bplans_1_the_idea.ppt

INLS 210-97Information Entrepreneurship

Module 1: Business Planning

Readings Venturecoach.com

From Idea to Business http://www.venturecoach.com/resources/howbiz.htm

Anatomy of a Business Model http://www.venturecoach.com/resources/bizmodel.htm

Entrepreneur.com: An Introduction to Business Plans http://www.entrepreneur.com/Your_Business/YB_PrintArticle/0,2361,287323----1-,00.html

Readings Planware.org: Business Ideas http://

www.planware.org/ideas.htm Center for Entrepreneurial Excellence:

Elements of a Business Plan http://www.ceebic.org/elp.htm

BusinessTown.com: Creating Your Business Plan http://www.businesstown.com/planning/creating-plan.asp

Readings BusinessTown.com: Why Plan Your

Business? http://www.businesstown.com/planning/creating-why2.asp

The Business Planning Institute: Fatal Mistakes to Avoid When Writing a Business Plan http://www.bpiplans.com/Articles.htm

Sample Business Plans MOOT Court Competition

http://www.businessplans.org/mootcorp.html

Bplans.com: Sample Business Plans http://www.bplans.com/sp/?a=bc

Source: Business Ideas

The Idea Develop an idea that maximizes your

strengths and minimizes your weaknesses

Look for strengths by examining your Educational background (special expertise

or skills) Personality (commitment, resolve,

independence) Personal experience in a business or hobby

Source: The Venturecoach.com

Idea Components The idea has four components

Product/Service A Business Model A Team Money


The Idea: Components When thinking about your product or

service Remember the better technology rarely

wins. But the better idea usually does. What real customer need are you

meeting? How do you market in a way that

customers are willing to buy your product or service?

Who are the competitors?


The Idea: Components A Business Model

Describes how your business makes money.

What are you selling? How do you get paid? Who pays you? How much do you get paid? How often do you get paid?


The Idea: Components Business Model Fundamentals -

What to look for markets with a lack of competition Recurring revenues Low fixed costs Low asset requirements Compelling reason for customers to

stay Know why customers stay


The Idea: Components A Team

Identify business needs – find the best people to fill those needs

Skill set Financial Project Management Marketing Production/Manufacturing/Logistics Technological

Beware choosing friends Establish clear roles and accountability


The Idea: Components Money

A solid plan brings money Investors are partners and can offer

guidance Sources

Banks Credit Angels Target groups Venture capital


The Idea: Elevator Speech To be able to talk about your business

plan with clarity and passion develop a Two Minute Summary Conveys who the market is, what is the

problem to be solved, and how it will be done.

FOR target customers WHO ARE DISSATISFIED WITH market alternatives OUR PRODUCT IS A new product or service THAT PROVIDES key problem-solving capabilities UNLIKE product alternative WE HAVE ASSEMBLED key product/service features

Refining the Idea:Refining the Idea:Logic Flow PlanningLogic Flow Planning

Adapted by Tom Miller, NCSU and Scott Brown, UNC-CH with

permission from Jerry Hart, CMC

Vision

Mission

Objectives / Goals

Strategy

Tactics / Action Plan

High level, abstract view

Low level, concrete view

Source: Kotler Strategic Marketing for Non-Profit Organizations

Vision Statement A statement of what the world will

be like if the business venture is successful.


Mission Statement The basic purpose of an

organization. What the organization is trying to accomplish.

A clear statement of your company’s long-term mission.

Try to use words that will help direct the growth of your company, but be as concise as possible.


Logic Flow Planning Terms Objectives/Goals

The major variable that the organization will emphasize

Strategy A plan of action to accomplish a goal

Tactics Specific steps to be taken to

implement strategy

Source: SmartPlanet.com Guide to Writing a Business Plan

Plan Outline Executive Summary Table of Contents Situation Analysis Business Objectives Management

Capabilities Market Analysis Business

Development Strategy

Financial Review Appendices

Company background

Technological Needs

Literature Citations Resumes Administrative

issues


Executive Summary Executive Summary

2 pages maximum Summary of the plan Do not cut and paste from the plan This may be your only chance to sell

your idea Compelling and persuasive wording


Situation Analysis What is the organization is trying to accomplish? What distinguishes the company from the

competition? How does the company add value to its

customer’s lives? What factors will account for the company’s

success? What are the key technologies/concepts upon

which the company is based? Why is the time right for your product/service?


Business Objectives The major variable that the organization will

emphasize Describe the where, when, why, how, and who

of the company’s first year of business. How they will be short-term goals (12 to 18

months) and long-term (18+ months) be achieved? State specific measurable objectives State market share objectives State revenue/profitability objectives

What are the plans for alternative outcomes?


Management List CEO and key management by

name Describe roles in company Include previous accomplishments

to show these are people with a record of success

Summarize number of years of experience in this field

Outline advisory boards or panels


Management Describe strategies for attracting

and keeping key personnel. Schedule for adding new personnel Sample organizational structure


Market Analysis Industry Analysis Competitive Analysis Marketing Activities Technology Business Operations

Source: David Bangs Jr. The Market Planning Guide

Market Analysis:SWOT Analysis Informs marketing analysis and

planning Internal Analysis

Strengths, Weaknesses, External Analysis

Opportunities Threats


Internal SW Analysis Areas to examine within the company

Profitability Sales and marketing Quality Customer service Productivity Financial resources Financial management Operations


External OT Analysis Areas to examine

Technology Government and Regulation Legal Economic environment

Opportunities Think in terms of consumer problems. Define nature of product/service

opportunities created by those problems.


Marketing Analysis:Industry Analysis Industry size

$1 billion or $10 billion Target Markets

Who is most likely to buy from you? What wants, needs, and habits do your best customers

and prospects share? How many best customers are there?

Regulatory requirements Think about local, state, and federal laws and

regulation affecting your business Projected changes over the next three to five

years In industry In company’s product/service


Marketing Analysis:Competitive Analysis Who are the competitors? What is their market share? How do you compare, in the eyes

of the consumers, to existing companies?

Outline your company’s competitive advantage


Marketing Analysis:Marketing Activities Who are the competitors? What is their market share? How do you compare, in the eyes of the

consumers, to existing companies? Review those changes in market share,

leadership, players, market shifts, costs, pricing, or competition that provide the opportunity for the company’s success.


Business Development Strategy

When will the business open? What resources are available? How will the customer base be

built and maintained?


Business Development Strategy

Growth Strategy & Tactics Market penetration – capture market

share from competitors Create new markets


Financial Review Detailed financial plan (be

conservative) Best guess at financial results States what assumptions have been made

and why Outlines funds required and their use Reviews yearly expected sales and profits

for the next three years Discussion of how growth will be managed

Things to Think About Resource Requirements Risks and Rewards Near-term/Long-term Decisions

Resource Requirements Technology requirements Personnel requirements Resource requirements

Financial, distribution, promotion, etc. External requirements

Products/services/technology required to be purchased outside company

Risks & Rewards Risks

Summarize risks of proposed project Addressing risk

Summarize how risks will be addressed

Rewards Estimate expected pay-off,

particularly if seeking funding

Decisions Near term

Isolate key decisions and issues that need immediate or near-term resolution

Long term Isolate issues needing long-term

resolution State consequences of decision

postponement

bplans_1_the_idea.ppt

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