ࡱ> Root Entry F;.hData j1TableWordDocumentmH  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~utopqrsuvwxyz{|}~ I !"#$%&'()*+,-./089:;<=DEFGHJKLMNOPQRSTUVWXYZ[\]^_`abcdjknopqrstvwxyz{|}~Root Entry FI/Data j1TableWordDocumentJ follow. Hint: To help you consider the ethical issues that your business might fact, refer to the discussion in Chapter 2.  FORMTEXT       Social Responsibility A business shows social responsibility by respecting all of its stakeholders. What steps will you take to create a socially responsible business? Hint: To help you consider issues of social responsibility, refer to the discussion of social responsibility in Chapter 2. What steps can you take to be a good citizen in the community? Consider also how you may need to be socially responsible toward your customers and, if applicable, investors, employees, and suppliers.  FORMTEXT       Global Issues Do you think that you ll sell your product in another country? If so, what countries would you choose, and why? What challenges will you face? Hint: To help you consider issues of global business, refer to Chapter 4. Consider how you will expand internationally (i.e. independent agent, licensing, etc.). Do you expect global competition for your product? What advantages will foreign competitors have?  FORMTEXT       Provide a brief mission statement for your business Hint: Refer to the discussion of mission statements in Chapter 5. Be sure to include the name of your business, how you will stand out from your competition, and why a customer will buy from you.  FORMTEXT       Consider the goals for your business. What are three of your business goals for the first year? What are two intermediate to long-term goals? Hint: Refer to the discussion of goal setting in Chapter 5. Be as specific and realistic as possible with the goals you set. For example, if you plan on selling a service, how many customers do you want by the end of the first year and how much do you want each customer to spend? If you plan on selling a good, how many do you hope to sell?  FORMTEXT       Perform a basic SWOT analysis for your business, listing its main strengths, weaknesses, opportunities, and threats. Hint: We explained above what factors you should consider in your basic SWOT analysis. Look around at your world, talk to classmates, or talk to your instructor for other ideas in performing your SWOT analysis. Strengths  FORMTEXT       Weaknesses  FORMTEXT       Opportunities  FORMTEXT       Threats  FORMTEXT       Who will manage the business? Hint: Refer to the discussion of managers in Chapter 5. Think about how many levels of management as well as what kinds of managers your business needs.  FORMTEXT       Show how the  team fits together by creating a simple organizational chart for your business. Make sure that you organizational chart indicates who will work for each manager as well as each persons job title. Hint: Most businesses start off quite small. However, as you create your organizational chart, consider what your business will look like in the future. What different tasks are involved in the business? Who will each person report to in the organizational structure? Refer to the discussion of organizational structure in Chapter 6 for information to get you started.  FORMTEXT       Create a floor plan of the business. What does it look like when you walk through the door? Hint: When sketching your floor plan, consider where equipment, supplies, and furniture will be located. Ask your instructor how they would like you to submit the floor plan for your business.  FORMTEXT       Explain what types of raw materials and supplies will you need to run your business. How will you produce your good or service? What equipment do you need? What hours will you operate? Hint: Refer to the discussion of operations in Chapter 7 for information to get you started.  FORMTEXT       What steps will you take to ensure that the quality of the product or service stays at a high level? Who will be responsible for maintaining the quality of the product or service (or both)? Hint: Refer to the discussion of quality improvement and Total Quality Management in Chapter 7 for information to get you started.  FORMTEXT       What do you see as the  corporate culture of your business? What types of employee behaviors, such as organizational citizenship, will you expect? Hint: Will your business demand a casual environment or a more professional environment? Refer to the discussion on employee behavior in Chapter 8 for information on organizational citizenship and other employee behaviors.  FORMTEXT       What is your philosophy on leadership? How will you manage your employees day-to-day? Hint: Refer to the discussion on leadership in Chapter 9 to help you formulate your thoughts.  FORMTEXT       Looking back at your organizational chart in Part 2, briefly create a job description for each team member. Hint: As you learned in Chapter 10, a job description lists the duties and responsibilities of a job; its working conditions; and the tools, materials, equipment and information used to perform it. Imagine your business on a typical day. Who is working and what is each persons responsibilities? (Note that if your business is very large, you should ask your instructor how many positions he or she would like you to create job descriptions for.)  FORMTEXT       Next, create a job specification for each job, listing the skills and other credentials and qualifications needed to perform the job effectively. Hint: As you write your job specifications, consider what you would write if you were making an ad for the position. What would the new employee need to bring to the job in order to qualify for the position? Insert Job Title #1:  FORMTEXT       Insert Needed Skills/Credentials/Qualification for Job:  FORMTEXT       Insert Job Title #2:  FORMTEXT       Insert Needed Skills/Credentials/Qualification for Job:  FORMTEXT       Insert Job Title #3:  FORMTEXT       Insert Needed Skills/Credentials/Qualification for Job:  FORMTEXT       What sort of training, if any, will your employees need once they are hired? How will you provide this training? Hint: Refer to the discussion of training in Chapter 10. Will you offer your employees on-the-job training? Off-the-job training? Vestibule training?  FORMTEXT       A major factor in retaining skill workers is a companys compensation systemthe total package of rewards that it offers employees in return for their labor. Part of this compensation system includes wages/salaries. What wages or salaries will you offer for each job? Why did you decide on that pay rate? Hint: Refer to Chapter 10 for more information on forms of compensation. You may also want to check out sites like  HYPERLINK "http://www.salary.com" www.salary.com, which includes a salary wizard you can use to determine how much people with different job titles are making in your area and across the United States.  FORMTEXT       As you learned in Chapter 10, incentive programs are special programs designed to motivate high performance. What incentives will you use to motivate your workforce? Hint: Be creative and look beyond a simple answer such as giving pay increases. Ask yourself, who are my employees and what is important to them? Refer to Chapter 10 for more information on the types of incentives you may want to consider.  FORMTEXT       Describe your target market in terms of age, education level, income, and other demographic variables. Hint: Refer to Chapter 11 for more information on the aspects of target marketing and market segmentation that you may want to consider. Be as detailed as possible about who you think your customers will be.  FORMTEXT       Describe the features and benefits of your product or service. Hint: As you learned in Chapter 11, a product is a bundle of attributes features and benefits. What features does your product have what does it look like and what does it do? How will your product benefit the buyer?  FORMTEXT       How will you make your product stand out in the crowd? Hint: There are many ways to stand out in the crowd, such as a unique product, outstanding service, or a great location. What makes your  great idea special? Does it fill an unmet need in the marketplace? How will you differentiate your product to make sure that it succeeds?  FORMTEXT       What pricing strategy will you choose for your product, and what are the reasons for this strategy? Hint: Refer to Chapter 12 for more information on pricing strategies and tactics. Since your business is new, so is the product. Therefore, you probably want to choose between price skimming and penetration pricing. Which will you choose, and why?  FORMTEXT       Where will customers find your product or service? (That is, what issues of the distribution mix should you consider?) Hint: If your business will sell its product directly to consumers, what types of retail stores will sell your product? If your product will be sold to another business, which channel of distribution will you use? Refer to Chapter 12 for more information on aspects of distribution you may want to consider.  FORMTEXT       How will you advertise to your target market? Why have you chosen these forms of advertisement? Hint: Marketers use several different advertising mediaspecific communication devices for carrying a sellers message to potential customerseach having its advantages and drawbacks. Refer to Chapter 12 for a discussion of the types of advertising media you may wish to consider here.  FORMTEXT       What other methods of promotion will you use, and why? Hint: There s more to promotion than simple advertising. Other methods include personal selling, sales promotions, and publicity and public relations. Refer to the discussion of promotion in Chapter 12 for ideas on how to promote your product that go beyond just advertising.  FORMTEXT       What kind of IT resources will your business require? Hint: Think about the employees in their business and what they will need in order to do their jobs. What computer hardware and software will they need? Will your business need a network and an Internet connection? What type of network? Refer to Chapter 13 for a discussion on IT resources that you may want to consider.  FORMTEXT       How will you use information technology to keep track of your customers and potential customers? Hint: Many businesseseven small businessesuse databases to keep track of their customers. Will your business require a database? What about other information systems? Refer to Chapter 13 for more information on these topics.  FORMTEXT       What are the costs of doing business? Equipment, supplies, salaries, rent, utilities, and insurance are just some of these expenses. Estimate what it will cost to do business for one year. Hint: Insert the costs associated with doing business in the following table. The list below provides some hints as to where you can get this information. Note that these are just estimatesjust try your best to include accurate costs for the expenses you think will be a part of doing business. Hints for each expense in the table below: Rent: Refer to the floor plan. How many square feet is your place of business? What is the going rate per square foot for office space in your community? A real estate agent or a local SBA representative ( HYPERLINK "http://www.sba.gov" www.sba.gov) can also be helpful in answering this question. Salaries: Refer to the organizational chart. How much will each employee earn? How many hours will each employee be needed on a weekly basis? Once youve determined the weekly cost, then expand it to a monthly and a yearly cost. Supplies: Refer to the floor plan. How much will all of the computers, equipment, and furniture cost? What kinds of general office supplies will you need? Most prices for this information can be found on an office supply website such as  HYPERLINK "http://www.staples.com" www.staples.com. Advertising and Other Promotions: Refer to your marketing section. You have described how you wish to reach your customernow you need to decide how much it will cost. If you are using television, contact the sales department at a local station. If you are using newspaper, contact their advertising department. Salespeople are usually happy to answer your questions. Utilities: These amounts will vary, depending on your business and what utilities you will pay. If your business looks like an office, then this cost may be similar to what a homeowner pays. However, if your business involves making a product, then the costs will be significant. An SBA representative can be a good resource. Insurance: This value will be affected by the nature of the business. More equipment will usually mean higher insurance costs. Again, contact an SBA representative for feedback. ExpensesExpected Monthly CostExpected Yearly CostRent FORMTEXT       FORMTEXT      Salaries and Wages FORMTEXT       FORMTEXT      Supplies: Technological, Equipment, and Furniture (computers, software, copy machine, desks, chairs, etc.), other FORMTEXT       FORMTEXT      Advertising and Other Promotions FORMTEXT       FORMTEXT      Utilities: Heat, Electricity, etc. FORMTEXT       FORMTEXT      Telephone and Internet FORMTEXT       FORMTEXT      Insurance FORMTEXT       FORMTEXT      Other (specify) FORMTEXT       FORMTEXT      Other (specify) FORMTEXT       FORMTEXT       How much will you charge for your product? How many products do you believe that you can sell in one year (or how many customers do you think your business can attract)? Multiply the price that you will charge by the number of products that you hope to sell or the amount you hope each customer will spend. This will give you an estimate of your revenues for one year. Hint: You will use the amounts you calculate in the costs and revenues questions in this part of the plan in the accounting statements in the next part, so be as realistic as you can.  FORMTEXT       Create a balance sheet and an income statement (profit-and-loss statement) for your business. Note that you will have two options for creating these reports. The first option is to use the Microsoft Word versions that are found within this Business Plan Student template (shown below). The second option is to use the specific Microsoft Excel templates created for each statement. Youll find these templates in the file called Business Plan Part 5 Spreadsheets, which is available from your instructor or on the books companion website at  HYPERLINK "http://www.prenhall.com/ebert" www.prenhall.com/ebert. These Excel files are handy because they already have the worksheet calculations presetall you have to do is plug in the numbers and the calculations will be performed automatically for you. If you make adjustments to the different values in the Excel worksheets, youll automatically see how changes to expenses, for example, can improve the bottom line. Note that the Excel templates also include helpful hints as to where you can get the information you need to complete the balance sheet and income statement. 12-Month Income Statement (Profit & Loss Statement) JuneJulyAug.Sept.Oct.Nov.Dec.Jan.Feb.MarchAprilMayYEARLYRevenue (Sales)Category 1Category 2Total Revenue (Sales)Cost of Goods SoldCategory 1Category 2Total Cost of Goods SoldGross ProfitExpensesRent ExpenseSalary/Wage Expenses Supplies ExpenseAdvertising Expense Utilities ExpenseTelephone/Internet ExpenseInsurance ExpenseInterest from Loans (if applicable)Other Expenses Total ExpensesNet Profit Balance Sheet AssetsCurrent AssetsCash in Bank FORMTEXT      Cash Value of Inventory FORMTEXT      Prepaid Expenses (insurance) FORMTEXT      Total Current Assets FORMTEXT      Fixed AssetsMachinery & Equipment FORMTEXT      Furniture & Fixtures FORMTEXT      Real Estate / Buildings FORMTEXT      Total Fixed Assets FORMTEXT      Total Assets FORMTEXT      Liabilities & Net Worth Current LiabilitiesAccounts Payable FORMTEXT      Taxes Payable FORMTEXT      Notes Payable (due within 12 months) FORMTEXT      Total Current Liabilities FORMTEXT      Long-Term LiabilitiesBank Loans Payable (greater than 12 months) FORMTEXT       Less: Short-Term Portion  FORMTEXT      Total Long-Term Liabilities FORMTEXT      Total Liabilities FORMTEXT      Owners' Equity (Net Worth) FORMTEXT      Total Liabilities & Net Worth FORMTEXT       How much money will you need to get your business started? Hint: Refer back to Part 5 of the plan, where you analyzed the costs involved in running your business. Approximately how much will you need to get your business started?  FORMTEXT       How will you finance your business? For example, will you seek out a bank loan? Borrow from friends? Sell stocks or bonds initially or as your business grows? Hint: Refer to Chapter 16 for information on securities such as stocks and bonds. Refer also to Appendix I: Financial Risk and Risk Management for more information on sources of short-term and long-term funds.  FORMTEXT       Now create an executive summary for your business plan. The executive summary should be brief no more than two pages long and should cover the following points: The name of your business Where your business will be located The mission of your business The product or service you are selling Who your ideal customers are How your product or business will stand out in the crowd Who the owners of the business are and what experience they have An overview of the future prospects for your business and industry Hint: At this point, youve already answered all of these questions, so what you need to do here is put the ideas together into snapshot form. The executive summary is really a sales pitchits the investors first impression of your idea. Therefore, as with all parts of the plan, write in a clear and professional way. Once you have written the executive summary, copy and paste it so that it falls at the beginning of your business plan, as the very first element.     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SEILER Kevin SpencerMargaret Levine Young John LevineDavid WadleighAlison Barrows Davis Straub Sandy ReedRichard Graves Steve Nelson Paul Hoffman Egon Schiele Jepson LabGonzaga UniversityJan WeingartenJohn WeingartenKeith Jim MeadeOh, father, I'm so ashamedJames Michael Stewart Leah Cameron Kathy Cox Joyce MountIndustry MarketingProgrammer's Press Editorial Tina Rathbone Jim McCarterRk idg booksShannon Looney (PC) Lou Peragallo La carolinefSuzanne J. Steadhamwbc4hsantoyomisstudent Jaime J. RomoSAAcrussellCharles L. Smtth Stan WauchopeGeorge LivermanHaworth AdministratorfredMary C. Johnson Anne OwenDon ChristenseDon ChristensenEllie ChristensenSteven Schwartz Wendy Zucker Bob CorrellVCISCSAGayle L. JohnsonLisa M. Thibault Chris Morris Mich Kabay Alex Krasne Randy LarsenTodd K. Shackelford Liz Drassviviana weekesLisa Feldman BarrettDaniel J. BarrettD aniel J. Barrett Microsoft6pWjDaniel J. Barret t Phil Peake Howard WeissJennifer C. 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Derek Sut Office Bible Chapter 3 formattedy Nate Holdread, 3/30/95 Chapter 3 Formatting Documents As you create and refine your text, you will need to control the ad, we need a concluding paragraph here. It can include a brief summary of thy F. LawrencejsmithValued Gateway ClientITGCorporate Network Services Paul Timm Lyle CurryWilliam C. WadeISU Eric WilsonDeborah ValentineHelene GreenwoodRobert S. FeldmanCompUSA Preferred Customer Chris PoirierJGG Mike Henry Scott Muellerbadpsch J. LombardiBusiness AdministrationSharendale BruniCollege Of BusinessCOBATBurkeTerry K. PattonSuesan Catlett Suesan Patton Kelly Medlin Dan SuceavaSunni Kay McMillan Paul HinsbergWilliam McLuskie Warren EmensWilliams, Leah Mike LubanskiDDWillaert, Jenifer Trent Lott Kelly Held Jesse HelmsAlain GuilbaultMeriah Crawford Darshan DoshiML Eric K. ConeChris and Janice Howd Stacey Lum Kelli M. Adam Kelli Adam Diana Georgedianeti Tim Smith Robert WrightErik Dafforn & Kezia EndsleySandra B. 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The business should be easy to explain. Keep your description here to about 30 words or less.  FORMTEXT       Form of Business Ownership What form of business ownership (sole proprietorship, partnership, or corporation) will your business take? Why did you choose this form? Hint: For more information on the types of business ownership, refer to the discussion of the different forms of business ownership in Chapter 3.  FORMTEXT       Ideal Customer Briefly describe your ideal customer. What are they like in terms of age, income level, and so on? Hint: You dont have to give too much detail in this part of the plan; youll provide more details about customers and marketing in later parts of the plan.  FORMTEXT       Our Advantages Why will customers choose to buy from your business, instead of your competition? Hint: In this section, describe what will be unique about your business. For example, is the product special, will customer service be exceptional, or will you offer the product at a lower price?  FORMTEXT       Ethical Issues All businesses have to deal with ethical issues. One way to address these issues is to create a code of ethics. List three core (unchanging) principles that your business will{{{ |4|6|8|:|<|`|| g/$$l:0!$!' /$$l:0!$!' $/$$l:0!$!' $$ 6|8|:|<|`|||||||||||||||8}`}b}d}0XR΃+H„Hۆ݆ކ678WXYxyz                    J|||||||||| g/$$l:0!$!' /$$l:0!$!' $$$/$$l:0!$!'  |||||||||8}:}N}P}R}\}^}`}b}d}}02FHJTVXK() RHۆ܆ކ߆68Wҹ CJOJQJ566B*5B*jTjU jUmHjiU jU65jhiCJOJQJU5CJOJQJCJ CJOJQJjCJOJQJUmHjCJOJQJUjhCJOJQJU4|||||8}`}b}d}0X db\bxx3$$l:0!$!'  /$$l:0!$!' $$$/$$l:0!$!'  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LeMay-Finn [8@8 NormalCJ_HaJmH sH tH <A@< Default Paragraph Fontjj Elvis9x$d&d-D FMicrosoft Word DocumentNB6WWord.Document.8 ՜.+,D՜.+,L hp  'Indiana Business Collegey."Rb Unit 1 TitleT(RZ _PID_GUID _PID_HLINKS'AN{8954C596-045F-11DB-8420-0050E445B607}ADOhttp://www.prenhall.com/ebertx(p~http://www.staples.com/x(s{http://www.sba.gov/x('Whttp://www.salary.com/x Oh+'0   < H T `lt|'Unit 1fnitmkk237fkk2kk2NormalfShannon K. LeMay-Finn855nMicrosoft Word 8.0n@z@p]@8q]@$P 8C(specify) s jbjb JkkT]*̽нؽ9|||t|p qFnLnLnLnLUM/PQddddddd,rtldp ̽RQMUMRRdSnLnL=SSSR4nL̽nLdlRdSSTc6̽d|\p |R4ndWhat is the name of your business? Hint: When you think of the name of your business, make sure that it captures the spirit of the business you re creating.  FORMTEXT       Description of Business What will your business do? Hint: Imagine that you are explaining your business to a family member or a friend. The business should be easy to explain. Keep your description here to about 30 words or less.  FORMTEXT       Form of Business Ownership What form of business ownership (sole proprietorship, partnership, or corporation) will your business take? Why did you choose this form? Hint: For more information on the types of business ownership, refer to the discussion of the different forms of business ownership in Chapter 3.  FORMTEXT       Ideal Customer Briefly describe your ideal customer. What are they like in terms of age, income level, and so on? Hint: You dont have to give too much detail in this part of the plan; youll provide more details about customers and marketing in later parts of the plan.  FORMTEXT       Our Advantages Why will customers choose to buy from your business, instead of your competition? Hint: In this section, describe what will be unique about your business. For example, is the product special, will customer service be exceptional, or will you offer the product at a lower price?  FORMTEXT       Ethical Issues All businesses have to deal with ethical issues. 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Mission StatementBusiness Goals SWOT AnalysisManagementOrganization ChartFloor PlanRaw Materials and SuppliesQuality Assurance areTraining Employee and Chapter 3 Corporate CultureLeadership PhilosophyJob DescriptionsJob Specifications Training EmployeeesCompensationIncentives nt to them? Refer to Chapter 10Target MarketProduct Features and BenefitsProduct DifferentiationPricingPlace (Distribution) IssuesAdvertisingPromotions IT ResourcesCustomer ServicesCost of Doing BusinessExpected RevenueIncome Statement and Balance SheetStartup CostsFinancingExecutive Summary areTraining Employee and Chapter 3 , aat