m
 

|

 
9 Identify Entrepreneurial Competencies
9 Explain parts of the business plan
9 Analyze production and marketing
processes
9 Explain the basic principles of office
and business management
9 Observe business ethics
Personal Entrepreneurial Competencies
(PECs) M
M  M M 
   
M M M    
 M
   


9 
 
9   
9 
{ Opportunity-
Opportunity-seeking
9 Perceives and acts on new business
opportunities
9 Seizes unusual opportunities to obtain
financing, equipment, land,
workspace or assistance

Persistence
9 Takes repeated or different actions to overcome
obstacles
9 Makes sacrifices or expends extraordinary effort to
complete a¦a¦task
9 Sticks to own judgment in the face of opposition or
disappointments
 Commitment to work contract
9 Accepts full responsibility for problems encountered
9 Helps own employees to get the job done¦
9 Seeks to satisfy¦* the customer
4 Risk-
Risk-taking
9 Takes calculated or studied risks
9 Prefers situations involving moderate risks
5 Demand for quality and efficiency
9 Always strives to raise standards
9 Aims for excellence
9 Strives to do things better, faster, cheaper
 Goal-
Goal-setting
9 Sets clear and specific short-term objectives
9 Sets clear long-term goals
7 Information-
Information-seeking
9 Personally seeks information on clients, suppliers,
and competitors
9 Seeks experts for business or technical advice
9 Uses contacts or networks to obtain information
u Systematic planning and monitoring
9 Develops logical, step-by-step plans to reach goals
9 Looks into alternatives and weighs them
9 Monitors progress and shifts to alternative strategies
when necessary to achieve goals
 Persuasion and networking
9 Employs deliberate strategies to influence or persuade
others
9 Uses business and personal contacts to accomplish
objectives
{ Self
Self--confidence
9 Believes in self¦
9 Expresses confidence in own ability to
complete a difficult task or meet a challenge
ÿ 
 

      



  


 

  
     
 


      

  ›

  ›
{ Letter of transmittal
9 it officially introduces your business plan to reader
9 explains reason for writing the plan
9 gives a title to plan or business name
9 outlines major features of interest

Title Page
9 provides identifying information about you and
proposed business
9 name, address, phone number of business and same
information about yourself -date plan was
finalized/submitted
 Table of Contents
9 Lists major headings and subheadings-provides a
quick overview
4 Executive Summary and Fact Sheet
9 considered the most important part
9 it captures attention of reader
9 it should concisely explain current business status,
describe products and services and their benefits to
customers
9 provide overview of objectives, market prospects,
and financial forecasts
9 if seeking financing, it should state the amount
needed, explain how money will be used and state
benefits to prospective lender/investor
Fact Sheet
9 a separate page at back of executive summary
{ Company Name

Location and Telephone /Fax/ Internet
 Type of business and industry
4 Form of Business (sole proprietor, partnership,
corporation)
5 Principal product or service line
 Registered patents, trademarks
7 Number and name of
founders/partners/shareholders
u Length of time in business
 Current and/or projected market share
{ Funds invested in the business to date and their
source
{{ Additional Financing required
{
Proposed terms and payback period
{ Total Value or net worth of the business
{4 Name of business advisors (legal counsel,
accountant, others)
5 (BODY OF PLAN)
9 the longest component-a detailed story of business
proposition
9 should be broken down into major divisions using
headings and each division divided into sections with
subheadings
A COMPANY AND THE INDUSTRY (Include
vision, mission statement and values))
9 Background-date started, form of
organization, location, founders, how key
products/services chosen, success to date
9 Current Situation-how you have identified
market opportunity, assessed the
competition and developed some unique
factor that will make your business stand out
9 Future Plans-goals and ambitions for
business strategy to achieve goals

 
!
9 Principal Characteristics-current status
of industry-size-total sales-typical
standards, seasonal patterns
9 Major Participants-who, market share
strength/weakness -how will you
compete
9 Industry Trends -growing? Stable?
What will happen in 5/{ years -any
economic/social technological
regulatory trends
9 B PRODUCT/SERVICE OFFERING
9 Description
9 describe the product/service you plan to sell in detail
9 explain unique characteristics or advantages
9 indicate stage of development of product
9 include pictures if possible

 
9 outline market opportunity and how to take advantage
of it
9 describe key success factors and how you will exploit
them
C MARKET ANALYSIS
9 describe the total market for
product/service
9 what segment is the market broken
into
9 explain the segment you will go
after and the share you will reach
9   "#

{ Market studies from research

companies/government agencies

Statistics
 Information from trade associations
and publications
4 Surveys/ informal discussions with
dealers, distributors, sales reps,
customers and competitors
Target Market and Customers
9 identify primary target market
9 break this target into groups with common identifiable
characteristics› Demographics/Geographic
9 Who are they? What are the primary bases for
purchase decisions?
9 How can product service be used? What benefit is
there to purchase your product versus competitions?
9 Identify and major buyers

Market Size and Trends

9 estimate size of current total market-identify trends
Competition
9 identify principal competitors
9 access services and products of each
major competitor (price, quality, service
support, warranties, other features)
9 what market share does each competitor
have
Estimated Sales and Market Share
9 estimate share of each segment of
market -use a table
D MARKETING PLAN
9 describes what has to be done, when, how and
who as far as sales strategy, advertising,
promotion pricing policy, channels of distribution
Pricing
9 summarize the financial characteristics of your
business and industry at large
9 explain typical gross and net margins for
products/services
9 discuss prices you plan to charge for various products
services
9 detail any product mark up
9 indicate how long it will take to break even
Sales and Distribution
9 indicate methods used to sell and distribute
product/service

Advertising and Promotion

9 Describe program you plan to use to create awareness
9 What consumers are you seeking?
9 What media?-radio, television, newspapers?
How much will be spent and where?
9 What plans do you have to get free publicity?
Service and Warranty Program
9 indicate warranty and service plans and how they
compare to competitors
E PRODUCTION/OPERATIONS PLAN
9 outlines plant location, facilities needed, space
requirements, equipment and labor
requirements

Location
9 describe planned location (advantages &
disadvantages) in terms of cost, proximity to
customers access, zoning

Facilities and equipment

9 describe factory space/office space/selling
space
9 Lease? Own?
Manufacturing Plans and Costs
9 breakdown total costs into raw material,
parts, labor, overhead
9 inventory requirements

Labor
9 describe number of employees and their
qualifications
9 How much will each be paid?
F MANAGEMENT TEAM
Description of Management
Team/Directors
9 outline duties and responsibilities of each
member-a brief resume-
qualifications/experience

Management /Directors Compensation

9 List names titles, salary
Shareholders
9 indicate shareholders and number of
shares/% and amount paid for shares

Professional Advisors
9 names and addresses of all advisors
and fees paid to each
G IMPLEMENTATION SCHEDULE AND
RISKS ASSOCIATED
Milestones
9 Summarize significant goals-what still
needs to be done?
9 Who will do these things? When?
Schedule
9 develop a schedule of significant
events and priority for completion

Risks and Problems

9 summarize problems to date and how
resolved
9 identify risks and how they will be dealt
with
H YOUR FINANCIAL PLAN
Funding requested
9 indicate type/amount of funding needed
9 how will money be used
9 give overview of financial structure of company
9 Outline proposed terms of investment

 $ 
 
$ 
%
 s
{ Profit and loss forecasts

Pro forma Balance Sheets
 Projected cash flow statements
4 Breakeven analysis
 Appendixes (Back-up information)
9 product specifications/photos
9 detailed resumes of management
9 prospective customer list
9 names of suppliers
9 job descriptions of management
team
9 consulting reports/surveys
9 legal documents
9 letters of reference
9 relevant trade/journal/newspaper
articles
#
 
 responsible for
creating goods and services offered by the
business organization There are three
main parts to the production process as
can be seen in the diagram›
9 A business organization must purchase all the
necessary   and then   them into the
product &' that it wishes to sell

9 How well-organized the organization is at

undertaking this transformation process will
determine its success
9 This is known as the #


( of a firm
and it will want to be as efficient as possible in
transforming its inputs into outputs (i e using the
minimum number of inputs as possible to achieve a
set amount of output) This will reduce the cost per
unit of production and allow the firm to sell at a lower
price
9 Ultimately, the "%

#
 

#
 #
 # #
 
)The needs and
wants of customers will be met if a
business can produce the correct number
of products, in the shortest possible time,
to the best quality and all at a competitive
price
x* 
 consist of selling and/or
promoting the goods or services of the
organization
9
x* 

9 Situation Analysis› viewed in terms of the
external environment and internal analysis
of the business organization itself;
identification of opportunities to satisfy
unfulfilled needs; understanding own
capabilities and the environment in which it
is operating
9 Situational Analysis Frameworks
9 5 C Analysis› company, customers, competitors,
collaborators, climate

9 PEST Analysis› for macro-environmental

political, economic, societal and technological
factors A PEST analysis can be used as the
³climate´ portion of the 5 C framework

9 SWOT Analysis› strengths, weaknesses,

opportunities and threats for the internal and
external situation; used to condense the
situation analysis into listing the most relevant
problems and opportunities and to assess how
ell the business organization is equipped to deal
with them
9 Marketing Strategy› pursuing for the
opportunity of the identified unfulfilled
needs

9 Segmentation› identification of portions of the

market that are different from one another; it
allows the business organization to better
satisfy the needs of its potential customers (
needs are identifiable, accessible, substantial,
unique and durable/stable)
9 Targeting (target market selection)
9 Value proposition to the target market
9 Marketing Mix Decisions› detailed tactical
decisions
9 Product development› specifying, designing
and producing the products/services
9 Pricing decisions
9 Distribution contracts
9 Promotional campaign development

9 Implementation and Control› marketing plan

has been developed and the product has been
launched, results of the marketing effort should
be monitored closely to accommodate market
changes


+
 # 
x  
9 Establish office and business management
routines and stick to them
9 Set up clearly delineated responsibilities
9 Keep updated business records
9 Take a walk through the office and have a sit
9 Schedule the scut work (trivial, unrewarding,
tedious, dirty, and disagreeable chores)
9 Delegate and outsource
9 Make business planning a priority
  


9 Form of applied ethics that examines ethical

principles and moral or ethical problems that arise
in a business environment It applies to all
aspects of business conduct and is relevant to the
conduct of individuals and business organizations
as a whole
9 Knowing the difference between right and wrong
and choosing to do what is right
 


9 Honesty› saying things that are false,
deliberately misleading consumer; open and
free to share information about the
product/service
9 Promise-keeping› keeping commitments;
true to deliver the expected product/service
9 Fairness› create and follow a process and
achieve outcomes that a reasonable person
would call just
9 Respect for others› open and direct in
communication, and receptive to influence;
honor and value the abilities and contributions
of others; embrace the responsibility and
accountability for every action

9 Compassion› maintain an awareness of the

needs of others and act to meet those needs
whenever possible; minimize harm whenever
possible; and act in ways that are consistent
with commitment to social responsibility

9 Integrity› live up to ethical principles, even

when confronted by personal, professional and
social risks, as well as economic pressure