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					So You Want To Go Into
                Presented to
The Future Entrepreneurs and Business Leaders
             of the Senior Class
        of Hudson Falls High School

                  Presented by
                 John S. Kvocka

                  May 11, 2007
                 Who is this Guy???
•   New York City Born and Raised
•   Education: BS and MBA St. John’s University, NYC
•   Spent 36 years in the Corporate World and as a Senior Exec for some Big
    outfits, traveled the world extensively
•   Consultant to Business in Planning, Leadership and Management
•   Certified Franchise Consultant
•   Taught part-time as an adjunct professor at 2 Colleges
•   Married 33 years, one son (and 2 dogs)
•   Live in Queensbury last 14 years
•   Entrepreneur for last several years, Own an English Pub with my son and
    some Real estate properties
•   Volunteer work
•   Avid Sports Fan, Car Nut and Oldies Music freak!
The Business Plan
    (For a Start-up Business)

• Why have a Plan?
• Who am I doing it for?
• What’s in a Plan?
        Table of Contents
•   Executive Summary
•   General Company Description
•   Products & Services
•   Marketing Plan
•   Operational Plan
•   Management & Organization
Table of Contents continued

 •   Personal Financial Statement
 •   Start-Up Expenses and Capitalization
 •   Financial Plan
 •   Appendices
 •   Refining the Plan
            Executive Summary
• Write this Section LAST!
• Covers everything you would include in a 5 minute
• Fundamentals of the business…product, service to be
• Who will be your customers? Who are the owners?
• What does the future hold for your business and your
• Enthusiastic, professional, complete and concise.
• If for a loan, how much, for what, and how will it make
  your business profitable? (So it can be repaid!)
     General Company Description
• What is the business, what will you do?
• Vision, Mission, Values
• Company Goals and Objectives
• Your Business Philosophy
• To whom will you market your products?
• Describe Industry (Growth? Changes? How will you take
  advantage of them?)
• Your most important strengths & competence—to make
  company succeed—your competitive strengths, experience
  and skills
• Legal form of ownership—Partnership, Corporation, LLC
  and why this form selected?
             Products and Services
• Describe in depth your products and services
  (Technical specifications, drawings, photos, sales
  brochures and related belong in the Appendices)
• What factors will give you competitive advantages or
  disadvantages? Examples include level of quality or
  unique or proprietary features.
• What are the pricing, fee, or leasing structures of your
  products or services?
                  Marketing Plan

• This area requires careful, systematic research, not just
  ―gut feel‖
• Two kinds of data are needed: Primary and Secondary
• Secondary research means using published
  information: industry profiles, trade journals,
  newspapers, magazines, census data, demographics
• Primary research means gathering your own data:
  traffic counts, yellow pages, surveys, visits to
  competitors, interviews. Professional market research
  is also a method, but is expensive.
• Be specific, giving statistics, numbers and sources
          Marketing Plan continued

• Economics—regarding your industry, size of market?
  Your share of market, current demand, trends, growth
  potential, barriers to entry you face—costs, acceptance,
  brand recognition, training and skills, technology, unions,
  other barriers…and of course how will you overcome
  these barriers?
• How could changes in technology, government regs, the
  economy and industry changes affect your company?
            Marketing Plan continued

• Product –Describe your products and services from your customers’
point of view
•Features and Benefits—most important features, what is special?
Benefits—what will product do for the customer? Note differences and
what after-sale services will be provided? Also include various policies
regarding delivery, warranty, service contracts, support, refund policy
•Customers—who are targeted customers, their characteristics,
geographic locations (demographics)? Give their profile—Age, gender,
location, income level, social class and occupation, education and other
factors specific to your industry. For business customers—their industry,
location, size of firm, quality, technology and price preferences, etc.
              Marketing Plan continued
• Competition—What products and companies will compete with you?
  List your major competitors. In what areas, products, customers and
  locations will they compete? Or across the board? Will you have
  indirect competitors providing alternative products/services to
• How will you compare with the competition?
• Draw up a competitive analysis table to compare various factors to
  show how you present your business side by side with key
  competition. Customize as appropriate to your industry. List things
  such as product selection, price, quality, service, reliability, stability,
  expertise, reputation, location, appearance, etc. Prioritize factors by
  importance and be very honest in your assessments.
• Niche—in one short paragraph define your niche, your unique
  corner of the market.
       Marketing Plan continued
• Strategy—outline your market strategy that is
  consistent with your niche.
• Promotion—how will you get the word out to
  customers? Advertising, media – why, how often?
  Other methods to stimulate business? What image
  do you want to project, how do you want your
  customers to see you? Other considerations such
  as logo design, brochures, signage, etc. A system
  to identify and contact repeat customers?
• Promotional Budget—start-up, ongoing
       Marketing Plan continued
• Pricing—explain your method of setting prices,
  does it fit with competitive situation? Are you
  higher, lower, same and why? How much is price
  a factor given your position in the market?
• Location—this may be an extremely critical
  decision depending upon the nature of your
  business. Physical needs to be described later in
  the Operational section.
               Operational Plan
• Production—How and Where are your products
  or services produced? Explain methods,
  techniques, quality control, customer service,
  inventory control, product development
• Location—What qualities do you need in a
  location? Space, type of building, zoning, power
  and utilities, access, proximity to transportation,
  parking, etc. Include a drawing or layout. Include
  cost estimates for the location-construction, fit-up,
  rent, insurance, utilities, maintenance, etc.
        Operational Plan continued
• Legal Environment—Licensing, bonding, health,
  workplace/environmental regs, zoning, building code,
  insurance coverage, trademarks, patents, copyrights, etc.
• Personnel—Number of employees, type of labor, where
  and how to find, quality and skills of staff, pay structure,
  training, tasks to be done, schedules.
• Inventory—Kind, value, rate of turnover, seasonal
  considerations, storage, order lead times, etc.
• Suppliers—Key suppliers, names, addresses and
  description of products furnished, costs, terms.
• Credit—dealings with customers, payment terms, etc.
    Management and Organization
• Day to day management—experience and
  competencies of responsible person
• Organizational structure—chart
• Position descriptions for Key employees
• Resumes of Owners and Key Management
• Professional and Advisory support—Board of
  Directors, Attorney, Accountant, Insurance Agent,
  Banker, Key Advisors
    Personal Financial Statement

• Include personal financial statements for
  each Owner with Assets and Liabilities held
  outside the business and personal Net
      Start-Up and Capitalization
• Provide estimates of all start-up expenses. Be
  conservative and allow a cushion for unforeseen
  items. Identify potential contingency requirements
  as well.
• Explain how you arrived at these estimates
• Give sources and amounts of proposed loans and
  identify amounts contributed by each investor and
  percent of each one’s ownership in the business.
                Financial Plan
• 12 Month Profit and Loss and Cash Flow
  Projection—identify key assumptions and risks.
  Also outline actions to be taken in the event
  projections do not meet expectations. Use both
  narrative and numeric presentation.
• Provide a 3 Year Forecast along with the first
  year statement, in similar form.
• These statements will show whether your initial
  and ongoing cash flow is adequate to sustain the
  business and repay any loans made.
• Include any pertinent back-up documents
  referred to in the Plan or data that will
  supplement and support statements made or
  information used in development of the Plan.
• Examples: Brochures, industry studies, maps,
  blueprints, magazine or other articles, leases,
  contracts, letters of support from customers,
  market research studies, list of assets for
  collateral for a loan.
             Refining the Plan
• For Raising Capital—amount of loan, how funds
  will be used, what will it accomplish (make it
  stronger?), requested repayment terms, collateral
  offered, along with any existing liens against
• For Investors—funds needed short-term, needed
  in 2-5 years, how will funds be used, and what
  accomplished, estimated return on investment, exit
  strategy for investors, percent ownership obtained
             Refining the Plan
• For Type of Business
• Plan will be modified according to
  Manufacturing, Service, High Tech, Retail
• Further details pertinent to type of business will
  enhance the Plan and make it more suitable and
• The Plan should remain a dynamic tool for use by
  the management and owners on an ongoing basis!
  It should be updated periodically!

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