They call it the “unfranchise”. Meaning it is likened to a franchise offering all the benefits of a franchise without the traditional overhead expenses and fees that are associated with a franchise. Market America is a product brokerage and one to one marketing company specializing in Mass Customization. Founded in 1992 by James Ridinger, Market America makes its headquarters in Greensboro, North Carolina.

The Business Model

Market America is part of the network marketing industry. Each unfranchise owner is encouraged to recruit others into the network of unfranchise owners. By doing so they will create leverage for themselves and their unfranchise business. The requirements to activate and qualify your unfranchise to begin receiving profits is as follows. You must recruit two people one on your left and one on your right side of your business. You must qualify your business by purchasing 200BV worth of product and then remain on an “transfer buy” of 50bv to 150bv each month. (BV is approx. 80% per $1 spent. Example, $100 = 80 BV) Once your network begins to grow your points start accumulating. Upon reaching certain points or bv on your left and right you will start to receive commission checks.

Here are some specific details regarding the binomial compensation plan that Market America uses. First, as stated before you have two sides of your business. To qualify your business you will need to purchase 200 – 600 BV of product, this equates to $350-$1000 worth of product. After that you will be encouraged to spend an additional several hundred dollars in business support materials. Once you qualify your center with your initial purchase you are required to purchase 50BV – 150BV of product per month, depending on your position within the pay plan. We will use an average monthly order of 100bv as we get further into the plan.

Now that you are qualified you must activate your business by sponsoring or recruiting two people one person on the left side and the other on the right. To do this your sponsor will help teach you how to introduce the business and products to people who may have an interest.

SBA or Small Business Administration is an independent agency of the US government that helps in protecting the interests of the small business organizations by assisting them in securing loans, forming business plan, business counseling so that they can thrive among competition which in the long run is beneficial to the economy of the country.

The SBA business plan provides such guidance so that one can manage the business efficiently from the start to the finish. This agency guides how to start the business by selecting a proper location, frame a strategy of the business and the steps to obtain the license ad permits necessary to run the business successfully.

The basis of a successful business starts from its planning and writing down the features of the business plan in a standardized template guides the business person to the right path in achieving the goals.

The SBA plan starts with mentioning the mission of the business giving a total description of the growth of the organization, its goals and achievements along with the background of the organization. This represents a clear view of the business and the perception of its growth and potential. The plan reflects the outlook of the business and in identifying the target in the market with the special mention of the existing clients and customers and the market share which the business is holding at present.

The detailed information of the products and services are included in this plan emphasizing its uniqueness with other competitors and possible up gradations of the product, supported with the brochures and photographs.

A brief summary of the management and the administration is mentioned in the SBA plan highlighting the names of the key managers duly supported by the organization charts. The strategies adopting in marketing and sales promotion along with the distribution are specified in this plan. Financial management holds a key position in the business plan which is clearly laid out reflecting the financial health of the organization. This guideline by the SBA enables one to generate a business plan.

Business Plans written with the primary purpose of presenting the company to outsiders differ in format and presentation from a business plan developed as a management tool. While it would benefit the company and management to go through the efforts necessary to establish goals, objectives, strategies and action plans defined near the end of this chapter, outsiders unfamiliar with not only the company, but also possibly the industry and products require a different presentation, with an emphasis on selling the reader on the attributes of the company. A plan for strictly internal use is geared more toward defining specific, measurable performance targets and assigns responsibility for reaching those targets.

The business plan document is often the first exposure an investor has to a company seeking financing, often even before talking to the entrepreneur on the phone or having a meeting. Because it makes the critical “first impression” for the company, a poorly prepared plan can be a reason for an investor to decline on the investment, and not take the time to ask for more information. While we all hear of stories about deals that were scratched out on the back of an envelope, after a brief meeting between a savvy entrepreneur and a multi-millionaire, the truth is: no business plan equals no capital.

The business plan template below can be used for an established company or for a start-up. Obviously a start-up company may not have an historical background, or the previous years’ financial information. There also may be some gaps in the management team as well.

*******************************************

YOUR BUSINESS PLAN

Below is an outline of each segment of a business plan developed for presentation to potential investors or lenders.

EXECUTIVE SUMMARY

HISTORICAL PERSPECTIVE

ECONOMIC AND INDUSTRY ENVIRONMENT

PROFILE OF THE BUSINESS

Business Model

The Product

The Market

Competitive Environment

Marketing

Management, Operations, Production, and Facilities

Current Ownership

Strengths, Weaknesses, Risks, and Opportunities

STRUCTURE OF THE TRANSACTION

FINANCIAL SECTION

APPENDIX

Don’t skip on planning, if you wish to stay in business for long. For determined entrepreneurs it does not take long to learn how to make a business plan. Apply the given ground rules and you can confidently prepare a document that will be the cornerstone of your business.

You must be adept at defining your basic business concept in order to know how to make a business plan. Business concept is the strategy you will employ to set your business apart from competition. Focus on the competitive attributes of the particular product or service you wish to offer. Elaborate upon the strategic impact factors like marketing, research and development that will distinguish your business from the competing concerns.

Conduct the feasibility studies and gather the specifics of your line of business activity. Find out if you have to test market the product; has a prototype been developed and has adequate market research been performed. Ask yourself all possible related questions and write down the answers.

Don’t lose sight of the financial objectives. If you intend to raise the capital, clearly state the desired amount and how you plan to use the funding. Based on this data you can refine your business concept and draw a complete outline of the plan.

It is necessary to have a consistent business focus. Specialists in a product or service are better positioned to compete in a market dominated by large and well-established players. Review some sample business plans to learn how to make a business plan that compels individuals and firms to fashion strategic business partnerships and convince investors and bankers to bet their money on you.

Don’t lose sight of your target audience and the main objective for writing the plan. This way you are bound to succeed in your venture.

I. What is a Strategic Plan?

Business Owners or Managers are often so preoccupied with day to day immediate issues in their business they lose sight of their ultimate objectives. Taking a step back and reviewing their business is essential. There is no guarantee of success, but without it a business is much more likely to fail. A strategic plan is NOT a Business Plan. It is likely to be a very short or short document whereas a Business Plan is very detailed and much more substantial. A sound plan will:

o Serve as a framework for making decisions or for securing future support or approval as required

o Provide a basis for more detailed planning

o Explain the business to others in order to inform, involve and motivate

o Assist in performance monitoring or benchmarking as required

o Stimulate change, and become a foundation for the next plan

II. Why make a Strategic Plan?

Making a Strategic Plan is an exciting exercise, and gets the adrenaline going! It should be visionary, conceptual and directional, and because it must be realistic and attainable too, it will provide owners and/or managers to think strategically and act operationally. Being able to think strategically means that, when you make decisions and choices, you settle for the best strategic option. Operational issues are all taken care of, but without having to think too hard about it, you ensure that your decisions and choices are supportive of your long term strategic objectives.

Setting goals and focusing on them causes these goals to become subconscious drivers that guide your actions. Doing this in terms of a structured strategic planning system, means that you will tend to steer your business in the right direction all the time, and you will do this without consciously thinking about it.

Starting with developing a Vision and working from there means that the Vision becomes firmly entrenched in how you think about your business, and becomes a subconscious part of your thinking process.

The effect can be really powerful and rewarding. By putting the necessary effort into creating a comprehensive Vision and building on it, you become a strategic thinker. Taking the right strategic action becomes easy.

III. What is involved?

A critical review of past performance by Owners and/or Managers of a business, and the preparation of even a short Strategic Plan beyond the normal annual budgetary horizon requires the type of thinking described above. Some essential points which should be observed during the review and planning process include the following:

o Consider the medium term of 3-5 years

o It must be undertaken by Owners/Directors

o It must focus on matters of strategic importance

o It must take place outside normal day to day work

o It must be realistic, detached and critical

o It must be written down

o It must be reviewed periodically

IV. What does it contain?
In developing a Strategic Plan, it is necessary to clearly identify the current status of the existing business, its objectives and strategies. Correctly defined, these can be used as the basis for a critical examination to probe existing or perceived Strengths, Weaknesses, Opportunities and Threats. Also forming part of a Strategic Plan are the following requirements:

o Vision

o Mission

o Strategic themes

o Strategic Objectives

o Measures or Key Performance Indicators

o Targets or Goals

o Initiatives or Action Plans

V. Summary

The preparation of a plan is a multi-step process, but is not difficult to carry out, and can be done reasonably quickly. For business Owners who want to drive their businesses to the next level, a plan for the future is essential.