Lecture 2-SCH264-The Buisness Plan

1
Entrepreneurship
and Small Business
Management
SCH-264
2
Course Objectives
The course is designed to provide

preliminary guidance for entrepreneurs to
understand business nature, spot business
opportunities, conduct market research,
make a marketing plan and put pricing
strategies of products, work on financial
aspects of the business plans, and create
business plans.
Intended Learning Outcomes
After the course the student will be able to:
▪ Spot market trends and business opportunities.

▪ Know how to contribute to societal, social, economic,
and environmental welfare.
▪ Conduct market research and design a bootstrap
marketing plan.
▪ Design a business model for a product or a service.
▪ Build financial plans and assess financial plans flaws
on a small scale.
▪ Build a business plans based on proposed ideas.
▪ Analyze business cases.
3
4
Where are The dilemma between wage slavery and

entrepreneurial pandemonium
we?
Traits of a successful entrepreneur
Ethics
Social responsibility
Sustainability
5
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 and will be.
• All costs and a marketing plan.
• Description of financing.
• Estimate of projected earnings.
Why Create a Business
Plan?
• Saves time and money.
• Key to raising capital.
• Serves as an operations guide.
Helps you organize your thoughts

before starting.
• Cover page • Management and
Business Plan operations
• Table of contents
Components • Executive summary
• Financial analysis and
projections
• Mission, vision, and
culture • Funding request
• Company description • Exit strategy

• Appendices
• Opportunity analysis
• Marketing strategy and
plan
Clear—identify concept and purpose.
Concise—one to two pages long.
Executive
Summary Comprehensive—answer basic who, what, when,
where, and how questions.
Should Be:
Compelling—generate enthusiasm.
Written last.
Mission, 01 02 03
Vision, and
MISSION—CONCISE VISION—BROAD “PICTURE” CULTURE—BELIEFS, VALUES,
COMMUNICATION OF OF WHAT YOU WANT THE AND BEHAVIORAL NORMS
STRATEGY WITH A BUSINESS ORGANIZATION TO OF THE ORGANIZATION
DEFINITION AND BECOME. WHICH WILL FORM THE
Culture COMPETITIVE ADVANTAGE;

EXPRESSED IN A
STATEMENT.
BUSINESS “ENVIRONMENT”.
Summary of company’s
founding.
If company is already Overview of track
record: business
established… progress and financial
Company success.
Description Brief background story.

If a start-up What has been done so
far, and why.
venture… Legal form of the
business.
Opportunity Analysis
INDUSTRY ANALYSIS— ENVIRONMENTAL AND PROOF OF MARKET—

DEFINITION, SIZE, AND SUSTAINABILITY EVIDENCE OF
GROWTH/DECLINE OF THE ANALYSIS—HOW OPPORTUNITY IN TERMS
INDUSTRY. COMMUNITY, REGION, OF DOLLARS AND UNITS.
NATION, WORLD RELATES
TO THE BUSINESS.
Target market segments—groups defined
by common factors such as demographics,
psychographics, age, and geography.
Opportunity Competitive analysis—comparison of the

business to direct and indirect competitors.
Analysis
(continued)
Analysis Tools: SWOT analysis, PESTEL
analysis, and Porter's Five Forces.
Marketing Strategy
and Plan
Mix Plan
Marketing mix (the “Four Marketing plan—statement
Ps”). of marketing goals and the
• Products/Services strategies to achieve them.
• Pricing
• Promotion
• Place
Management and
Operations
MANAGEMENT TEAM RESEARCH AND PHYSICAL LOCATION(S)

AND EMPLOYEES. DEVELOPMENT. OF FACILITIES WITH
EMPHASIS ON LOGISTICS
AND WORKFORCE.
PRODUCTION PROCESSES. INVENTORY CONTROL QUALITY ASSURANCE

SYSTEMS. METHODS.
Financial Analysis
and Projections
• Sources and uses of capital.
• Cash flow projections.

• Cash flow statement shows cash receipts
less cash disbursements over a time
period.
• Balance sheet projections.

Assets = Liabilities + Owner’s Equity
Funding Request & Exit Strategy
Amount of funds needed.
Type of financing, including terms.
Proposed exit scenarios, such as:

• Buyout plan.
• Initial public offering (IPO).
• Sold when benchmarks or date reached.
• Succession plan.
Implementation schedule.
• Milestones
Management resumes.
Specifications/photos/diagrams of products and packaging.
Advertising and promotional samples.

Appendices
Detailed financial projections.
Other supportive materials.

The People. The Opportunity. The Context. Risk and Reward.
• The men and • A profile of the • The big • An assessment

women starting business itself— picture—the of everything
and running the what it will sell regulatory that can go
What do venture, as well

as the outside
parties
and to whom,
whether the
business can
environment,
interest rates,
demographic
wrong and
right, and a
discussion of
Investors Care providing key

services or
important
grow and how
fast, what its
economics are,
trends,
inflation, and
the like—
how the
entrepreneurial
team can
About? resources for it,

such as labs or
facilities.
who and what
stand in the way
of success.
basically, factors
that inevitably
change but
respond
cannot be
controlled by
the
entrepreneur.
19
• Funding Sources for Start-ups
20
1-21

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1

The course is designed to provide

After the course the student will be able to:

▪ Spot market trends and business opportunities.

Where are The dilemma between wage slavery and

• Key to raising capital.

• Serves as an operations guide.

Helps you organize your thoughts

• Company description • Exit strategy

Concise—one to two pages long.

Culture COMPETITIVE ADVANTAGE;

Description Brief background story.

INDUSTRY ANALYSIS— ENVIRONMENTAL AND PROOF OF MARKET—

Opportunity Competitive analysis—comparison of the

MANAGEMENT TEAM RESEARCH AND PHYSICAL LOCATION(S)

PRODUCTION PROCESSES. INVENTORY CONTROL QUALITY ASSURANCE

• Cash flow projections.

• Balance sheet projections.

Type of financing, including terms.

Proposed exit scenarios, such as:

Specifications/photos/diagrams of products and packaging.

Advertising and promotional samples.

Other supportive materials.

• The men and • A profile of the • The big • An assessment

What do venture, as well

Investors Care providing key

About? resources for it,

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