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The Purpose and Process of Writing a Business Plan

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What do you believe is the value of a business plan? ... Entrepreneur Risk taker Business Plan ... Business plans enable entrepreneurs to be calculated ... – PowerPoint PPT presentation

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Date added: 13 July 2020
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Title: The Purpose and Process of Writing a Business Plan


1
The Purpose and Process of Writing a Business Plan
  • Debi Kuehn MBA
  • Kuehn Financial Education Services LLC

2
Section One
  • Relating to the Business Plan

3
Expectations
  • Why are you here?
  • What are your issues with research
  • What do you want to learn?
  • What do you believe is the value of a business
    plan?

4
Purpose and process for student responsiveness
  • The reason we should teach business plans
    purpose
  • How we should teach business plans process
  • Purpose answers Why
  • Process answers How

5
Make it meaningful
  • Students want to be rich and famous.
    Entrepreneurship is a means to become both.
  • A disportionately large portion of millionaires
    are entrepreneurs.
  • Writing a business plan is a disciplined
    exploration of the company or idea.

6
Defining business plan
  • Business plan is a written proposal that
    describes a new business and strategies to launch
    the business. It focuses on what needs to be done
    and how it will be done.

7
Defining the words that are the purpose for
writing the business plan
  • What is entrepreneurship?
  • What is intrapreneurship?

8
The connection
  • Entrepreneur Risk taker Business Plan
  • Entrepreneurs need to be calculated risk takers
    having accurate and sufficient information
  • Business plans enable entrepreneurs to be
    calculated risk takers

9
Purpose Why write a business plan in
entrepreneurial America
  • Formulate a complete idea for start up and
    operation
  • Internal and external use
  • Compare projected with actual
  • Banks want to see them
  • Share with others
  • Professional and easy to follow assessment of
    business goals

10
Purpose Why write a business plan in the
classroom
  • Increase writing skills
  • Introduce students to business concepts
  • Allows students to be creative which is the
    backbone to small business
  • Means for you to build a relationship with
    students through encouragement and support

11
Purpose Why write a business plan in the
classroom
  • Explore the development of an idea
  • Challenge the norm
  • Team work vs. individual effort
  • Teach the purpose of visioning My people parish
    for a lack of vision.

12
Process in teaching business plans
  • Curriculum on entrepreneurship begins by defining
    the concept entrepreneurship and developing a
    framework into which young people can adopt the
    value of being entrepreneurial or intrapreneurial.

13
Focus of teaching business plans
  • The overall focus is on helping students
    appreciate the value of entrepreneurial thinking
    and on encouraging them to implement the ideas
    learned in the classroom in their own context.

14
Why Entrepreneurship is rising?
  • 1) Shift of womens role in economic life women
    ventures out pace male ventures
  • 2) Norm of two family incomes
  • 3) Recognition that large corporate organizations
    dont fill the need for security
  • 4) Policy makers acknowledge that ventures are
    critical for new jobs, exports, and innovations

15
Why Entrepreneurship is rising?
  • 5) Owning your own business provides pathway for
    lower and middle classes to accumulate wealth
  • 6) Computer technology levels the playing field
    when it comes to barriers of entry
  • 7) Development of programs to teach
    entrepreneurship

16
Entrepreneurship and innovation
  • How are you innovatively teaching business plan
    classes?

17
Effective activity for non-entrepreneurial
students
  • Employees for a small business need qualities of
    entrepreneurship
  • Critical thinking skills
  • Develop needed computer skills
  • Career exploration
  • Increase knowledge of business systems

18
Effective activity for non-entrepreneurial
students
  • Incorporates materials learned in marketing and
    finance classes
  • Writing skills
  • Imagination at work
  • Enhances personal growth

19
The basics
  • What makes for a good business makes for a good
    business plan.

20
The basics
  • What are the basic skills in starting and
    operating a business?

21
Recommended reading
  • E-Myth Revisited by Michael Gerber

22
Section Two
  • Structuring the business plan

23
Major Sections
  • Executive summary
  • Business description
  • Marketing
  • Human resources
  • Operations
  • Finance

24
Areas to concentrate on
  • Executive summary
  • Marketing
  • Finance

25
Before the business plan
  • Students need to understand personal finance.
  • Activity on personal budget (See high school
    budget)
  • Discuss time management

26
Name and Incorporation
  • Creative and procedural process
  • Visit www.azsos.gov
  • Visit www.godaddy.com
  • Visit www.cc.state.az.us

27
Licensing
  • Visit www.azcommerce.com
  • This cite will also provide info on networking,
    city compliance, transaction privilege tax, and
    employer identification number

28
Mission statement
  • 1) Who you are.
  • 2) What you do.
  • 3) How you do it.
  • 4) Who you do it for.
  • A good mission statement captures why your
    business exists and what it hopes to achieve. It
    displays commitment, innovation and courage.

29
My mission statement
  • Kuehn Financial Education Services LLC is
    actively committed to educating the public on
    money, so consumers, small business owners, and
    students enjoy prosperity. It strives to
    ethically empower individuals to lead a solvent
    life where money is simply a resource in a
    meaningful life.

30
Marketing research
  • Demographics of customer / client
    www.claritas.com
  • Competition comparison product/service, price,
    quality, service, reliability, expertise, image,
    location, layout, appearance / packaging, sales
    methods, credit policy, availability, management,
    stability, advertising methods

31
Marketing research
  • Competitor websites and phone call
  • Gather competitors marketing material
  • North American Industry Classification System
    (NAICS) http//www.census.gov/naics

32
Focus Group
  • Focus groups will help you answer questions about
    ages of your customers and their reasons for
    buying.
  • Information is organized in a marketing matrix
  • Zeros in on your niche
  • Great for visual learners

33
Finance
  • Four major points Start up costs
  • PricingOperating costsPro forma statements
  • Cash flow statement Cash is king great
    reinforcement for personal finance
  • Myth availability of bank loans

34
Vocabulary
  • Revenue vs. profit
  • Profit vs. cash flow
  • Types of costs fixed vs. variable
  • Working capital (again cash is king)
  • Break even point
  • Financial statements income, cash flow, balance
    sheet

35
Familiarize yourself with finance
  • Excel High school cash flow
  • Excel High school sales forecast

36
SWOT
  • In my professional opinion, the most effective
    tool.
  • S strength, W weakness, O opportunities, T
    threats
  • Great for visual learners

37
Process Capstone
  • www.azcommerce.com

38
Section Three
  • Classroom Application

39
What is expected of you as the educator
  • You need not be an expert in all industries to be
    effective at teaching business planning.
  • You do need to know foundational principles of
    business management.
  • If a student shows particular interest, by all
    means research that industry to support the
    student.

40
Incorporating ideas
  • Entrepreneurial survey prior to starting business
    plan
  • Brainstorming exercise on potential businesses
    based on interest and knowledge
  • Case study on business process
  • Inform students that listening to questions from
    other students will aid their learning

41
Hands on
  • Build stores
  • Draw pictures
  • Work with graphic teachers
  • PowerPoint presentation
  • Excel financial spreadsheets
  • Prototypes

42
Story telling
  • Communication The power of story telling
  • Revision Your advice as a teacher on the
    material turned in
  • Rework rework real life
  • Decision making remember finance is not about
    numbers it is about decisions. The business plan
    process is an exercise in decision making how
    valuable.

43
Games
  • Life games reflect life aims. R. DeRopp
  • www.lavamind.com
  • Role play have students present their business
    idea to investors (industry person, classmates,
    teacher panel of investors)

44
Final thought
  • Business planning if done properly is a sacred
    process. It causes us to dually focus inward and
    outward at the same moment. We are forced to
    explore our own creativity while meeting the
    needs of others in the marketplace.
  • -
    Debi Kuehn
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