Business Plan Considerations. Types of Plans Complete, Quick/dehydrated, Operational Startup,...
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Transcript of Business Plan Considerations. Types of Plans Complete, Quick/dehydrated, Operational Startup,...
Business PlanConsiderations
Types of Plans
• Complete, Quick/dehydrated, Operational
• Startup, Existing
• For-Profit, Non-Profit
• Customized, Fill-in-the-Blank
Motivation• Why start a new business?
• Profit motive – make lots ‘O money• Better the world• Improve efficiency• Do something you have a passion for• Be your own boss• Provide jobs• Financial independence / job security• Family firms, create jobs for a niche• Ceiling at existing job• Respect / power
Motivation• What prevents people from starting a
new business?• Lack of capital• Opportunity costs• Fear of failure• Not enough time• Content in bad situation / comfortable• Ignorance• Hectic lifestyle (wear a lot of hats)• People skills• Uncertainty
• Strengths• Smart• Funny• Reliable• Productive
• Weaknesses• Avoid uncertainty• Poor decision-maker• Procrastinate tasks I do not enjoy• Naive
Introspection
• Why write a business plan?• Provide a roadmap for yourself
• For investors
• To recruit talent
• Buyer and suppliers
• To give yourself a budget
• Identify all the details of you venture(forces you to answer tough questions)
• Test feasibility (validate the idea)
• Provide a timetable
Rationale
Evaluating Business Plans• What determines small business success?
• Management experience (entrepreneurial experience) (team cohesion)
• What’s my expected ROI? When am I gonna make it?
• Preparation, where are you in the life cycle?
• Size of market, amount/fragmentation of competition, barriers to entry, growth
rate of the market, accessibility (how much of this market can we get?),
timing, cyclical nature of the market
• What’s your competitive advantage (value proposition)
• What’s your financial plan AND does the owner understand them (accounting)
• Is it a job you love.
• Location