Business+Plan

=Business Plan=

Click on the file below for a printable version of this assignment.



You should also refer to your textbook in Chapter 24: The Salon Business for more information.

Your business plan must contain the following:

>> >> >> >> >> This section requires a lot of careful thought and reflection. >>
 * 1) **Introduction (3 pages)**
 * 2) Title page-The title page should include the title “Business Plan”, the name of the company, the date of the plan, and the company’s address and phone number.
 * 3) Overview (sometimes called the Executive Summary)- should be one page in length (double spaced). This should be written last. It is a concise summary of the business plan’s main topics. It is a shortened version of all the main topics.
 * 4) Table of Contents- Should be completed after the plan is complete.
 * 1) **The Company (1pages)**
 * 2) Type of ownership- Sole proprietorship, partnership, or corporation. Explain the reasons you chose this type of ownership. The present owners of the company should be listed by name.
 * 3) Management- A brief description of the company’s management team should list each manager along with a short resume of each (the resumes may be included in the last section)
 * 1) **The Product (1-2 pages)**
 * 2) Product description- Give a brief description of the product and or service.
 * 3) Proposed research and development-If there is further research and development work to be performed, proposed activities should be described.
 * 4) Pricing considerations-The business plan should state the price of the product or service and how it compares with the competition.
 * 1) **The Market (2-3 pages)**
 * 2) Market Niche- You should describe the “uniqueness of your products or service and the customer needs it will satisfy. What makes your product or service “special”?
 * 3) Customer Profile-You should provide a summary of your business’s target market by describing your average customer. You should identify which segment of the population is most likely to purchase the product or service.
 * 4) Total market size-You should give an indication of the total number of potential customers for your product or service.
 * 5) You should attempt to state whether the product or service’s market is growing, stable, or declining.
 * 6) Competition-You should compare the strengths and weaknesses of your product or service with those of the competition. (You will have competitors- either direct or indirect). You should identify the product or service’s competitors, their location and try to identify the current size of their market share. Large or powerful competitors will have the resources to undercut prices, run special promotions, etc. to keep new competitors out of the market place. You should try to anticipate the reaction of the competition to your entry into the market place and how you plan to counteract their actions.
 * 1) Promotion-You should describe how you intend to promote your product or service. Include at least three different types of advertising or promotion. Include flyers, ads, business cards or any other form of promotion in the Appendix.

>> >> >> Once you have calculated your gross profit using your cash flow projections, use the “Average Expense for Salons in the United States” on page 660 of your textbook to complete a projected budget. >> >> Objectives may include (but not limited to) the following: Development of certain methods, setting sales volumes, contracting with others, plans to get into new markets, plans to add to your service or product lines, plans for future development, plans to meet threats posed by the competition. You should have a timeline which includes completion of your most important goals > > Should include all promotional material, including advertisements, business cards, radio ads, flyers, etc., resumes from at least three potential employers, cash flow projections, and a computer generated floor plan layout and a 3-D layout of the salon using appropriate colour schemes, and floor plans (see page 662 in the text for more information on how to create an effective layout).
 * 1) **Operations (1-2 pages)**
 * 2) Geographical location-You should describe any facilities that are already in place, and try to anticipate future requirements. You should state why your chosen location is suitable.
 * 3) Human Resource Requirements- You should estimate the number of people required to work in your business. You should describe the jobs for all employees. Resumes for at least three potential employees needs to be included in the Appendix.
 * 1) **Financial information (3-5 pages)**
 * 2) Management Compensation- You should include a summary of the salaries paid to the owner and other key personnel. Are the employees getting commission, if so how much? Are they getting a base pay? If so how much? Are they chair renting? If so how much?
 * 1) Cash flow projections and a budget need to be summarized here. Your cash flow projections sheet can be included in the appendix. Your cash flow projections for products sold need to include three different lines of product and include pricing for one shampoo, conditioner, and two styling products for each product line if you are in a hair salon. See the cash flow projections sheet given with the question handout.
 * 1) **Strategic Plan and Timetable (1-2 pages)**
 * 2) You should identify immediate objectives (less than one year), intermediate objectives (one to five years) and long-term objectives (five + years). Be realistic and concise. You want to be able to show that your business will be profitable on a long-term basis.
 * 1) **Appendix:**

Assignment modified from Mr. Kruse’s “Student Constructed Business Plan”.