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Finance allah shmoop what is a business plan Well think

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of it like blueprints for building a home or a

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directions for toll house cookie baking or the process for

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howto you know get pregnant let's get down to business

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time anyway A business plan is just the game day

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strategy for how your little garage startup will grow to

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someday be a google or facebook or even little old

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shop You'll describe the product like a pill that cures

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cancer Yep some products are easy to describe Like if

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you actually had a pill that cures cancer while you'd

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pretty much be done you could have a one page

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business plan that just says i have a pill that

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cures cancer Your eight hundred seventy six people on whom

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it has worked Now give me billions of dollars and

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a nobel prize night and you'd be done But if

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you only had a flying car well then you describe

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it well How much weight it khun carrie how fast

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and far it goes how it navigates and avoids crashes

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and how it recharges and stuff like that That's the

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product then there's the place or distribution Like how you

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get the car out to the masses you want to

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sell it to like are you partnering and paying ford

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to stock it in their showrooms Are you leveraging starbucks

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places teo You know showcase it Get buzzed while you

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buzz about that Or do you just have a mail

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order website Customers pay with a credit card and a

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delivery agent applies it to your home You know kind

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of like tesla All right Next up promotion Like how

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do you market your product Or is it just so

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cool that the press writes about it endlessly fawning and

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all that digital ink is free Well if the products

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all over the covers of the new york times and

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yusa today well you're kind of marketed everyone in the

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country knows about it All right Well then there are

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the finances Like how much does a unit cost So

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this is all about price How much is the factory

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that stamps out the carriage The blades of the battery

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Well if you sell a hundred units a month you

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make what What should they be Priced at fifty grand

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Each one hundred two hundred fifty grand if you sell

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Ten thousand a month Well how much do you make

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How much capital do you need thio field all that

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get through your first two years and then how much

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do you need to raise beyond those first two years

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to get to break even profitability and and so on

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Is there a ny po in the future Yeah yeah

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what about that That should be in the plan Well

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there's a lot to figure out a lot of work

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to put together a business plan So you better get 00:02:27.7 --> [endTime] uh you know busy No

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