Business PlanPKM-K / PKM-5 Training

Harlan DimasSchool of Economics & Business

Padjadjaran University

Wednesday, Sept. 12, 2012 @ RSG 4th fl., Building 4

Content

• Business Plan : First formal step in Business Start-up

• Business Plan – Contents/Details

• Body of the Business Plan

• Reference

Business Plan

• What is it ? • First formal step in Business Start-Up1. Proposal, feasibility study, blue print2. Management guide, plan with numbers• Why make it ?1. A good plan is winning half of the battle2. Communication : Financier, Suppliers3. Experiment : “dry run” (on paper; vs. wet

sailing), test of implicit assumptions

Contents of a Business Plan 1

• Title Page : identification (names, addresses, contacts : email-phones-fax, dates, copy right)

• (Executive) Summary : capture attention/ interest of readers 1-2 pp. max

• Body of the Business Plan

• Appendices/Enclosures

• Reference

Contents of a Business Plan 2

• Body of the Business Plan :

1.Product / Service

2.Marketing

3.Production / Operations Management

4.Finance

5.Human Resource & Organization

6.Risk Management

Body of the Business Plan 1

• Products / Services

1. Knowledge : do something you know

2. Be the first, be better, be different

3. Add – Subtract – Combine - Modify

4. Not just the product, but all of its attributes + “intangibles” Innovation/Creativity

• “Blue Ocean” vs. “Red Ocean” strategy• Cost – quality (including service) product

positioning P & Quality considerations

Body of the Business Plan 2

• Marketing - 1• The Marketing Paradigm

1. Target Market : potential customers

2. Competition : market intelligence SWOT

3. Adopt their strength & exploit weakness• Developing countries : production vs.

marketing• Market observation : identify opportunities

(walk @ malls “Niche”)

Body of the Business Plan 3

• Marketing – 2• Good marketing can compensate for non-

innovative products, examples :• Facsimile – FedEx, US vs. Ricoh, Japan• Dr. Dre – audio (Guerilla Marketing; non-posed

“reporter style” advertising)• Airplane – distro (busses as shops)• Ma Icih – hot chips (social media; mobile shop)

Body of the Business Plan 4

• Production

1. Who does What, When, Where, Why and How

2. Logistics : Inventory, Distribution, Facilities, Locations (proximity to market or input ?)

• Risk Management1. Legal Protection (piracy)2. Insurance3. Specialization vs. Diversification (prod, dd, ss)

Body of the Business Plan 5

• Finance - 11. Feasibility Study : NPV & IRR (time value)

2. Investment & Working Capital

3. Break Even Analysis & Pay-Back Period

4. Cash Flow Projection (“the life” of the firm)• Money is the blood of business• Numbers vs. cook• Example : how do one set P ? Target daily Q ?

Body of the Business Plan 6

• Finance – 2

• Last, but not least reality vs. creativity

• Book-keeping :

• Cash Flow (in – out)

• Receivables – Payables (timing)

• Income Statement (profit & loss flow concept)

• Balance Sheet (Assets – stock concept)

Body of the Business Plan 7

• Human Resource Plan1. Organization Chart & Job Description2. Remuneration & Incentive Structure• “Success preceding conflicts”

• Time Schedules1. Progressive Checkpoints (“cash flow timing”)2. Feedback & Control (Monitoring) regular• The P-D-C-F cycle dynamic assessment

Closing Remarks

• PKM selection is super RIGID : read and follow each instruction and every little details (font, margins, color, format, sequence + administratives)

• Photographs and samples• Failure may simply means : the market is not

ready try again next year• Exit Strategy : do not give up, perseverance (T A

Edison : 1,000 bulbs; Henry Ford Model-T)

Reference

• Burch, 2006, “Entrepreneurship”, 4th ed.; John Wiley & Sons, NY

• Holt, 2008, “Entrepreneurship – New Venture Creation”, 3rd ed.; Prentice Hall, NJ

• Meyer & Allen, 2007, “Entrepreneurship and Small Business Management”, 5th ed.; Glencoe, NY

• Small Business Administration (SBA) – US Federal Agency (website)

• Situs : UNPAD text, DirJen DikTi – PMW, Bank Mandiri & “Rumah Perubahan”, Ciputra Entrepreneurship Center