Why Business Plan ?????????????A business plan is an effective tool for defining the existingrealities.A good business plan will reveal weaknesses or omissions inyour planning.They provide a valuable communication tool presented in anorganized, credible manner, which allows the stakeholders toobtain a complex view of the business.`
BUSINESS PLAN ESSENTIALS•ALWAYS Prepare the Plan Yourself! –Professional input from accountants, consultants, lawyers, etc. can be helpful. –Write the Plan. Own the Plan. Know the Plan.•I am investing in You & in Your Plan!
FORMAT OF THE BUSINESS PLAN – Executive Summary – General Company Description – Products & Services Offering – Strategic Marketing & Sales Plan – Operational Plan – Management & Organizational Structure – Capitalization & Use of Proceeds – Financial Projections -- to include Assumptions – Appendices
Stages of Project Development Supply Analysis Supply AnalysisI Business PlanN Market Analysis Market AnalysisP Financial ModelU Technology AnalysisT Prototype Stage 1 Stage 2 Stage 3 Stage 4 Prefeasibility Technical Feasibility Commercial Feasibility Investor EngagementA DonorsC Grants & Subsidies Strategic Investors Strategic Investors Private EquityTI Philanthropic Institutions Private Equity Private Equity Social InvestorsVI Specialist Development Social Investors Social Investors Development BanksT Finance Development Agencies Development BanksY Risk Capital Venture CapitalOUT Supply Analysis Technology Analysis Business PlanPU Market Analysis Prototype Financial ModelT
What is the value of a Business Plan? Business Plan Project Data Sheet Investment Pitch
Business ModelSupply Agreement T o PPAs e l Profit Sharing Supply c o Demand Power h g Deficit Transportation n yObjective: Gain investor confidence
Unique Selling Proposition Discoveries follow ing a revolution Accidental discoveries Discovery copied ormodified from Systematic a previous search for idea new products and services
Market AnalysisSWOT Analysis External Opportunities Threats Communicate Leverage Internal Strengths Clearly to Strengths Investors Weaknesses Point of Mitigation Differentiation Measures
Market AnalysisProduct Position TARGET TM MARKET Price Place
Porter Analysis Ease of SubstitutionPower of Industry Power ofSuppliers Customers Rivalry Barriers to Entry
Industry QuestionsHow do we define our industry?How is the industry segmented?What are current trends and importantdevelopments?Who are the largest and most importantplayers?What problems is the industry experiencing?What national and int’l events influence ourindustry?What are growth forecasts?
-- Marketplace AnalysisDefine and describe your marketplace Niche, geographic area, subset of larger industryWhat’s happening in your market?Network! – talk with the marketplace Customers, competitors, vendors, suppliers, sal espeople, … Chambers of commerce Industry trade groups
Marketplace QuestionsHow do we define our marketplace?How large is it and how fast is itgrowing?How is our marketplace segmented?What companies currently service thismarket?What trends are important in ourmarketplace?
-- Customer AnalysisIdentify current buyers in yourmarketplace Segment these customers What “problems” are not being solved? What needs are not being met? Which customer segments are currently ignored?Talk with current buyers!
-- Competitor AnalysisIdentify current sellers in your marketplace Niche and focus Target customers Strengths and weaknessesTalk with current marketplace sellers! Sellers themselves Vendors CustomersCompetitive Matrix Comparison
Competitive Matrix Competitive Matrix Chart Product or Production Unique Distribution Marketing / Geographic Strengths & Market Service / Quality Features System Advertising Location Weaknesse ShareCompetitor ACompetitor BCompetitor CCompetitor DCompetitor ECompetitor F
Competitor QuestionsWho are current sellers in the marketplace?What are the attributes and characteristics ofthese sellers and their products/services?What is there size, location, target market, andother important characteristics?For their products or services, identifyprice, quality, features, distribution, and otherimportant attributes.What problems and concerns to customershave with these sellers?
PROJECT PROFIT AND LOSS ACCOUNTIncome from Sales/ServiceCost of Manufacturing/Servicing i) Raw Materials ii) Utilities iii) Salaries/Wages iv) Repairs & maintenance v) Selling & Distribution Expenses vi) Administrative Expenses vii) Interest viii) Rent ix) Depreciation x) Misc. Expensesc. Gross Profit/Loss (A-B)