(c) Business Plan Services Ltd 2010 1 Jane Khedair Managing Director Business Plan Services This and...

(c) Business Plan Services Ltd 2010 1

Jane Khedair

Managing Director

Business Plan Services

This and all supplementary course material may not be reproduced, copied, modified or adapted in any way without the prior express written consent of Business Plan Services Ltd and London Business School. All rights reserved.

The “Perfect” Business Plan


Business Plan Services – est. 1991A service that is totally dedicated to all

aspects of effective business planning80+ consultantsIn association with London Business

School


The Next 30 Minutes

What is a business plan?What needs to be in a business plan?Big mistakes in a business plan7 tests of an entrepreneurial opportunity


What is a business plan?

Focus on the audiencePaperweight for the bank managerFocus for the teamSales tool for equity funding


What’s in a business plan?

• Executive Summary

• Management and Organisation

• Products / Services

• The Market and Competition

• Route to Market

• Operational Details

• Exit Plan

• Financial Plan

• Appendices


Background

• VISION

• Where is your company now?

• What is your product or service?

•Value proposition


Typical mistakes at this stage include

• Excessive product detail

•You are too close to the product

• Customer benefits are self-evident


What is your market?

And how people make money in this market

Demonstrate a real understanding of • what makes the market tick,

• why it is attractive, and• why it will remain so


In addressing these issues, beware of

• Market data unsupported by factual evidence

• Lack of basic, first-hand market research

• Equating a large, growing market with ease of gaining share


How will you reach the market?

• Marketing and promotion

• Selling

• Distribution


Who will you be competing against?

But this is only a photograph of

what you (and everyone else) can see

Basic competitor analysis tells us about competitors’

• identity, size, financial results, etc.

• product range and performance

• market reputation - quality, service, image

• market positioning - price, support, selling methods


Operations

In describing production and operations be sure that you don’t

• overburden the reader with excessive detail

• assume technological knowledge on the reader’s part

• use technical terms without explanation

• imagine that the reader finds the production process as fascinating as you do

• ignore the risks associated with production, particularly as volumes build up


The Team


The People…

The first question for investors

• directly relevant industry, market experience and skills

• accomplishments and track record; viz. P&L responsibility

• range, depth and quality of relevant contacts: customers, suppliers, key personnel, etc.

• experience that the team has had in working together

• status and nature of commitment of both yourself and the team

• key recruits still to be found


Financial Projections

This part of the plan should focus on . . .

• core assumptions• the link between these assumptions and your market

data• key financial indicators • base case and the rationale for it• the potential downside and upside


How much money do you need?

For an investor the key issues are:

• how much money is needed

• what it’s needed for

• when and in what stages it’s required

• key milestones

• the form in which the finance is required


Exit

• the projected timetable

•break even, positive cash and profit

• exit route

• valuations

Do not feel obliged to propose a deal in the plan.

Outline . . .


Risks

Risk is inherent in starting a business.

Identify and minimise all potential risks. . .


Executive Summary Last of all – the First Page

• captures the reader’s interest• a clear picture • highlights the salient features • establishes team’s credentials • encapsulates the financial opportunity • VISION• And persuades the reader to keep reading!


Big Mistakes in a Business Plan

Who is the audience? What about the team? Value proposition? Route to market? Poor presentation (and excessive length) Lack of vision PASSION


The 7 Tests of an entrepreneurial opportunity

1. Does the opportunity match my experience, skills and interests?

2. Can I recruit and lead the team needed to exploit the opportunity?

3. Do the resource needs of the opportunity shorten the odds on success?

4. Is the timing of the opportunity right?

5. Does the opportunity constitute a scalable (and saleable) business?

6. Does the opportunity offer good margin potential?

7. Am I developing an opportunity or simply an idea?


How can BPS help you now?

Business Plan Workshop– 18th May 2010

[email protected]

90-minute Ideatorium with Action Plan [email protected]

A range of business plan preparation [email protected]

Over to you...

(c) Business Plan Services Ltd 2010

24


Business Plan Serviceswww.bizplans.co.uk

0845 057 4065

(c) Business Plan Services Ltd 2010 1 Jane Khedair Managing Director Business Plan Services This and...

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