INLS 210-97Information Entrepreneurship
Module 1: Business Planning
Readings Venturecoach.com
From Idea to Business http://www.venturecoach.com/resources/howbiz.htm
Anatomy of a Business Model http://www.venturecoach.com/resources/bizmodel.htm
Entrepreneur.com: An Introduction to Business Plans http://www.entrepreneur.com/Your_Business/YB_PrintArticle/0,2361,287323----1-,00.html
Readings Planware.org: Business Ideas http://
www.planware.org/ideas.htm Center for Entrepreneurial Excellence:
Elements of a Business Plan http://www.ceebic.org/elp.htm
BusinessTown.com: Creating Your Business Plan http://www.businesstown.com/planning/creating-plan.asp
Readings BusinessTown.com: Why Plan Your
Business? http://www.businesstown.com/planning/creating-why2.asp
The Business Planning Institute: Fatal Mistakes to Avoid When Writing a Business Plan http://www.bpiplans.com/Articles.htm
Sample Business Plans MOOT Court Competition
http://www.businessplans.org/mootcorp.html
Bplans.com: Sample Business Plans http://www.bplans.com/sp/?a=bc
Source: Business Ideas
The Idea Develop an idea that maximizes your
strengths and minimizes your weaknesses
Look for strengths by examining your Educational background (special expertise
or skills) Personality (commitment, resolve,
independence) Personal experience in a business or hobby
Source: The Venturecoach.com
Idea Components The idea has four components
Product/Service A Business Model A Team Money
Source: The Venturecoach.com
The Idea: Components When thinking about your product or
service Remember the better technology rarely
wins. But the better idea usually does. What real customer need are you
meeting? How do you market in a way that
customers are willing to buy your product or service?
Who are the competitors?
Source: The Venturecoach.com
The Idea: Components A Business Model
Describes how your business makes money.
What are you selling? How do you get paid? Who pays you? How much do you get paid? How often do you get paid?
Source: The Venturecoach.com
The Idea: Components Business Model Fundamentals -
What to look for markets with a lack of competition Recurring revenues Low fixed costs Low asset requirements Compelling reason for customers to
stay Know why customers stay
Source: The Venturecoach.com
The Idea: Components A Team
Identify business needs – find the best people to fill those needs
Skill set Financial Project Management Marketing Production/Manufacturing/Logistics Technological
Beware choosing friends Establish clear roles and accountability
Source: The Venturecoach.com
The Idea: Components Money
A solid plan brings money Investors are partners and can offer
guidance Sources
Banks Credit Angels Target groups Venture capital
Source: The Venturecoach.com
The Idea: Elevator Speech To be able to talk about your business
plan with clarity and passion develop a Two Minute Summary Conveys who the market is, what is the
problem to be solved, and how it will be done.
FOR target customers WHO ARE DISSATISFIED WITH market alternatives OUR PRODUCT IS A new product or service THAT PROVIDES key problem-solving capabilities UNLIKE product alternative WE HAVE ASSEMBLED key product/service features
Refining the Idea:Refining the Idea:Logic Flow PlanningLogic Flow Planning
Adapted by Tom Miller, NCSU and Scott Brown, UNC-CH with
permission from Jerry Hart, CMC
Vision
Mission
Objectives / Goals
Strategy
Tactics / Action Plan
High level, abstract view
Low level, concrete view
Source: Kotler Strategic Marketing for Non-Profit Organizations
Vision Statement A statement of what the world will
be like if the business venture is successful.
Source: Kotler Strategic Marketing for Non-Profit Organizations
Mission Statement The basic purpose of an
organization. What the organization is trying to accomplish.
A clear statement of your company’s long-term mission.
Try to use words that will help direct the growth of your company, but be as concise as possible.
Source: Kotler Strategic Marketing for Non-Profit Organizations
Logic Flow Planning Terms Objectives/Goals
The major variable that the organization will emphasize
Strategy A plan of action to accomplish a goal
Tactics Specific steps to be taken to
implement strategy
Source: SmartPlanet.com Guide to Writing a Business Plan
Plan Outline Executive Summary Table of Contents Situation Analysis Business Objectives Management
Capabilities Market Analysis Business
Development Strategy
Financial Review Appendices
Company background
Technological Needs
Literature Citations Resumes Administrative
issues
Source: SmartPlanet.com Guide to Writing a Business Plan
Executive Summary Executive Summary
2 pages maximum Summary of the plan Do not cut and paste from the plan This may be your only chance to sell
your idea Compelling and persuasive wording
Source: SmartPlanet.com Guide to Writing a Business Plan
Situation Analysis What is the organization is trying to accomplish? What distinguishes the company from the
competition? How does the company add value to its
customer’s lives? What factors will account for the company’s
success? What are the key technologies/concepts upon
which the company is based? Why is the time right for your product/service?
Source: SmartPlanet.com Guide to Writing a Business Plan
Business Objectives The major variable that the organization will
emphasize Describe the where, when, why, how, and who
of the company’s first year of business. How they will be short-term goals (12 to 18
months) and long-term (18+ months) be achieved? State specific measurable objectives State market share objectives State revenue/profitability objectives
What are the plans for alternative outcomes?
Source: SmartPlanet.com Guide to Writing a Business Plan
Management List CEO and key management by
name Describe roles in company Include previous accomplishments
to show these are people with a record of success
Summarize number of years of experience in this field
Outline advisory boards or panels
Source: SmartPlanet.com Guide to Writing a Business Plan
Management Describe strategies for attracting
and keeping key personnel. Schedule for adding new personnel Sample organizational structure
Source: SmartPlanet.com Guide to Writing a Business Plan
Market Analysis Industry Analysis Competitive Analysis Marketing Activities Technology Business Operations
Source: David Bangs Jr. The Market Planning Guide
Market Analysis:SWOT Analysis Informs marketing analysis and
planning Internal Analysis
Strengths, Weaknesses, External Analysis
Opportunities Threats
Source: David Bangs Jr. The Market Planning Guide
Internal SW Analysis Areas to examine within the company
Profitability Sales and marketing Quality Customer service Productivity Financial resources Financial management Operations
Source: David Bangs Jr. The Market Planning Guide
External OT Analysis Areas to examine
Technology Government and Regulation Legal Economic environment
Opportunities Think in terms of consumer problems. Define nature of product/service
opportunities created by those problems.
Source: SmartPlanet.com Guide to Writing a Business Plan
Marketing Analysis:Industry Analysis Industry size
$1 billion or $10 billion Target Markets
Who is most likely to buy from you? What wants, needs, and habits do your best customers
and prospects share? How many best customers are there?
Regulatory requirements Think about local, state, and federal laws and
regulation affecting your business Projected changes over the next three to five
years In industry In company’s product/service
Source: SmartPlanet.com Guide to Writing a Business Plan
Marketing Analysis:Competitive Analysis Who are the competitors? What is their market share? How do you compare, in the eyes
of the consumers, to existing companies?
Outline your company’s competitive advantage
Source: SmartPlanet.com Guide to Writing a Business Plan
Marketing Analysis:Marketing Activities Who are the competitors? What is their market share? How do you compare, in the eyes of the
consumers, to existing companies? Review those changes in market share,
leadership, players, market shifts, costs, pricing, or competition that provide the opportunity for the company’s success.
Source: SmartPlanet.com Guide to Writing a Business Plan
Business Development Strategy
When will the business open? What resources are available? How will the customer base be
built and maintained?
Source: Kotler Strategic Marketing for Non-Profit Organizations
Business Development Strategy
Growth Strategy & Tactics Market penetration – capture market
share from competitors Create new markets
Source: SmartPlanet.com Guide to Writing a Business Plan
Financial Review Detailed financial plan (be
conservative) Best guess at financial results States what assumptions have been made
and why Outlines funds required and their use Reviews yearly expected sales and profits
for the next three years Discussion of how growth will be managed
Things to Think About Resource Requirements Risks and Rewards Near-term/Long-term Decisions
Resource Requirements Technology requirements Personnel requirements Resource requirements
Financial, distribution, promotion, etc. External requirements
Products/services/technology required to be purchased outside company
Risks & Rewards Risks
Summarize risks of proposed project Addressing risk
Summarize how risks will be addressed
Rewards Estimate expected pay-off,
particularly if seeking funding
Decisions Near term
Isolate key decisions and issues that need immediate or near-term resolution
Long term Isolate issues needing long-term
resolution State consequences of decision
postponement