Business plan competition for young entrepreneurs

1. Business plan competition for young entrepreneurs Guide presentation Adnan Hagoog

2. Business plan • A “business plan” is a roadmap that describes where you’re going and how you’re going to get there • A guide to achieving your goals • A tool to spark investor interest • A document that helps employees understand the company mission

3. Getting Started • Is business ownership right for you? • An “entrepreneur” is a person who starts his or her own business • Self-assessment questions: • Are you a self-starter? • How well do you plan and organize? • Can you work long hours? • How will the business affect your family?

4. What Type of Business Do You Want? • A startup: • Follow your own dream • Buying an existing business: • You will have current customers and a known track record of performance • Franchising: • Brand recognition reduces marketing costs

5. Questions to ask when starting up A new business • Does the idea suit your personality and interests? • Will you use your own name to brand the business? • Will it be financially viable? • Do you have startup money to invest? • What will your monthly expenses be? • Is there a current need in the marketplace? • Who are you competing with?

6. Key elements of the business plan • Description of your products and services • Market and industry analysis that demonstrates the need for your business • List of competitors, including their strengths and weaknesses • Marketing strategy (sales approach) • Management team and operations plan • Financial analysis: the investment needed

7. Business Plan Content • 1. Executive Summary • 2. The Problem & Opportunity • 3. The Business Model • 4. Underlying Ambitions, Skills and Insights • 5. Competition • 6. Management • 7. Product Development & Deployment • 8. Marketing & Sales • 9. Financial Projections • 10. Current status

8. Executive Summary • A mini-business plan in one or two pages • Highlights the most important points of your business plan • It is NOT an introduction to the plan • It must grab your reader, and entice him/her to read further

9. Executive… • Identify the company, its background, structure and location • Describe what the company does, and the market it serves • Describe the market potential for the company’s products and services, market trends, etc.

10. Company Overview • Brief Company Introduction • Mission statement • Location, size, history • Market and products • Overview of company capabilities • Objectives

11. Industry Overview • Set The Stage • Industry Definition and Description • Major players within the industry • Factors driving dynamics • New products and developments • Legislation and Policies

12. Market Analysis • Market Definition • Primary Market • Secondary Markets • Market Size and Trends • Current total revenues • Predicted annual growth rate

13. Competitors • Direct Competitors • Who are they? • Size and product breadth • Revenues and profitability • Strengths and weaknesses • Market shares • Indirect Competitors

14. Customers • Customer Characteristics • Who are they? • Why do they buy? • Need satisfied by the product/service • How is the need currently filled? • What are the alternatives? • Who makes the decision to buy? • How frequently do they purchase?

15. Marketing and Sales Plans • Statement of Opportunity • Marketing and Sales Objectives • Existing Customers • Potential Customers • Prospects targeted • How prospects will be targeted and qualified

16. Marketing and Sales Plans • Marketing Programs • Direct Mail • Trade Shows • Advertising • Internet • Publicity/Public Relations • Marketing Budget • Pricing • Basis for targeted price point • Margins and profitability by volume levels

17. Marketing and Sales Plans • A “marketing plan” serves as a blueprint for you to follow to get your products and services known and recognized. It has: • Competitor and issue analysis: challenges and opportunities facing the business • Objectives: What do you want to achieve? • Action program: A “to-do” list • Budget: Detail expenses • Strategy: The Four “P’s” • Sales Plan • Sales force structure – (direct or reps) • Sales expectations/quotas • Margins given to intermediaries • Service and warranties • Sales Budget

18. The Four P’s of Marketing • Product: Describes features and benefits • Price: Lists prices and pricing strategy • Promotion: Tools or tactics to achieve marketing objectives • Placement: Sales philosophies and methods

19. How Much $$$ Do I Need? • Determine start up costs and estimate monthly operating costs to determine your working capital needs

20. Financial Plan • THE PRIMARY EVALUATING TOOL • Support all information • Make conservative projections • Start-up Budget: amount needed to open • Operating Budget: ongoing expenses once open • Sources and Uses Sheet

21. Financing Your New Business • Start up loans are very difficult to obtain • Chances are you have to rely on the funds you can personally raise • Grants?! Sidebar here • World bank grants • ACF- African Challenge fund • BPC for young entrepreneurs • Global Entrepreneurship fund

22. Financial Plan: Startup Budget • Personnel (costs prior to opening) • Occupancy (lease, rent, or mortgage) • Legal/ Professional Fees • Equipment • Supplies • Salary/ Wages • Utilities • Payroll Expenses • Internet • Licenses/ Permits • Advertising/ Promotions

23. Personnel Lease/ Rent/ Mortgage Loan Payments Legal Fees Accounting Supplies Salaries/ Wages Dues/ Subscriptions/ Fees Repairs/ Maintenance Insurance Advertising/ Promotions Depreciation Payroll Expenses Internet Payroll Taxes Travel/ Entertainment Miscellaneous 3-6 Months of Operating Capital Financial Plan: Operating Budget

25. Final Thoughts • Build on every success • Learn from your mistakes • Take time to relax and reduce stress!

26. Thank you for working so hard today!Contact the office anytime! info@shaqodoon.org