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Business plan basics by M. Hariharan (Savior Faire)
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Business plan basics by M. Hariharan (Savior Faire)

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This slide deck was presented by M. Hariharan at the TiE Institute Knowledge Series session by M. Hariharan

This slide deck was presented by M. Hariharan at the TiE Institute Knowledge Series session by M. Hariharan

Published in Business , Economy & Finance
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  • 1. Starting Up – Creating a Business Plan
    June 19, 2010
    M Hariharan
    Director
    Savoir faire
    Management Services Pvt Ltd
  • 2. Stability
    Rigidity
    Flexibility
    Confusion
  • 3. Road Map
    Understand the “Customer” of the Business Plan
    Egg or Hen – starting point for the business plan
    Where do I start? – Market or Capabilities
    Assumptions
    Tie-up the loose ends
  • 4. Customer of the Business Plan
    Long Term Investor
    Lender
    Long Term Profit Earning Potential
    Will my money be safe?
    Venture Capitalist/ Private Equity
    Customer
    Intention of showing the Business Plan to the Customer?!
    Scalability; Exit
    Yourself
    Convincing yourself
  • 5. Road Map
    Understand the “Customer” of the Business Plan
    Egg or Hen – starting point for the business plan
    Where do I start? – Market or Capabilities
    Assumptions
    Tie-up the loose ends
  • 6. Investing
    Application of Funds
    Source of Funds
    Financing
    Money Required
    Money Funded
    Fixed Assets
    Share Capital
    Net Worth
    + Reserves
    Working Capital
    Loaned Funds
    Balance Sheet Basics
  • 7. Egg or Hen?
    This is what I require…. ஃ this is the funding required ……. OR
    This is the funding available … ஃ this is what I’ll do with that fund
  • 8. Sourcing options
    Venture Capital
    Seed Capital
    Angel Investor
    Private Equity
    Lender
    Boot Strap
    • Long Term
    • 9. Managerial and Tech expertise
    • 10. High risk, High return
    • 11. Long term influence in the venture
    • 12. Friends and relatives
    • 13. Pre-revenue stage
    • 14. To attract the attention of the Venture Capital
    • 15. To get the business off the ground
    • 16. “At risk” investment of promoters
    • 17. More favourable terms than other type of investors
    • 18. For the person than the project
    • 19. Focus on helping the business succeed than huge profit for the future
    • 20. Not quoted on exchanges
    • 21. Revival, multiple investors
    • 22. Buy, Strip and Flip
    • 23. Building company from own finances
  • Road Map
    Understand the “Customer” of the Business Plan
    Egg or Hen – starting point for the business plan
    Where do I start? – Market or Capabilities
    Assumptions
    Tie-up the loose ends
  • 24. Market or Capabilities
    Key factor/ Limiting Factor/ Constraint
    I know the size of the market I am going to address
    I know the amount I require to run my business to start with
  • 25. Road Map
    Understand the “Customer” of the Business Plan
    Egg or Hen – starting point for the business plan
    Where do I start? – Market or Capabilities
    Assumptions
    Tie-up the loose ends
  • 26. Assumptions
    Info.Sources
    Timing
    Valid Assumption
    Growth
    Controls
    Ockham’s razor (Pluralis non estponenda sine neccesitate)
    Explicit vs implicit assumptions
    • Understand the domains of control and influence
  • Beyond
    Influence &
    Control
    Within
    Sphere of
    Influence
    Domains of Influence and control
    Within
    Span of
    Control
  • 27. Assumptions
    Info.Sources
    Timing
    Valid Assumption
    Growth
    Controls
    • Ockham’s razor (Pluralis non estponenda sine neccesitate)
    • 28. Explicit vs implicit assumptions
    • 29. Understand the domains of control and influence
    • 30. Assumptions proving incorrect
    • 31. Mistrust the obvious
  • Road Map
    Understand the “Customer” of the Business Plan
    Egg or Hen – starting point for the business plan
    Where do I start? – Market or Capabilities
    Assumptions
    Tie-up the loose ends
  • 32. Prosper
    Purpose
    Process
    People
  • 33. Sales Plan
    Production Plan
    Cost Plan
    Projected
    Profit and Loss Account
    Investment Plan
    Debt/ Equity
    Plan
    Projected
    Balance Sheet
    Charts/ Graphs and Pictures
    Milestone reporting
    Cash Flow Statement
    Assumptions
    Critical Annexures
  • 34. What makes a good plan?
    Simple
    Is it easy to understand and to act on? Does it communicate its contents easily and practically?
    Specific
    Are its objectives concrete and measurable? Does it include specific actions and activities, each with specific dates of completion, specific persons responsible and specific budgets?
    • Realistic
    • 35. Are the sales goals, expense budgets, and milestone dates realistic? Is the plan complete?
    • 36. Complete
    • 37. Does it include all the necessary elements?
    Results
    Simple
    Specific
    Plan
    Actions
    Realistic
    Complete
    Follow
    up
  • 38. Have a satisfied customer to have satisfied investor
    Thank you
    hari@sfccostmanagment.com
    www.sfccostmanagement.com
    +919821160114