During this course, you will learn to develop all the essential elements of a Business Plan, it can either be an existing company on the NASDAQ exchange which is the “American stock exchange, which is located at One Liberty Plaza in New York City known as the New York Stock Exchange” or “a company that you would like to start one day”. Some of your plans will be hypothetical, as access to certain information in the company is restricted, but you can focus on the actual existing customers and products or services the company offers to the public. If you are developing your own company it will be made up so just answer the questions that are being asked.
These sections are due between weeks 1-2.
The vision/mission statements are clear summaries of where the business is headed. It describes what the business produces, who the products are produced for, and unique business characteristics. It will reflect the values of the management team and the type of business culture you are trying to create.
What do you want your business to achieve? Be specific in terms of financial performance, resource commitments (time and money) and risk.
When will various milestones be achieved?
What do you need, or must happen, for you to succeed?
The material in this section is an introduction to the firm.
What does your business do?
Who were the founders of the business?
What were the important milestones in the development of the business?
With what do you produce your products or services?
What are the land, equipment, human and financial resources?
Who provides them?
How are resource providers rewarded?
What is your annual sales volume in dollars and units?
Explain how you work with others to improve returns. This may include a strategic alliance with suppliers or customers that you can leverage.
Do you use forward contracting, options, or futures? If so, how?
How much does it cost to produce and deliver your products and services?
How is contracting used?
Who is currently on the management team?
How have management responsibilities been divided among the management team?
What are the lines of authority?
Who acts as the president/CEO? spokesperson? Chief Financial Officer?
Who determines employees’ salaries and conducts performance reviews?
What is the educational background of the management team members?
What is the management team’s reputation in the community?
What special skills and abilities does the management team have?
What additional skills does the management team need?
Who are the key people and personnel that make your business run?
Who do you go to for advice and support?
Do management and employees have avenues for personal development?
Sketch a diagram of lines of authority for your operation.
Who are the primary stakeholders in your business?
Describe the legal form of your company, such as partnership, proprietorship, or corporation.
Do you need special permits to operate or a record for inspections? If you do, please describe them.
What environmental practices do you follow?
What procedures do you use for handling chemicals?
What noise/dust/timing/odor policies do you have?
What will be the roles of management and employees in community organizations?
What will be your involvement at the local/state/national level in commodity organizations?
What training and new employee orientation practices will you offer to ensure the proper handling of hazardous materials and safe operation of equipment?
What are the strengths and weaknesses of your firm?
What are the relative strengths of each enterprise or business unit within the firm?
What are the core competencies (things you are doing better than others) of your firm?
What things can you build on? Think only about the things that you can control.
Suggested areas to consider:
What enterprise or business unit should be exited?
What enterprise or business unit shows promise?
The Business Plan is divided into 4 sections: Due week 1-2; 3-4; 5-6;7-8. Each section of the Business Plan needs to be 2-3 paragraphs some maybe more. The final submission will be adding the executive summary (explanation of the executive summary is under 1st assignment) to all 4 steps throughout the course into one document.
These sections are due between weeks 3-4. which is step 2 of the Business Plan. Remember that every section should be 2-3 paragraphs.
Describe the products and services you plan to sell.
How is your product or service unique?
Are you producing a commodity or a differentiated product?
How does your product or service compare to other products in
Quality? Price? Location?
What experience do you have with this product/service?
How is the market characterized?
Are there clear segments in the market? Describe them.
What important customer need(s) is the market not currently fulfilling?
What is the growth potential for each segment of the market?
What opportunities and threats does your firm face?
What does an analysis using the Five Forces model suggest about your industry? Who is your competition (in light of the Five Forces)?
What trends, relevant to your business, do you see?
What are the drivers of change?
What political and legal issues do you face, such as zoning, environmental laws, inspections, etc?
Who will be your customers?
What do you sell to each of the customers?
How does your product/service solve a key customer problem?
How difficult is it to retain a customer?
How much does it cost to support a customer?
A comparison of companies is similar.
What can the company do that they aren’t doing now?
How will you produce your product?
What value will you create and capture with your product?
What is your competitive advantage?
What technology will you use, i.e. reduced tillage, GPS systems, etc.?
What processes will you use to produce products?
What growth options will you use to develop the business unit?
What is the anticipated timeline?
In order to effectively organize your business, you need to ensure the resources are available. Assess those needs here.
What skills are needed?
How will human resources be acquired?
What level of financial resources will be needed?
What type, quantity and quality of physical resources will be required?
On what do you base a decision to buy products or services? Price? Quality? Convenience? Extra service? A combination?
By what venue will you find suppliers — local dealer, Internet, direct from the manufacturer, etc.?
What is your sales plan?
What advertising and promotion will be used to increase sales/awareness?
Where will you sell products/services?
Will you use the open market or contracts?
Do you have a preferred market outlet?
Are you a qualified supplier for a specific processor or buyer?
How will you price the product?
How will you use these to mitigate your risk?
Will you use production or marketing contracting to reduce risk?
How will you use crop, liability and other insurance?
What performance standards will be used to monitor this enterprise or business unit?
What are the acceptable performance standards?
What yield or output levels could you attain?
What efficiency levels will you reach?
What procedures will be used to monitor performance?
Who is responsible for monitoring performance?
What industry benchmarks will be used to assess performance?
This is step 3 of completing your Business Plan. It needs to be completed in Week 5 and Week 6. Remember 2-3 paragraphs in each section.
How will you fund the business?
What are your desired debt and equity position?
Who will provide capital debt funds?
What role will leasing play in your financial strategy?
Will you use outside investors for equity capital?
How will you manage the financial risks your business faces?
What operating procedures, such as developing cash flow budgets or spending limits, will you have to ensure adequate money for debt repayment?
What are the important assumptions that underlie your projections? These assumptions may be associated with both external or internal factors.
What financial aspects of your business (equity, asset growth, ROA, ROE, etc.) will you monitor?
What procedures will be used for monitoring overall business performance?
What level of performance will your business shoot for? These should be targets for next year and in five years. They should be financial performance standards used to monitor the overall business.
What yield and output levels could you attain? What efficiency levels will you reach?
What will you do if you can’t follow through with your primary plan?
How are you preparing for an emergency in your business?
How will the business function if something happens to one of the key members of the management team?
These sections will be added to the final business plan at the end of the course. Each section of the Business Plan needs to be 2-3 paragraphs some maybe more.
During this course, you have learned to develop all the essential elements of a Business Plan, it was either an existing company on the NASDAQ exchange which is the “American stock exchange, which is located at One Liberty Plaza in New York City known as the New York Stock Exchange” or “a company that you would like to start one day”. Some of your plans will be hypothetical, as access to certain information in the company is restricted, but you can focus on the actual existing customers and products or services the company offers to the public. If you are developing your own company it will be made up so just answer the questions that are being asked.
Attached is a Business Plan Template, fill in the information it is asking for it is under the Home Tab, under e-text.
This week is the final step to completing the Business Plan. The Executive Summary. It comes first in the Business Plan but is wrote last. It is a summary of everything you wrote. The sections you should include in the Executive Summary is:
This section is a summary of the information from the pages that follow. Prepare it last, after the business plan has been written. It should not exceed two pages. Headings to use in the Executive Summary:
The Executive Summary is a brief description of A-F that that is above. It is part of a Business Plan. Your Business Plan is mostly steps 1-2-3. The executive summary completes it.
Your final project should include in one document:
Index of all your pages so number your pages.