Business Plan Guide
Killingly Agricultural Education
SAE: Entrepreneurship Requirement
All Business Plans should include the following items:
· Cover Page, Including: Companies Name, Your Name, and a graphic
· Table of Contents: Make sure each of the headings below is included, along with a page number of where the heading can be found
· Appendix: Any charts, tables, examples of products or advertisements, etc. should be included in the back in an appendix. They should be a letter and headings for each item put in the appendix- this will make it easier to refer to your appendix items in your Business Plan
Executive Summary:
· Provides an overview of the key information that is developed in greater detail throughout your Business Plan. Aim for clarity and simplicity!
· Make it enthusiastic, professional, complete, and concise.
· Hint: Write this piece LAST. Once you have done all of your research and collected your data, this will be much easier to complete!
· The Elevator Test- Can you explain your basic business idea in the time it takes to get from the lobby to the 5th floor of a building?
· Questions to Answer:
o What is the status of the business? Start-up, expansion, or take-over?
o What are your products (overview, do not go in detail)
o Who are (or will be) your customers?
o Why will you be successful in this business?
o What will be special or unique about this business that will set you apart from others who sell a similar product or service?
o What is the Vision or Mission Statement for your business?
o What is the location of your business? Where will you be selling your products?
Product Description:
· Describe your product offering. This will include details of product/services you are selling. You must also describe the product benefits, and why customers will want to buy it.
· If your product/service is not unique, you must find a way to position your product/service in the mind of your customer and to differentiate them from the competition. Examples include: Highest quality, lowest price, wider selection, best customer service, faster delivery, etc.
· Questions to Answer:
o What product/serves are you (will you be) selling? Be specific!
o What are the features and benefits of what you sell?
o How do your products/services differ from the competition?
o What makes your products unique and desirable?
o Why do (will) customers buy from you?
o What do you still need to learn to be able to create your product or offer your service? Example: Do you need to take a photography course? Or a framing class?
o Do you need to experiment with a “magic formula” to make your product perfect? Example: If you’re making soaps, do you need to try several different recipes to find the one you like best?
Market Analysis:
· For new businesses, market analysis is important as the basis for the marketing plan, and to help justify your sales predictions.
· Do research on the business you wish to enter into. Use government statistics, research from the library, and survey people who you hope to have as future customers. Most librarians can help you with business data collection. Your local chamber of commerce is also a great place to start.
· Questions to Answer:
o Who are the purchasers of your product or service?
§ Geographic Location
§ Demographics: Male vs. Female, Average Age of Customers, Race, etc.
§ Economic Status: What is the average annual income of your customers? What are their careers?
§ What do they think of your competition? Are they loyal to your competition? Why or why not?
o What is the size of the market? Is it growing?
o What is the industry outlook? Is it becoming more popular, and growing, or have other companies in the same area been slowly loosing business over time?
o What/Who is your competition? Who else is offering your product/service?
o What makes your product/service better then your competitors?
o What is great about your location? If you need to- do a traffic count at a proposed selling location, or create a focus-group to ask about location preferences.
SWOT Analysis:
· It is important to outline your SWOT’s when creating your business plan so that you are fully aware of your strengths and weaknesses.
· By identifying these, you will better be able to avoid less then ideal situations for your business, and increase sales and profits.
· Questions to Answer:
o Strengths: What do you do really well? What are your advantages over others who are in the same business?
§ Examples: Skills, lower expenses, reputation, education/knowledge
o Weaknesses: What can you improve upon? What do others in the industry do better then you?
§ Examples: Poor location, higher expenses, no reputation, lack of skills
o Opportunities: Are their sources for additional profits or new lines of businesses?
§ Examples: Market growth, competitor closing businesses, chance to expand, less expensive inventory
o Threats: What are the risks to your business? How probable are they?
§ Examples: Society trends, new competitors, customer groups relocating
Marketing & Sales:
· Provides a detailed description as to how you are going to spread the word to your customers, and continue to gain new customers.
· All flyers, radio/television ads, business cards, websites, and other marketing products should be attached in an appendix at the end of your Business Plan.
· Questions to Answer:
o Product Strategies: If you are selling a product;
§ How will products be packaged?
§ How broad (or narrow) will your product line be?
§ Will you eventually introduce new products?
o Pricing Strategies:
§ How will you compare with competition and how will customers respond?
§ Why will customers pay your price?
§ What forms of payment will you allow? Cash, Check (made out to whom?), Credit (How?)?
§ Do you have a return policy, or a guaranteed satisfaction policy?
§ Will you offer sales to frequent buyers? Discounts for buying in larger quantities?
o Promotional Strategies:
§ How will you reach your Target market? What media will you use? Advertisements (radio, newspaper, television, magazines), Social Media, brochures, flyers, signage at your business location, etc.
§ How often will you use your advertisements? Where will they be placed (be specific).
§ How will you motivate customers to buy? Will you offer sales? When and why?
Goal Setting:
· It’s important to set goals in order to keep your business on track. All goals should be SMART Goals, and should help set milestones that you would like to see accomplished throughout the life of your business.
· Questions to Answer:
o What skills are you planning on learning through the operation of your business?
o What will be your profit margin? How many items do you hope to sell? How much profit do you want to make? Think long term- how much do you hope to make this year, next year, and a third year out?
o What do you plan on doing for marketing? When do you want to run your advertisements and promotions? Where?
o Where do you plan to sell your product/service? Examples can include: online, craft fairs, local businesses, etc. Be SPECIFIC!
Financial Plan:
· A financial plan should include charts and graphs projecting future sales, expenses, and any other data you feel is important to the success of your business.
· It is important to create a financial plan for the next 3 years. This can be altered at any time, but for a business, it’s important to envision what you expect the future to look like!
· Questions to Answer:
o What money will you need to spend to create an inventory? Where will you be getting this money?
o What equipment do you need purchase or lease?
o How much do you plan on selling each year (You should create a 3 year plan for sales)? Be specific- How many items of each product of service?
o How much money will you invest in advertising? Make sure to include fees for printing business cards, brochures, flyers, etc., as well as costs to run ads, create websites, etc.
o Will you need a loan? If yes, where will you be getting the loan from (Parent, Bank, FFA Alumni, etc.)? What is your plan for paying them back?