Startup Business Plan-Finance & Operations Section (video 5)

hi and Kathy thanks for watching the
fifth and actually fifth and sixth video and Working for Wonka how to write a
business plan series. in this video were combining the finance
in the operation section into one video. And we’re going to start with the
financial section. now the finance section is really where the rubber meets the road. this is
one of the most important sections as your business plan because this is
what’s proving that your company is a financially viable venture. if maybe
not and maybe not lucrative in year one or
year two. but you’re proving out that there is
actually a potential for this business to make money. and you’re proving how much money over what period of time. in your
financial section you want to include revenue model. you can include cash flow
statement, earnings statement, and balance sheet, any loan or vendor deals that are
affecting the financial future of this company should also be included in this section. But here’s what I’m gonna say about all
those documents I am NOT a professional financial
advisors. so I don’t want to mislead anyone it will give any bad information
I’m gonna suggest that if you don’t know what those document are, that you google them or they should pay
an accountant or somebody to go through and help you put those together. what I will say is that when you put this together you really want to be sure you have your ducks in a row and then just as important as as having all that information is
making sure that the information is real. do not exaggerate your numbers in your
business plan it doesn’t do anyone any good. let’s say,
for instance, that you are launching an actual product
at retail, and haven’t fully defined the cost goods yet. don’t say that you can get this
part for five cent when, in the end, the average price is $.25 but you’re sure you can find a vendor. no!
you need to be conservative with your numbers it doesn’t do you any good to look back
at these numbers a year from now and realize that you missed the mark
completely because you were not conservative
enough when you put this document together. and let me tell you it’s even worse if it happens to your bank or an investor, who’s looking back a year from now and saying why are you so grossly off in your
numbers. And it’s really because you put together a pie in the sky financial section. do your
homework here do with a financial professional if you don’t have one on
staff hirer one, and put together a real snapshot of the financial viability of
the company. So, let’s move on to operations. operations is really the peek behind the curtain at
what the wizard is doing to keep Oz running. and it may seem
obvious to you how you manufacture whatever your product is. but that’s because you are the or you work for the entrepreneur, nor
figure it out. it’s not obvious to anybody but you. so explain how the product is
manufactured. who were the vendors that you work with to get the product manufactured? talk about your warehousing. Are you
warehousing are you a taking control of inventory
and keeping inventory in a warehouse in your facility, do you have warehouses cross-country? are you and taking ownership at the port, wherever this is being made? all those details and again she like it that’s just of course what you do, it’s not obvious to anyone but you. listen at in detail. you also want to
talk about how the product is being distributed. so how’s it getting from your warehouse
to your retailer or your consumer? if you
have a B-to-B businesses, for a web-based
business, some of the distribution and
manufacturing might not be relevant to you. but if you are launching actual physical
product you really wanna be sure that it’s clear what the pact markets is. you can
do that path if you wanted to you from manufacturing, from ideation, to time on shelf, it’s an actual product.
you can even do it from ideation to close of sale, if it’s not a physical product. and then lastly you want to look at your organizational
structure. now of course you want an org chart and if your company’s big enough for or chart…even if it’s not, it probably
is a good idea to list out who ultimately reports into to who. what’s the hierarchy of the few
people that you do have? You want to list bios for anyone down to maybe a director level. and and if a company is smaller than
that, then you wanna have a bio for anyone who is key to the success in your business. now
again, if this is being written for investors is an important
part they want to know that you have assembled a team of people who can get the job done. who know the
industry. who have a track record in the industry. keep in mind you do not have to be the
smartest person in your business plan. the
smartest person in the business plan is the person who was smart not smart enough to bring people smarter than them. So list out anyone who is important to your business
in your organizational structure. And that’s really it. These two sections
are pretty cut and dry. there’s not a lot of room for interpretation here so I don’t have examples at how they would be written in this
video. But I think you understand what I mean. the last video are going to do is the executive summary. as he discussed
it’s actually the first page of your business plan, but it’s the last thing you write. We’re going to do that next. thanks for watching. hope you learned something. I look forward
to seeing you on the next video.

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2 thoughts on “Startup Business Plan-Finance & Operations Section (video 5)

  1. I want to thank you for the videos that you've shared. I really appreciate the examples. I will follow up with you in 12 months and let you know the successes and growth.

  2. Thank you for helping me on a group project that I am working on. Clear and relevant, just the way I like it. 🙂 Good day

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