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Balanko-Dickson, Greg. Tips and Traps for Writing an Effective Business Plan. US: McGraw-Hill Education, 2007.

Tips and Traps for Writing an Effective Business Plan

Authors: Greg Balanko-Dickson

Published:  2007

ISBN: 9780071709484 0071467513
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  • Contents
  • PART 1 INTRODUCTION
  • 1. What Is a Business Plan? Why Do I Need a Business Plan?
  • Does Every Business Need a Plan?
  • Ten Sections of a Business Plan
  • Business Plans as a Communication Tool
  • What Is a Business Plan?
  • Goals + Research + Strategy = Business Plan
  • Planning Stops Problems before They Start
  • Planning Is Part of Our DNA
  • It’s Worth the Effort
  • Good Management
  • Impress Your Bankers and Investors
  • Business Plans as a Management Tool
  • 2. Understanding the Process and Getting Prepared
  • Trust the Process, and You Will Gain New Insights
  • What’s Your Learning Style?
  • Learning Styles—Everyone Has One
  • Your Personality
  • The Process of Writing a Business Plan
  • One Bite at a Time
  • Financial Projections for Your Business Plan
  • Ignore the Order in Which Sections Appear in the Final Document
  • Sample Business Plans Are Too General
  • Director’s Liability
  • PART 2 THE 10 SECTIONS OF A BUSINESS PLAN
  • 3. Industry Analysis
  • Industry Analysis = External Focus
  • Competitive Environment, Industry Trends, and Market Environment
  • Economic Climate
  • The Role of Technology
  • Exit Strategy
  • Government Regulations
  • Demographic Trends
  • Industry Analysis Questions
  • Sample Industry Analysis
  • 4. Market Analysis
  • Benefits of the Market Analysis
  • Identify Your Competition
  • Competition Analysis
  • How to Gather Information about Your Competitors
  • Identify Sales and Profits by Market Segment
  • Other Sources of Information
  • In-Depth Marketing Research
  • Market Segments and Innovation
  • Calculate Market Size and Market Share
  • How to Determine the Size of Your Market
  • Market Area
  • External Factors
  • Sample Market Analysis
  • 5. Products and Services
  • Background Information
  • Define the Line of Products or Services
  • Service and Product Positioning
  • Start-Up and Expansion Costs
  • Document Revenue, Costs, and Profits
  • Growth, Expansion, and Redesign
  • Change in Costs and Profits
  • Service Life Cycle
  • Customer Profile
  • Customer Analysis
  • Customer Preferences
  • Create a Customer Needs and Preferences Profile
  • Proprietary Rights
  • Sample Services Section
  • 6. Business Description
  • Define Your Vision
  • Draft a Mission Statement
  • Ethics Statement
  • Explain Your Business Goals
  • Operations
  • Type of Facilities
  • Legal Structure
  • Sample Business Description
  • 7. Marketing and Sales Strategy
  • The Five-Step Marketing Strategy
  • Pricing Decisions and Strategy
  • Want to Avoid Failure? Then Develop a Sales Strategy
  • Sales = Influence
  • Creating Your Sales Strategy
  • The Complete Six-Step Sales Process
  • Repeat Customers Generate Substantial Profits
  • Sample Marketing and Sales Strategy
  • 8. Operations and Management
  • Why Operations and Management Plans Are Taken for Granted
  • Operations and Management as a Marketing Tool
  • Your Financier Will Take a Critical Eye to Management and Operations
  • Uses of an Operations and Management Plan
  • Components of the Operations and Management Plan
  • Management and Organizational Structure
  • Professional Services
  • Sample Management, Operations, and Organization Section
  • 9. Pro Forma Financial Plan
  • Drive to the Finish Line
  • The Purpose of Your Pro Forma Financial Plan
  • The Pro Forma Financial Plan Must Answer Four Questions
  • Research and Study Sample Financial Statements
  • Building Your Business Financial Plan
  • Gather, Organize, and Enter Data
  • Cash Budget
  • How to Build the Income Statement
  • Structure of the Income Statement
  • Building Your Pro Forma Statement of Cash Flows
  • The Difference between Cash Flow and Profitability
  • Balance Sheet
  • Structure of a Balance Sheet
  • Putting your Balance Sheet Together
  • Using the Balance Sheet to Determine Profit or Shortfall
  • Breakeven Analysis
  • Understanding Breakeven
  • Sensitivity Analysis
  • Ratio Analysis—Understanding Your Financial Ratios
  • Liquidity Ratios
  • Safety Ratios
  • Profitability Ratios
  • Sales, General, and Administrative Costs to Sales Ratio
  • Efficiency Ratios
  • Formatting the Financial Plan
  • Reality Check—Revise and Make Final Adjustments
  • Financial Planning Tools
  • Conclusion
  • Sample Pro Forma Financial Plan
  • 10. Implementation Plan
  • Write It, Then Read It
  • Track Implementation Ideas as You Write
  • Special Considerations for Start-Ups
  • Implementation for Established Firms
  • Use of Funds
  • Three-Part Implementation Plan
  • Sample Implementation Plan
  • 11. Contingency and Emergency Plan
  • Business Planning Evolves
  • What Is the Purpose of a Contingency and Emergency Plan?
  • What Is an Emergency Plan?
  • What Is a Contingency Plan?
  • Key Performance Indicators
  • Write a Six-Step Disaster/Emergency Plan
  • What’s Missing from the Sample Contingency and Emergency Plan
  • Sample Contingency and Emergency Plan
  • 12. Executive Summary
  • Customize the Executive Summary for the Person Reading Your Business Plan
  • Customizing the Executive Summary for Your Bank
  • Confidentiality
  • Sample Executive Summary
  • PART 3 WRITING A BUSINESS PLAN IN 30 DAYS
  • 13. Writing a Business Plan in 30 Days
  • Minimize Your Distractions
  • Read, Think, Write, Edit
  • How to Write a Business Plan in 30 Days
  • The 30-Day Time Line
  • 14. Common Mistakes in Writing a Business Plan
  • Writing a Business Plan to Get Funding
  • Writing a Business Plan to Get Your Business Organized
  • Writing a Business Plan because Your Banker Asked for It
  • Writing a Business Plan because You’ve Been Told You Need One
  • What to Do If You Have No Business Experience
  • Beware of the B.S. Factor
  • Writing a Business Plan without Financial Statements
  • Making Assumptions and Decisions without All the Facts
  • Ignoring Risk = Gambling
  • Trying to Go It Alone
  • Not Enough Detail in the Business Plan
  • Not Customizing Your Business Plan for the Reader
  • Not Writing a Business Plan or Not Finishing It
  • Inflating Revenue or the Sales Forecast
  • Not Starting a Business Plan because It’s Too Much Work
  • 15. Working with Professional Advisers
  • History of Business Advisers
  • The “Coaching” Side of Business Coaching
  • Business Coaching
  • You and Your Team
  • Advisers Provide Perspective
  • Working with an Accountant or an Attorney
  • Informal Advisers
  • PART 4 SPECIAL CONSIDERATIONS FOR SPECIFIC BUSINESSES
  • 16. Business Planning for Inventors
  • Managing the Details
  • Product Development: Building a Prototype
  • Business Development
  • Market Research
  • Advice for Inventors
  • Making Money from Your Invention
  • 17. Business Planning for a Retail Business
  • Describe Your Retail Location
  • High End = High Rent
  • Do Your Own Investigation
  • Drawing Traffic by Locating Close to Other Tenants
  • Staff Recruiting and Training
  • Buying the Right Inventory
  • The Retail Marketing Secret
  • What Type of Retail Business Do You Want?
  • 18. Business Planning for a Manufacturing Business
  • Specific Operational Information to Include
  • Role of Quality Management Systems
  • Document Your Input Costs and Considerations
  • Equipment Depreciation
  • Facility Design and Operations Layout
  • Include Information about Labor, Production, and Process Considerations
  • Include Information about Your Health and Safety Programs
  • Include Your Plans for Training and Education Programs
  • 19. Business Planning for Wholesale Distributors
  • Industry Analysis
  • Financial Plan
  • Marketing Strategy
  • Competition
  • Customer Surveys
  • Technology
  • Purchasing and Inventory Management
  • Delivery and Pick Up
  • Product Lines
  • Vendor Support and Customer Service
  • 20. Business Planning for a Service Business
  • Creating a Positive Customer Experience
  • Before You Write Your Business Plan, Define the Customers’ Needs
  • Identify Competitors
  • Marketplace
  • Choose and Define Your Ideal Customer
  • Create a Service Blueprint
  • Watch for New Revenue Opportunities
  • Describe the Operation of Your Service Business
  • 21. Business Planning for Consultants and Professionals
  • Seasonal Fluctuations in Sales Volume
  • Obtain Financing to Bridge the Gap
  • Sales and Marketing Plan
  • Financial Projections and Cash Flow Analysis
  • 22. Business Planning for Large and Public Companies
  • Team Approach to Building Your Business Plan
  • Bottom-Up Approach
  • Role of the CEO and Senior Executives in the Business Planning Process
  • Sarbanes-Oxley (SOX)
  • Industry Analysis
  • Market Analysis
  • Marketing Strategy
  • Operations Plan
  • Products and Services
  • Business Description and Executive Summary
  • 23. Business Planning for Small-Medium Businesses (SMB)
  • You Might Be a Small Business, but Growth Is a Priority
  • Growth Potential = Growth in Human Resources
  • Industry Analysis
  • Marketing Strategy
  • Operations Plan
  • Financial Plan
  • Exit Strategy, Sarbanes-Oxley (SOX)
  • 24. Business Planning for Small-Small Businesses
  • The Big Business Trend? Keeping It Small
  • Build a Diversified Marketing and Sales Plan
  • Create a Development Plan to Increase Your Interpersonal Skills
  • Avoid the Trap of “Breakevenitis”—Create a Profit Plan
  • Your Customers Fund Your Downtime
  • Calculate a Profitable Rate and Build a Profit Plan
  • Keep an Eye on Economic and Business Trends
  • Taking Outsourced Work from Larger Companies—Get a Good Contract
  • U.S. Entrepreneurship Outlook
  • Manage Cash Flow by Managing the Sales Process
  • Calculate Required Sales Activity
  • Long Hours When Successful
  • Getting a Business Loan for a Small-Small Business
  • 25. Business Planning for a Web-Based Business
  • Vision and Goals
  • Choose Your Market Wisely
  • Think You’ll Need Venture Capital?
  • Bootstrap It
  • Use Wisdom When You Write Your Business Plan
  • Rapid Development
  • Stay Small and Agile
  • Business Model
  • Personnel Plan
  • Marketing Strategy
  • PART 5: GETTING THE MONEY YOU NEED
  • 26. Applying for a Business Loan
  • Preparing to Apply for a Small Business Loan
  • After the Loan Application
  • Unseen Decision Makers
  • The Loan Officer’s Role
  • Plan Ahead
  • Work with the System
  • Supporting Documents Needed for a New Commercial Business Loan
  • The Loan Application Process for a Commercial Business Loan
  • Small Business Administration Loans
  • Alternative Financing Options
  • Franchise Financing
  • 27. Getting Funding from Investors, Family, and Friends
  • Get a Loan or Sell Equity
  • Finding Money
  • Make a List of Investors
  • Should I Ask for More Money Than I Need to Create a Cushion?
  • Be Professional in Your Business Dealings
  • Choosing an Investor
  • PART 6 APPENDIXES
  • A. Business Plan
  • B. Business Dictionary
  • C. 101+ Marketing Tools, Tactics, and Strategies
  • Sample Tools and Strategies
  • Sample Application of Marketing Tools
  • D. Getting Help Writing Your Business Plan
  • How to Select, Screen, and Hire a Business Plan Writer or Business Plan Professional
  • How to Get Maximum Value When You Hire a Business Coach
  • E. Web Resources and Links
  • F. Software That Can Help
  • G. How the Author Can Help
  • Getting Support While You’re Writing Your Business Plan
  • Why I Do Not Write Business Plans for Other People
  • Why I Wrote This Book
  • Common Problems Facing Business Owners
  • Coaching Services
  • How My Coaching Relationships Work
  • Seven Reasons You Should Consider Coaching
  • Index