Chapter 6

Business Plans: How Are They Important?

Copyright © 2012 Pearson Canada Inc.

 Chapter 6 Learning Objectives
1. Discuss uses of the business plan
2. Identify factors affecting business plan length
3. Differentiate between templates and interactive
plan writers
4. List style features of well written plans
5. Discuss how a business plan can be an ongoing
process
6. Explain the business plan as a consulting tool
7. Explain the business plan as a teaching tool

Copyright © 2012 Pearson Canada Inc. Chapter 6 - 2

 Chapter 6 Learning Objectives cont’d.
8. Identify emphasis in each manufacturing,
wholesale, retail and service plans
9. Discuss the Strategic Growth Plan
10. Discuss the Operational Efficiency Plan
11. Compare non-profit organizations with
businesses
12. Discuss “intrapreneurship” and the business
plan
13. Critically read a detailed business plan

Copyright © 2012 Pearson Canada Inc. Chapter 6 - 3

 Business Plan Uses

 The business plan as a document

 Length
 Format

 Style

Copyright © 2012 Pearson Canada Inc. Chapter 6 - 4

 Business Plan Uses cont’d.

Copyright © 2012 Pearson Canada Inc. Chapter 6 - 5

 Business Plan Uses cont’d.
 As a consulting tool
 As a teaching tool

Copyright © 2012 Pearson Canada Inc. Chapter 6 - 6

 Business Plan Variations
 Variations for type
 Manufacturing
 Wholesale
 Retail
 Service
 Variations for stage
 Strategic growth plan
 Operational efficiency plan

Copyright © 2012 Pearson Canada Inc. Chapter 6 - 7

 Business Plan Variations cont’d.
 Non-profit business plan
 Social enterprise
 Department business plan
 Strategic business unit

Copyright © 2012 Pearson Canada Inc. Chapter 6 - 8

 Example Business Plan
 Pippa’s Patty ‘n Pie
 Format
 Uses
 Type
 Stage

Copyright © 2012 Pearson Canada Inc. Chapter 6 - 9

 Example Business Plan cont’d.
 Pippa’s Patty ‘n Pie cont’d.
 Section 1: The Summary and Concept
 Summary
 Introduction

 Products and services

 The customers

 The opportunity

 The owners

 The legal organization

Copyright © 2012 Pearson Canada Inc. Chapter 6 - 10

 Example Business Plan cont’d.
 Pippa’s Patty ‘n Pie cont’d.
 Section 2: Feasibility
 Location
 Site

 Site expenses

 Market potential

 Competition

 Sales forecast

 Protecting the business

Copyright © 2012 Pearson Canada Inc. Chapter 6 - 11

 Example Business Plan cont’d.
 Pippa’s Patty ‘n Pie cont’d.
 Section 3: Marketing
 Image
 Business name

 Service / product mix

 Pricing

 Distribution

 Promotion

 Promotion evaluation

Copyright © 2012 Pearson Canada Inc. Chapter 6 - 12

 Example Business Plan cont’d.
 Pippa’s Patty ‘n Pie cont’d.
 Section 4: Operations
 Space and equipment
 Floor plan

 Logistics

 Methods and procedures

 Systems

 Organization

 regulation

Copyright © 2012 Pearson Canada Inc. Chapter 6 - 13

 Example Business Plan cont’d.
 Pippa’s Patty ‘n Pie cont’d.
 Section 5: Finances
 Start-up requirements
 Owner(s)’ investment

 Borrowed money

 Sales income by month

 Sources of data

 Costs and expenses

Copyright © 2012 Pearson Canada Inc. Chapter 6 - 14

 Chapter 6 Summary
 What are the uses of business plans?
 What are the different types of business
plan?
 What does a finished business plan look like?

Copyright © 2012 Pearson Canada Inc. Chapter 6 - 15