what  you  have  written  and  why  it’s  important  and  then  write  this  area.    

  The  next  area  is  the  company  description.  Here  you  should  include  background  info  on  the  owner  or  owners  of  the  business.  Explain  the  qualifications  they  have.  Next,  talk  about  the  history  of  the  business.    When  was  it  established?  Why  did  you  go  into  business?  What  is  your  product  or  service?  What  makes  your  product  or  service  better  than  a  similar  one?  These  questions  all  should  be  answered  in  this  section.  

  The  next  section  of  the  business  plan  is  the  market  analysis.  This  selection  is  all  about  your  particular  industry.  You  should  write  about  what  your  particular  industry  is,  the  outlook  of  it,  the  important  factors  that  influence  your  industry,  the  size  of  the  target  market,  the  market  share  you  plan  to  have,  your  pricing  structure,  and  a  SWOT  analysis  (Strengths,  Weaknesses,  Opportunities,  and  Strengths).    

EQUINE BUSINESS HOW TO: CREATE A BUSINESS PLAN FACT SHEET

HTTP://FIRSTFINANCIALTEST.FILES.WORDPRESS.COM/2013/02/TIPS20FOR20WRITING20A20SMALL20BUSINESS20PLAN.JPG

2 Building Strong and Vibrant New York Communities

Cornell Cooperative Extension of Madison County provides equal program and employment opportunities.

The  next  section  is  about  your  businesses  organization  and  management  structure.  Here  is  where  you  discuss  information  about  the  people  who  work  in  in  your  organization  and  their  qualifications.  A  chart  showing  the  management  structure  is  a  great  idea  here.  Start  with  upper  level  management  and  work  your  way  down  the  ladder.  Describe  each  person’s  impact  on  the  business  and  maybe  list  their  job  description.    

The  next  area  of  the  business  plan  is  all  about  your  product  or  service!  What  exactly  does  your  business  offer  or  produce?  Here  you  describe  your  services  or  products  and  how  they  are  beneficially  to  the  consumer.  What  do  your  products  or  services  have  that  the  others  don’t?  The  main  purpose  of  this  section  is  to  explain  why  your  product  or  service  will  serve  the  needs  of  the  consumer.    

 Marketing  and  sales  is  the  next  area  of  the  business  plan.  Here  you  talk  about  the  marketing  strategy  of  your  business.  How  will  you  attract  and  maintain  a  customer  base?  What  types  of  promotion  will  you  use?  What  print  materials  will  best  suit  your  business?  How  about  web  marketing  and  social  media?  The  sales  part  is  all  about  the  plan  of  selling  your  product  or  business.  

5  Tips  for  A  Great  Business  Plan  

according  to  Patrick  Hull  of  Forbes  

• Get  rid  of  the  fluff-­‐  be  clear  and  concise;  get  to  the  point  quickly.  

• Be  realistic-­‐be  honest  with  yourself;  allow  your  business  idea  to  stand  on  its  own.    

• Be  conservative-­‐use  examples  that  show  that  you  are  using  conservative  thinking  with  your  projections.  

• Visuals  are  good-­‐  use  graphs,  charts,  and  images  to  your  advantage;  they  break  up  the  text  for  the  reader.  

• Be  creative-­‐  make  it  unique  to  your  business  and  grab  the  reader’s  attention.    

For  the  full  article  go  to  the  link  on  the  next  page.

ORGANIZATION AND MANAGEMENT, A

PRODUCTS OR SERVICE LINE, MARKETING AND

SALES

EQUINE BUSINESS HOW TO: CREATE A BUSINESS PLAN FACT SHEET

HTTP://2.BP.BLOGSPOT.COM/-CNDND_CLJN8/T1VWQ40BF5I/AAAAAAAAALK/I4TBGNILIQU/S1600/REALLY_NEED_A_BUSINESS_PLAN(OURBUSINESS).JPG

3 Building Strong and Vibrant New York Communities

Cornell Cooperative Extension of Madison County provides equal program and employment opportunities.

EQUINE BUSINESS HOW TO: CREATE A BUSINESS PLAN FACT SHEET

4 Building Strong and Vibrant New York Communities

Cornell Cooperative Extension of Madison County provides equal program and employment opportunities.

The  next  two  sections  of  your  business  plan  kind  of  go  together  and  are  very  important  to  your  business  plan.  This  section  on  funding  is  only  if  you  are  seeking  funding  for  your  business.  Here  you  talk  about  what  the  current  funding  requirement  your  business  needs,  followed  by  any  funding  needed  for  the  next  five  years  of  operation.    You  then  discuss  how  you  use  or  plan  to  use  the  funds  you  are  seeking.    

The  next  area  is  the  financial  projection  section.  Here  you  discuss  the  math  behind  your  business.  If  you  are  an  existing  business  you  would  show  your  income  statements,  balance  sheets,  and  cash  flow  statement  for  each  year  your  business  has  been  in  existence.  If  you  are  a  startup  or  an  existing  business  most  creditors  want  to  see  three  and  five  year  future  projections.  Here  you  should  forecast  your  income  statements,  balance  sheets,  and  cash  flow  statements.  For  the  first  year  you  should  show  monthly  or  quarterly  projections.  After  that  yearly  projections  are  suggested.    Make  sure  that  you  are  consistent  between  your  projections  and  funding  request  section.  You  want  to  use  graphs  and  charts  in  this  section.    

The  last  area  of  your  business  plan  is  the  appendix.  This  section  is  different  for  everyone.  You  would  put  any  vital  paperwork  in  this  section.  They  would  include  but  not  be  limited  to:  resumes,  service  pricing  sheets,  any  contracts,  employee  handbooks,  reference  letters,  market  studies,  building  permits,  and  the  list  goes  on  and  on.    

For  more  information  on  business  plans  or  general  business  advice  please  visit  these  websites  along  with  our  website!  

v http://www.sba.gov/  

v http://www.equestrianprofessional.com  

v http://www.entrepreneur.com/businessplan/index.html  

v http://www.forbes.com/sites/patrickhull/

2013/02/28/5-­‐tips-­‐for-­‐a-­‐great-­‐business-­‐

plan/  

v http://www.madisoncountycce.org  

FUNDING REQUESTS, FINANCIAL PROJECTIONS,

AND THE APPENDIX.

HTTP://WWW.WORKSMARTMOMPRENEURS.COM/BLOG/WP-CONTENT/UPLOADS/2012/10/URL-11.JPG

We hope this overview helps you in developing

your business plan. See the helpful websites on

left!