CHAPTER 2

The Business Plan:

Road Map To
Success
Creating Business
From Opportunity

Creating Business from

Opportunity

The Business Definition

The

offerwhat will the business offer the

customers?
Target marketwho will it serve?
Production and delivery capabilityhow
will it provide the products & services it
sells?

Types of Business

Manufacturingmakes tangible
products & sells them through
distributors or directly.
Wholesalebuys in bulk from
manufacturers & sells smaller
quantities to retailers.

Types of Business

Retailsells individual items to

consumers.
Servicesells time/expertise to
consumers.

Routes to Finding Opportunities

Self-

or group-developed business

ideas
Research on hot business ideas or
growth areas
Product or service idea first & search
for a market or business second

Factors of Competitive Advantage

1.
2.
3.
4.
5.
6.

Quality
Price
Location
Selection
Service
Speed/turnaround

The Business Plan: Road

Map To Success

What Is a Business Plan?

Document

that thoroughly explains a

business idea and how it will be carried out
Story of what the business is & will be
All costs & a marketing plan
Description of financing
Estimation of earnings

Why Create a Business Plan?

SAVES time & money
KEY to raising capital
Serves

as an operations GUIDE

BUSINESS PLAN COMPONENTS

1.
2.
3.
4.
5.
6.

Cover page
Executive summary
Mission, vision, & culture
Company description
Opportunity analysis &
research
Marketing strategy & plan

Management &
operations
8. Financial analysis &
projections
9. Funding request &
exit strategy
10. Appendices
7.

COVER PAGE
Full

legal name of organization

Logo
Key contact information
Date
Non-disclosure information

Executive Summary
Business
Target
Key

definition

market

marketing strategy

Goals
Ownership
Financing
Use

request

of funds & exit strategy

Organizational Core Beliefs

Beliefs

entrepreneurs use to guide organizations.

Example: My restaurant will support local
organic farmers.

Core

beliefs affect:

materials

used in production
prices charged
how customers are treated

Mission, Vision, Culture

MISSION

= concise communication of strategy

with business definition & competitive
advantage

VISION

= overall view of what the team wants

the organization to become

CULTURE

= environment including risk

tolerance & innovation, orientation with
respect to people, teams & outcomes, attention
to detail, & communication norms

Mission Statement

A concise statement of

Target customers

Products & services

Markets served

Use of technology

Importance of public issues & employees

Focus on survival, profitability, & growth

 Mission

Statement
To ensure that each guest receives prompt,
professional, friendly and courteous service. To
maintain a clean, comfortable and well
maintained premises for our guests and staff. To
provide at a fair price - nutritional, wellprepared meals - using only quality ingredients.
To ensure that all guests and staff are treated
with the respect and dignity they deserve. To
thank each guest for the opportunity to serve
them. By maintaining these objectives we shall be
assured of a fair profit that will allow us to
contribute to the community we serve.

Mission Statement
1. To achieve and maintain such distinction
in food and wine, service, atmosphere and
setting that the restaurant gains a first
class reputation for gastronomy, gracious
and informed hospitality, comfort and
beauty which draws new and repeat
customers year after year.
2. To achieve the above whilst upholding
staff policies and practices which promote
a fair and positive working environment.

3. To be aware of and act on our

responsibilities as a good corporate citizen
to: * provide a safe, clean and attractive
place for guests to enjoy and for employees
to work in; * ensure ecologically sound
management practices at the restaurant and
in our surrounding gardens and woods; *
undertake meaningful involvement of
Restaurant Les Fougres in selected charitable
activities in our community and region.

Vision
Overall
Built

view of desired company future state

upon core values & beliefs

Compelling
Employees

across the organization

need to be empowered to fulfill it

 PepsiCo

"PepsiCo's responsibility is to continually improve all aspects

of the world in which we operate - environment, social,
economic - creating a better tomorrow than today.Our vision
is put into action through programs and a focus on
environmental stewardship, activities to benefit society, and
a commitment to build shareholder value by making PepsiCo
a truly sustainable company." (Quoted fromPepsi Co.com.)
Amazon

"Our [Amazon's] vision is to be earth's most customer centric

company; to build a place where people can come to find and

discover anything they might want to buy online.

 Sometimes

a vision statement can be summarized in one

sentence.
Examples include:
To

help people be healthy,

To

have our product in every home in the United States,

To

help people enjoy life, or offer an affordable solution

to health care.
Local

companies might aspire to be the best company in

the town or to offer locally grown produce. A restaurant
may have this vision statement: To offer fresh and
delicious food to our customers along with a fun-filled
dining experience.

Vision statements may also be longer as well.

Some examples include:
The

XYZ Company will inspire its employees to be the best

they can be. We will engage in sustainable practices and
anticipate the needs of our customers. We will maximize
return to the stockholders while still maintaining quality in
our products.
Our

vision is to bring our students into the 21st century

through innovation and modern technology. Learning will be
enhanced with computer software and educational games that
will allow students to proceed at their own rate according to
their ability.

Culture
Largely

shaped by leadership
Core values in action
Includes
Risk

tolerance & innovation

Orientation with respect to people, teams, &
outcomes
Attention to detail
Communication norms

STARBUCKS CULTURE
What Were Doing Now
At

Starbucks, we strive to create a culture that values and respect

diversity and inclusion. We expect to be a leader in diversity and
inclusion, from our partners in the field to our senior leadership
teams.
To

help make our goals become reality, we have integrated diversity

and inclusion into the core of our leadership competencies. We expect
that all leaders within Starbucks practice behaviors that demonstrate
inclusion. We will reach out to leverage diverse points of view,
talents and capabilities. We will work and think across teams,
functions and businesses; across markets, channels and organizations;
across cultures and communities; across physical and digital spaces.

STARBUCKS CULTURE
The

goalsof the Diversity and Inclusion team include

building a diverse workforce, increasing cultural
competencies, shaping a culture of inclusion and
developing a diverse network of suppliers.
To advance

our diversity and inclusion goals we are

leveraging Starbucks Partner Network Groups.
These

groups provide us insight on product innovation,

business solutions, partner development and the
recruitment and retention of partners. We empower seven
Partner Networks, field Diversity & Inclusion councils and
a Global Council operating in North America.

Company Description
Industry
Type of firm (manufacturing/service/wholesale)
Strategic advantage
Legal structure
Physical location & geographic reach
Ownership structure

Opportunity Analysis
Industry

analysis
Target market
Environmental analysis (SWOT)
Competitive analysis

Marketing Strategy & Plan

Products
Pricing
Promotion
Place
Philanthropy

Management & Operations

Management

team & employees

Research

& development

Location

& physical facilities & equipment

Inventory
Quality

& production

assurance

Financial Analysis & Projections

Start-up

capital requirements
Cash flow projections
Income statement projections
Balance sheet projections
Breakeven analysis
Key ratios & comparisons

Funding Request & Exit Strategy

Amount,

type, & terms for funds

Risks & barriers
Exit & harvesting strategy
Milestones

Appendices
Resumes
Detailed

financial projections
Product specifications, photos, & the like
Advertising & promotion samples
Contracts
Other supportive materials

Business Plan Suggestions

Write

for your audience

Show

that you have skin in the game

Be

clear & concise

Use

current data & reports

Select
Use

a voice

a consistent, easy-to-read format

Number

& label throughout

Present

the plan professionally

Presenting the Plan

Formal

presentations
Elevator pitch
Competitions