book

Business Plans Kit For Dummies®, 3rd Edition

Name: Business Plans Kit For Dummies®, 3rd Edition
ISBN: 9780470438541

by Steven D. Peterson PhD, Peter Jaret, Barbara Findlay Schenck

May 2010

Beginner

380 pages

8h 28m

English

For Dummies

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Copyright
About the Authors
Authors' Acknowledgments
Publisher's Acknowledgments
Introduction
About This BookWhy This Book Is for YouConventions Used in This BookHow This Book Is OrganizedPart I: Building a Strong Foundation for Your PlanPart II: Developing Your Plan's ComponentsPart III: Tailoring a Business Plan to Fit Your NeedsPart IV: Making the Most of Your PlanPart V: The Part of TensAbout the CDIcons Used in This BookWhere to Go from Here
I. Building a Strong Foundation for Your Plan
1. Starting Your Planning Engine
1.1. Understanding Your Starting Position1.1.1. Planning for a start-up1.1.2. Planning to address changing conditions1.1.3. Planning to seize growth opportunity1.2. Committing to the Business-Planning Process1.2.1. Defining your business-planning situation1.2.2. Buying into the value of business planning1.2.3. Making a wish list for your business plan1.3. Identifying Target Audiences and Key Messages1.3.1. Your audience1.3.2. Your message1.3.3. Business planning as a test drive1.4. The Anatomy of a Business Plan1.4.1. Business-plan contents from beginning to end1.4.2. Frequently asked business-plan questions1.5. Establishing Your Plan's Time Frame1.5.1. Committing to a schedule1.5.2. Defining milestones1.6. Preparing for the Real World1.6.1. Locating informative resources1.6.2. Seeking expert advice1.6.3. Sharing the load1.6.4. Staying on track1.7. Forms on the CD-ROM
2. Generating a Successful Business Idea
2.1. Brainstorming Business Ideas2.1.1. Hatching plans for a new product or service2.1.2. Using the do-it-yourself idea blender2.1.3. Seeking creative solutions to tough challenges2.1.4. Inspiring team creativity (with or without donuts or bagels)2.1.4.1. Applying the LCS system to nurture new ideas2.1.4.2. Assembling a brainstorming session2.1.5. Finding business ideas within your work environment2.2. Identifying Business Opportunities2.2.1. Listening to what customers have to say2.2.2. Spotting changes that open up new opportunities2.2.3. Putting your business ideas through a first test2.2.4. Narrowing your choices2.3. Doing Your First Reality Check2.3.1. Getting a second opinion2.3.2. Conducting a self-appraisal2.4. Forms on the CD-ROM
3. Defining Your Business Purpose
3.1. Knowing What Business You're In3.1.1. How would I describe my business?3.1.2. Where's the money?3.2. Giving Your Company Its Mission3.2.1. Asking basic questions3.2.2. Framing your mission3.2.3. Crafting your mission3.2.4. Fixing a weak or ineffective mission statement3.2.5. Putting your mission to work3.3. Setting Goals and Objectives3.3.1. Approach #1: Tying goals to your mission3.3.2. Approach #2: Using goal-setting ACES3.3.3. Approach #3: Covering all the bases3.3.4. Making final choices3.4. Exploring Values and Vision3.4.1. Uncovering values you already hold3.4.2. Writing a values statement3.4.3. Writing a vision statement3.5. Putting Your Principles into Practice3.6. Forms on the CD-ROM
II. Developing Your Plan's Components

4. Understanding Your Business Environment
4.1. Zooming In on Your Industry4.1.1. Seeing your industry's big picture4.1.2. Paying the price of admission4.2. Defining Your Customers4.2.1. Developing your customer profile4.2.2. Conducting customer research4.2.2.1. Compiling a firsthand analysis of your customer4.2.2.2. Casting a wider net4.2.2.3. Getting research assistance4.2.2.4. Establishing your customer intelligence game plan4.2.3. Sharpening your customer focus4.2.4. Describing your ideal customer4.2.4.1. Separating the good from the best — and the best from the worst4.2.4.2. Defining perfection4.2.5. Segmenting customers into buyer groups4.2.6. Doing business with business customers4.3. Defining and Addressing Market Shifts4.3.1. Charting market growth patterns4.3.2. Tracking buyer tastes and trends4.4. Sizing Up Your Competition4.4.1. Using cloak-and-dagger methods4.4.2. Identifying your stealth competitors4.4.3. Staying a step ahead4.5. Greening Your Business4.6. Forms on the CD-ROM
5. Charting Your Strategic Direction
5.1. Assessing Your Capabilities Against the Opportunities and Threats You Face5.1.1. Sizing up your strengths and weaknesses5.1.1.1. Grading your capabilities5.1.1.2. Matching your capabilities to the task at hand5.1.1.3. Capitalizing on strengths and overcoming weaknesses5.1.2. Identifying opportunities and threats5.1.3. Conducting a SWOT analysis5.2. Defining Your Business Model5.2.1. Staying in the black5.2.2. Getting entrepreneurial about nonprofits5.2.3. Timing your expenses and income5.2.4. Generating and collecting revenue5.2.5. Pricing yourself into the market5.2.6. Planning to control costs5.2.7. Creating a business model that works5.3. Charting Your Future5.3.1. Understanding your options5.3.2. Planning for growth5.4. Outlining an Exit Strategy5.5. Forms on the CD-ROM
6. Describing Your Business and Its Capabilities
6.1. Introducing Your Business6.1.1. What is it you're selling, anyway?6.1.2. How do you prepare an elevator speech?6.2. Describing Your Business Capabilities6.2.1. Research and development6.2.2. Operations6.2.3. Distribution and delivery6.2.4. Management6.2.5. Organization6.2.5.1. The pack6.2.5.2. Form follows function6.2.5.3. Divide and conquer6.2.5.4. The matrix6.3. Changing Your Business Focus6.3.1. Making product changes6.3.2. Moving your business6.3.3. Revamping your operations and processes6.3.4. Altering distribution channels6.4. Staying Focused on What You Do Best6.5. Forms on the CD-ROM
7. Crafting Your Marketing Plan
7.1. Marketing at a Glance7.1.1. The big marketing picture7.1.2. The nuts and bolts of a marketing plan7.2. Analyzing Your Market Situation7.2.1. Getting a handle on your market7.2.2. Assessing your competition7.2.3. Forecasting your business climate7.3. Setting Marketing Goals and Objectives7.4. Defining Your Position and Brand7.5. Targeting Your Efforts7.6. Designing Marketing Strategies7.6.1. Your product strategy7.6.2. Your distribution strategy7.6.3. Your pricing strategy7.6.4. Your promotion strategy7.7. Planning Your Internet Footprint7.8. Forms on the CD-ROM
8. Tallying Up Your Financial Situation
8.1. Decoding Financial Terminology8.2. Putting Together an Income Statement8.2.1. Reviewing a sample income statement8.2.1.1. Section 1: Gross revenue8.2.1.2. Section 2: Gross profit8.2.1.3. Section 3: Operating profit8.2.1.4. Section 4: Profit before taxes8.2.1.5. Section 5: Net profit8.2.2. Now it's your turn: Creating your income statement8.3. Creating Your Balance Sheet8.3.1. Reviewing a sample balance sheet8.3.1.1. Section 1: Current assets8.3.1.2. Section 2: Fixed assets8.3.1.3. Section 3: Intangibles8.3.1.4. Section 4: Total assets8.3.1.5. Section 5: Current liabilities8.3.1.6. Section 6: Long-term liabilities8.3.1.7. Section 7: Owner's equity8.3.1.8. Section 8: Total liabilities and equity8.3.2. Now it's your turn: Building your balance sheet8.4. Constructing a Cash-Flow Statement8.4.1. Section 1: Total funds in8.4.2. Section 2: Total funds out8.4.3. Section 3: Net change in cash position8.4.4. Section 4: Changes in liquid assets8.4.5. Section 5: Net change in cash position8.4.6. Now it's your turn: Creating your cash-flow statement8.5. Forecasting and Budgeting8.5.1. Your financial forecast8.5.2. Planning for that rainy day8.5.2.1. Pro forma income statement8.5.2.2. Estimated balance sheet8.5.2.3. Projected cash flow8.5.3. The master budget8.6. Forms on the CD-ROM
III. Tailoring a Business Plan to Fit Your Needs
9. Planning for a One-Person Business
9.1. Having What it Takes to Succeed in a One-person Business9.1.1. Planning for success9.1.2. Avoiding legal hassles9.1.3. Putting a price on what you do9.1.3.1. Knowing how to charge9.1.3.2. Figuring out how much to charge9.1.3.3. Establishing billing policies9.1.3.4. Getting paid9.1.4. Treating your business like a business9.2. Tailoring a Business Plan to Fit Your One-Person Enterprise9.2.1. Company overview9.2.2. Business environment9.2.3. Company description and strategy9.2.4. Financial review9.2.5. Action plan9.3. Forms on the CD-ROM
10. Planning for a Small Business
10.1. Recognizing the Importance of a Plan10.2. Preparing Your Small Business Plan10.2.1. Analyzing your business location and the surrounding environment10.2.2. Defining your business and its purpose10.2.3. Plotting your business strategy10.2.4. Clarifying your financial situation10.2.5. Establishing your action plan10.3. Keeping an Eye on the Business Horizon10.4. Growing — or Not Growing — Your Small Business10.5. Keeping It in the Family10.6. Forms on the CD-ROM
11. Planning for an Established Business
11.1. Purpose-Driven Planning11.2. Planning to Raise Capital11.2.1. Bank financing11.2.2. Investor capital11.3. Planning to Grow Your Business11.4. Planning in Times of Trouble11.4.1. Diagnosing your problems11.4.2. Getting a second opinion11.4.3. Analyzing your current situation11.5. Charting a Turnaround11.5.1. Keeping an eye on the clock11.5.2. Focusing on what's doable11.5.3. Getting the right people in the loop11.5.4. Using your plan to communicate11.6. Planning for a Merger or Sale11.6.1. Assessing the transferability of your business11.6.2. Planning for a change in leadership11.7. Forms on the CD-ROM
12. Planning for a Nonprofit Organization
12.1. Running a Nonprofit Like a Business12.1.1. Fine-tuning your mission and vision12.1.2. Creating the appropriate structure12.1.3. Setting goals and objectives12.1.3.1. Sample goals and objectives12.1.3.2. A sample solicitation based on goals and objectives12.2. Organizing to Do Good Work12.2.1. Operations12.2.2. Organization12.2.3. Management12.2.4. Research and development (R&D)12.3. Keeping the Books12.3.1. Finding funding12.3.2. Tailoring your plan to big donors12.3.3. Managing overhead12.3.4. Putting working cash to work12.3.5. Staying accountable12.4. Marketing and Promoting Your Nonprofit12.5. Forms on the CD-ROM
13. Planning in an Online World
13.1. Avoiding the Well-Traveled Bumps on the Cyber Highway13.1.1. Web presence isn't an all-or-nothing proposition13.1.2. E-business planning is a continuous process13.1.3. Successful strategy depends on a business model13.2. Ironing Out Pressing Planning Issues13.3. Creating an Online Customer Profile13.4. Building an Internet Business13.4.1. Establishing your value proposition13.4.2. Constructing a workable e-business model13.4.3. Getting funded13.5. Adding an Internet Extension to Your Brick-and-Mortar Business13.5.1. Retailing online13.5.2. Budgeting for your online presence13.5.3. Tapping into the power of social networks13.6. Forms on the CD-ROM
IV. Making the Most of Your Plan
14. Putting Your Plan Together
14.1. Making a List and Checking It Twice14.2. Locating Additional Resources14.2.1. The bookstore14.2.2. The Web14.2.3. Business software14.2.4. Expert advice14.2.5. Self-help14.3. Assembling Your Planning Team14.3.1. Delegating responsibilities14.3.2. Setting the ground rules14.3.3. Putting first things last14.3.4. Keeping track of it all14.3.4.1. The master tracker14.3.4.2. The old-fashioned loose-leaf notebook14.4. Targeting Your Plan to Key Audiences14.4.1. Identifying your stakeholders14.4.2. Addressing more than one audience14.4.2.1. Table of contents14.4.2.2. Executive summary14.4.2.3. The appendixes14.4.3. Creating alternate versions of your plan14.5. Fitting the Pieces Together14.6. Planning Ahead14.7. Forms on the CD-ROM
15. Putting Your Plan to Work
15.1. Organizing Your Company around Your Business Plan15.1.1. Form meets function15.1.2. Duties and responsibilities15.1.3. Systems and procedures15.2. Getting Team Buy-In15.2.1. Distributing your plan15.2.2. Leading effectively15.2.3. Sharing the vision15.2.4. Encouraging pride of ownership15.2.5. Developing employee skills15.3. Nurturing Tomorrow's Leaders15.4. Keeping Your Plan Current15.4.1. Monitoring your situation15.4.2. Encouraging feedback15.4.3. Planning for change15.5. Forms on the CD-ROM
V. The Part of Tens
16. Ten Signs That Your Plan May Need an Overhaul
16.1. Costs Rise, Revenues Fall16.2. Sales Figures Head South16.3. You Don't Meet Financial Projections16.4. Employee Morale Sags16.5. Key Projects Fall Behind Schedule16.6. New Competitors Appear16.7. Technology Shakes Up Your World16.8. Important Customers Defect16.9. Business Strategy Does a 18016.10. Growth Is Out of Your Control
17. Ten Ways to Fund Your Business Plan
17.1. Your Own Pocket17.2. Friends and Family17.3. Prospective Customers17.4. A Bank Loan17.5. A Commercial Line of Credit17.6. Equipment Leasing17.7. A Small Business Administration (SBA) Loan17.8. Deep-Pocket Partners17.9. Venture Capital17.10. Angel Money
18. Ten Ways to Evaluate a New Business Idea
18.1. Is This Something I Really Want to Do?18.2. Is This Something I'm Capable of Doing?18.3. Does It Tap My Personal Strengths?18.4. Can I Describe It in 25 Words or Less?18.5. What's the Closest Thing to It in the Marketplace?18.6. Does It Meet a Need or Solve a Problem?18.7. Does It Take Advantage of a New Opportunity?18.8. What's the Biggest Drawback or Limitation?18.9. Will It Make Money — and How Fast?18.10. Am I Willing to Remortgage My House?
19. Ten Questions to Ask Before You Finish Your Business Plan
19.1. Does the Plan Realistically Assess Your Business Idea?19.2. Does the Plan Adequately Describe Your Customers and What They Want?19.3. Does the Plan Establish Specific Timelines?19.4. Do the Financials Add Up?19.5. Does the Plan Spell Out Specific Goals and Objectives?19.6. Will It Guide and Inspire Employees?19.7. Is the Writing Clear and Jargon-Free?19.8. Is the Plan Concise?19.9. Does Your Strategy Allow for the Unexpected?19.10. What Would Your Competitors Think?
A. About the CD
A.1. System RequirementsA.2. Using the CD with WindowsA.3. Using the CD with MacIntoshA.4. What You'll Find on the CDA.4.1. Author created material: Business plan formsA.4.2. Other softwareA.5. Troubleshooting

Content preview from Business Plans Kit For Dummies®, 3rd Edition

Chapter 19. Ten Questions to Ask Before You Finish Your Business Plan

In This Chapter

Reviewing you business plan one last time
Fine-tuning your business plan to make it more effective

By the time you're ready to dot the last i and cross that last t of your written business plan, chances are you're more than ready to be done with it. But before you sign off, we strongly recommend reviewing the plan one last time. If you have the luxury to let your plan sit for a week before reading it through, even better. That extra time will allow you to assess your plan with fresh eyes. In our experience, some of the most important refinements are made to a business plan during the final review process. Consider this list of ten questions to ask about your plan.

Does the Plan Realistically Assess Your Business Idea?

We're all for enthusiasm, especially when it gives you the motivation and inspiration you need for the hard work of putting a business together. But we've learned from hard experience that a clear-eyed assessment of the strengths and weaknesses of a new enterprise is crucial to success.

Identifying weaknesses doesn't mean you have to scrap your idea. In fact, it can help you develop a strategy that plays on your strengths and minimizes your weaknesses. Read over your plan, taking the point of view of a very skeptical investor. Does it offer a convincing argument that your business idea will succeed?

Does the Plan Adequately Describe Your Customers and What They Want?

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