Presentazione standard di PowerPoint...WHY A Business plan is a formal statement of business goals,...

BUSINESS SKILLS

MODULE 3Business Planning

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MODULE 3 - Business Planning

BUSINESS PLAN

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‘A good plan is like a road map: it

shows the final destination and usually the best

way to get there’

H. Stanely Judd


WHAT

WHY

A Business plan is a formal statement of business goals, reasons they are attainable, and plans for reachingthem.

Writing out your business plan forces you to review everything atonce: your value proposition, marketing assumptions, operationsplan, financial plan and staffing plan. You'll end up spottingconnections you otherwise would have missed.And of course, a well-written plan is great for attracting funds, investors and talents.

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Organizations

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Plans today no longer need the 20 to 40 pages prescribed by classic planners.

"The shorter [it is], the better chance [it has] of being read"

says Bygrave, who recommends devoting no more than five pages to income, cash flow and balance sheets.

"And don't have any numbers in [there] you can't explain instantaneously."


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WHO NEEDS A BUSINESS PLAN?

1. ………………………………………2. ………………………………………3. ………………………………………4. ………………………………………5. ……………………………………...

BUSINESS PLAN

WHAT CAN YOU FIND IN A BUSINESS PLAN?

1. ………………………………………2. ………………………………………3. ………………………………………4. ………………………………………5. ……………………………………...


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BUSINESS PLAN

5 Reasons You Need to Write a Business Plan

1. The competitive research you do will force you to come up

with new and creative ways to outgrow everyone else

2. Seeing the big picture will let you see the holes in your

thinking early on

3. You will become intimately acquainted with your customer

4. Brings everyone on the team together to synthesize a

unified vision

5. It is a prerequisite in most cases to apply for funding


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SKELETON ELEMENTS

CoverWe recommend keeping this as minimalist as possible, which means no brightneon or contrasting colors or any unnecessary fancy borders.

Logo

Business Name

Founder’s Name (optional)

The words “Business Plan”

An image of the product (optional)

Date


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SKELETON ELEMENTS

A clear roadmap of which section falls where.

This means having every section, and potentially

subsection, that could be of interest on the table of

contents.

You also don’t need to spend a lot of time thinking about the

most sophisticated way to number your topics.

Simply using the numbers 1, 2, 3 and so on for main

sections and 1A, 2A, 3A for subsections works just fine.

TABLE OF CONTENTS


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SKELETON ELEMENTS

A good executive summary is the holy grail of good business plan writing.

Even though it comes after you’ve written and thought every other facet of

your business, it is maybe the most important part of the business plan.

Its purpose is suggested in its name, giving investor the high-level overview of

your business that will persuade them to continue reading or not.

Here you’ll only be highlighting the main facets of what you’ve uncovered over

the course of writing your plan.

EXECUTIVE SUMMARY


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SKELETON ELEMENTS

What your executive summary should include:

• Business Concept (What you do)

• Business Goals and Vision (What you want to do)

• Product Description and Differentiation (What you sell and whyit’s different)

• Target Market (Who do you sell to)

• Marketing Plan (How you plan on reaching your customers)

• Current Financial State (What you currently make in revenue)

• Projected Financial State (What you foresee making in revenue)

• The Ask (How much money you’re asking for)

• The Team (Who you are and why it matters)

EXECUTIVE SUMMARY


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A GOOD OPPORTUNITY TO EVALUATE YOUR IDEA INTANGIBLE ASPECTS

This section of your business plan will

fundamentally answer three questions:

1. Who are you?

2. What do you plan to do?

3. How do you want to change the world?

VISION & MISSION

“You don't have to fear your own company being perceived as human. You want it. People don't trust companies; they trust people.”

― Stan Slap


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A GOOD OPPORTUNITY TO EVALUATE YOUR IDEA INTANGIBLE ASPECTS

Answering these questions in a concise, direct, and simple manner

should provide an ample introduction of:

• why you’re in business,

• why you’re different,

• what you have going for you,

• and why you’re a good bet if you’re asking for an investment.

Don’t spend more than a previously allocated time to get the answer to those

questions, because you’re learning as much about yourself each day as you

are about your customer.

Meaning, don’t by any means feel that anything you state here is set in stone!

VISION & MISSION


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VALUES

It’s important to clarify your values.

Take into account all the various stakeholders that your company is accountable

to, that includes owners, employees, suppliers, customers, and investors.

Consider how you would like to ideally conduct business.

Start making a list and your core values should start to emerge.

VISION & MISSION


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MISSION STATEMENT

Let’s break those words up first, according to Dictionary.com.

Mission can be defined as “an important goal or purpose that is accompanied by

strong conviction,”

Statement can be defined as “a single sentence or assertion.”

Now let’s put the two together to break down what your mission statement

should be.

It should state the purpose of why your business exists in a convincing manner

in no more than a single sentence: the shorter, the better.

VISION & MISSION


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MISSION STATEMENT

Here are some do’s and don’ts:

VISION & MISSION

Do’s

Create something that connects with both

employees and customers

Make it about you

Highlight your value proposition

Make it tangible

Mention a specific goal

Don’ts

Make it useless

Make it long

Make it generic

Make it confusing


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EXAMPLE 1: BAD MISSION STATEMENT

General Motors

“G.M. is a multinational corporation engaged in socially responsible

operations, worldwide. It is dedicated to provide products and services

of such quality that our customers will receive superior value while our

employees and business partners will share in our success and our

stockholders will receive a sustained superior return on their

investment.”

VISION & MISSION


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EXAMPLE 2: GOOD MISSION STATEMENT

Nike

“To bring inspiration and innovation to every athlete in the world.”

VISION & MISSION


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VISION STATEMENT

Vision: It is “the act of anticipating that which will be or may come to be.”

So, what impact do you envision your business having on the world once you’ve

achieved your vision?

Now that you’re thinking that far down the road about your business, put it in an

assertion.

You can have more than a single sentence for this one, but we don’t recommend

going over three at most.

VISION & MISSION


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VISION STATEMENT

Here are some do’s and don’ts:

VISION & MISSION

Do’s

Make it compelling

Make it detailed

Paint the intended end outcome

Highlight why your company exists

Make it the outcome of your mission

statement

Don’ts

Make it bland

Make it generic

Make it uninspiring

Make it obviously unreasonable


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EXAMPLE 1: BAD VISION STATEMENT

Dell

“To be the most successful computer company in the world at delivering

the best customer experience in markets we serve.”

VISION & MISSION


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EXAMPLE 2: GOOD VISION STATEMENT

Amazon

"Our vision is to be earth's most customer centric company; to build a

place where people can come to find and discover anything they might

want to buy online."

VISION & MISSION


BUSINESS OBJECTIVES

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HOW YOU’RE GOING TO EXECUTE AND BRING YOUR MISSION AND VISION TO

REALITY

That’s where setting goals and objectives come into play. Don’t forget the

importance of making them SMART

S - specific

M - measurable

A - achievable

R - realistic

T - time-frame


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MARKETING YOUR PRODUCTS & SERVICES

Here’s something to keep in mind before you start a detailed plan, this

is referred to as the Buyer’s Five-Step Adoption Process.

This model highlights the sequence of steps a buyer goes through

before making the final purchase decision.

1 - Awareness - Customers are aware you exist, but don’t know what it

is you do or sell

PRODUCT & SERVICE


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2 - Interest - Customers have now heard of you and because of what

they see, they want to learn more

3 - Evaluation - Customers have now decided whether to give you a

shot or not

PRODUCT & SERVICE


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4 - Trial - Customers are willing to make an initial purchase to take your

products and services for a spin

5 - Adoption - Customers now love what you have to sell and will

regularly purchase from you.

PRODUCT & SERVICE


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The first half of that adoption process gets covered through your advertising and promotions

plan, while the latter half requires a solid sales and distribution plan.

Advertising and Promotion Plan

- Will you have a dedicated presence across many of the popular online channels (ex.

website, social media, relevant marketplaces…etc.) used today to gain brand

awareness?

- Will your marketing plan be primarily inbound focused (ex. SEO, social media,

blogging…etc...), outbound focused (ex. PPC, affiliate marketing, sales teams…etc.),

traditionally focused (ex direct mail, brochures, and print advertising) or a mix of all

three?

- What are other low-cost yet effective marketing media that you’ll leverage to get

attention?

- What is your PR strategy? Why would the press be interested in your story?

PRODUCT & SERVICE


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The first half of that adoption process gets covered through your advertising and promotions

plan, while the later half requires a solid sales and distribution plan.

Sales and Distribution Plan

What channels will you use to get your product out there? Will you sell via your website, a

retailer, wholesaler, or a different channel all together?

How will customers be able to pay for your product?

What will your return policy look like? Will you offer any guarantees? If so, what will they

look like?

What happens after a customer makes a purchase? What type of customer support will

you provide?

PRODUCT & SERVICE


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CUSTOMER SEGMENTATION

You have to slice and dice your market into segments and identify your target

customer.

You’re going to want to describe a number of both general and specific demographic

characteristics that apply.

Some of the questions are:

Where do they live?

What’s their age range?

What’s their level of education?

How many of them are there?

CUSTOMER


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CUSTOMER SEGMENTATION

What are some common behavioural patterns?

What do they spend their free time on?

Where do they work?

What technology do they use?

What ethnicity are they?

How much do they earn?

Where are they commonly employed?

What are their values, beliefs, or opinions?

CUSTOMER


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PRODUCT DIFFUSION CURVE

how quickly your customers are likely to adopt a new technology?

There are five major categories:

Innovators

Early adopters

Early majority

Late majority

Laggards

CUSTOMER


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Innovators - These are the folks who’ve done their research on the latest

product launches, follow all the hype, and will wait for any amount of time in a

line to get their hands on the latest ideas and products.

Early adopters - Based on the feedback and response from innovators, early

adopters then decide whether to jump on the bandwagon or not.

CUSTOMER


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Early majority - Once products have been tested and tried out by a larger pool,

these customers will listen closely to the recommendations of the groups listed

above when deciding whether to purchase something or not.

Late majority - These individuals don’t trust anything until it becomes

commonplace and popular

Laggards - They only change their consumption habits when what they’re used

to no longer exists and becomes obsolete. Only when that occurs they do start

looking for alternatives

CUSTOMER


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CUSTOMER SATISFACTION VS CUSTOMER LOYALTY

Customer Satisfaction is a measurement of customer attitudes regarding products, services,

and brands.

Customer Loyalty consists of

CUSTOMER

1 - loyalty behavior → the act of

customers making repeat purchases

of current brands, rather than

choosing competitor brands.

2 - loyalty attitudes → opinions

and feelings about products,

services, brands, or businesses that

are associated with repeat

purchases.

At times, customers display loyalty behavior without having loyalty attitudes. Vice versa,

occasionally customers show loyalty attitudes without exhibiting any loyalty behavior.

Customers are the link to your business success!


LEGO BUILDING

GROUP WORK

A planning and building activity

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JOURNALING

Why planning is important in your life?

Think of yourself as a customer: what do you expect to get from a product or a service?

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YOUR ORGANIZATION

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STRUCTURE OF YOUR BUSINESS

Sole Proprietorship: Someone who owns an unincorporated by themselves

Partnership: Here two or more persons join to create and sustain a business by contributing some

form of money, property and skills thus being directly impacted by the profit or loss of the

business

Corporation: This structure enables prospective shareholders to exchange money and/or property in

exchange for capital stock.

Limited Liability Company (LLC): This is a state-authorized business structure that falls under state

specific regulations that is composed of members, who are the owners.

Other National/International type of Business Structure


YOUR ORGANIZATION

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START UP

A startup is a young company that is just beginning to develop.

Startups are usually small and initially financed and operated by a handful of founders or

one individual.

These companies offer a product or service that is not currently being offered

elsewhere in the market, or that the founders believe is being offered at an inferior level.


FACING THE MARKET

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MARKET SIZE

How big the opportunity is?

How many customers you’re going after and what are the revenue possibilities?

Some sources for data:

• Free resources on the web

• Government sources

• Trade associations

• Financial Services Firms

• Online Data Providers


FACING THE MARKET

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MARKET SIZE

It’s useful to outline what’s happening in the industry from a number of different angles.

A tool for doing that is the PEST Analysis:

● P - Political factors → What role the government plays in your industry?

● E - Economic factors → What is the state of economy at both a local and national level?

● S - Social factors → What are the relevant changes in matters like lifestyle trends,

demographics, consumer attitudes, buying patterns and opinions?

● T - Technological factors → What is the impact of changing technological trends on your

industry?


FACING THE MARKET

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COMPETITION

Point out your major competitors:

Not just your direct competition (those with similar offerings) but the indirect competition

as well, meaning maybe Amazon or Google for exemple.

Mention things like their annual profits, market share, and distinct competitive advantage.

It’s much easier to find information on public companies than private companies, but it’s

always a good idea to do as much background research as possible.


FACING THE MARKET

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COMPETITION

SWOT Analysis: a tool to analyze your competitors

S - Strengths → What do they have going for them? Is it their technology, brand, people, or lean value

chain?

W - Weaknesses → What do they not have going for them? Are they missing experienced

management, have unreliable customer service, or just plain old poor customer retention?

O - Opportunities → What are they positioned to take advantage of? Are their environmental trends or

changes they are likely to benefit from?

T - Threats → What’s keeping them up at night? Or what should they be worried about?


FACING THE MARKET

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COMPETITION

What makes your offering distinct from everything else in the marketplace?

Three variables:

● value propositions

● unique selling points

● competitive strategy

Generic Competitive Strategy: three routes for standing out from the competition.


FACING THE MARKET

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COMPETITION

1. Cost Leadership

This refers to having the capacity to scale operations in order to offer lower prices than

the majority of the players in an effort to maximize profits.

2. Differentiation

This is where your product or service offers something distinct than those of the current

cost leaders in your industry and banks on standing out based on the “newness” factor.

3. Segmentation

Focus your work on building traction with a smaller audience first before moving on to the

bigger fish.


FACING THE MARKET

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COMPETITION

Business Model Generation → by Alexander Osterwalder and Yves Pigneur who list

some very handy ways that your offering can stand out from the crowd.

● Newness - Satisfying a previously undiscovered need or want with no similar

offering

Performance - You’ve built something that is incrementally faster or better than what

exists in the marketplace

Customization - You tailor your offerings to each individual customer or customer

segment

Design - Your offering is markedly better designed or stands out from the others


FACING THE MARKET

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COMPETITION

Price - You offer the same thing as everyone else at a lower price

Cost reduction - You help your customers save money

Risk reduction - You help reduce the risk your customers take when purchasing what

you have to offer

Accessibility - You’ve tapped into a previously underserved or never served market

Convenience - You’ve made something that’s much easier to use than whatever else is

in the marketplace


FACING THE MARKET

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SUPPLY CHAIN

Suppliers - Who will be providing you with all the materials that you won’t be

manufacturing yourself?

Facilities - Where will you house your inventory (if any) or which office will you be

working out of?

Personnel - How many staff will your daily operations require? What will their duties

look like?

Equipment - What tools and technology do you require to be up and running or to take

your company to the next level? (This could include everything from computers to

office desks and everything in between)


FACING THE MARKET

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SUPPLY CHAIN

Shipping and Fulfilment - Here you’ll have to outline whether you’ll be handling all the

deliveries on your orders or if you’ll be using a third-party fulfillment partner.

Inventory - Here you’ll highlight how much you’ll keep on hand, where it’ll be stored,

and how you’ll have it shipped to third-partners if applicable. Also, an important detail

to note is how you’ll keep track of everything going in and out.

Customer Support - How will support requests, refunds, and customer complaints be

considered and integrated in your business workflow?


FACING THE MARKET

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PRODUCTION PROCESS

How long will it take you to produce a single unit or a predefined number of units?

What measures have you put in place to integrate customer feedback into your product

or service? As in pricing or delivery mechanisms?

How will you deal with major increases in demand, as in what procedures or steps will

you have in place when you offer a sale and orders come flying in?


FINANCIAL PLAN

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NOT ONLY GREAT IDEAS

A business lives and dies based on its financial feasibility and most importantly its

profitability

Three statements to plan costs, feasibility and profitability:

Income Statement

Balance Sheet

Cash-Flow Statement


FINANCIAL PLAN

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INCOME STATEMENT

The balance between Revenues and Costs make you arrive at Net Profit value

Sales

● Direct Cost of Sales

● Other Production

Expenses

● Total Cost of Sales

● Gross Margin

● Gross Margin %

Expenses

● Payroll

● Marketing & Other

Expenses

● Depreciation

● Leased Equipment

● Utilities

● Insurance

● Rent

● Payroll Taxes

● Other

Total Operating Expenses

● Profit Before Interest &

Taxes

● Interest Expense

● Taxes Incurred

Net Profit

___________________

Net Profit/Sales

______________


FINANCIAL PLAN

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BALANCE SHEET

On one side you should list all your assets (what you own) and on the other side, all your liabilities

(what you owe), thereby giving a snapshot of your net worth (assets - liabilities = equity).

Assets

● Current Assets

● Cash

● Inventory

● Other Current Assets

Total Current Assets

● Long-term Assets

● Accumulated

Depreciation

Total Assets_____________

Liabilities and Capital

● Current Liabilities

● Accounts Payable

● Current Borrowing

● Other Current

Liabilities

Subtotal Current Liabilities

● Long-term Liabilities

Total Liabilities __________

Capital

● Paid-in Capital

● Retained Earnings

● Earnings

Total Capital_________________

Total Liabilities and Capital ____

Net Worth___________


FINANCIAL PLAN

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CASH FLOW STATEMENT

This statement is similar to your income statement but it takes into account just when revenues are

actually collected and when expenses are paid. When the cash you have coming in is greater than the

cash you have going out, your cash flow is said to be positive.

Cash Received

● Cash from Operations

● Cash Sales

Subtotal Cash from Operations

● Additional Cash Received

● Sales Tax, VAT, HST/GST

Received

● New Current Borrowing

● New Other Liabilities

(interest-free)

● New Long-term Liabilities

● Sales of Other Current

Assets

● Sales of Long-term Assets

● New Investment Received

Subtotal Cash Received _______

Expenditures

● Expenditures from Operations

● Cash Spending

● Bill Payments

Subtotal Spent on Operations

● Additional Cash Spent

● Sales Tax, VAT, HST/GST Paid Out

● Principal Repayment of Current

Borrowing

● Other Liabilities Principal Repayment

● Long-term Liabilities Principal

Repayment

● Purchase Other Current Assets

● Purchase Long-term Assets

● Dividends

Subtotal Cash Spent _________________

Net Cash Flow ________

Cash Balance _________


FINANCIAL PLAN

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FUNDS

In the early stages, companies' expenses tend to exceed their revenues as they work on

developing, testing and marketing their idea.

As such, they often require financing. So you may be funded by traditional small business

loans from banks or credit unions, by government-sponsored Small Business

Administration loans from local banks, or by grants from nonprofit organizations and state

governments.

Incubators can provide startups with both capital and advice, while friends and family may

also provide loans or gifts. A new business that can prove its potential may be able to

attract venture capital financing in exchange for giving up some control and a percentage

of company ownership.


BUSINESS PLAN ACTIVITY

GROUP WORK

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A Business planning Activity

Be Open mindedEmbrace the unknown, try to embrace one new unknown thing everyweek—or even, every day.

Be Aware of constraintsA business plan needs to be realistic, so it is important to set out in detail the constraints that are likely to act as limits on business activity.

Discipline yourself“Discipline is the bridge between goals and accomplishment.” Jim Rohn

Set your goalsSet your S.M.A.R.T. goals

Be Positive! Smile at life!

BUSINESS PLAN

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JOURNALING

What technical skills do you need to start a new business?

What are your strengths to start a new business?

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FOLLOW UP

More tools to continue improving!

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FOLLOW UP

Go online for more tools and to become part of the online community of mentors and young people

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DON’T FORGET THE PAST. CHOOSE AND PLAN YOUR FUTURE.

LIVE AND ACT IN THE NOW TO CREATE IT.

BUSINESS PLAN

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