Business plan workshop Business Plan Competition for women
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Transcript of Business plan workshop Business Plan Competition for women
Maastricht Centre for Entrepreneurship
Female Business Plan CompetitionOperations planning, Wednesday March 16th
Lecturer: Wynand Bodewes
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Maastricht Centre for Entrepreneurship
Female Business Plan Competition
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Maastricht Centre for Entrepreneurship
Female Business Plan CompetitionOperations planning, Wednesday March 16th
Lecturer: Wynand Bodewes
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Maastricht Centre for Entrepreneurship
Starting your venture
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Maastricht Centre for Entrepreneurship
Why planning (operations) makes sense
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Maastricht Centre for Entrepreneurship
Planning your operations
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Entails deciding on
scope of the venture’s operations
based on fear
based on calculus
I.e. what will you do, what do intend you leave to others
Maastricht Centre for Entrepreneurship
Scoping
Forward
principal-agent issues between you and your distributors/resellers
Backward
supplier hold-up (the supplier profits, and not you)
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Backward scopingdifficulties arise when
supplier has to commit to
site-specificity (i.e. co-location)
physical-asset specificity (i.e. moulds)
human asset specificity (i.e. training their workers)
because such commitments
are sunk-costs (buyer holdup)
render you dependent on a sole supplier (supplier hold-up)
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Scoping pitfalls
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Sleeping with the enemy can be fatal
If you marginalize your role, also your margins will be small
long term ability to compete
What happens to an IP broker at the negotiating table?
you MUST sub-licence or the contract with the IP owner will be revoked
you sell an idea, not a product or a business
Maastricht Centre for Entrepreneurship
Scoping
Present ability, resources & competences
Future ability to compete
cost leadership (process innovation)
differentiation (product innovation)
As scoping decisions affect one’s future competitive positioning, it they also represent strategic choices
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Maastricht Centre for Entrepreneurship
Complementarity
Some activities are connected: they are complements
In such cases, scoping should consider the complementary activities, not the individual ones.
e.g. product development & production capability may be strongly interwoven
e.g. manufacturing subsystems with pre-standard interfaces
e.g. complex and novel technology/product
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Maastricht Centre for Entrepreneurship
Outsourcing operational tasksreduces operational risk as it reduces the managerial task
minimises financial risk as it reduces investment needs
speeds up execution of one’s plan (no lead time to build)
outsourcing is a reversible decision
67 % of Inc 500 were started with less than $ 50,000 in capital
21% required more than $ 100.000
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Maastricht Centre for Entrepreneurship
Scoping options
Industry life-cycle
initially one may have to do all itself, later there may be others who can do tasks better and more efficient
Partner selection
profile your partner
large, established, dependent, dynamic, cost conscious, fast
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Maastricht Centre for Entrepreneurship
An analytical approach to scopingFocus on value added of activities
re-occuring tasks
unique tasks
Map your value chain, transform it into a worksheet
if activity is strategic, then internalise (unless competitive suppy industry)
non-strategic then outsource (unless threat of forward integration by supplier)
calculate the “minimum efficient scale” to find out whether or when it makes financially sense to internalise
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Maastricht Centre for Entrepreneurship
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Break
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Understanding your (future) operations
Attract investors to invest in the business
Guide the owner and managers in operating the business
Give direction to and motivate employees
Provide an environment to attract customers and prospective employees
Maastricht Centre for Entrepreneurship
Resource requirements & capacity planning
Operational implementation of the proposed venture
what resources are needed to execute the chosen business model and the expected demand
Physical resources
Human resources
Machinery & equipment
This translates into financial resources
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Maastricht Centre for Entrepreneurship
Capacity planningRequired capacity
labour hours
machine hours
floor space
translates into
manpower requirements (FTE and positions)
equipment needs
scaling
Gradual / incremental
slack capacity
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Operating cycle
external
processing orders
internal
order fulfilment (production)
calendarize asset utilisation (peaks in capacity requirements)
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Maastricht Centre for Entrepreneurship
Bill of capacityTotal standard time
of each piece of equipment
of each type of labour
to produce one unit of your (initial) product
Requires (and shows!) detailed knowledge of your venture’s operational processes
equipment suppliers may help you specify the standard times for your production process
but also potential sub-contractors (if you ask for it)
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Maastricht Centre for Entrepreneurship
Demand forecast & Master production scheduleWill you produce to demand or to inventory
build in some slack between demand and supply
transform demand into a production plan,
Anticipate to ramp up production!
Calendarise resource requirements (that result from your forecasted sales)
manhours, machine hours
Capacity requirements
FTE, Machines
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