{"id":33601,"date":"2020-03-04T18:57:58","date_gmt":"2020-03-04T23:57:58","guid":{"rendered":"https:\/\/www.myedme.com\/login\/?p=33601"},"modified":"2020-03-04T18:58:07","modified_gmt":"2020-03-04T23:58:07","slug":"the-business-plan","status":"publish","type":"post","link":"https:\/\/myedme.com\/login\/the-business-plan\/","title":{"rendered":"The Business Plan"},"content":{"rendered":"\n<p>Unlike the brief or lean formats introduced so far, the business plan\n is a formal document used for the long-range planning of a company\u2019s \noperation. It typically includes background information, financial \ninformation, and a summary of the business. Investors nearly always \nrequest a formal business plan because it is an integral part of their \nevaluation of whether to invest in a company. Although nothing in \nbusiness is permanent, a business plan typically has components that are\n more \u201cset in stone\u201d than a business model canvas,\n which is more commonly used as a first step in the planning process and\n throughout the early stages of a nascent business. A business plan is \nlikely to describe the business and industry, market strategies, sales \npotential, and competitive analysis, as well as the company\u2019s long-term \ngoals and objectives. An in-depth formal business plan would follow at \nlater stages after various iterations to business model canvases. The \nbusiness plan usually projects financial data over a three-year period \nand is typically required by banks or other investors to secure funding.\n The business plan is a roadmap for the company to follow over multiple \nyears.<\/p>\n\n\n\n<p>Some entrepreneurs prefer to use the canvas \nprocess instead of the business plan, whereas others use a shorter \nversion of the business plan, submitting it to investors after several \niterations. There are also entrepreneurs who use the business plan \nearlier in the entrepreneurial process, either preceding or concurrently\n with a canvas. For instance, Chris Guillebeau has a one-page business plan template in his book <em>The $100 Startup<\/em>.<sup><a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#footnote1\">49<\/a><\/sup> His version is basically an extension of a napkin sketch (see the \u201cAre You Ready?\u201d activity in <a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-2-designing-the-business-model\">Designing the Business Model<\/a>),\n without the detail of a full business plan. As you progress, you can \nalso consider a brief business plan (about two pages)\u2014if you want to \nsupport a rapid business launch\u2014and\/or a standard business plan.<\/p>\n\n\n\n<p>As with many aspects of entrepreneurship, there \nare no clear hard and fast rules to achieving entrepreneurial success. \nYou may encounter different people who want different things (canvas, \nsummary, full business plan), and you also have flexibility in following\n whatever tool works best for you. Like the canvas, the various versions\n of the business plan are tools that will aid you in your \nentrepreneurial endeavor.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Business Plan Overview<\/h3>\n\n\n\n<p>Most business plans have several distinct sections (<a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#OSX_Eship_11_03_BPlan\">Figure 11.16<\/a>).\n The business plan can range from a few pages to twenty-five pages or \nmore, depending on the purpose and the intended audience. For our \ndiscussion, we\u2019ll describe a brief business plan and a standard business\n plan. If you are able to successfully design a business model canvas, \nthen you will have the structure for developing a clear business plan \nthat you can submit for financial consideration.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/openstax.org\/resources\/b8c26fe5657a999b9de4c4a8fdca14ede7226830\" alt=\"Business plan that includes an executive summary, business description, market strategies, marketing plan, competitive analysis, operations and management plan, financial analysis, and design and development plan.\"\/><\/figure>\n\n\n\n<p>Figure 11.16  Most\n business plans include the same important sections. (attribution: \nCopyright Rice University, OpenStax, under CC BY 4.0 license)\n<\/p>\n\n\n\n<p>Both types of business plans aim at providing a \npicture and roadmap to follow from conception to creation. If you opt \nfor the brief business plan, you will focus primarily on articulating a \nbig-picture overview of your business concept.<\/p>\n\n\n\n<p>The full business plan is aimed at executing the\n vision concept, dealing with the proverbial devil in the details. \nDeveloping a full business plan will assist those of you who need a more\n detailed and structured roadmap, or those of you with little to no \nbackground in business. The business planning process includes the \nbusiness model, a feasibility analysis, and a full business plan, which \nwe will discuss later in this section. Next, we explore how a business \nplan can meet several different needs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Purposes of a Business Plan<\/h3>\n\n\n\n<p>A business plan can serve many different \npurposes\u2014some internal, others external. As we discussed previously, you\n can use a business plan as an internal early planning device, an \nextension of a napkin sketch, and as a follow-up to one of the canvas \ntools. A business plan can be an organizational roadmap,\n that is, an internal planning tool and working plan that you can apply \nto your business in order to reach your desired goals over the course of\n several years. The business plan should be written by the owners of the\n venture, since it forces a firsthand examination of the business \noperations and allows them to focus on areas that need improvement.<\/p>\n\n\n\n<p>Refer to the business venture throughout the \ndocument. Generally speaking, a business plan should not be written in \nthe first person.<\/p>\n\n\n\n<p>A major external purpose for the business plan \nis as an investment tool that outlines financial projections, becoming a\n document designed to attract investors. In many instances, a business \nplan can complement a formal investor\u2019s pitch. In this context, the \nbusiness plan is a presentation plan, intended for an outside audience \nthat may or may not be familiar with your industry, your business, and \nyour competitors.<\/p>\n\n\n\n<p>You can also use your business plan as a \ncontingency plan by outlining some \u201cwhat-if\u201d scenarios and exploring how\n you might respond if these scenarios unfold. Pretty Young Professional\n launched in November 2010 as an online resource to guide an emerging \ngeneration of female leaders. The site focused on recent female college \ngraduates and current students searching for professional roles and \nthose in their first professional roles. It was founded by four friends \nwho were coworkers at the global consultancy firm McKinsey. But after \npositions and equity were decided among them, fundamental differences of\n opinion about the direction of the business emerged between two \nfactions, according to the cofounder and former CEO Kathryn Minshew.\n \u201cI think, naively, we assumed that if we kicked the can down the road \non some of those things, we\u2019d be able to sort them out,\u201d Minshew said. \nMinshew went on to found a different professional site, The Muse, and took much of the editorial team of Pretty Young Professional with her.<sup><a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#footnote2\">50<\/a><\/sup>\n Whereas greater planning potentially could have prevented the early \ndemise of Pretty Young Professional, a change in planning led to \novernight success for Joshua Esnard and The Cut Buddy\n team. Esnard invented and patented the plastic hair template that he \nwas selling online out of his Fort Lauderdale garage while working a \nfull-time job at Broward College and running a side business. Esnard had\n hundreds of boxes of Cut Buddies sitting in his home when he changed \nhis marketing plan to enlist companies specializing in making videos go \nviral. It worked so well that a promotional video for the product \ngarnered 8 million views in hours. The Cut Buddy sold over 4,000 \nproducts in a few hours when Esnard only had hundreds remaining. Demand \ngreatly exceeded his supply, so Esnard had to scramble to increase \nmanufacturing and offered customers two-for-one deals to make up for \ndelays. This led to selling 55,000 units, generating $700,000 in sales \nin 2017.<sup><a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#footnote3\">51<\/a><\/sup> After appearing on <em>Shark Tank<\/em> and landing a deal with Daymond John\n that gave the \u201cshark\u201d a 20-percent equity stake in return for $300,000,\n The Cut Buddy has added new distribution channels to include retail \nsales along with online commerce. Changing one aspect of a business \nplan\u2014the marketing plan\u2014yielded success for The Cut Buddy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Link to Learning<\/h3>\n\n\n\n<p>Watch this <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/openstax.org\/l\/52CutBuddy\">video of Cut Buddy\u2019s founder, Joshua Esnard, telling his company\u2019s story<\/a> to learn more.<\/p>\n\n\n\n<p>If you opt for the brief business plan, you will\n focus primarily on articulating a big-picture overview of your business\n concept. This version is used to interest potential investors, \nemployees, and other stakeholders, and will include a financial summary \n\u201cbox,\u201d but it must have a disclaimer, and the founder\/entrepreneur may \nneed to have the people who receive it sign a nondisclosure agreement (NDA).\n The full business plan is aimed at executing the vision concept, \nproviding supporting details, and would be required by financial \ninstitutions and others as they formally become stakeholders in the \nventure. Both are aimed at providing a picture and roadmap to go from \nconception to creation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Types of Business Plans<\/h3>\n\n\n\n<p>The brief business plan is similar to an \nextended executive summary from the full business plan. This concise \ndocument provides a broad overview of your entrepreneurial concept, your\n team members, how and why you will execute on your plans, and why you \nare the ones to do so. You can think of a brief business plan as a scene\n setter or\u2014since we began this chapter with a film reference\u2014as a \ntrailer to the full movie. The brief business plan is the commercial \nequivalent to a trailer for <em>Field of Dreams<\/em>, whereas the full plan is the full-length movie equivalent.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Brief Business Plan<\/h4>\n\n\n\n<p>As the name implies, the executive summary\n summarizes key elements of the entire business plan, such as the \nbusiness concept, financial features, and current business position. The\n executive summary version of the business plan is your opportunity to \nbroadly articulate the overall concept and vision of the company for \nyourself, for prospective investors, and for current and future \nemployees.<\/p>\n\n\n\n<p>A typical executive summary is generally no \nlonger than a page, but because the brief business plan is essentially \nan extended executive summary, the executive summary section is vital. \nThis is the \u201cask\u201d to an investor. You should begin by clearly stating \nwhat you are asking for in the summary.<\/p>\n\n\n\n<p>In the business concept phase, you\u2019ll describe \nthe business, its product, and its markets. Describe the customer \nsegment it serves and why your company will hold a competitive \nadvantage. This section may align roughly with the customer segments and\n value-proposition segments of a canvas.<\/p>\n\n\n\n<p>Next, highlight the important financial \nfeatures, including sales, profits, cash flows, and return on \ninvestment. Like the financial portion of a feasibility analysis, the \nfinancial analysis component of a business plan may typically include \nitems like a twelve-month profit and loss projection, a three- or \nfour-year profit and loss projection, a cash-flow projection, a \nprojected balance sheet, and a breakeven calculation. You can explore a \nfeasibility study and financial projections in more depth in the formal \nbusiness plan. Here, you want to focus on the big picture of your \nnumbers and what they mean.<\/p>\n\n\n\n<p>The current business position section can \nfurnish relevant information about you and your team members and the \ncompany at large. This is your opportunity to tell the story of how you \nformed the company, to describe its legal status (form of operation), \nand to list the principal players. In one part of the extended executive\n summary, you can cover your reasons for starting the business: Here is \nan opportunity to clearly define the needs you think you can meet and \nperhaps get into the pains and gains of customers. You also can provide a\n summary of the overall strategic direction in which you intend to take \nthe company. Describe the company\u2019s mission, vision, goals and \nobjectives, overall business model, and value proposition.<\/p>\n\n\n\n<p>Rice University\u2019s Student Business Plan \nCompetition, one of the largest and overall best-regarded graduate \nschool business-plan competitions (see <a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/7-introduction\">Telling Your Entrepreneurial Story and Pitching the Idea<\/a>), requires an executive summary of up to five pages to apply.<sup><a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#footnote4\">52<\/a><\/sup><sup>,<\/sup><sup><a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#footnote5\">53<\/a><\/sup> Its suggested sections are shown in <a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#fs-idm353643616\">Table 11.2<\/a>.\n\nSuggested Executive Summary Components for Rice University Business Plan Competition54\n<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"\"><thead><tr><th scope=\"col\">Section<\/th><th scope=\"col\">Description<\/th><\/tr><\/thead><tbody><tr><td>Company summary<\/td><td>Brief overview (one to two paragraphs) of the problem, solution, and potential customers<\/td><\/tr><tr><td>Customer analysis<\/td><td>Description of potential customers and evidence they would purchase product<\/td><\/tr><tr><td>Market analysis<\/td><td>Size of market, target market, and share of market<\/td><\/tr><tr><td>Product or service<\/td><td>Current state of product in development and evidence it is feasible<\/td><\/tr><tr><td>Intellectual property<\/td><td>If applicable, information on patents, licenses, or other IP items<\/td><\/tr><tr><td>Competitive differentiation<\/td><td>Describe the competition and your competitive advantage<\/td><\/tr><tr><td>Company founders, management team, and\/or advisor<\/td><td>Bios of key people showcasing their expertise and relevant experience<\/td><\/tr><tr><td>Financials<\/td><td>Projections of revenue, profit, and cash flow for three to five years<\/td><\/tr><tr><td>Amount of investment<\/td><td>Funding request and how funds will be used<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Table 11.2 \n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Are You Ready?<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"20418\">Create a Brief Business Plan<\/h4>\n\n\n\n<p>Fill\n out a canvas of your choosing for a well-known startup: Uber, Netflix, \nDropbox, Etsy, Airbnb, Bird\/Lime, Warby Parker, or any of the companies \nfeatured throughout this chapter or one of your choice. Then create a \nbrief business plan for that business. See if you can find a version of \nthe company\u2019s actual executive summary, business plan, or canvas. \nCompare and contrast your vision with what the company has articulated.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>These companies are well established but is there a component of \nwhat you charted that you would advise the company to change to ensure \nfuture viability?<\/li><li>Map out a contingency plan for a \u201cwhat-if\u201d scenario if one key \naspect of the company or the environment it operates in were drastically\n is altered?<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Full Business Plan<\/h4>\n\n\n\n<p>Even full business plans can vary in length, \nscale, and scope. Rice University sets a ten-page cap on business plans \nsubmitted for the full competition. The IndUS Entrepreneurs,\n one of the largest global networks of entrepreneurs, also holds \nbusiness plan competitions for students through its Tie Young \nEntrepreneurs program. In contrast, business plans submitted for that \ncompetition can usually be up to twenty-five pages. These are just two \nexamples. Some components may differ slightly; common elements are \ntypically found in a formal business plan outline. The next section will\n provide sample components of a full business plan for a fictional \nbusiness.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Executive Summary<\/h4>\n\n\n\n<p>The executive summary\n should provide an overview of your business with key points and issues.\n Because the summary is intended to summarize the entire document, it is\n most helpful to write this section last, even though it comes first in \nsequence. The writing in this section should be especially concise. \nReaders should be able to understand your needs and capabilities at \nfirst glance. The section should tell the reader what you want and your \n\u201cask\u201d should be explicitly stated in the summary.<\/p>\n\n\n\n<p>Describe your business, its product or service, \nand the intended customers. Explain what will be sold, who it will be \nsold to, and what competitive advantages the business has. <a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#fs-idm366618080\">Table 11.3<\/a> shows a sample executive summary for the fictional company La Vida Lola.\n\nExecutive Summary for La Vida Lola\n<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"\"><thead><tr><th scope=\"col\">Executive Summary Component<\/th><th scope=\"col\">Content<\/th><\/tr><\/thead><tbody><tr><td>The Concept<\/td><td>La Vida \nLola is a food truck serving the best Latin American and Caribbean \ncuisine in the Atlanta region, particularly Puerto Rican and Cuban \ndishes, with a festive flair. La Vida Lola offers freshly prepared \ndishes from the mobile kitchen of the founding chef and namesake Lola \nGonz\u00e1lez, a Duluth, Georgia, native who has returned home to launch her \nfirst venture after working under some of the world\u2019s top chefs. La Vida\n Lola will cater to festivals, parks, offices, community and sporting \nevents, and breweries throughout the region.<\/td><\/tr><tr><td>Market Advantage<\/td><td>Latin \nfood packed with flavor and flair is the main attraction of La Vida \nLola. Flavors steeped in Latin American and Caribbean culture can be \nenjoyed from a menu featuring street foods, sandwiches, and authentic \ndishes from the Gonz\u00e1lez family\u2019s Puerto Rican and Cuban roots.\n<em>Millennial foodies<\/em> craving ethnic food experiences and <em>Latin food lovers<\/em>\n are the primary customers, but anyone with a taste for delicious \nhomemade meals in Atlanta can order. Having a native Atlanta-area \nresident returning to her hometown after working in restaurants around \nthe world to share food with area communities offers a competitive \nadvantage for La Vida Lola in the form of founding chef Lola Gonz\u00e1lez.<\/td><\/tr><tr><td>Marketing<\/td><td>The \nventure will adopt a concentrated marketing strategy. The company\u2019s \npromotion mix will comprise a mix of advertising, sales promotion, \npublic relations, and personal selling. Much of the promotion mix will \ncenter around dual-language social media.<\/td><\/tr><tr><td>Venture Team<\/td><td>The two \nfounding members of the management team have almost four decades of \ncombined experience in the restaurant and hospitality industries. Their \nbackground includes experience in food and beverage, hospitality and \ntourism, accounting, finance, and business creation.<\/td><\/tr><tr><td>Capital Requirements<\/td><td>La Vida \nLola is seeking startup capital of $50,000 to establish its food truck \nin the Atlanta area. An additional $20,000 will be raised through a \ndonations-driven crowdfunding campaign. The venture can be up and \nrunning within six months to a year.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Table 11.3 \n\n<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Business Description<\/h4>\n\n\n\n<p>This section describes the industry, your \nproduct, and the business and success factors. It should provide a \ncurrent outlook as well as future trends and developments. You also \nshould address your company\u2019s mission, vision, goals, and objectives. \nSummarize your overall strategic direction, your reasons for starting \nthe business, a description of your products and services, your business\n model, and your company\u2019s value proposition. Consider including the Standard Industrial Classification\/North American Industry Classification System (SIC\/NAICS)\n code to specify the industry and insure correct identification. The \nindustry extends beyond where the business is located and operates, and \nshould include national and global dynamics. <a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#fs-idm329591776\">Table 11.4<\/a> shows a sample business description for La Vida Lola.\n\nBusiness Description for La Vida Lola\n<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"\"><tbody><tr><td>Business Description<\/td><td>La Vida \nLola will operate in the mobile food services industry, which is \nidentified by SIC code 5812 Eating Places and NAICS code 722330 Mobile \nFood Services, which consist of establishments primarily engaged in \npreparing and serving meals and snacks for immediate consumption from \nmotorized vehicles or nonmotorized carts.\nEthnically inspired to serve a consumer base \nthat craves more spiced Latin foods, La Vida Lola is an Atlanta-area \nfood truck specializing in Latin cuisine, particularly Puerto Rican and \nCuban dishes native to the roots of the founding chef and namesake, Lola\n Gonz\u00e1lez.\nLa Vida Lola aims to spread a passion for Latin \ncuisine within local communities through flavorful food freshly prepared\n in a region that has embraced international eats. Through its mobile \nfood kitchen, La Vida Lola plans to roll into parks, festivals, office \nbuildings, breweries, and sporting and community events throughout the \ngreater Atlanta metropolitan region. Future growth possibilities lie in \nexpanding the number of food trucks, integrating food delivery on \ndemand, and adding a food stall at an area food market.\nAfter working in noted restaurants for a decade,\n most recently under the famed chef Jos\u00e9 Andr\u00e9s, chef Lola Gonz\u00e1lez \nreturned to her hometown of Duluth, Georgia, to start her own venture. \nAlthough classically trained by top world chefs, it was Gonz\u00e1lez\u2019s \ngrandparents\u2019 cooking of authentic Puerto Rican and Cuban dishes in \ntheir kitchen that influenced her profoundly.\nThe freshest ingredients from the local market, \nthe island spices, and her attention to detail were the spark that \nignited Lola\u2019s passion for cooking. To that end, she brings flavors \nsteeped in Latin American and Caribbean culture to a flavorful menu \npacked full of street foods, sandwiches, and authentic dishes. Through \nreasonably priced menu items, La Vida Lola offers food that appeals to a\n wide range of customers, from millennial foodies to Latin natives and \nother locals with Latin roots.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Table 11.4 \n\n\n\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Industry Analysis and Market Strategies<\/h3>\n\n\n\n<p>Here you should define your market in terms of \nsize, structure, growth prospects, trends, and sales potential. You\u2019ll \nwant to include your TAM and forecast the SAM. (Both these terms are discussed in <a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-3-conducting-a-feasibility-analysis\">Conducting a Feasibility Analysis<\/a>.)\n This is a place to address market segmentation strategies by geography,\n customer attributes, or product orientation. Describe your positioning \nrelative to your competitors\u2019 in terms of pricing, distribution, \npromotion plan, and sales potential. <a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#fs-idm331506384\">Table 11.5<\/a> shows an example industry analysis and market strategy for La Vida Lola.\n\nIndustry Analysis and Market Strategy for La Vida Lola\n<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"\"><tbody><tr><td>Industry Analysis and Market Strategy<\/td><td>According to <em>Mobile Food Trends and Insights<\/em>\u2019\n first annual report from the San Francisco-based Off The Grid, a \ncompany that facilitates food markets nationwide, the US food truck \nindustry alone is projected to grow by nearly 20 percent from $800 \nmillion in 2017 to $985 million in 2019. Meanwhile, an <em>IBISWorld<\/em>\n report shows the street vendors\u2019 industry with a 4.2 percent annual \ngrowth rate to reach $3.2 billion in 2018. Food truck and street food \nvendors are increasingly investing in specialty, authentic ethnic, and \nfusion food, according to the <em>IBISWorld<\/em> report.\nAlthough the <em>IBISWorld<\/em>\n report projects demand to slow down over the next five years, it notes \nthere are still opportunities for sustained growth in major metropolitan\n areas. The street vendors industry has been a particular bright spot \nwithin the larger food service sector.\nThe industry is in a growth phase of its life \ncycle. The low overhead cost to set up a new establishment has enabled \nmany individuals, especially specialty chefs looking to start their own \nbusinesses, to own a food truck in lieu of opening an entire restaurant.\n Off the Grid\u2019s annual report indicates the average typical initial \ninvestment ranges from $55,000 to $75,000 to open a mobile food truck.\nThe restaurant industry accounts for $800 \nbillion in sales nationwide, according to data from the National \nRestaurant Association. Georgia restaurants brought in a total of $19.6 \nbillion in 2017, according to figures from the Georgia Restaurant \nAssociation.\nThere are approximately 12,000 restaurants in \nthe metro Atlanta region. The Atlanta region accounts for almost 60 \npercent of the Georgia restaurant industry. The SAM is estimated to be \napproximately $360 million.\nThe mobile food\/street vendor industry can be \nsegmented by types of customers, types of cuisine (American, desserts, \nCentral and South American, Asian, mixed ethnicity, Greek Mediterranean,\n seafood), geographic location and types (mobile food stands, mobile \nrefreshment stands, mobile snack stands, street vendors of food, mobile \nfood concession stands).\nSecondary competing industries include chain \nrestaurants, single location full-service restaurants, food service \ncontractors, caterers, fast food restaurants, and coffee and snack \nshops.\nThe top food truck competitors according to the <em>Atlanta Journal-Constitution<\/em>,\n the daily newspaper in La Vida Lola\u2019s market, are Bento Bus, Mix\u2019d Up \nBurgers, Mac the Cheese, The Fry Guy, and The Blaxican. Bento Bus \npositions itself as a Japanese-inspired food truck using organic \ningredients and dispensing in eco-friendly ware. The Blaxican positions \nitself as serving what it dubs \u201cMexican soul food,\u201d a fusion mashup of \nMexican food with Southern comfort food. After years of operating a food\n truck, The Blaxican also recently opened its first brick-and-mortar \nrestaurant. The Fry Guy specializes in Belgian-style street fries with a\n variety of homemade dipping sauces. These three food trucks would be \nthe primary competition to La Vida Lola, since they are in the \u201cethnic \nfood\u201d space, while the other two offer traditional American food. All \nfive have established brand identities and loyal followers\/customers \nsince they are among the industry leaders as established by \u201cbest of\u201d \nlists from area publications like the <em>Atlanta Journal-Constitution<\/em>. Most dishes from competitors are in the $10\u2013$13 price range for entrees. La Vida Lola dishes will range from $6 to $13.\nOne key finding from Off the Grid\u2019s <em>Mobile Food Trends and Insights<\/em>\n report is that mobile food has \u201cproven to be a powerful vehicle for \ncatalyzing diverse entrepreneurship\u201d as 30 percent of mobile food \nbusinesses are immigrant owned, 30 percent are women owned, and 8 \npercent are LGBTQ owned. In many instances, the owner-operator plays a \nvital role to the brand identity of the business as is the case with La \nVida Lola.\nAtlanta has also tapped into the nationwide \ntrend of food hall-style dining. These food halls are increasingly \npopular in urban centers like Atlanta. On one hand, these \ncommunity-driven areas where food vendors and retailers sell products \nside by side are secondary competitors to food trucks. But they also \noffer growth opportunities for future expansion as brands solidify \ncustomer support in the region. The most popular food halls in Atlanta \nare Ponce City Market in Midtown, Krog Street Market along the BeltLine \ntrail in the Inman Park area, and Sweet Auburn Municipal Market downtown\n Atlanta. In addition to these trends, Atlanta has long been supportive \nof international cuisine as Buford Highway (nicknamed \u201cBuHi\u201d) has a \nreputation for being an eclectic food corridor with an abundance of \nrenowned Asian and Hispanic restaurants in particular.\nThe Atlanta region is home to a thriving \nHispanic and Latinx population, with nearly half of the region\u2019s \nforeign-born population hailing from Latin America. There are over half a\n million Hispanic and Latin residents living in metro Atlanta, with a \n150 percent population increase predicted through 2040. The median age \nof metro Atlanta Latinos is twenty-six. La Vida Lola will offer \nauthentic cuisine that will appeal to this primary customer segment.\nLa Vida Lola must contend with regulations from \ntowns concerning operations of mobile food ventures and health \nregulations, but the Atlanta region is generally supportive of such \noperations. There are many parks and festivals that include food truck \nvendors on a weekly basis.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Table 11.5 \n\n\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Competitive Analysis<\/h3>\n\n\n\n<p>The competitive analysis\n is a statement of the business strategy as it relates to the \ncompetition. You want to be able to identify who are your major \ncompetitors and assess what are their market shares, markets served, \nstrategies employed, and expected response to entry? You likely want to \nconduct a classic SWOT analysis\n (Strengths Weaknesses Opportunities Threats) and complete a \ncompetitive-strength grid or competitive matrix. Outline your company\u2019s \ncompetitive strengths relative to those of the competition in regard to \nproduct, distribution, pricing, promotion, and advertising. What are \nyour company\u2019s competitive advantages and their likely impacts on its \nsuccess? The key is to construct it properly for the relevant \nfeatures\/benefits (by weight, according to customers) and how the \nstartup compares to incumbents. The competitive matrix\n should show clearly how and why the startup has a clear (if not \ncurrently measurable) competitive advantage. Some common features in the\n example include price, benefits, quality, type of features, locations, \nand distribution\/sales. Sample templates are shown in <a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#OSX_Eship_11_04_Compet1\">Figure 11.17<\/a> and <a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#OSX_Eship_11_04_Compet2\">Figure 11.18<\/a>.\n A competitive analysis helps you create a marketing strategy that will \nidentify assets or skills that your competitors are lacking so you can \nplan to fill those gaps, giving you a distinct competitive advantage. \nWhen creating a competitor analysis, it is important to focus on the key\n features and elements that matter to customers, rather than focusing \ntoo heavily on the entrepreneur\u2019s idea and desires.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/openstax.org\/resources\/f39bc59c3ae316a84538a076f962a02fee6d2899\" alt=\"Competitor analysis comparing five different restaurants by price, location, quality, and food type. La Vida Lola sells Latin food of mid to high quality at a variety of locations for between six and 13 dollars. Mix\u2019D Up Burgers sells American food\/burgers of low quality at both rotating and Smyrna locations for around ten dollars. Mac the Cheese sells American comfort food of mid quality at rotating locations for between ten and thirteen dollars. The Fry Guy sells American food of high quality in Buckhead for at minimum thirteen dollars. The Blaxican sells soul\/Mexican fusion food of high quality in Midtown at high prices.\"\/><\/figure>\n\n\n\n<p>Figure 11.17  This\n chart shows one sample format for a competitor analysis. (attribution: \nCopyright Rice University, OpenStax, under CC BY 4.0 license)\n<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/openstax.org\/resources\/26440564c78638c7a4c3a2e189d8732eeddfac5f\" alt=\"Competitor analysis template comparing competitors by price, benefits, quality, features, locations, distribution\/sales, and customer satisfaction.\"\/><\/figure>\n\n\n\n<p>Figure 11.18  This\n chart provides a more complex template for creating a competitive \nanalysis. (attribution: Copyright Rice University, OpenStax, under CC BY\n 4.0 license)\n\n\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Operations and Management Plan<\/h3>\n\n\n\n<p>In this section, outline how you will manage \nyour company. Describe its organizational structure. Here you can \naddress the form of ownership and, if warranted, include an \norganizational chart\/structure. Highlight the backgrounds, experiences, \nqualifications, areas of expertise, and roles of members of the \nmanagement team. This is also the place to mention any other \nstakeholders, such as a board of directors or advisory board(s), and \ntheir relevant relationship to the founder, experience and value to help\n make the venture successful, and professional service firms providing \nmanagement support, such as accounting services and legal counsel.<\/p>\n\n\n\n<p><a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#fs-idm326177680\">Table 11.6<\/a> shows a sample operations and management plan for La Vida Lola.\n\nOperations and Management Plan for La Vida Lola\n<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"\"><thead><tr><th scope=\"col\">Operations and Management Plan Category<\/th><th scope=\"col\">Content<\/th><\/tr><\/thead><tbody><tr><td>Key Management Personnel<\/td><td>The key \nmanagement personnel consist of Lola Gonz\u00e1lez and Cameron Hamilton, who \nare longtime acquaintances since college. The management team will be \nresponsible for funding the venture as well as securing loans to start \nthe venture. The following is a summary of the key personnel \nbackgrounds.\n<em>Lola Gonz\u00e1lez:<\/em> \nChef Lola Gonz\u00e1lez has worked directly in the food service industry for \nfifteen years. While food has been a lifelong passion learned in her \ngrandparents\u2019 kitchen, chef Gonz\u00e1lez has trained under some of the top \nchefs in the world, most recently having worked under the James Beard \nAward-winning chef Jos\u00e9 Andr\u00e9s. A native of Duluth, Georgia, chef \nGonz\u00e1lez also has an undergraduate degree in food and beverage \nmanagement. Her value to the firm is serving as \u201cthe face\u201d and company \nnamesake, preparing the meals, creating cuisine concepts, and running \nthe day-to-day operations of La Vida Lola.\n<em>Cameron Hamilton:<\/em>\n Cameron Hamilton has worked in the hospitality industry for over twenty\n years and is experienced in accounting and finance. He has a master of \nbusiness administration degree and an undergraduate degree in \nhospitality and tourism management. He has opened and managed several \nsuccessful business ventures in the hospitality industry. His value to \nthe firm is in business operations, accounting, and finance.<\/td><\/tr><tr><td>Advisory Board<\/td><td>During \nthe first year of operation, the company intends to keep a lean \noperation and does not plan to implement an advisory board. At the end \nof the first year of operation, the management team will conduct a \nthorough review and discuss the need for an advisory board.<\/td><\/tr><tr><td>Supporting Professionals<\/td><td>Stephen \nNgo, Certified Professional Accountant (CPA), of Valdosta, Georgia, will\n provide accounting consulting services. Joanna Johnson, an attorney and\n friend of chef Gonz\u00e1lez, will provide recommendations regarding legal \nservices and business formation.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Table 11.6 \n\n\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Marketing Plan<\/h3>\n\n\n\n<p>Here you should outline and describe an \neffective overall marketing strategy for your venture, providing details\n regarding pricing, promotion, advertising, distribution, media usage, \npublic relations, and a digital presence. Fully describe your sales \nmanagement plan and the composition of your sales force, along with a \ncomprehensive and detailed budget for the marketing plan. <a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#fs-idm361316656\">Table 11.7<\/a> shows a sample marketing plan for La Vida Lola.\n\nMarketing Plan for La Vida Lola\n<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"\"><thead><tr><th scope=\"col\">Marketing Plan Category<\/th><th scope=\"col\">Content<\/th><\/tr><\/thead><tbody><tr><td>Overview<\/td><td>La Vida \nLola will adopt a concentrated marketing strategy. The company\u2019s \npromotion mix will include a mix of advertising, sales promotion, public\n relations, and personal selling. Given the target millennial foodie \naudience, the majority of the promotion mix will be centered around \nsocial media platforms. Various social media content will be created in \nboth Spanish and English. The company will also launch a crowdfunding \ncampaign on two crowdfunding platforms for the dual purpose of \npromotion\/publicity and fundraising.<\/td><\/tr><tr><td>Advertising and Sales Promotion<\/td><td>As with \nany crowdfunding social media marketing plan, the first place to begin \nis with the owners\u2019 friends and family. Utilizing primarily \nFacebook\/Instagram and Twitter, La Vida Lola will announce the \ncrowdfunding initiative to their personal networks and prevail upon \nthese friends and family to share the information. Meanwhile, La Vida \nLola needs to focus on building a community of backers and cultivating \nthe emotional draw of becoming part of the La Vida Lola family.\nTo build a crowdfunding community via social \nmedia, La Vida Lola will routinely share its location, daily if \npossible, on both Facebook, Instagram, and Twitter. Inviting and \nencouraging people to visit and sample their food can rouse interest in \nthe cause. As the campaign is nearing its goal, it would be beneficial \nto offer a free food item to backers of a specific level, say $50, on \none specific day. Sharing this via social media in the day or two \npreceding the giveaway and on the day of can encourage more backers to \ncommit.\nWeekly updates of the campaign and the project \nas a whole are a must. Facebook and Twitter updates of the project \ncoupled with educational information sharing helps backers feel part of \nthe La Vida Lola community.\nFinally, at every location where La Vida Lola is\n serving its food, signage will notify the public of their social media \npresence and the current crowdfunding campaign. Each meal will be \naccompanied by an invitation from the server for the patron to visit the\n crowdfunding site and consider donating. Business cards listing the \nsocial media and crowdfunding information will be available in the most \nvisible location, likely the counter.\nBefore moving forward with launching a \ncrowdfunding campaign, La Vida Lola will create its website. The website\n is a great place to establish and share the La Vida Lola brand, vision,\n videos, menus, staff, and events. It is also a great source of \ninformation for potential backers who are unsure about donating to the \ncrowdfunding campaigns. The website will include these elements:\n\n<em>About Us<\/em>. Address the following \nquestions: Who are you? What are the guiding principles of La Vida Lola?\n How did the business get started? How long has La Vida Lola been in \nbusiness? Include pictures of chef Gonz\u00e1lez.\n<em>Menu.<\/em> List of current offerings with prices.\n<em>Calendar of Events.<\/em> Will include promotional events and locations where customers can find the truck for different events.\n<em>Social Media.<\/em> Steps will be taken to \nincrease social media followers prior to launching the crowdfunding \ncampaign. Unless a large social media following is already established, a\n business should aggressively push social media campaigns a minimum of \nthree months prior to the crowdfunding campaign launch. Increasing \nsocial media following prior to the campaign kickoff will also allow \npotential donors to learn more about La Vida Lola and foster \nrelationship building before attempting to raise funds.\n<\/td><\/tr><tr><td>Facebook Content and Advertising<\/td><td>The key \npiece of content will be the campaign pitch video, reshared as a native \nFacebook upload. A link to the crowdfunding campaigns can be included in\n the caption. Sharing the same high-quality video published on the \ncampaign page will entice fans to visit Kickstarter to learn more about \nthe project and rewards available to backers.\n\nPromoted Post(s): Boosting\/promoting a Facebook post for only $5 can\n go a long way for a business page the size of La Vida Lola\u2019s. Reach and\n engagement will be exponentially higher than it would have been \norganically. Promoting two or three posts during the first few weeks of \nthe campaign would be highly effective.\nVideo Views Ad: Video ads are a little more ambitious than promoted \nposts and cost a little more. But the objective is the same: increase \nthe number of people who watch the pitch video and drive them to the \ncampaign page.\n\n<\/td><\/tr><tr><td>Crowdfunding Campaigns<\/td><td>Foodstart\n was created just for restaurants, breweries, caf\u00e9s, food trucks, and \nother food businesses, and allows owners to raise money in small \nincrements. It is similar to Indiegogo in that it offers both flexible \nand fixed funding models and charges a percentage for successful \ncampaigns, which it claims to be the lowest of any crowdfunding \nplatform. It uses a reward-based system rather than equity, where \nbackers are offered rewards or perks resulting in \u201clow-cost capital and a\n network of people who now have an incentive to see you succeed.\u201d<sup><a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#footnote7\">55<\/a><\/sup>\nFoodstart will host La Vida Lola\u2019s crowdfunding \ncampaigns for the following reasons: (1) It caters to their niche \nmarket; (2) it has less competition from other projects which means that\n La Vida Lola will stand out more and not get lost in the shuffle; and \n(3) it has\/is making a name\/brand for itself which means that more \npotential backers are aware of it.\nLa Vida Lola will run a simultaneous crowdfunding campaign on Indiegogo, which has broader mass appeal.<\/td><\/tr><tr><td>Publicity<\/td><td>Social \nmedia can be a valuable marketing tool to draw people to the Foodstarter\n and Indiegogo crowdfunding pages. It provides a means to engage \nfollowers and keep funders\/backers updated on current fundraising \nmilestones. The first order of business is to increase La Vida Lola\u2019s \nsocial media presence on Facebook, Instagram, and Twitter. Establishing \nand using a common hashtag such as #FundLola across all platforms will \npromote familiarity and searchability, especially within Instagram and \nTwitter. Hashtags are slowly becoming a presence on Facebook. The \nhashtag will be used in all print collateral.\nLa Vida Lola will need to identify social \ninfluencers\u2014others on social media who can assist with recruiting \nfollowers and sharing information. Existing followers, family, friends, \nlocal food providers, and noncompetitive surrounding establishments \nshould be called upon to assist with sharing La Vida Lola\u2019s brand, \nmission, and so on. Cross-promotion will further extend La Vida Lola\u2019s \nsocial reach and engagement. Influencers can be called upon to cross \npromote upcoming events and specials.\nThe crowdfunding strategy will utilize a progressive reward-based model and establish a reward schedule such as the following:\n\n$5 or more (unlimited): Exclusive updates on fundraising progress\n$10 or more (500): $1 OFF; a coupon for $1 off purchase\n$20 or more (200): BOGO! Buy one entree, get one FREE\n$50 or more (100): FREE entr\u00e9e coupon\n$250 or more (2): One-on-one with chef Gonz\u00e1lez!\n\nIn addition to the publicity generated through \nsocial media channels and the crowdfunding campaign, La Vida Lola will \nreach out to area online and print publications (both English- and \nSpanish-language outlets) for feature articles. Articles are usually \nteased and\/or shared via social media. Reaching out to local broadcast \nstations (radio and television) may provide opportunities as well. La \nVida Lola will recruit a social media intern to assist with developing \nand implementing a social media content plan. Engaging with the audience\n and responding to all comments and feedback is important for the \nsuccess of the campaign.\nSome user personas from segmentation to target in the campaign:\n\nInfluencer Isabel: Social media-savvy, college-age Latina influencer\nFood truck Freddie: An avid food truck follower, this \nthirty-three-year-old white urban hipster professional seeks out the \nbest food trucks around town on a regular basis looking for \u201cnoms\u201d to \nsatisfy his cravings.\nTaco townies: In-town residents who religiously eat tacos on \u201ctaco \nTuesday,\u201d as a family rite of passage for the wives, husbands, and kids.\n The entire neighborhood turns out for the occasion as a community event\n of sorts.\n\n<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Table 11.7 \n\n\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Financial Plan<\/h3>\n\n\n\n<p>A financial plan\n seeks to forecast revenue and expenses; project a financial narrative; \nand estimate project costs, valuations, and cash flow projections. This \nsection should present an accurate, realistic, and achievable financial \nplan for your venture (see <a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/9-introduction\">Entrepreneurial Finance and Accounting<\/a>\n for detailed discussions about conducting these projections). Include \nsales forecasts and income projections, pro forma financial statements (<a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/12-2-building-the-entrepreneurial-dream-team\">Building the Entrepreneurial Dream Team<\/a>, a breakeven analysis, and a capital budget. Identify your possible sources of financing (discussed in <a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-3-conducting-a-feasibility-analysis\">Conducting a Feasibility Analysis<\/a>). <a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#OSX_Eship_11_06_CashFlow\">Figure 11.19<\/a> shows a template of cash-flow needs for La Vida Lola.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/openstax.org\/resources\/fcb0765ce8dc4bbbf3d9014a3e906c2f88be5aff\" alt=\"Cash flow template that tracks income for every day of the week and expenses. Fixed monthly expenses include facility rental, personal loans, insurance, credit cards, Farmer\u2019s Market overheads, planned savings, and other. Variable monthly expenses include food\/beverages, utilities (electricity, gas), uniforms, wages, fuel (vehicle), medical expenses, and other. Fixed infrequent expenses included insurance, annual subscriptions, property rates\/taxes, union fees, education, and other. Variable infrequent expenses include gifts, holidays, vehicle repairs and registration, durable goods purchase, donations, and other. The difference between total income and total expenses is the income available.\"\/><\/figure>\n\n\n\n<p>Figure 11.19  La\n Vida Lola can use a template like this to project cash flow. \n(attribution: Copyright Rice University, OpenStax, under CC BY 4.0 \nlicense)\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Entrepreneur In Action<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"88466\">Laughing Man Coffee<\/h4>\n\n\n\n<p>Hugh Jackman (<a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#OSX_Eship_11_03_Hugh\">Figure 11.20<\/a>)\n may best be known for portraying a comic-book superhero who used his \nmutant abilities to protect the world from villains. But the <em>Wolverine<\/em>\n actor is also working to make the planet a better place for real, not \nthrough adamantium claws but through social entrepreneurship.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/openstax.org\/resources\/38122d64037b72fa16f7c8d5e428ff185ec94ca1\" alt=\"Photo of Hugh Jackman.\"\/><\/figure>\n\n\n\n<p>Figure 11.20  Hugh\n Jackman launched a social entrepreneurship venture called Laughing Man \nCoffee. (credit: \u201cHugh Jackman navy\u201d by \u201cU.S. Navy photo by \nPhotographer&#8217;s Mate Airman Dennard Vinson\u201d\/Wikimedia Commons, Public \nDomain)\n<\/p>\n\n\n\n<p>A love of java jolted Jackman into action in \n2009, when he traveled to Ethiopia with a Christian humanitarian group \nto shoot a documentary about the impact of fair-trade certification on \ncoffee growers there. He decided to launch a business and follow in the \nfootsteps of the late Paul Newman, another famous actor turned \nphilanthropist via food ventures.<\/p>\n\n\n\n<p>Jackman launched Laughing Man Coffee two years later; he sold the line to Keurig\n in 2015. One Laughing Man Coffee caf\u00e9 in New York continues to operate \nindependently, investing its proceeds into charitable programs that \nsupport better housing, health, and educational initiatives within \nfair-trade farming communities.<sup><a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#footnote8\">56<\/a><\/sup>\n Although the New York location is the only caf\u00e9, the coffee brand is \nstill distributed, with Keurig donating an undisclosed portion of \nLaughing Man proceeds to those causes (whereas Jackman donates all his \nprofits). The company initially donated its profits to World Vision, the\n Christian humanitarian group Jackman accompanied in 2009. In 2017, it \ncreated the Laughing Man Foundation to be more active with its money management and distribution.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>You be the entrepreneur. If you were Jackman, would you have sold the company to Keurig? Why or why not?<\/li><li>Would you have started the Laughing Man Foundation?<\/li><li>What else can Jackman do to aid fair-trade practices for coffee growers?<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">What Can You Do?<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"13478\">Textbooks for Change<\/h4>\n\n\n\n<p>Founded in 2014, Textbooks for Change\n uses a cross-compensation model, in which one customer segment pays for\n a product or service, and the profit from that revenue is used to \nprovide the same product or service to another, underserved segment. \nTextbooks for Change partners with student organizations to collect used\n college textbooks, some of which are re-sold while others are donated \nto students in need at underserved universities across the globe. The \norganization has reused or recycled 250,000 textbooks, providing 220,000\n students with access through seven campus partners in East Africa. This\n B-corp social enterprise tackles a problem and offers a solution that \nis directly relevant to college students like yourself. Have you \nobserved a problem on your college campus or other campuses that is not \nbeing served properly? Could it result in a social enterprise?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Work It Out<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"40656\">Franchisee Set Out<\/h4>\n\n\n\n<p>A\n franchisee of East Coast Wings, a chain with dozens of restaurants in \nthe United States, has decided to part ways with the chain. The new \nstore will feature the same basic sports-bar-and-restaurant concept and \nserve the same basic foods: chicken wings, burgers, sandwiches, and the \nlike. The new restaurant can\u2019t rely on the same distributors and \nsuppliers. A new business plan is needed.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>What steps should the new restaurant take to create a new business plan?<\/li><li>Should it attempt to serve the same customers? Why or why not?<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Link to Learning<\/h3>\n\n\n\n<p>This <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/openstax.org\/l\/52EntreResurg\"><em>New York Times<\/em> video, \u201cAn Unlikely Business Plan,\u201d describes entrepreneurial resurgence<\/a> in Detroit, Michigan.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Footnotes<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#footnote-ref1\">49<\/a> Chris Guillebeau. <em>The $100 Startup: Reinvent the Way You Make a Living, Do What You Love, and Create a New Future<\/em>. New York: Crown Business\/Random House, 2012.<\/li><li><a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#footnote-ref2\">50<\/a> Jonathan Chan. \u201cWhat These 4 Startup Case Studies Can Teach You about Failure.\u201d <em>Foundr.com<\/em>. July 12, 2015. https:\/\/foundr.com\/4-startup-case-studies-failure\/<\/li><li><a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#footnote-ref3\">51<\/a> Amy Feldman. \u201cInventor of the Cut Buddy Paid YouTubers to Spark Sales. He Wasn\u2019t Ready for a Video to Go Viral.\u201d <em>Forbes.<\/em>\n February 15, 2017. \nhttps:\/\/www.forbes.com\/sites\/forbestreptalks\/2017\/02\/15\/inventor-of-the-cut-buddy-paid-youtubers-to-spark-sales-he-wasnt-ready-for-a-video-to-go-viral\/#3eb540ce798a<\/li><li><a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#footnote-ref4\">52<\/a> Jennifer Post. \u201cNational Business Plan Competitions for Entrepreneurs.\u201d <em>Business News Daily<\/em>. August 30, 2018. https:\/\/www.businessnewsdaily.com\/6902-business-plan-competitions-entrepreneurs.html<\/li><li><a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#footnote-ref5\">53<\/a> \u201cRice Business Plan Competition, Eligibility Criteria and How to Apply.\u201d <em>Rice Business Plan Competition<\/em>.\n March 2020. \nhttps:\/\/rbpc.rice.edu\/sites\/g\/files\/bxs806\/f\/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf<\/li><li><a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#auto_bb6a76c3-8900-4674-905a-78324cc33ecc_footnote-ref6\">54<\/a> \u201cRice\n Business Plan Competition, Eligibility Criteria and How to Apply.\u201d Rice\n Business Plan Competition. March 2020. \nhttps:\/\/rbpc.rice.edu\/sites\/g\/files\/bxs806\/f\/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf;\n Based on 2019 RBPC Competition Rules and Format April 4\u20136, 2019.<br>https:\/\/rbpc.rice.edu\/sites\/g\/files\/bxs806\/f\/2019-RBPC-Competition-Rules%20-Format.pdf<\/li><li><a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#footnote-ref7\">55<\/a> Foodstart. http:\/\/foodstart.com<\/li><li><a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan#footnote-ref8\">56<\/a> \u201cHugh\n Jackman Journey to Starting a Social Enterprise Coffee Company.\u201d Giving\n Compass. April 8, 2018. \nhttps:\/\/givingcompass.org\/article\/hugh-jackman-journey-to-starting-a-social-enterprise-coffee-company\/<\/li><\/ul>\n\n\n\n<p>Adapted from OpenStax&#8217;s Entrepreneurship textbox: https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-4-the-business-plan<a href=\"https:\/\/openstax.org\/books\/entrepreneurship\/pages\/11-3-conducting-a-feasibility-analysis\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unlike the brief or lean formats introduced so far, the business plan is a formal document used for the long-range planning of a company\u2019s operation. It typically includes background information, financial information, and a summary of the business. Investors nearly always request a formal business plan because it is an integral part of their evaluation [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-33601","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/myedme.com\/login\/wp-json\/wp\/v2\/posts\/33601","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/myedme.com\/login\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/myedme.com\/login\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/myedme.com\/login\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/myedme.com\/login\/wp-json\/wp\/v2\/comments?post=33601"}],"version-history":[{"count":1,"href":"https:\/\/myedme.com\/login\/wp-json\/wp\/v2\/posts\/33601\/revisions"}],"predecessor-version":[{"id":33602,"href":"https:\/\/myedme.com\/login\/wp-json\/wp\/v2\/posts\/33601\/revisions\/33602"}],"wp:attachment":[{"href":"https:\/\/myedme.com\/login\/wp-json\/wp\/v2\/media?parent=33601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/myedme.com\/login\/wp-json\/wp\/v2\/categories?post=33601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/myedme.com\/login\/wp-json\/wp\/v2\/tags?post=33601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}