Small Business Guide - Welcome to Alabama A&M University

S m a l l B u s i n e s s H a n d b o o k f o r N o r t h A l a b a m aV) Business PlanA business plan is needed for any business venture. A business plan is a formal statementof a set of business goals, the reasons why they are believed attainable, and theplan for reaching those goals. A good plan includes has several components, includinga cover page, executive summary, business overview, state of the industry, competitiveanalysis and marketing strategies, operations plan, management overviewand company finances. Research has shown that a business with a well thought outbusiness plan has a high rate of success compared to one without a plan.Advantages:♦ You'll be able to tell if you are likely to make any profit.♦ You'll know how much you will need to make in order to live.♦ You'll be forced to see if this really is a workable business or not.♦ You'll have a blue print to spot problems early and before they turn into businessthreatening problems particularly in the first couple of years.♦ If you want finance banks or investors will want to see what they can expectfrom your business; this helps them keep an eye on their investment.Business Plan Checklist1. Executive Summary: - Objectives- Mission- Keys to Success2. Company Summary - Company Ownership- Start-up Summary / Company History- Company location and Facilities3. Products - Product Description.- Competitive Comparison- Sourcing- Technology- Future Products4. Market Analysis Summary- Market Segmentation- Target Market Segment Strategy- Industry Analysis5. Strategy and Implementation Summary- SWOT Analysis- Strategy Pyramid- Value Proposition- Competitive Edge- Marketing Strategy- Sales Strategy6. Management Summary - Organizational Structure- Management Team- Personnel Plan7. Financial Plan - Key Financial Indicator- Break-Even Analysis- Projected Profit and Loss- Projected Cash Flow Sheet24