Qualities to aim for: y Specificity of goals (i.e. raise certain amt.

of money by certain date) y Optimism of achieving financial security y Realism (i.e. raising monthly income by 25% steps) y Short-term (weeks to a year) and long-term (1-5 yrs.) goals Questions to ask myself: The most important reason for being in business for myself is: What I like best about being in business for myself is: Within five years I would like my business to be: When I look back over the past five years of my career I feel: My financial condition as of today is: I feel the next thing I must do about my business is: The most important part of my business is (or will be): The area of my business I really excel in is: Factors: Industry competition in area Economy in area Demographic breakdown of client base Availability of potential customers Rule of thumb: Wait until your part-time business is bringing in income equivalent to at least 30% of your current salary from your full-time job. If possible, lease property that was used as similar business in recent past. Create a good niche for business smaller is bigger in business since it s highly focused. A good niche has five qualities: - It takes you where you want to go in other words, it conforms to your long-term vision - Somebody else wants it namely, customers - It s carefully planned - It s one-of-a-kind, the only game in town. - It evolves, allowing to develop different profit centers and still retain core business, thus ensuring long-term success Creating a niche is the difference between being in business and not being in business. It s the difference between surviving and thriving, between simply liking what you do and the joy of success. - Dr. Lynda Falkenstein

Business mission statement - In few succinct sentences - Explains the essence of your business s goal and the philosophies underlying them - Signals what your business is all about to your customers, employees, suppliers, and the community - Reflects every facet of your business: the range and nature of the products you offer, pricing, quality, service, marketplace position, growth potential, use of technology, and your relationships with your customers, employees, suppliers, competitors, and the community Naming and art design/logo creation - Company name should reinforce the key elements of your business - Name should be meaningful (the more your name communicates to consumers, the less effort needed to explain it) - Give priority to real words or combinations of words over fabricated words - Not too specific, as to be trapped in a narrow niche forever - Descriptive vs. subjective names instead of being direct about the name, use qualities/adjectives to convey your business even stronger (appeal to senses) - Make a list of 10-20 and narrow down to five really good ones (numbers may vary) - Create logo that goes well with name (combo screening) Business Structure (Limited Liability Company) - LLC is a hybrid of partnership and corporation features - Receive business liability protection without double taxation Primary parts of a Business Plan - Business concept: discuss the industry, your business structure, your product or service, and how you plan to make your business a success - Marketplace section: describe and analyze potential customers; who and where they are, what makes them buy and so on. Here, you also describe the competition and how you will position yourself to beat it - Financial section: contains your income, cash flow statements, balance sheet, other financial ratios (break-even analysis) Broken down further - Executive summary - Business description - Market strategies - Competitive analysis - Design and development plan - Operations and management plan - Financial factors - Cover page, title page, TOC Executive Summary - Nature of business - If seeking capital, let it be known as well as type of financing wanted - Legal form of business operation (LLC) - Amount and purpose of loan requested

Repayment schedule Borrower s equity share D/E ratio after the loan Market value, estimated value or price quotes for equipment page to 1 page

Business Description - Expands on executive summary - Description of industry: food service (how big is industry? Why has it become so popular? Trends responsible for industry growth? Opportunity! - Target market for product/service, how it will be distributed, business support systems (advertising, promotions, customer service strategies) - Describe product or service, discuss product s applications and end users, unique features or variations that set your product or service apart from others in industry Market Strategies - Define market (size, structure, growth prospects, trends, sales potential) - Based on research, interviews, and sales analysis - Focus on customers and competition how much of market will product/service capture? - Becomes important in determining pricing strategies and distribution channels - Unique selling proposition (USP) what makes you different? - Pricing strategy explain thoroughly o Projected costs, determine pricing based on profit percentages expected o Projected costs include materials, distribution, advertising, overhead; experts recommend adding 25-50% to each cost estimate (esp. overhead) so no underestimating Competitive Analysis - How does business relate to competition? - Detail strengths and weaknesses of competitors - Strategies that give you a distinct advantage - Any barriers you can develop to prevent new competition from entering market - Weaknesses in competitors service you can take advantage of - Every business has competition, whether direct or indirect Design and Development Plan - Not necessary for restaurant venture Operations and Management Plan - Describe how your business will function on a daily basis - Logistics such as responsibilities of each member of the management team and capital and expense requirements for business operation - Describe business s managers and qualifications, and specify what type of support staff will be needed to run efficiently - Local, state, federal regulations conforming Financial Factors - Income statement

o Cash-generating ability o Revenue, expenses, capital (depreciation), cost of goods o Monthly income statement for business s first year o Quarterly statements for the second year o Annual statements for each year thereafter (3-5 years) Cash-flow statement o Details amount of money coming in and going out of business monthly for first year and quarterly for each year thereafter o Result is a profit or loss at the end of the period represented by each column Balance sheet o Paints picture of business s financial strength in terms of assets, liabilities, equity o Generate balance sheet for each year profiled Other relevant financial information o ROI o Break-even analysis o Return on assets