THE BUSINESS PLAN: ROAD
MAP TO SUCCESS
ENTREPRENEURSHIP: Starting and Operating a Small Business, 3/e
Steve Mariotti and Caroline Glackin
After this lecture, you should be able to complete the following Performance Objectives
1. Know what a feasibility analysis is and when to create one.
2. Know what a business plan is and how to describe it.
3. Explain the various purposes of a business plan and the audience for each. 4. Understand the components of a business plan.
5. Be able to demonstrate proper development and formatting of a business plan.
Feasibility Analysis: Will My Idea Work?
Feasibility Analysis-a study to assist in making a go/no go decision based upon a close examination of product/service, market, industry, and financial data in a sufficient degree of detail to ensure confidence in the results.
The feasibility analysis essentially tests a business concept for viability in three areas
• Product and/or service feasibility
• Market and industry feasibility
• Financial feasibility
Five Industry Forces by Porter:
•Barriers to entry
•Threat of substitutes
What is a Business Plan?
Document that thoroughly explains a business idea and how it will be carried out
• Story of what the business is & will be
• All costs & a marketing plan
• Description of financing
• Estimation of earnings
Why Do You Need a Business Plan?
Saves time & money
Key to raising capital
Serves as an operations guide
Business Plan Components
Management & operations
Financial analysis & projections Mission, vision & culture
Funding request & exit strategy Opportunity analysis & research Appendices
Marketing strategy & plan