The document provides guidance on building an effective business plan, including why it is needed, what should be included, who will see it, and how to construct it. An effective business plan (1) establishes goals and objectives, (2) describes products/services, marketing strategy, operations, management, and funding, (3) includes financial projections, and (4) is used to obtain investment and gauge business performance over time. The business plan should be thoroughly researched, professionally written and formatted, and revised based on feedback to strengthen investment opportunities.

1. Building A Business Plan
 Why do I need one?
 What do I put in it?
 Who sees it?
 Will I ever use it again?
 How do I build a business plan?

2. Why do I need a business plan?
 If you don't know where you are going you
may end up somewhere else
 You never get a second chance to make a first
impression
 You need a coherent vehicle to present to
investors and/or bankers
 You need a plan (See case study)

3. What goes in a business plan?
 After your table of contents comes your
Executive Summary. Although it comes first, it
is written last
 It must be concise (no more than 4 pages)
 It must be SMART (Specific, Measurable,
Attainable, Realistic and Time sensitive)

4. What Goes in a Business Plan?
 Next comes a general company description.
 Mission Statement
 Company Goals and objectives (SMART)
 To whom will you market your product (Briefly)
 Business Philosophy
 Describe your industry
 Core strengths & competencies
 Legal Form of ownership

5. Products and Services
 Describe in depth your products or services
 What factors will give you competitive
advantages or disadvantages?
 Include examples of level of quality or
proprietary features
 What are the pricing, fee or leasing structures
of your product or services?

6. Marketing Plan
 Begins with careful, systematic thorough
research
 Secondary research (Industry profiles, trade
journals, libraries, chamber of
commerce, internet etc.
 Primary Research (Traffic counts on
site, identify competitors, research consumer
preferences)
 Be as specific as possible, give
statistics, numbers and sources.

7. Marketing Plan
 Total Size of Market VS your realistic share?
 Define your target market, growth trends and
customer demographic. Who buys it & why?
 What Barriers do you face? How will you
overcome these barriers?
 Product Features and Benefits (Why should
the customer want to buy your products?)
 Competition. Analyze their strengths and
weaknesses and compare them to your own

8. Marketing Plan
 In one short paragraph describe your unique
niche in the market
 Design a marketing strategy consistent with
your niche
 Promotion (How will you get the word out to
the customers?)
 Advertising (What media, why, how often.
 Advertising on a shoe string budget
 What image do you want to project?

9. Marketing Plan
 Promotional Budget
 Pricing (explain how you arrived at it. What's
your profit level?)
 What are your customer service policies?
 Proposed location
 Distribution channels
 Sales Forecast (do two - “best guess” and
“worst case” Be thorough and realistic)

10. Operational Plan
 How and Where are your products produced?
 Location (Where? How big? Access, Zoning)
 Licensing, Permits, Regulations, Insurance
 Personnel, Pay structure, training, job
descriptions, schedules etc.
 Inventory (what kind, turns, seasonal, Lead
Time, Average value of stock?)
 Suppliers (credit & delivery policies)
 Credit Policies, Receivables & Payables

11. Management and Organization
 Who will manage the business & what are
their qualifications?
 Personal Financial Statements
 Start up Expenses and Capitalization
 What is your 12 month Profit and Loss
Projection.
 Projected Cash Flow for start up, preliminary
expenses, operating costs and reserves

12. Funding
• How is your start up being funded?
• How much money is in your contingency fund?
• Do you need more funding?
• What is your “Ask”?
• What will you use it for?
• How and when will you pay it back?

13. Appendix
• Contains proofs and examples
• Pictures or brochures of equipment to be
purchased
• Business License, Name registration,
Partnership Agreement (if any), Incorporation
papers (if any)
• Cash Flow Projections
• Market Research Sources
• Resumes of owner, partners and key staff

14. WHO SEES MY BUSINESS
PLAN?
• Members of your advisory board
• Family Members and friends
• Key Employees
• Partners
• Suppliers
• Potential Investors

15. Will I ever use it again?
• You will use it continually
• Compare projections with actual results
monthly
• Revise it to reflect reality every 3 months and
extend it out an additional 3 months
• Use it to red flag cost increases, lower than
expected revenues or insufficient margins
• Keep it current in case you need interim
financing for a big deal or an expansion.

16. How do I build a Business Plan?
• Do the research.
• Identify your market niche
• Define your ideal customer
• Calculate your costs and overhead expenses
• Identified suppliers and lead times for delivery
• Determined your distribution channels
• Set Goals and objectives

17. Building your Business Plan
• SWOT Analysis (Strengths, Weaknesses,
Opportunities and Threats)
• SWOT your business idea
• SWOT the owner and partners and key staff
• SWOT each and every competitor
• SWOT each of your products and services

18. Building Your Business Plan
• Visit several financial websites looking for
downloadable Business Plan Templates
• Create a 1 page Business Plan to act as an
outline for your full Business Plan
• Identify your core personal values
• Write a Mission Statement for your business
• Write a Vision Statement for your business
• Make sure both reflect your core values

19. Building Your Business Plan
• What is your marketing plan? (Write one)
• What are the best social media marketing
tactics?
• How much will you budget for marketing
(Where, how often, at what cost?)
• Identify your sales strategies
• Identify the benefits of your product or service
from the customer point of view

20. Building Your Business Plan
• Put all of your gathered research into the
Business Plan Template from the Financial
Institution you are most likely to seek funding
from.
• Spell check and Proof read it.
• Get other people to proof read it for you
• Revise it, edit it and check the spelling again
• Proof read the revisions

21. Building Your Business Plan
• Get an accountant or book keeper to review
your cash flow projections
• Find a professional proof reader or editor to
edit your 3rd draft before you make it final
• Get a professional to format and print the final
draft on high quality paper
• Bind each copy into a presentation folder and
number it for tracking purposes

22. What Now?
• Make an appointment with your potential
investor(s)
• If you get turned down, ask for feedback and
advice from the potential lender.
• Make all suggested revisions and prepare to
submit it to a different funder (maybe several
different funders)
• Look for alternate methods of finance

23. Summary
• A well written business plan is not a magic
bullet.
• You might not get funding even with a great
business plan. You have a 10% chance.
• You will NOT get funding without a well written
Business Plan
• You need to have at least 25% of your $$
“ASK” in cash on hand or assets to qualify for
most business loans

24. Fraser Valley Training Group
http://fraservalleytraining
group.com/
http://www.linkedin.com/
company/fraser-valley-
training-group
http://www.slideshare.net
/RichardLindfield