Economic Partners Sudbury East / West Nipissing Inc.is a community-based, non-profit organization that is dedicated to creating opportunities for entrepreneurship and to the pursuit of economic growth in our community. We are your local branch of the Community Futures Development Corporation (CFDC) and a member of the Community Futures Ontario (CFO). Funded byIndustry Canada and FedNor, CFDC is a community economic development initiative designed to help find local solutions for local economies.
Who We Serve
We service a total catchment population of 21,277 people that includes the following communities:
Sudbury East
Dokis First Nation
French River
Markstay-Warren
St. Charles
West Nipissing
Nipissing First Nation
Nipissing
What We Do
We are people helping people. Run by a board of local volunteers and professional staff, we take a grass roots approach to investing in local entrepreneurs, exporters, and community initiatives.
Here are the key services that we offer you:
- Community economic planning and development
- Access to funding for community projects and small businesses
- Business counselling, services, and resources
30 Front Street, Unit A
Sturgeon Falls, ON P2B 3L4
Telephone: 705-753-5450
Fax: 705-753-3456
Website:
Email:
Table of Contents
INTRODUCTION
What is an Entrepreneur?
Advantages & Disadvantages of Being an Entrepreneur
Traits of a Successful Entrepreneur...... 6
What is a business plan?...... 6
THE BUSINESS PLAN OUTLINE...... 8
Executive Summary...... 9
Business Overview...... 9
Description of the Business...... 9
Description of Products and Services
Mission, Vision, Goals and Objectives
Human Resources...... 12
Operational Plan...... 13
Production...... 13
Planning Considerations...... 14
Location Considerations...... 14
Production Plan...... 16
Service Plan...... 16
Business Policies...... 17
Legal Environment...... 17
Contingency Plan...... 17
Market Research...... 20
Industry Analysis and Trends
Market Analysis/Research...... 21
Target Market...... 26
Competitive Analysis...... 29
S.W.O.T. Analysis...... 30
Marketing Plan...... 32
First “P” of Marketing: Product or Service...... 32
Second “P” of Marketing: Price...... 33
Third “P” of Marketing: Place (Distribution)...... 34
Fourth “P” of Marketing: Promotion...... 35
Financial Plan...... 36
The Start-up Budget...... 37
The Monthly Cash Flow Statement...... 38
APPENDIX...... 44
INTRODUCTION
So you have a great idea or just tired of working for someone else. Maybe you think there is something more profitable you could be doing. Whatever your reason, your decision to become an entrepreneur has to be based on knowledge of yourself, your business and the industry it is part of.After deciding to start your business, it is crucial you take time to formulate a realistic path for yourself. One of the most certain ways to be successful in business is to adequately plan where you want to go with your ideas.
People who enter a business venture without properly mapping their road to success often find themselves in serious administrative and financial trouble several months later, when they realize they have failed to prepare properly. This guide is by no means the complete guide for entrepreneurs but a reference tool for people considering starting a venture in West Nipissing and/or Sudbury East. We hope this guide helps you in identifying some key factors and reference tools in the pursuit of your business goals.
What is an Entrepreneur?
“It is one who owns, launches, organises, manages,
and assumes the risks of an economic venture”.
At the heart of every new business is an entrepreneur; someone not content to leave things as they are, but wanting to strike out on his own. This individual brings two important ingredients to the new business: confidence in an idea and a willingness to accept the hard work and long hours necessary for success.
Advantages & Disadvantagesof Being an Entrepreneur
Advantages:Independence
Personal satisfaction
Chance for financial success
Control
Freedom
Disadvantages:Risk of failure
Insecurity
Hard work
Risk of financial loss
Long hours
Traits of a Successful Entrepreneur
Ability to withstand business reversals without quitting
Business and Product/Service knowledge
Willingness to handle uncertainty well
Strong goal orientation
Persistence
Strong desire for independence
Versatility and resourcefulness
Self-confidence and self-reliance
The habit of seeking and using feedback
Self-determination
Physical health, with high degree of stamina and energy
The habit of looking for and creating opportunities
Openness to change
Objective and realism
Ability to apply ideas in creative ways
Human relations ability
Sense of purpose
Achievement orientation
What is a business plan?
A business plan is a recognized management tool used by successful and/or prospective businesses of all sizes to document business objectives and to propose how these objectives will be attained within a specific period of time. It is a written document which describes:
Who you are
What you plan to achieve
Where your business will be located
When you expect to get underway
How you will overcome the risks involved
What are the anticipated returns
Why do you need a business plan? What’s in it for me?
A business plan will provide information of your proposed venture to lenders, investors, and suppliers to demonstrate how you plan to use their money, and to establish a basis for credibility of your project. You should do a business plan for a number of important reasons. Some of these reasons include:
• Your own thinking process is solidified through the planning process. The planning outline leads you through a series of questions and issues that you may have forgotten about whenthinking about your business idea. Remember that you are an investor in your own business. You are the first person who must be convinced of the validity of your business concept.
• Your bank will need to be convinced of the viability of your business, or your business expansion. The business plan is a communications tool. Inform and influence the reader towards some action – providing a loan, extending credit or investing in your business.
• Your business plan provides some guideposts in running your business. You will set goals and then, once you are in business, you can measure those goals against the actual performance.
The most important purpose of the business plan is to help ensure your business makes financial and operating sense. A business plan clearly sets out short and long term objectives, guidelines and milestones on paper.
Keep in mind…
A good business plan is your company’s roadmap to the future. It describes, in detail, the company you will be running, and identifies every important step you must take to build that company. It even gives you advance warning of the dangers you may encounter along the way.
THE BUSINESS PLAN OUTLINE
1) COVER PAGE
2) TABLE OF CONTENTS
3) EXECUTIVE SUMMARY
4) BUSINESS OVERVIEW
Description of the business
Description of products and services
Mission, vision, goals and objectives
Human resources
5) OPERATIONAL PLAN
Production
Planning considerations
Location considerations
Production plan
Service plan
Business policies
Legal environment
Contingency plan
6) MARKET RESEARCH
Industry analysis
Market analysis/research
Target market
Competitive analysis
S.W.O.T. analysis
(Strengths, Weaknesses, Opportunities, Threats)
7) MARKETING PLAN
First “P” of marketing : Product or Service
Second “P” of marketing : Price
Third “P” of marketing : Place
Fourth “P” of marketing : Promotion
8) FINANCIAL PLAN
Start-up budget
Cash flow
8) APPENDIX
Hint: Follow
Executive Summary
Write this section last. The purpose of the Executive Summary is to get thereader’s attention by summarizing the key elements of thebusiness plan. It must be short, to the point and very wellwritten. We suggest that you make it two pages or fewer. Include everything that you would cover in a five-minute interview. It is your business plan in a nutshell!
The Executive Summary will include:
A description of your company, including your products and/or services
Your business’s management
The market and your customer
Marketing and sales
Your competition
Your business’s operations
Financial projections and plans
If applying for a loan, clearly state the amount needed, precisely how you are going to use it, and how the money will make your business more profitable, thereby ensuring repayment.
The executive summary should end with a summary statement, a sentenceor two designed to persuade the readers of your business plan that yourbusiness is a winner.
Business Overview
The Business Overview section is where you canelaborate on the details of your business. The who,what, where, when, and why of the business shouldfall into place and readers should have a clearunderstanding of how the company will function. Inthis section, consider covering the Description of theBusiness, the Description of Products and Services,the Human Resource requirements and theOperations.
Description of the Business
The Description of the Business section should outline your basic businessconcept. What business will you be in? What will you do? You should detail exactly what your business does for thecustomer and what makes these offerings desirable to the customer.Your business description should clarify why you are,or why you want to be, in business.
Describe what your business does in general terms.
Describe what differentiates your business from others.
Briefly describe your business history if applicable. If this is a new business and has no background, discuss your background.
Business Structure: is it a new independent business, a purchase of an existing business, an expansion, a franchise?
Business type: retail, manufacturing or service.
To whom will you market your products? (State it briefly here, you will do a more thorough explanation in the Marketing Plan section).
Legalities - business form: sole proprietorship, partnership or corporation. The licenses or permits you will need.
Business information: What you have learned about your kind of business from outside sources (trade suppliers, bankers, other franchise owners, franchisor, publications).
Profitability: Why your business will be profitable. Describe your industry. Is it a growth industry? What changes do you foresee in the industry, short term and long term? How will your company be poised to take advantage of them?
Describe your most important company strengths and core competencies. What factors will make the company succeed? What do you think your major competitive strengths will be? What background experience, skills, and strengths do you personally bring to this new venture?
Provide any other information that will excite the reader about your business. Emphasize any special benefits that you feel will appeal to customers and explain how and why these benefits are appealing.
Description of Products and Services
The purpose of the Product and Services section isto detail exactly what your business does for thecustomer and what makes these offerings desirableto the customer. Describe in depth your products or services (technical specifications, drawings, photos, sales brochures, and other bulky items belong in Appendices).
Key Products (Goods Business)
Describe each product you sell. This is your product mix. If you cannot list each product, break the business down into logical categories.
Describe the key product features, and how your products are different from those of your competition. (Functionality, durability, eases of use etc.) What factors will give you competitive advantages or disadvantages? Examples include level of quality or unique or proprietary features.
What are the pricing, fee, or leasing structures of your products or services?
Describe product protection such as patents, copyrights and trademarks. (If applicable)
Key Services (Service Business)
Describe each type of service you offer. (Be specific)
Describe the service features in terms important to the customer.
Describe any service protection such as copyrights or trademarks. (if applicable)
Mission, Vision, Goals and Objectives
Mission Statement: A mission is a statement which specifies what the business’ broad program of activities shall be. It establishes the parameters upon which objectives are set, strategies are developed and tactics are implemented. The mission is a statement of core organizational values and is referred to as the “Invisible hand” which guides employees to work independently and yet collectively towards the organization’s prime objectives. Be clear and to the point and make it obvious what your business is attempting to do. Many companies have a brief mission statement, usually in 30 words or fewer, explaining their reason for being and their guiding principles. Hint: Your mission statement will help you determine how you want to market your product/services.
Examples:
- Canadian Tire
To be the first choice for Canadians in Automotive, Sports and Leisure, and Home products, providing total customer value through customer-driven service, focused assortments and competitive operations.
- TELUS
To be recognized as the premier Communications Company in the world. To help people communicate effortlessly.
Vision
A vision involves thinking or planning about the future of the business. It is planning for the future based on the mission statement specified at the inception of the business.
Company Goals and Objectives: Goals and objectives refer to something that is wished for (a purpose or a target). They are things that a person or a business pursues or desires to achieve.Goals are destinations, where you want your business to be. Objectives are progress markers along the way to goal achievement. For example, a goal might be to have a healthy, successful company that is a leader in customer service and that has a loyal customer following. Objectives might be annual sales targets and some specific measures of customer satisfaction.
Goals and objectives may include but are not limited to:
Achieve x% market share by end of the first year
Increase sales 5% each year
Reduce customer complaints to 10% of all sales
Ensure profit margin of 2% by the second year
Generate sales of $100,000 by end of the second year
Human Resources
The purpose of the Human Resources section is toprovide the reader with a thorough understanding of thepeople who will contribute to running the business.Managing a business requires more than just the desireto be your own boss. It demands dedication, persistence, the ability to makedecisions and the ability to manage both employees and finances.It's imperative that you know what skills you possess and those you lack,since you might have to hire personnel or retain a professional advisor tocomplement your skill set.
Management summary
How does your background/business experience help you in this business?
What are your weaknesses and how can you compensate for them?
Demonstrate how team members’ skills complement each other. Show the balance of marketing, financial, management and production skills, as well as experience with the product or service you are developing.
Who will be on the management team?
What are the qualifications of each principle in this enterprise? What are their duties and responsibilities?
What are their strengths/weaknesses? If there are critical skills missing, how will this be overcome (ex. Training, outside advisors, etc….)?
Key personnel (if applicable)
What are your current personnel needs? Number of employees.
Type of labor (skilled, unskilled, and professional)
Where and how will you find the right employees?
What are your plans for hiring and training personnel?
What are their duties?
What salary, benefits, vacations and holidays will you offer? If a franchise, are these issues covered in the management package the franchisor will provide?
Do you have schedules and written procedure prepared?
Have you drafted job descriptions for employees? If not, take time to write some. They really help internal communications with employees.
For certain functions, will you use contract workers in addition to employees?
List all experts that will be utilized. (Lawyers, Accountants/Bookkeepers, Bankers, Insurance providers
Compensation and Ownership
State how each person will be compensated (salary, incentive bonus, profit sharing) and what investment each has in the business.
If you have formed a corporation, identify board members and what each individual bring to the corporation.
Operational Plan
The purpose of the Operations section is to summarize how you plan tooperate the business. It explains the daily operation of the business, its location, equipment, people, processes, and surrounding environment.
Production
How and where are your products or services produced?
Explain your methods of:
Production techniques and costs – Describe how you produce your product or service, do you use any unique technologies, ingredients, know-how’s (you are not expected to share exact recipes, but you should proudly list any exclusive production techniques you use). If you are writing business plan for internal use (it remains private and will not be shared with potential investors), you can be much more detailed: list all the pieces of equipment you’ll need, set up system requirements for water, gas and electricity supplies, outline requirements for location and premises etc. Considering the amount of technical data needed for this section delegating it to your chief engineer (or side technology consultants) might be the wisest decision possible.
Quality control – Write a short paragraph about quality control measures that you’ve set up or are going to establish. As with any part of operational plan the amount of details depends on the audience of your business plan. Investors would require just strategic level information while your engineers would appreciate the list of approved standards and procedures.
Customer service – Here you should describe client service strategy and after-sales support in your business. The principles of customer service and quality control are much interconnected: in most cases your customers will report about quality issues. So think how you can get a synergy effect in here.
Inventory control and Product development