1 00:00:00,002 --> 00:00:02,004 - A good business plan includes the following, 2 00:00:02,004 --> 00:00:04,009 number one, the executive summary. 3 00:00:04,009 --> 00:00:07,003 Number two, the company summary. 4 00:00:07,003 --> 00:00:09,007 Number three, market analysis. 5 00:00:09,007 --> 00:00:12,000 Number four, industry analysis. 6 00:00:12,000 --> 00:00:15,002 Number five, product or service description. 7 00:00:15,002 --> 00:00:18,004 Number six, strategies and implementation. 8 00:00:18,004 --> 00:00:20,006 Number seven, financial plan. 9 00:00:20,006 --> 00:00:23,008 Number eight, sales forecast. 10 00:00:23,008 --> 00:00:26,008 Now let's begin with a breakdown of the executive summary. 11 00:00:26,008 --> 00:00:28,008 This is typically one to three pages 12 00:00:28,008 --> 00:00:31,000 and as a highlight of the entire plan, 13 00:00:31,000 --> 00:00:33,006 consider this an elevator pitch and it's designed 14 00:00:33,006 --> 00:00:36,003 to give a brief scope of the business at a glance. 15 00:00:36,003 --> 00:00:38,008 Here you will list bullet points of each section, 16 00:00:38,008 --> 00:00:41,004 starting with the introduction. 17 00:00:41,004 --> 00:00:43,007 This is the name of the LLC or corporation, 18 00:00:43,007 --> 00:00:45,008 the address and contact info. 19 00:00:45,008 --> 00:00:47,009 It's also okay to list any web addresses 20 00:00:47,009 --> 00:00:50,005 or social media handles when applicable. 21 00:00:50,005 --> 00:00:52,006 Number two, the purpose, 22 00:00:52,006 --> 00:00:55,009 this is where you'll list the reason for this plan. 23 00:00:55,009 --> 00:00:57,002 For example, 24 00:00:57,002 --> 00:01:00,004 this plan is to set a course for the successful management, 25 00:01:00,004 --> 00:01:02,009 operation and administration of the business, 26 00:01:02,009 --> 00:01:06,003 as well as support the negotiation of financial resources 27 00:01:06,003 --> 00:01:09,002 needed for transactional capital. 28 00:01:09,002 --> 00:01:11,001 Number three, the company, 29 00:01:11,001 --> 00:01:12,009 what type of business is this? 30 00:01:12,009 --> 00:01:14,007 What industry is covered? 31 00:01:14,007 --> 00:01:16,007 How was it legally structured? 32 00:01:16,007 --> 00:01:17,009 When was it established? 33 00:01:17,009 --> 00:01:19,002 And by whom? 34 00:01:19,002 --> 00:01:21,002 You should also include any professional training, 35 00:01:21,002 --> 00:01:22,005 that person has. 36 00:01:22,005 --> 00:01:25,008 Number four, products and services to be offered. 37 00:01:25,008 --> 00:01:28,007 Here, you will write two to four sentences on the product 38 00:01:28,007 --> 00:01:30,003 or service you offer. 39 00:01:30,003 --> 00:01:33,007 Remember, this is a brief description. 40 00:01:33,007 --> 00:01:36,007 Number five, broad target market. 41 00:01:36,007 --> 00:01:38,009 Under this bullet, you'll want to list the target 42 00:01:38,009 --> 00:01:42,005 demographics and geographic areas that you are focused on. 43 00:01:42,005 --> 00:01:46,009 For example, the LLC is targeting men between 18 and 54 44 00:01:46,009 --> 00:01:49,004 with disposable income, searching for health 45 00:01:49,004 --> 00:01:53,001 and wellness services in the county metro area. 46 00:01:53,001 --> 00:01:55,004 Number six, the industry, 47 00:01:55,004 --> 00:01:57,002 this should be two to four sentences 48 00:01:57,002 --> 00:01:59,008 explaining the industry at a brief snapshot. 49 00:01:59,008 --> 00:02:01,008 Here you may want to reference some of the data 50 00:02:01,008 --> 00:02:03,005 you have from your research. 51 00:02:03,005 --> 00:02:06,000 For an example, the wellness industry 52 00:02:06,000 --> 00:02:09,001 has seen significant growth over the last XYZ years 53 00:02:09,001 --> 00:02:11,001 and according to the latest data published 54 00:02:11,001 --> 00:02:13,005 by ADC government agency, 55 00:02:13,005 --> 00:02:18,001 the industry is expected to see a 20% year over year gain. 56 00:02:18,001 --> 00:02:21,008 Number seven, techniques, plans and strategies. 57 00:02:21,008 --> 00:02:24,008 In this section, take some time to explain the resources 58 00:02:24,008 --> 00:02:27,002 required to accomplish your goals. 59 00:02:27,002 --> 00:02:29,006 You might reference the company having equipment in place 60 00:02:29,006 --> 00:02:33,005 or executives from major firms as advisors, et cetera. 61 00:02:33,005 --> 00:02:35,006 Again, keeping this short but enough to create 62 00:02:35,006 --> 00:02:37,006 an interest in your company. 63 00:02:37,006 --> 00:02:40,003 Number eight, financial projections. 64 00:02:40,003 --> 00:02:42,007 It's important to reference the impact of the business 65 00:02:42,007 --> 00:02:45,000 from a brief financial standpoint. 66 00:02:45,000 --> 00:02:47,004 You might say things like the research and data 67 00:02:47,004 --> 00:02:51,000 listed in this plan shows substantial market opportunity 68 00:02:51,000 --> 00:02:53,005 which will allow the business to scale rapidly, 69 00:02:53,005 --> 00:02:55,001 getting to break even cash cashflow 70 00:02:55,001 --> 00:02:57,008 within the first two years of operation. 71 00:02:57,008 --> 00:03:00,002 This bullet may also account for job creation 72 00:03:00,002 --> 00:03:03,003 in the local market, so you can expand on that as well. 73 00:03:03,003 --> 00:03:07,003 Number nine, funding request, create a short statement 74 00:03:07,003 --> 00:03:09,007 on how any capital raised will be used. 75 00:03:09,007 --> 00:03:12,004 However, keep it to just the points, 76 00:03:12,004 --> 00:03:15,004 then summarize the amounts requested in two parts. 77 00:03:15,004 --> 00:03:17,009 First, what you personally have invested 78 00:03:17,009 --> 00:03:20,001 and second, the amount of outside capital 79 00:03:20,001 --> 00:03:22,004 you will need to raise for the business. 80 00:03:22,004 --> 00:03:24,003 Let me give an example of how you're going to want 81 00:03:24,003 --> 00:03:26,005 to showcase the information. 82 00:03:26,005 --> 00:03:29,004 Here you see all the investments made by the owner, 83 00:03:29,004 --> 00:03:32,007 so $20,000 for the purchase of reseller mentoring, 84 00:03:32,007 --> 00:03:39,002 $3,000 for all deposits and $2,000 for initial marketing. 85 00:03:39,002 --> 00:03:41,000 Now you have the outside capital, 86 00:03:41,000 --> 00:03:43,004 this entrepreneur needs for his or her business. 87 00:03:43,004 --> 00:03:47,001 So, $20,000 for the purchase of resell inventory, 88 00:03:47,001 --> 00:03:49,005 $500 for all deposits, 89 00:03:49,005 --> 00:03:53,005 $3,000 for the acquisition of all longterm assets, 90 00:03:53,005 --> 00:03:57,009 $69,000 for equipment, furnishings and office build out 91 00:03:57,009 --> 00:04:01,001 and $7,500 in working capital for cash 92 00:04:01,001 --> 00:04:02,008 and operational expenses. 93 00:04:02,008 --> 00:04:05,002 So you have a hundred thousand dollars total business 94 00:04:05,002 --> 00:04:08,001 startup requirements and funding request. 95 00:04:08,001 --> 00:04:11,006 You can also see examples of this in your handouts. 96 00:04:11,006 --> 00:04:14,005 This wraps up our first segment on executive summary, 97 00:04:14,005 --> 00:04:16,008 based on the information provided to you so far, 98 00:04:16,008 --> 00:04:18,005 you may already be seeing the importance 99 00:04:18,005 --> 00:04:20,000 of having a well laid out business plan.