Book Preview ISBN13: 978-0-9878773-0-7ISBN10: 0987877305 About: Managing Organized Chaos is a series of books written to teach the fundamentals of business development, operations and management. Business Planning 1.0 is the first in the series and focuses on writing a solid and purposeful business plan that will get your idea to the exact place you envisioned. Fact: Everyone has ideas! Fact: An idea can only make you money if you know how to present it. Fact: You can only present it if you are prepared. __________________________________________ Managing Organized Chaos™ Verb, The process of taking charge of, handling, or directing to bring about positive change to an entity engaged in continual activity that is, or appears to be, in disorder. CONTENTS ACKNOWLEDGEMENTS FOREWORD DEFINITION INTRODUCTION ____________________________________ CHAPTER 1 BUSINESS OVERVIEW • Industry Description • Business Details • Major Demographic, Economic, Social and Cultural Factors • Major Players (suppliers, distributors, clients • Nature of the Industry • Trends in the Industry • Government or other Regulations ____________________________________ CHAPTER 2 MARKET • • Services • Distribution • • Factors Market Segment Products and Pricing and Market Trends Implications or Risk XIII XV XVII 1 9 10 12 15 16 17 18 21 23 23 26 42 43 47 ____________________________________ CHAPTER 3 COMPETITION. • Competitors and Type of Competition • Competitors’ Strengths and Weaknesses 51 51 52 55 • Advantages Competitive ____________________________________ CHAPTER 4 SALES & MARKETING PLAN • Customers • Terms – Products and Services • Additional Product Information • Suppliers • Advertizing and Promotion • Customer Service Policy 57 57 58 59 61 63 65 ____________________________________ CHAPTER 5 OPERATING PLAN • Location 1. Size and Capacity 2. Advantages and Disadvantages 3. Lease or Ownership Details • Equipment • Future Expenditures/Technology Requirements • Research and Development • Environmental Compliance ____________________________________ CHAPTER 6 HUMAN RESOURCES PLAN • Key Employees 1. Job Title with Key Responsibilities and Qualifications 73 73 74 74 75 75 77 77 80 83 84 84 • Organizational Chart Example 86 ____________________________________ CHAPTER 7 POLICIES & PROCEDURES • Training and Development • Remuneration and Benefits • Performance Assessment • Health and Safety ____________________________________ CHAPTER 8 ACTION PLAN • S.M.A.R.T. Goals 115 115 87 94,110 102,110 111 113 ____________________________________ CHAPTER 9 FINANCIAL PLAN • Information • • • • • • • Requirements • Indicators • Company Sales Cost of Sales Expenses Income Statement Balance Sheet Cash Flow Financial Performance Personal Status 121 122 125 130 131 132 133 135 138 140 141 ____________________________________ CHAPTER 10 EXECUTIVE SUMMARY • Objectives of the 145 Plan and Description of the Project • Business History and Nature of Operation • Products and Services • Project Financing • Management and Advisors • Risk Assessment & Contingency Plan • Financial Institution • Supporting Documentation ____________________________________ Appendix A FINANCIAL GLOSSARY ____________________________________ Appendix B BUSINESS QUESTIONS • Questionnaire Example A-2 149 151 152 158 158 159 164 165 A-15 A-16 ____________________________________ Appendix C BUSINESS PLAN CONTENTS CHECKLIST ____________________________________ Appendix D BLANK EXECUTIVE SUMMARY A-31 A-27 FOREWORD In my life I have done an unusual amount of different and unrelated things. I worked at many completely different jobs for many different types of people. I have seen the world from nearly every perspective because I walked a lot of miles in many different shoes. I was able to feel the softest and most expensive Versace alligator skin loafers on my bare skin; which I did not really appreciate until I got blisters from wearing no brand second (third, forth, or who knows) hand smelly thrift store Velcro ones. I have owned the most expensive cars and could afford the most expensive of unnecessary luxuries that now make me feel sick and embarrassed when I think of the money I wasted… INTRODUCTION Anyone who has ever succeeded or failed in the attempt to start a business from scratch will agree that it is one of the hardest things to do. I have heard time and time again from all types of people claiming to have the greatest idea ever. They feel that this idea gives them the automatic right to receive the funding and support necessary to make their vision of this idea a reality from whom ever they give the privilege of hearing it. Time and money is wasted on drafting a rock solid noncompete, non-disclosure agreement, just to tell your hardly thought out idea to anyone who will listen. If this sounds familiar, don’t feel too bad. I admit that I am also guilty of believing that one or two of my ideas were so great that everyone should stop everything they were doing and jump on board to make millions overnight…