Plan Smart

1. Convince investors/lenders to fund the business

Provide a cost estimate and how much funding you will need

Calculating a revenue estimate

Demonstrate a profit potential

Why A Business Plan ?

2. Create a Management Roadmap

Forces you to “think things through”

Help to stay organized

Confirm the Math

Establish Benchmarks

Hold yourself Accountable

A business plan is not a to do list!

Why A Business Plan ?

The classic business plan

“A long Winded Guess!”

The one page business planBusiness model Canvas (Alex Osterwalder)

Lean Canvas (Eric Ries – Ash Maurya)

Planning Methodology

The Lean Canvas

The One Page Business Plan

12 4

3

5

67

8

9

Lean Canvas Version

Customers

Who will we serve?

Who will benefit most?

1

2

The Problem

Top problems customers faceUnique needs and challenges

Existing AlternativesHow else can customers address the problem?

Products or services that already exist.(Research your competition)

Customers

Who will we serve?

Who will benefit most?

Early Adapters

Who will be the first to buy?

1

3

The Solution

How you will solve the problems

Top features and capabilities of your product or service

What aspects of your offering willusers find most beneficial?

12 4

3

5

67

8

9

Lean Startup Begins here

Lean Startup Theory

Develop a “Minimum Viable Product”

“No plan survives the first contact with a customer”You are not smarter than your customers

Get out of the Office

4

Value PropositionWhy are we different?

Why are we worth buying?Special benefits to the customer?

Channels Path to customers

Where do we sell?How do we sell?

How do we raise awareness?How do we get feedback?

5

6

Revenue StreamsWhat are your sources of income?

Sales, Service, Usage, Subscription, License, Delivery, Installation

7

Cost StructureAll Variable and Fixed costs

1. Define 2. Determine (price)

90 % of new businesses fail because they do not properly consider the costof launching and operating the business

SCORE templates: Business Startup Expenses /12 Month Profit and Loss Calculation

8

Key MetricsKey activities to Measure

Determine how well you are doing

9

Unfair AdvantageCan’t be copied or bought

Patents/Licenses, Reputation,Location, staff skills.

Write a Business Plan

Financial Projections to be Included

• Startup Costs• 12 Month Sales forecast• 12 Month Profit and Loss• 12 Month cash flow projection• Opening Balance Sheet

Write a Business Plan

The Executive Summary

Basic Highlights of the Business Concept

Convince the reader that:There is a market for your product/serviceYou can manage a businessThe business can be profitableThe lender will recover their fundingThe investor will be rewarded

Write a Business Plan

Get Help Writing Your Plan

SCORE Business Plan Templateshttps://www.score.org/resources/business-plan-template-startup-business

The written business plan “Word”All necessary financial worksheets “Excel”

Contact a SCORE MentorIn Person/ Online

Lets Wrap Up

Questions? or

Comments!

Achieve Your Goal

Cost Structure

Customer Acquisition costsDistribution costsHostingPeople, etc.

Revenue Streams

Revenue ModelLife Time ValueRevenueGross Margin

Problem

Top 3 problems

Solution

Top 3 features

Key Metrics

Key activities you measure

Unique Value Proposition

Single, clear, compelling message that states why you are different and worth paying attention

Unfair Advantage

Can’t be easily copied or bought

Channels

Path to customers

Customer Segments

Target customers

PRODUCT MARKET

Existing Alternative Early Adopters

Cost Structure

Customer Acquisition costsDistribution costsHostingPeople, etc.

Revenue Streams

Revenue ModelLife Time ValueRevenueGross Margin

Problem

Top 3 problems

For the customer segment you are working with, describe the top 1-3 problems they need solved.

Solution

Top 3 features

Don’t fully defining a solution. Simply sketch out the top features or capabilities for each problem.

Key Metrics

Key activities you measure

Unique Value Proposition

Single, clear, compelling message that states why you are different and worth paying attention

A good UVP gets inside the head of your customers and focusses on the benefits your customers derive after using your product.

Unfair Advantage

Can’t be easily copied or bought

Channels

Path to customers

Inbound and Outbound

Direct and Indirect

Customer Segments

Target customers

A customer is a someone that pays for your product.

You can’t effectively build, design, and position a product for everyone.

PRODUCT MARKET