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2008 - -Lack of Customer Focus-Inability to handle growth...

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Challenges of Started a Business Chapter 2 Business Plan “…a document that identifies the goals of our proposed enterprise and explains how they will be Business Plan Purposes 1. Lays out how business will be built. 2. And how you intend to make it sturdy 3. Used to set direction, hone ideas, get financing. Benefits of a Business Plan Plan Audiences - Yourself - Friendly, Trusted Critics - Investors o Quality of Management o Quality of Idea - Banker o Ability to repay. Business Plan - Executive Summary - Business Concept - Management Qualifications/Legal Form of Business - Marketing o Explain Good/Services o ID Customers/Competitors - Productions Methods o Product Development - Projected Sales, Profits, Cash Flow and Borrowing. Why Businesses Fail - Bad Business Idea (VDD) - Under capitalizations/Cash Problems - Inexperience or Incompetence
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Unformatted text preview: -Lack of Customer Focus-Inability to handle growth Build a Market Position That…-Offers something valuable-Is Different from Competition (“I want your customers!”)-Can be defended Financial Plan-Cash Needs o Start-up o Operations o Funding Sources-Repay Debt-Projections o Expected Sales Income Statement Revenues (Mainly Sales) Less: Costs of Goods Sold Gross Margin (Profit) Less: Operating Expenses Operating Income Less: Interest Expense Income Before Taxes Less: Taxes Net Income (or Profit or Earnings) Sales (100 x $10) $100 Less Costs of Goods Sold (100 x $6) $600 Gross profit (100 x $4) $400 Less Operating Expenses Salaries $24 Advertising $40 Table Rental $20 $30 Net Income $100...
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2008 - -Lack of Customer Focus-Inability to handle growth...

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