The Purpose And Benefits Of Writing A B

Writing a Business Plan:
Purpose and Benefits
A Presentation by Western Connecticut SCORE

Christopher Tse
SCORE Business Counselor

What is a Business Idea?

A Business Idea describes:






The concept of an undertaking that can be used for commercial purposes
How value can be created
The direction the concept will go
The long term viability of the concept

What is a Business?
A Business is a range of functional activities organized to achieve a common goal. For Profit Businesses focuses on profit and growth.
Non Profit Businesses focuses on service and benefit to the targeted community.

What is a Business Plan?
A Business Plan is a formal statement that details the goals of a business, the strategy that will be used to achieve these goals.
A Business Plan addresses specific functional activities: Business, Offerings, Target Market, Sales and Marketing, Organization, Finance and Accounting, and Competition

A Business Plan contains: What actions are to be taken, Why they need to be taken, How the common goals can be achieved through these actions

Example: Apple vs. Facebook
Both businesses have successfully implemented ideas.

Non Profit Model

For Profit Model

Focused on
Service & Growth

Focused on
Profit & Growth

Example: German Restaurant
Critical Assumptions When Building a Business Plan:
Open

BUSINESS

a restaurant serving German Food
Generate Profit at average of 10% p/a
Growth of 5% p/a over a period of 10 years
Greater

TARGET MARKET

Danbury area
$30-$40 per person dinner (drinks not included)
$10 per person drinks

OFFERINGS

Southern

ORGANIZATION
COMPETITION
FINANCE &
ACCOUNTING
SALES &
MARKETING

German home cooking: pig’s knuckles, schnitzel

Serving

and kitchen staff size
Qualifications for hosts, wait staff, chef
Other

restaurants in the area offer the same category of food, similar price range, and level of service
Start

up capital
Operating expenses
Cost of loans

Fixed overhead

Adequate

Promote

parking