Many small businesses don't have a business plan because it seems too complicated to build one and then it is too complicated to actually use. They need a more simple method and a practical planning process that they will actually use to run the business. Most books and templates for building a business plan are overwhelming in the information they need. Learn to filter down to the necessary planning items you need to run your business, a practical business plan that you will use. - Defining the market for your business - Evaluate changing market conditions - Create a practical business plan for daily decisions

1. Sigma Free
Presents…
Build a Practical Business Plan for
Your Business
Tuesday, April 6, 2010
6pm – 8pm
Sigma College of Small Business
6611 Jefferson St.
Haymarket, VA 20169
Provided by Sigma College of Small Business, Inc.

2. Agenda
Introductions
Keynote Topic
Build a Practical Business Plan
for Your Business
Break – Refreshments and Networking
Ask
Keynote Conclusion
Questions
Build a Practical Business Plan
Any Time
for Your Business
Build a Practical Business Plan for Your Business 2
Copyright 2010 Sigma College of Small Business, Inc.

3. Going Into Business
Which answer best describes how YOU decided to
go into business?
– I had a product or skill and decided to build a market
for it.
– I saw a specific need in the market and built a product
or skill to fill the need
– I bought into a business where there was already a
defined market and product/services.
– The whole thing was thrust upon me!
– Other _____________________________________
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Copyright 2010 Sigma College of Small Business, Inc.

4. Product, Need and Value
The Core Planning Process
Product Value
Match
Market How Much Can or
Need Needs to be Made
Build a Practical Business Plan for Your Business 4
Copyright 2010 Sigma College of Small Business, Inc.

5. Execution
The Essential Element
Product Value
Execution:
Specific Actions
Match
for
Desired
Outcomes
Market How Much Can or
Need Needs to be Made
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Copyright 2010 Sigma College of Small Business, Inc.

6. Your Business Plan
Choose the answer that BEST matches your
company's business plan.
– I use my written business plan daily in the operation
of my business.
– We review and update parts of our written plan
periodically as a guide to planning decisions
– We have a plan that we hire someone to update every
year or so.
– I have one somewhere that we did a few years ago.
– Business Plan? ‐It's all up here baby!
– Other _______________________________________
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Copyright 2010 Sigma College of Small Business, Inc.

7. Types of Business Plans
Business Management Plans
• Used to run the business
• Communicates business
Investor Plans decisions to managers
• Communicate business • Process for guiding business
concept to others decisions
• Primarily to raise capital – Consolidates information
– Debt or Equity – Facilitates decision making
– Find Partners – Decision history and reasoning
– Execution
• Selling “The Business” • Links actions to
– Not necessarily the desired
product outcomes
Get Money vs. Make Money
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Copyright 2010 Sigma College of Small Business, Inc.

8. The Practical Business Plan
Core Elements
Market Opportunity
Match Product to Need
Budget
Opportunity Value and Cost
Marketing and Sales
Method for Exchanging Product
for Cash
Build a Practical Business Plan for Your Business 8
Copyright 2010 Sigma College of Small Business, Inc.

9. Investment
Build a Practical Business Plan for 9
Copyright 2010 Sigma College of Small Business, Inc.

10. Market Opportunity
• Gap in the Market
– The specific need or desire
– Potential buyers and users
– Reason for Gap
• Product Definition
– Basic description
– How it fills the gap
• Match Product and Need with Value
– Describe how the match will create value in the
market
Build a Practical Business Plan for Your Business
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Copyright 2010 Sigma College of Small Business, Inc.

11. Budget
• Revenue
– Market Potential Approach
– Break Even Approach
• Expenses
– Cost to build
– Cost to market, sell and
manage
• Cash Flow
• Profitability
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Copyright 2010 Sigma College of Small Business, Inc.

12. Marketing and Sales
• Packaging
– Sizes, combinations, service levels
• Price
– Strategy for pricing the product portfolio
• Message
– Key points to communicate for each product and
segment
– Show value and differentiate
• Promotion and Communication
– Methods and media for communicating the
message
– Includes advertising, discounts, promotion events,
etc…
• Sales and delivery
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Copyright 2010 Sigma College of Small Business, Inc.

13. Building on the Business Plan
Core Elements
Market Opportunity
Operations Detail
Business Strategy Match Product to Need
Procedures
Vision ‐ New Opportunities Organization
Mission Budget and Forecast HR Plan
Objectives Opportunity and Cost Development
Legal Structure ‐ Financial Plan Facilities
Marketing and Sales
Method for Exchanging
Product for Cash
‐ Marketing Plan
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Copyright 2010 Sigma College of Small Business, Inc.

14. Sigma College of Small Business
• Upcoming SigmaFree Classes Critical Business
– 4/13 – What’s In a Name? The Power of Areas
Your Brand Strategy and Planning
– 4/20 – There’s Gotta be a Better Way! Marketing and Sales
Happier Customers and Higher Profits Accounting and
Finance
• Focus Workshop
Operations and
– Leveraging the Online Social Network Quality
• Tuesday, May 4, 2010 Leadership and
• 10am – 2pm, $199 Administration
Technology and
Innovation
Dedicated to the Learning Needs of Small Business!
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Copyright 2010 Sigma College of Small Business, Inc.