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									Chapter 1

          The Business Plan

Perspective and Outline;
How to get started
The Business Plan

   A documented formal proposal for:
       The start up of a new business venture
       The growth and expansion of an existing business
       The implementation of special projects such as:
           In house personnel programs
           Marketing and sales proposals
           Social cause ventures
           Government legislation
           Special funding requests
           Non-profit organization functions
The Business Plan
   A business Plan serves as:
       Your application for the required permits, licenses
        and approvals.
       Your application for financing.
       Your confirmation of the likelihood of success.
       Your plan to follow for the first 12-24 months of
        What, Why, How, for Whom
   A statement or explanation of exactly what your
    business is.
   A description of your location and facilities, a
    verification of the financial feasibility of your
   A look at your administration, and a place where
    the answers to various agency’s and people’s
    question may be found.
   It may take a year or more to complete the
    collection of information.
   You may have to revise your plan to include new
    or more diverse markets, or other changes to get
    you over the top.
    Creation of a Business Plan
          -Executive Summary-

   A Description of the Business
   Company Mission Statement
   Short- Term and Long-Term Goals
   Location and Facilities
   Products and Services
   Keys to success
   Start-up Summary
     Executive Summary

   Point of reference for the Business Plan

   Typically one page in length

   Reader can clearly see your methodology,
    the major contents of the piece are, your
    final conclusion, and a reference to
    supporting documentation.
        Executive Summary
             Major Categories:
   Description of Business:
       Products, services, location, mission, short-
       and long-term goals.

   Market Research/Data, Analysis, and
       This is a summary of your analysis
       regarding competition, customer base, and
       sales forecast for the first two years of
        Executive Summary
            Major Categories:

   Approvals, Permits, Licenses:
       A verification that all of the necessary
       approvals and permits have been obtained.

   Financial Data:
       Projected income statements, cash flow
       statements, and balance sheets for the first
       two years of operation.
             Executive Summary
               -Major Categories-
   Organization and Staffing:
      Organizational chart with job titles and job
      descriptions for each staff member, along
      with credentials/resumes of management
      team, and operating procedures.
   Other:
      Information unique and relevant to your situation–
      for example, franchise information, equipment and
      supplier information, contracts, real estate data,
      and so on.
         Week 1 Student Activity
   Select a business
       What occupation or industry are you most
        interested in at this moment?

       Be sure to select something that you have an
         interest in, which make drawing up the
         business plan much more interesting and fun.
          Week 1 Student Activity
   Establish a Specific Focus
         Begin with the Business Description.
         Describe the business, its location, and its
           products and services.
         What are the primary markets that it will serve?
         What is the legal for of ownership, the layout of
          the facilities, and the number of employees?
   Scott, a business student has, wants to put new
    ideas into action in his parents business.
   His parents have owned a small tennis club for
    many years.
   Club has a limited exercise and fitness room, a
    locker room, and a small pro ship and snack bar.
   The facility is in a great location, and has enough
    room to grow.
Scott`s Executive Summary
The Mac Tennis Club has served the local
community for twenty-four years. To meet the
demands of its loyal customer base and of the
many new members of its growing community,
plans call for a major expansion of the currently
facility and the addition of the Mac`s son Scott as
managing partner. The tennis facilities and related
products and services will continue to be offered
in the great tradition established and developed by
the Mac family.
Plans call for a 60,000-square-foot addition to the
existing building that twill include one additional
tennis court, four racquetball courts, a fitness
equipment room, tow exercise studios, an indoor
track, and an expanded locker room, pro shop
and food court.

The current location meets all of the local
commercial zoning laws and regulations, and
includes adequate space for the building addition,
expanded parking, and other related facilities and
maintenance needs.
The addition of a fitness trainer and registered
diet technician will allow for increased health and
wellness services. The expanded food court will
offer full-service breakfast, lunch and dinner each
day. A banquet/function room will accommodate
private parties of up to forty.

Short-term goals call for the completion of the
project within eighteen months. Current tennis
and related products and services will not be
affected by the construction. The new facility will
be designed and built to allow for any furtue
changes needed to meet longer-term market
needs and demands.
Keys to success include a continuation of the
already well-established products, services and
traditions of the Mac family, the introduction of
new products and services that the local
community demands, a solid financial base from
which to operate, and strong support from the
local community and from the club`s many long-
term employees.

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