Business Plan Buliding Course: Business Staregy Lecturer: Dr. Roosta Shahid Beheshti University By:...
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Transcript of Business Plan Buliding Course: Business Staregy Lecturer: Dr. Roosta Shahid Beheshti University By:...
Business Plan Buliding
Course: Business Staregy
Lecturer: Dr. Roosta
Shahid Beheshti University
By: S.M.H.Hosseini
Agenda
Business Plan definition Types of Business Plans Elements of a Business Plan Strategic plan vs. business plan Strategic plan vs. Business Model
The Components of Successful Entrepreneurial Ventures
StrategyStrategy
ResourcesResources
OpportunityOpportunity
OrganizationOrganization
The EntrepreneurThe Entrepreneur
Business PlanBusiness PlanBusiness PlanBusiness Plan
Business Plan
A “Business Plan” is a “Selling Document” that conveys the excitement and promise of your business to any potential backers and stakeholders.
Business Plan
Formal Process used by organizations to help plan, organize and allocate resources.
Typically an annual plan Shows up in the mission statement, goals,
objectives, intent, and functional policies.
Reasons for Writing a Business Plan
To sell yourself on the business To obtain bank financing To obtain investment funds To establish strategic alliances To obtain initial contracts To attract key employees To motivate and focus your management team
Types of Business Plans
Summary Special Project Feasibility Mini Start-up Presentation Internal Growth
Types of Business Plans
1. The Summary Business Plan: 10 pages
Used for:
Bank Loan Application
Lifestyle business
To gauge initial investor interest
Types of Business Plans
2. The Full Business Plan: 25-40 pages
Used for:
Seeking a substantial amount of financing
Looking for a Strategic Partner
Types of Business Plans
3. The Operational Plan: 40+ pages
Used for:
Complex, rapidly growing companies
Part of an annual planning process
Key Elements of a Business Plan
An economically viable product or service with attractive markets.
An established attack plan that can be replicated.
A seasoned management team that has demonstrated it can carry out the attack plan.
What Should a Business Plan Contain?
Seven Common Parts of a Good Business Plan Seven common parts of a good Business Plan are:
1. Executive Summary2. Business Concept3. Market Analysis4. Management Team 5. Marketing Plan6. Financial Plan7. Operations and Management Plan
What Should a Business Plan Contain?
1. Letter of Transmittal 2.Title Page 3.Table of Contents 4.Executive Summary and Fact Sheet 5.Body of the Plan
The Company and Industry
The Product/Service Offering
Market Analysis
The Marketing Plan
The Development Plan
The Production/Operations Plan
The Management Team
Implementation Schedule and Risks Associated with the Venture
The Financial Plan
6.Appendices
A Typical Business Plan
1.Letter of Transmittal
2.Title Page
3.Table of Contents
4.Executive Summary
and Fact Sheet
1. Introduce your business plan to the reader2. Outline the major features that may be of
interest
1. Provide identifying information about you and your proposed business. Name, address and contact numbers for the business as well as key company contacts
1. A list of the major headings and sub-headings contained in your plan.
1. A 1-2 page summary of the most important points in your plan
2. May be the most important part of your business plan
3. Your Fact Sheet summarizes the basic information that relates to the venture
Business Plan Contents
Continued
A Typical Business Plan
5.Body of the Plan
1. History and current situation of your company
2. Goals and objectives for the business3. Principal characteristics and trends in the
industry
1. Detailed description of your product or service
2. Outline stage of development and proprietary position
1. Describe the profile of your principal target customers
2. Indicate current market size, trends, and seasonal patterns
3. Assess the nature of your competition4. Estimate your expected sales and market
share
Company and the Industry
Product-Service Offering
Market Analysis
Continued
A Typical Business Plan
1. Detail the marketing strategy you plan to use2. Describe your marketing plan insofar as your
sales strategy, advertising and promotion plans, pricing policy, and channels of distribution
Your Marketing Plan
1. Outline of the development status of your product and what is still required to get it to a market-ready state
2. Are there regulatory, testing or other requirements that still have to be met?
Your Development Plan
1. Outline the operating side of your business2. Describe your location, kind of facilities, space
requirements, capital equipment needs, and labour requirements
Your Production/Operations
Plan
Continued
5.Body of the Plan
(Continued)
A Typical Business Plan
Continued
1. Present an overall schedule indicating what needs to be done to launch your business and the timing required to bring it about.
2. Discuss the major problems and risks that you will have to deal with as well.
Your Implementation Schedule
1. Identify your key management people, their responsibilities and their qualifications.
2. Indicate the principal shareholders of the business, your principal advisors and the members of your Board of Directors.
Your ManagementTeam
5.Body of the Plan
(Continued)
A Typical Business Plan
1. Indicate the type and amount of financing you are looking for and how the funds will be used.
2. Outline your proposed terms of investment, the potential return to the investor, and what benefit is being provided.
3. Provide an overview of the current financial structure of your business.
4. Prepare realistic financial projections that reflect the effect of financing. Include:
• Cash flow forecasts• Pro forma profit and loss
statements• Pro forma balance sheet• Breakeven analysis
Your Financial Plan
Continued
5.Body of the Plan
(Continued)
6.Appendices
Supporting material for your plan including:• Detailed resumes of the
management team• Product literature and photographs• Names of possible customers and
suppliers• Consulting reports and market
surveys• Copies of legal documents• Publicity material• Letters of reference
A Typical Business Plan
The key differences between strategic planning and business planning
Strategic Plan Business Plan
An overarching plan that sets the strategic direction of the organization
An externally focused document that provides more detailed information on the proposed development of an organization, and is likely to be shared with potential investors - funding bodies for the voluntary and community sector.
Primarily used as an internal planning tool, although it may be
shared with users or external stake holders. It can be used to motivate,
inspire and lead staff and volunteers, and to communicate the
future direction of the organization to users and funders.
Will usually include more detailed information on the financial position of the organization, financial forecasts, and competitor and market analysis.
Strategic Plan Business Plan
Can provide a basis for more detailed planning including business plans, marketing strategies and funding strategies.
It may be more difficult to present the level of detail required within a business plan in a pictorial format.
A strategic plan generally covers a period of 3 to 5+ years
Is normally no more than one year
Is for established businesses, organizations and business owners that are serious about growing their organization.
Could be for new businesses and entrepreneurs who are startups.
The key differences between strategic planning and business planning
Strategic Plan Business Plan
Focuses on building a sustainable competitive advantage and is futuristic in nature.
Is used to assess the viability of a business opportunity, and is more tactical in nature.
Larger organizations with multiple business units and a wide variety of products frequently start their annual planning process with a corporate-driven strategic plan.
Smaller companies and startup companies typically use only a business plan to develop all aspects of the business on paper, obtain funding and then start the business. Many smaller companies including startups never develop a Strategic Plan.
The key differences between strategic planning and business planning
Strategy vs. Business Model :What is the Difference?
Strategy
1. Deals with a company’s competitive initiatives and business approaches.
2. strategy consists of the set of competitive moves and business approaches that management is employing to run the company.
Business Model
1. Concerns whether the revenues and costs flowing from the strategy demonstrate that the business can be amply profitable and viable.
2. business model addresses “How do we make money in this business?”
Relationship between three concepts