7 Steps to a Complete Business Plan

We've spent all week discussing research; what to ask and where to get the information.  The next step would be to put all your thoughts together in a cohesive business plan.  A lot of people will use these plans to present to potential investors.  But, even if you are not looking for outside money, a good plan is the foundation to any successful business.





So, what should you include?

1.  Business Description

An overview of your business and it's objectives.  The "why" of what you are doing and this section often times will contain your mission statement.  Also a great place to discuss in good details what products or services you will be offering.

2.  Market Analysis

Discuss the market for your particular industry and how you would fit into it.  Describe your target customer, your competition and how you plan to gain an advantage over them, or what makes you different.

3.  Competitor Assessment

Pick a few competitors to discuss in greater detail.  Think of those companies that will not take you entering into their market lightly.  Define who they are and the profile them.  Dive into their strengths and weaknesses compared to your own.

4.  Marketing Plan

This usually addresses 4 main themes; your products offered, price charged, distribution system and promotional efforts.

5.  Operating Plan

This section deals specifically with the internal organizational structure, operations and equipment you will need to operate.  Discuss how the business will be owned and managed, your personnel and legal issues.

6.  Financial Plan

Develop an estimate of your profit potential.  Describe your current situation and present forecasts.  Cover the type and amount of financing you may need for start up and initial operations.  A break even analysis is often included in this section as well.

7.  Executive Summary

Your chance to highlight the key items of your venture.  As is summary it should be fairly short.  You could include:

• You mission/goals
• The product
• The market and it's potential
• The marketing plan
• The management team
• Key elements of your operation
• Funding and return to any investors

Oink - A Case Study

It's a bit funny that we chose this month as the month to discuss new business start ups.  My husband is getting ready to graduate and get his business degree from Eastern Oregon University.  I feel like our whole family is graduating, it has been a long busy road for all of us, but I am so proud that he did it!  For his senior project, he has been tasked with writing a business plan for a business of his choice.

Anyone who knows my husband, knows he is a killer cook.  He is one of those that can just start throwing things into a pot and turn it into a masterpiece.  I love it, but my waistline does not.  We have always toyed with the idea of turning that into a business of some sort.  He doesn't want to start a full blown restaurant because he doesn't want to turn something he loves into an everyday thing and get burned out.  So, he has decided to write a business plan to start a food truck with some of his most famous recipes.  But, the genius part is that we will only take the truck out on weekends, or to festivals or special events.  So, it will not be an everyday thing.

So, I thought, what a great way to share tips and tricks about starting a business is letting you guys follow along the journey of getting this started.  Every once in a while I'll share some updates....and pictures of his delicious creations.  Here is what we have so far.

Truck Name: Oink
Concept: We will have two staple menu items and then rotate others seasonally.  The gimmick will be pork all sorts of ways.  We will get a whole pig and feature different cuts throughout the season.
Main Menus Items: 
Rolled Pork Tacos - pulled pork in a spicy Coke sauce rolled in a tortilla and flashed fried.  Topped with sour cream and homemade guacamole, served with homemade spanish rice.
Ground Pork Burgers - with a strawberry jalapeno sauce and asian slaw.
Bacon Bark in a Bag - for dessert candied bacon bark with a hint of spice.

I am drooling a bit just typing that out.  Oh, and the designer in me instantly came up with the logo above.  I know, jumping the gun a bit but I couldn't help myself.

We have decided to test the concept and one of the main recipes at the Mississippi Street Fair.  We have a fantastic friend who owns Mac! Mac and Cheesery and is going to let us tag along and use her kitchen as a commissary to prep for the day.  We will sell the rolled pork tacos and bacon bark in a bag.   This will be a great place to test the product and get some feedback from people who are not our families.

Stay tuned!

-Kristen

Key Questions to Ask in the Research Phase of Your New Business

Welcome to June! You've great this really great idea for a business...but now what?  We are going to spend 4 weeks helping you go from research to branding.  Help you get the word out and finally some tips on setting up shop.  

I have to admit, my favorite part of coming up with a new business idea is putting together a logo, main color scheme, business cards, etc.  It goes back to my Freshman year in high school interior design class and my love for all things design.  But, before you get crazy with the details you need to come up with a solid business concept and make sure you have asked some key questions to get the research ball rolling.  

Does the market want or have a need for what you are offering?

If you are thinking of opening up a cupcake shop or a new organic and earth friendly daycare, will anyone care?  Is it a product or service that people can't live without, or is it novel enough to get their attention?

Is the market already saturated?

Does your city really need another food cart or coffee shop?  Find out how much is spent in the industry each each year and if there is enough room for you to get a piece of that pie.

What is the competition doing?

What do they do well or not so well?  What makes them unique and more importantly, how will you set yourself apart from them?

Are you in the right area or able to reach your target audience?

If you are going to open a new boutique clothing store, are you looking in an area with the right population and disposable income?

Some great questions to ask - now where can you find this information?

Trade Information

Information specific to your industry can be found in print or online trade publications.  Find a trade show associated with the industry and walk the isles to check out competition or potential partners to see how they are doing it. 

The Technical Stuff

Demographic and economic data can be found in the U.S. Census Bureau's American Fact Finder, State Data Centers.  For even more information, a reference librarian can point you to other specialized databases.

Business Groups

Your local chamber of commerce is a great place to start and often times a wealth of information about local businesses and economy.  Or try small business development centers in your area.

Local Universities

My favorite project in journalism school was working with a local entrepreneur who was looking to open a new art studio.  I did all this research for him and put together a comprehensive marketing plan for him to execute.  So, check your local college - a lot of times professors and business schools are interested in having their students work of these projects for course credit.

Your Competition

Visit their websites, physical locations and events they put together.  Maybe even find a business similar to yours in a similar city (so you are not in direct competition) and ask to chat with the owner.

Potential Customers

Maybe put together a small informal focus group to find out if the demand is there.  Talk with friends of friends - but not your close friends or family, it may be hard for them to be completely honest with you.

Cheers!

Kristen