Business Plan Preparation Frank Moyes Leeds School of
Business Plan Preparation Frank Moyes Leeds School of Business University of Colorado Boulder, Colorado Framework for the Business Plan 1
Today’s Agenda Decide on concepts & select teams n Framework for writing a business plan n n Writing a Successful Business Plan from my website Importance of validation n Team meetings n Hand in F 2 F-R Step 1 Gut Check n Framework for the Business Plan 2
Next Week n MARKET & INDUSTRY ANALYSIS n n n COMPETITIVE ADVANTAGE Hand-in n Opportunity/Need Segmentation Financial COMP’s Model Company Interview list F 2 F-R Step 2 Reality Test I Critique Nut Check Business Plan (download from website) Framework for the Business Plan 3
Business Plan Elements n n n n n Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Framework for the Business Plan 4
Business Plan Elements n Executive Summary n Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation n n n n Framework for the Business Plan n Last to be written 5
Business Plan Elements n Executive Summary n Product or Service Description n n n n Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Framework for the Business Plan n n Strategy Features and Benefits 6
Business Plan Elements n n Executive Summary Product or Service Description n Industry and Marketplace Analysis n Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation n n n Framework for the Business Plan n Segmentation Size and Trends Competition 7
Business Plan Elements n n n Executive Summary Product or Service Description Industry and Marketplace Analysis n n Marketing Plan n Operations Plan n Development Plan n Management n Competitive Advantage Financial Projections Offering, Funding, Valuation n n Framework for the Business Plan n Customer Research Target Customer Positioning Pricing Advertising & Promotion Distribution Sales 8
Business Plan Elements n Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan n n Operations Plan n Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation n n n n Framework for the Business Plan Scope of Operations On-going Operations 9
Business Plan Elements n Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan n Development Plan n Management Competitive Advantage Financial Projections Offering, Funding, Valuation n n n Framework for the Business Plan n Key Milestones 10
Business Plan Elements n Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan n Management n Competitive Advantage Financial Projections Offering, Funding, Valuation n n n Framework for the Business Plan n n Organization Team 11
Business Plan Elements n Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management n Competitive Advantage n Financial Projections Offering, Funding, Valuation n n n Framework for the Business Plan n Sustainable 12
Business Plan Elements n Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management n Income Statement Competitive Advantage n Financial Projections n Offering, Funding, Valuation n n n Framework for the Business Plan n Balance Sheet Cash Flow Risks 13
Business Plan Elements n n n n n Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections n Valuation of Business Offering, Funding & Valuation n Request for Funding Framework for the Business Plan 14
Objectives of Market Research n Validation of your venture n n n There is good market You can compete Evidence that customer n n Needs the product/service Will buy it Framework for the Business Plan 15
Primary: Face to Face Research n n n Step 1: Gut Check - Determine concept potential Step 2: Reality Test I - Get preliminary feedback on your concept from experts Step 3: Sniff Test - Determine target customer interest Step 4: Reality Test II - Get feedback on the entire business venture from experts Step 5: Customer Surveys – Develop an indepth understanding of your target customer Framework for the Business Plan 16
Secondary Research n Market is n n n You can enter n n n Big enough & growing Positive trends Understand competition Competitive environment favorable to new entries Feasibility & Mullins Framework for the Business Plan 17
Market Research - Conclusion n. Validation n. Evidence Framework for the Business Plan 18
Team Dynamics All team members must meet at least once per week to review progress and create plan n Set time and place for weekly meeting n Assign responsibility for assignments n Set completion dates n Framework for the Business Plan 19
Process When One Team Member Not Pulling Weight 1. 2. 3. 4. 5. Team meets for frank discussion of what is the problem & decides how to resolve it Team brings problem to Instructor who will make suggestions on how to resolve Instructor meets with entire team to try to resolve Instructor meets with team member who is the cause of the problem and tries to resolve Team fires team member Framework for the Business Plan 20
Business Plan Critique n How good a job have they done in addressing the next two slides? Framework for the Business Plan 21
Critical Elements of a Business Plan (& You Must Address) Strong market n Attractive industry n Compelling Need n Clear value proposition n Sustainable competitive advantage n Understanding of profitability & cash flow n Management n 22
A Good Business Plan Explains how you are going to do it n Provides evidence that customers want to buy n Tells a story - creates excitement n Addresses the critical elements n Should be painful to write n 23
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