1. What did he identify as key planning issues?
    • Purpose of plan
    • Market need (product and/or service)
    • Market (buyers and sellers of need)
    • The offering unfair advantage (must have some to win)
    • Marketing strategy (how to make the target market buy without having to sell)
    • Financial plan (taxation, need & source of funds, income/cash flow/balance sheet forecast, financial ratios)
  2. What questions must the Plan answer?
    • What are the market needs and the market?
    • How are those needs presently satisfied?
    • What are the strengths and weaknesses of present suppliers?
    • What does the company need to offer to become a preferred supplier?
    • How is the company going to structure, staff and manage the business?
    • What are the financial needs? When are they needed?
    • How are those needs going to be financed?
    • Is the business going to make money? How much? When?
    • Is the company sufficiently capitalized until breakeven point is reached?
    • Does the forecast show consistent liquidity and solvency?
    • How will the company fill temporary cash flow gaps?
    • What is the relative financial health of the company?
  3. What is the most critical and difficult of business planning?
    Market research
  4. What are sources of market research information?
    • Client (if not a good source, then he/she shouldn't be in business)
    • Competitors
    • Industry associations
    • Trade journals and trade shows
    • Demographics
    • Fee-based services
    • Chambers of Commerce
    • Bureau of Labor Statistics
  5. What are the conditions for commercial loans?
    • Business plan with substantiated financial forecast
    • Capital - equity should be 20-25% of the total capital
    • Collateral - 100% of the loan request
    • Character - of the borrower and guarantors
    • Capacity - of the business to be profitable and cash-flow positive
    • Credit - of applicant adnd guarantors must be good
    • Conditions - state of the economy, industry, etc.
  6. Name the nine pieces of specific information needed to make a business plan.
    • Market research
    • Marketing
    • Legal business structure
    • Financing the business
    • Business financial model
    • Financial health & benchmarking
    • Business plan guides
    • Licenses and registrations
    • Protecting intellectual property
Card Set
MgtOps Carlos Gonzalez Presentation