2. Today’s
Agenda
• What
Will
I
Do
This
Year?
• Introduc9on
to
Entrepreneurship
• What
is
a
Business
Plan?
3. What
Will
I
Do
This
Year
?
• You
will
assume
the
role
of
a
teen-‐based
business
owner.
• The
form
of
business
ownership
you
will
assume
is
that
of
a
sole
proprietorship.
•
A
sole
proprietorship
is
a
business
owned
and
operated
by
one
person.
4. Ups
and
Downs
of
a
Sole
Proprietorship
Advantages
Disadvantages
1. Work
long
hours
2. Provide
the
necessary
startup
money,
known
as
CAPITAL
3. Responsible
for
money,
owed,
known
as
DEBT
4. Dependent
on
your
health
and
ability
to
operate
5. WHAT
IS
AN
ENTREPRENEUR?
• An
entrepreneur
is
an
amazing
person
who
organizes,
operates,
and
assumes
the
risk
for
a
business
venture.
• To
start
a
new
business
entrepreneurs
need
a
business
plan,
which
we
will
discuss
next.
6. What
is
a
Business
Plan
and
Why
Have
One?
• A
business
plan
is
a
series
of
documents
that
serves
as
a
blueprint
for
star9ng
a
business.
• A
business
plan
includes
informa9on
about
– the
business
– the
industry
in
which
it
competes
– its
products
and/or
services
– its
customers
– its
compe9tor,
and
– its
finances
7. What
is
a
Business
Plan
and
Why
Have
One?,
cont’d.
• Business
plans
allow
owner
to
break
down
the
process
because
it
can
be
an
overwhelming
task.
• Business
plans
indicate
1. current
status
of
the
business
2. vision;
future
goals,
and
objec9ves
3. a
plan
to
achieve
the
vision
8. What
is
a
Business
Plan
and
Why
Have
One?,
cont’d.
• The
primary
func9ons
of
a
business
plan
are
1. set
goals
and
objec9ves
2. aYract
poten9al
investors
3. acquire
financing
4. aYract
quality
emloyees
5. aYract
poten9al
new
customers
9. Components
of
a
Business
Plan
• Cover
Page
• Funds
Required
and
• Execu9ve
Summary
Expected
Uses
• Company
Descrip9on
• Financial
Statements
• Descrip9on
of
• Owner’s
Creden9als
Products
and
Services
(resume)
• Market
Analysis
• Supplemental
• Marke9ng
Plan
AYachments
• Opera9ng
Plan
10. Components
of
a
Business
Plan
• Cover
Page
–
includes
the
company
name
and
address
informa9on,
the
author
of
the
business
plan,
and
the
date
the
business
plan
was
prepared.
11. Components
of
a
Business
Plan
• Execu9ve
Summary
–
summarizes
all
the
sec9ons
of
the
business
plan;
it
is
to
capture
the
aYen9on
of
the
reader.
12. Components
of
a
Business
Plan
• Company
Descrip9on
–
sec9on
that
includes
all
details
about
the
the
business
including
its
age,
history,
legal
form
of
ownership,
industry
classifica9on,
structure,
loca9on,
the
number
of
employees,
and
its
primary
func9ons.
13. Components
of
a
Business
Plan
• Descrip9on
of
Products
and
Services
–
provides
detailed
informa9on
about
the
products
or
services
that
will
be
offered
to
customers.
14. Components
of
a
Business
Plan
• Market
analysis
–
informs
the
reader
of
the
condi9ons
and
trends
in
an
industry
including
the
target
market
of
the
business,
demographics
of
the
target
market,
and
an
analysis
of
the
compe99on.
• Marke9ng
plan
–
plans
for
building
and
maintaining
the
customer
base,
benefits
that
the
customers
will
have
for
choosing
this
business
or
service
over
compe9tors,
pricing
informa9on,
and
promo9on
and
adver9sing
plan.
15. Components
of
a
Business
Plan
• Opera9ng
Plan
–
tell
how
the
business
will
acquire
materials
and
supplies
to
how
they
will
be
distributed
to
the
customers.
16. Components
of
a
Business
Plan
• Schedule
of
Start-‐up
funds
Required
–
shows
the
detailed
plans
for
the
use
of
any
funds
needed
to
start
the
business.
17. Components
of
a
Business
Plan
• Financial
Statements
–
includes
a
Statement
of
Profit/Loss,
a
Balance
Sheet,
a
Statement
of
Cash
Flow
• Resume
–
also
known
as
owner’s
creden9als,
provides
reader
with
the
background
and
work
experience
of
the
owner
of
the
business.
18. Components
of
a
Business
Plan
• Supplemental
AYachments
– Logo
and
Tagline
– Business
Cards
– Company
LeYerhead
– Customer
Prospect
Database
– Promo9onal
LeYer
– Brochure
– Newspaper
Adver9sement
– iMovie
(commercial)
– Website
19. 5
Characteris9cs
of
a
Good
Business
Plan
• Neat
• Organized
• Professional
• Well-‐wriYen
and
well-‐designed
• Highlight
important
aspects
of
the
business
