BUSINESS PLAN PROJECT

Course Title: Small Business Management – MGT120
Project Rationale: The purpose of this 12-14 page paper is to become familiar with all the elements in the writing of a business plan. The business plan provides a detailed blueprint for the activities needed to finance the business, develop the product, market it, and otherwise manage the new business. Business plans are also used for planning the continuing operations of a firm. The guidelines, expectations, and format for the paper are clearly defined below. You are required to submit the paper, via the Business Plan Dropbox in D2L.
REQUIRED MATERIALS & TECHNICAL REQUIREMENTS:
Textbook, Internet Access, Computer and Word Processing Skills
Learning Outcomes:
*Learn why planning is so important for a small business
*Understand the role of financial planning
*Understand the role of strategic planning
*Determine the best legal structure for the firm
*identify the difference between variable and fixed expenses
*Understand all the components that comprise a business plan
The following must be included in this paper:
1: The Cover Sheet – Should include the business name, address and phone number (last two are optional), the name and title of the principals (your name) and the date the plan was prepared.
2: Table of Contents – Use an outline format so that the reader has an overview of the plan.
3. The Executive Summary – A brief statement of the purpose of the plan. It should include brief descriptions of your major objectives, products, marketing strategy, and financial objectives.
4. History of the Business – Should include a brief discussion of how the idea for the business, or product, originated and what has been done to develop the idea up to this point.
5. Description of the Business – This is where you define your business as you see it. You should answer such questions as: What business am I in? What services do I provide?
6. Description of the Market – You should try to answer such questions as: Who will buy my product? Where is my market? What is my sales strategy? What marketing strategy (ies) will I use? Who constitutes my target market? Also discuss your competition and any weaknesses that you can exploit.
7. Description of the Products – This category should describe all your existing or planned products, including services to be performed as well as goods to be produced. Look at any R&D activities along with patents, trademarks and copyrights.
8. Ownership and Management Structure – Describe the owners by name and title, some detail about their experience and expertise and include information about the organizational structure along with employee policies and procedures.
9. Objectives and Goals – Include items such as sales and revenue forecasts, marketing plans, manufacturing plans and how promotions and publicity are to be used.
10. Financial Analyses – In this section, you will indicate the expected financial results of your operations in an Excel format. For purposes of this exercise, your financial data will include only two (2) years of the following:
-Income Statement (P&L) – Break down by quarter for two (2) years reflecting all projected Income, COGS, Operating Expenses and EBITDA.
-Balance Sheet – Break down by year for two (2) years reflecting all projected Assets and Liabilities as well as Owner’s Equity.
-Cash Flow Statement – Break down by year for two (2) years projected Cash Flow from Operating Activities through Ending Cash.

11. Reference page – You must have at least three references one of which may be your text.
12. Appendix A – Though not normally part of a Plan, for purposes of this project, I want you to list all your expenses and identify them as either fixed or variable.
13. Appendix B – In Excel format, complete a projected Cash Budget for your first month of operation. Use all applicable categories shown on pg. 373. This may not be required from a banker or investor for a real Plan however, they may ask for it at a later date.
Thoroughly read Chapter 6 and Workbook for Developing a Successful Business Plan (starting pg. 418) in the text.
Points – 100 pts (35% of your grade)
You will be evaluated on the following:
 Length of your paper – 12 -14 pages. This number includes a separate cover sheet, a reference page, and separate pages for each Appendix.
 Use Word throughout except for Pro formas in Financial Analyses
 You must use at least 3 sources (your book can be one source)
 Grammar & Spelling
 Content & Readability
 Knowledge of the subject matter
 How well you address the required information in each section
 Format for text areas – APA or MLA– Times New Roman – 14 pt – Double
 Spaced