Your mission is to create a Business Plan for a business idea you will develop. It can be any product or service that YOU are interested in. Obviously, creativity is not only encouraged, but necessary. That said, your business idea must be feasible, however some information will be fictional (ie: Website address. etc.).
You may and SHOULD consult your textbook for guidance on each section. There is guidance on preparing a Business Plan in your textbook starting on page 242. I DO NOT WANT A COPY OF THAT PLAN FROM YOU. Be creative! I would also suggest your browse the Small Business Administration (US Government) website on Business Plans. (www.sba.gov).
AS ALWAYS, I will applaud and enjoy your original work. Plagiarism in any form will result in your earning NO CREDIT for the project. As this constitutes 20% of your grade, DO NOT RISK IT!
Your Business Plan MUST contain AT A MINIMUM the following sections.
REQUIRED PARTS OF YOUR BUSINESS PLAN:
I Cover Sheet
Include your name, your company name, email and website address and your company logo and slogan. This should be a separate page.
II Business Summary
This will be a three or four paragraph statement that will serve as a BRIEF introduction to your business. The key elements of this section should include:
Your company’s mission (statement)
The product(s) and or service(s) you sell (briefly)
Where you will operate your business (location(s), on-line, etc.)
Staffing needs (number of employees, their positions, etc.
III Product/Service Details
This section will describe in detail what your product or service is and how it will meet the needs of your customers. (Drawing, photos, etc. are welcome). You will explain the benefits of your product or service and the advantages it has over your competition (what is your “competitive advantage”).
This section should also include a discussion on pricing – how much you will sell your product for, as well as costs – what your product will cost to produce and sell, and then, your anticipated profit per unit.
IV Marketing Plan
In this section you will provide detailed information to show that you have a solid understanding of the industry within which your business will operate. It should answer the following questions:
Who is your target market (customer base)?
Who is your competition?
How will you “sell” (market) your product or service?
How will you “advertise” your product/service to your potential customers?
Why should your customers buy your product or service versus that of your competitors?
A RESEARCHED statement of the present and future growth potential for your business and your industry (why you decided to enter this particular business)
V The Financial Plan
This section is key to attract investors and satisfy lenders because it shows that your company is built on thoughtful planning. There will be considerable fiction in this section, albeit I will be looking for REASONABLE numbers. For example, rent on a storefront in Nassau County will not be $1,000,000 a month, nor will it be $200 a month. DO SOME RESEARCH!
At a minimum, you need to answer the following questions:
How much money will you need to start your business?
What will you do with these funds? (This requires a schedule of numbers).
How do you intend to raise your start-up capital? From what sources?
The foregoing is also called your “Sources and Uses” statement.
This section should also include at least the three financial statements as indicated below. I would refer to your textbook – Chapters 12 through 15 for guidance.
Profit and Loss Projection (Income Statement): This statement answers the questions
How much will I sellin my first year of operations?
What will my costs be?
Will I have a profit or a loss?
Projected Balance Sheet: This should be done for DAY 1 of Operations and PROJECTED for the end of your first year of operations. This statement estimates the resources your business will need, and how they will be financed.
Breakeven Analysis: This shows when your business will be able to cover all of its expenses and begin making a profit based on your costs and the numbers of units “sold”.
VI Appendicies
This is a “catch-all” section. You can include anything to “flesh-out” your plan. This can include advertising copy, product information, store layouts, etc

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