IT S YOUR BUSINESS TO PLAN! S., MA, RDN, LDN, FAND East Carolina University escottstumps@ecu.edu 252-744-1006 Objectives After this session, participants will be able to: Identify a relevant business planning opportunity Write a business plan using standard procedures Develop a network of associates willing to assist with the plan 1
Decide Why You Would Do This What is a Business Plan? BUSINESS PLAN: formal statement of department goals, the reasons the goals are believed attainable and the plan for reaching those goals. 2
10 Reasons Why You Need a Strong Business Plan 1. To attract investors. 2. To see if your business ideas will work. 3. To outline each area of the business. 4. To set up milestones. 5. To learn about the market. 6. To secure additional funding or loans. 7. To determine your financial needs. 8. To attract top-level people. 9. To monitor your business. 10. To devise contingency plans. 5 Types of Businesses and specific focuses Not-For-Profit Business Service goals For-Profit Business Financial goals 3
Business Plan Preparation Knowledge needed: 1.Financial Management 2.Human Resource Management 3.Property Management 4.Supply Chain Management 5.Operations Management 6.Marketing 3 Types of Business Plans 1. START-UP 2. EXTERNAL 3. INTERNAL 4
Types Externally-Focused businesses: Internally-Focused businesses: Target goals important to outside financial stakeholders Target intermediate goals required to reach department goals 10 How Detailed Should Your Plan Be? Business plans differ widely length appearance content emphasis placed on different aspects of the business. Depending on your business and the intended use, you may need several forms of your plan. 5
Draft Drafting Your Business Plan A business plan draft should be started and include: Vision Mission Statement Objectives Strategies Planning 12 Seven Common Parts of a Business Plan 1. Executive Summary 2. Business Concept 3. Market Analysis 4. Management Team 5. Marketing Plan 6. Financial Plan 7. Operations and Management Plan 6
Building a Business Plan Part 1: Executive Summary 13 3-5 page introduction to your Business Plan. Many individuals (including venture capitalists) only read the summary. The Executive Summary section includes: A first paragraph that introduces your business. Your business name and location. A brief explanation of customer needs and your products or services. The ways that the product or service meets or exceeds the customer needs. An introduction of the team that will execute the Business Plan. Begin at the Beginning Vision Statement State the vision and long term direction Goal and Objective State the desired goal State the desired objective Use multiple points if necessary 7
Products and Services Describe products and/or services of the company Allow others to see what you has to offer Benchmarking Process BENCHMARKING: A continuous process to continually seek to challenge current practices Comparing one s performance to those believed to be the best in the field 8
Competitive Analysis Building a Business Plan 18 Part 2: Business Concept Evidence that a product or service is viable and capable of fulfilling an organization's particular needs. 9
Feasibility Study A preliminary study conducted to determine a project s viability Should include: Operational requirements Project goals and objectives Description of project Financial feasibility Logic Model 10
Building a Business Plan 21 Part 3: Market Analysis A Market Analysis defines the target market so that you can position your business to get its share of sales. Simple Executive Summary 11
Market Analysis Know the overall market of your business Know the target market of customers Realize the customers needs When Setting Fees Do your homework! 12
Building a Business Plan 25 Part 4: Management Team This section outlines: Organizational Structure Management Team Working Structure Expertise Management Team 13
Building a Business Plan 27 Part 5: Marketing Plan The Marketing Plan section details what you propose to accomplish, and is critical in obtaining funding to pursue new initiatives. Strategy and Implementation Be specific on strategies How will your company differ from the rest? Key competitive capabilities Key competitive weaknesses 14
29 Part 6: Financial Plan The Financial Plan translates your company's goals into specific financial targets. Part 6: Financial Plan, continued 30 The most essential part of your Business Plan!! It shows investors the timeframes you have scheduled to make profits. Some elements of the Financial Plan include: Budget with all start-up expenses, equipment purchases, office purchases, payroll, etc. 15
Evaluation of Projected Results Include 1 year, 5 year, and 10 year goals Sample Business Plans 16
Prepare a PPT Presentation Use the 10 20 30 rule: 10 slides 20 minutes minimum 30-point font. Also -- Less is more! Prepare a 10-slide Presentation 1. First slide your business title/slogan 2. The next slide should introduce a problem that persists and is relatable to your target market. Statistics can help you support your comments, but cite only a couple 3. The third slide should get to your solution. Briefly describe in simple terms how your business has figured out how to alleviate the problem 4. How will you make money? Revenue sources. Customers. Pricing structure. 17
Prepare a 10-slide Presentation 5. Short summary of your operating plan how will this work? Kiosk? Clinic visits? 6. Brief description of your marketing plan 7. Describe your competitors (nicely) 8. Discuss (briefly) your team and their skills. People invest in other people! 9. Clear financial projection (3-5 year forecast) 10. Your current status what you have done so far Sample Business Ideas: NUTR 6600 Fertility Nutrition Clinic Prenatal Nutrition Center Breastfeeding Nutrition Clinic Neonatal Nutrition Clinic Pediatric Nutrition Clinic School-Based Nutrition Clinic Adolescent Nutrition Clinic Newlyweds Nutrition Clinic Women s Nutrition Clinic Men s Nutrition Clinic Senior Nutrition Center Healthy Nutrition Coaching Program Nutrition and Fitness Program Elite Athletes Sports Program Adult Weight Loss Program After-School Weight Loss Program Employee Weight Loss Program Seniors Weight Loss Program Home-Delivered Meals Nutrition Program Supermarket Nutrition Clinic Pharmacy Nutrition Clinic Healthy Meals Demo Center Food Safety Education Clinic Asthma and Allergy Nutrition Clinic Bariatric Surgery Nutrition Clinic Cancer Nutrition Clinic Cardiac Nutrition Clinic Celiac Disease Nutrition Clinic Diabetes Nutrition Clinic Eating Disorder Nutrition Clinic Farmers Market Nutrition Clinic Farm to Hospital Program Gastroenterology Nutrition Clinic Home Tube Feeding Program Renal Nutrition Clinic Vegetarian Nutrition Center 18
Time to Work! List one concept Purpose, goals Begin to draft the executive summary Identify a feasibility study Who will you benchmark against? Create a logic model Who will be on the management team? How will you market this project? Set up your financial plan Who might fund this? Include projected revenue and expenses Think 1 to 5 years out Go for it!! Conclusions 1. Make the plan match its purpose 2. A business plan should NOT be taken lightly - this may be your only chance to impress your investors 3. Business plan development occurs in stages 19
What Does Success Look Like? 20