Opportunity, strategy & the evaluation of the business plan?

  • 1,391 views
Uploaded on

Opportunity, Strategy & the Evaluation of the Business Plan? - The nature of opportunity, How entreprneeurs really work, can and do entrepreneurs use a business plan?, Business plan or business …

Opportunity, Strategy & the Evaluation of the Business Plan? - The nature of opportunity, How entreprneeurs really work, can and do entrepreneurs use a business plan?, Business plan or business model?, Forecasting, formats, and evaluation

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
1,391
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
77
Comments
0
Likes
1

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Opportunity, Strategy & the Evaluation of the Business Plan?
    Mohd. Murray Hunter
  • 2. Discussion Today
    Forecasting
    The nature of opportunity
    Formats
    How entrepreneurs really work
    Evaluation
    Can and do entrepreneurs use a business plan?
    Business Plan or Business Model?
  • 3. Small Business Verses Entrepreneurship
  • 4.
  • 5.
  • 6. ©Hunter (2011)
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12. The forms of opportunity
    ©Hunter (2011)
  • 13. ©Hunter (2011)
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25. Four potential firm opportunity seeking typologies
  • 26. ©Hunter (2011)
  • 27.
  • 28.
  • 29. Two ways to scan for opportunities
    Matching product to some marketspace
    Matching marketspace to some product
  • 30.
  • 31.
  • 32. ©Hunter (2011)
  • 33.
  • 34.
  • 35.
  • 36.
  • 37. How Entrepreneurs Really Work
  • 38. Creativity
    The Summarised
    Entrepreneurial
    Process
    Idea
    Turn into Opportunity
    Innovation
    Final Commitment
    NPD
    Start-Up
    Strategy
    Growth
    Sales
    Sustainability
    Resource Gathering
  • 39. ©Hunter (2011)
  • 40.
  • 41.
  • 42. Can and do entrepreneurs use a business plan?
  • 43. The Secret
  • 44.
  • 45.
  • 46.
  • 47.
  • 48.
  • 49.
  • 50.
  • 51. Business Plan
    Or
    Business Model?
  • 52.
  • 53.
  • 54.
  • 55.
  • 56.
  • 57.
  • 58.
  • 59. Perspectives
  • 60. Where does the information come from?
  • 61.
  • 62.
  • 63.
  • 64.
  • 65.
  • 66.
  • 67.
  • 68.
  • 69.
  • 70.
  • 71.
  • 72.
  • 73.
  • 74. Format
  • 75.
  • 76.
  • 77. Forecasting
  • 78.
  • 79.
  • 80.
  • 81.
  • 82.
  • 83.
  • 84.
  • 85.
  • 86.
  • 87.
  • 88.
  • 89. Checklists
  • 90. Questions you should ask about financial viability?
  • 91.
  • 92.
  • 93.
  • 94.
  • 95.
  • 96.
  • 97.
  • 98.
  • 99.
  • 100.
  • 101.
  • 102.
  • 103.
  • 104.
  • 105.
  • 106.
  • 107.
  • 108.
  • 109. A New Venture Checklist
    Basic Feasibility of the venture
    • Can the product or service work?
    • 110. Is it legal?
    Competitive Advantages of the New Venture
    • What specific competitive advantages will the product/service offer?
    • 111. What are the competitive advantages of firms already in business?
    • 112. How long will it take for firms to respond?
    • 113. Will the initial competitive advantage be maintained?
    Buyer Decisions in the Venture
    • Who Are the customers likely to be?
    • 114. How much will each customer buy and how many customers are there?
    • 115. Where are these customers located and how will they be serviced?
    Marketing of the Goods and Services
    • How much will be spent of advertising and promotion?
    • 116. What share of the market will the company capture?
    • 117. How long will it take to capture?
    • 118. Who will perform the selling functions?
    • 119. How will prices be set?
    • 120. How will they compare with competitors prices?
    • 121. How important is location and how will it be determined?
    • 122. What distribution channels will be used – wholesale, retail, agents, direct?
    • 123. What are the sales targets? By when should they be met?
    • 124. Can any orders be obtained before starting the business? How many?
    Production of the Goods and Services
    • Will the company make or buy what it sells?
    • 125. Or will it use a combination of these two strategies?
    • 126. Are sources of suppliers available at reasonable prices?
    • 127. How long will delivery take?
    • 128. Have adequate lease arrangements for premises been made?
    • 129. Will the needed equipment be available on time?
    • 130. Do any special problems with plant setup exist?
    • 131. How will quality be controlled?
    • 132. How will returns and servicing be handled?
    • 133. How will pilferage, waste, spoilage, and scrap be controlled?
    Staffing Decisions in the Venture
    • How will competence in each area of the business be ensured?
    • 134. Who will have to be hired? By when? How will they be found and recruited?
    • 135. Will a banker, accountant, lawyer or other advisors be needed?
    • 136. How will replacements be obtained if key people leave?
    • 137. Will special benefit schemes need to be arranged?
    Control of the Venture
    • What records will be needed? When?
    • 138. Will any special controls be required? What are they?
    • 139. Who will be responsible for them?
    Financing the Venture
    • How much will be needed for the development of the product or service?
    • 140. How much will be needed for setting up operations?
    • 141. How much will be needed for working capital?
    • 142. Where will the money come from?
    • 143. Which assumptions in the financial forecasts are most critical and uncertain?
    • 144. What will be the return on equity, sales?
    • 145. How does it compare with the rest of the industry?
    • 146. When and how will investors get their money back?
    • 147. What will be the need from the bank?
    • 148. What will be the bank’s response?
  • 149. Pitfalls to look for in Selecting New Ideas and Opportunities
    • Lack of Objective Evaluation
    • 150. No real insight into the market
    • 151. Inadequate understanding of technical requirements
    • 152. Poor financial understanding
    • 153. Lack of Venture uniqueness
    • 154. Ignorance of legal issues
  • Why New Ventures Fail (look for anything fundamentally wrong)
  • Business Plan Assessment
    There are 10 components of a business plan
    Is your business plan thorough in all areas
    5 Outstanding (thorough and complete in all areas)
    4 Very good (most areas covered but could use improvement in detail)
    3 Good (some areas covered in detail but other areas missing)
    2 Fair (a few areas covered but very limited detail)
    1 Poor (no written plans)
  • 164. Executive Summary
    5 Outstanding (thorough and complete in all areas)
    4 Very good (most areas covered but could use improvement in detail)
    3 Good (some areas covered in detail but other areas missing)
    2 Fair (a few areas covered but very limited detail)
    1 Poor (no written plans)
  • 165. Description of the Business
    What type of business will you have?
    What products or services will you sell?
    Why does it promise to be successful?
    What is the growth potential?
    How is it unique?
    5 Outstanding (thorough and complete in all areas)
    4 Very good (most areas covered but could use improvement in detail)
    3 Good (some areas covered in detail but other areas missing)
    2 Fair (a few areas covered but very limited detail)
    1 Poor (no written plans)
  • 166. Marketing
    Who will be your customers?
    How big is the market?
    Who will be your competitors?
    How are their businesses prospering?
    5 Outstanding (thorough and complete in all areas)
    4 Very good (most areas covered but could use improvement in detail)
    3 Good (some areas covered in detail but other areas missing)
    2 Fair (a few areas covered but very limited detail)
    1 Poor (no written plans)
    How will you promote sales?
    What market share do you want?
    Do you have a pricing strategy?
    What A&P strategy will you use?
  • 167. Operations
    Have you identified a specific location?
    Have you identified the advantages
    of this Location?
    Are there any zoning or tax considerations?
    Will you have access to transportation?
    5 Outstanding (thorough and complete in all areas)
    4 Very good (most areas covered but could use improvement in detail)
    3 Good (some areas covered in detail but other areas missing)
    2 Fair (a few areas covered but very limited detail)
    1 Poor (no written plans)
    Will your suppliers be
    conveniently located?
  • 168. Management
    Who will manage the business?
    What qualifications do they have?
    How many employees will you have?
    What will they do?
    5 Outstanding (thorough and complete in all areas)
    4 Very good (most areas covered but could use improvement in detail)
    3 Good (some areas covered in detail but other areas missing)
    2 Fair (a few areas covered but very limited detail)
    1 Poor (no written plans)
    How much will you pay them?
    What consultants do you need?
    What legal form of organisation will you have?
    What regulations will affect your business?
  • 169. Financial
    What is your total expected business income for the year?
    Quarterly for the next two years? (Forecast)
    What is your expected monthly cash flow during
    The year?
    Have you included a method of paying yourself?
    What sales volume do you need to
    make a profit during the three years?
    What will be the break even point?
    5 Outstanding (thorough and complete in all areas)
    4 Very good (most areas covered but could use improvement in detail)
    3 Good (some areas covered in detail but other areas missing)
    2 Fair (a few areas covered but very limited detail)
    1 Poor (no written plans)
    What are your projected assets,
    liabilities, net worth?
    What are your financial needs?
    What are your funding sources?
  • 170. Critical Risks
    What are the potential problems
    you have identified?
    Have you calculated the risks?
    What alternative courses of action
    Exist?
    5 Outstanding (thorough and complete in all areas)
    4 Very good (most areas covered but could use improvement in detail)
    3 Good (some areas covered in detail but other areas missing)
    2 Fair (a few areas covered but very limited detail)
    1 Poor (no written plans)
  • 171. Harvest Strategy
    How have you planned for the
    Orderly transfer of the venture
    Assets if ownership of the venture is
    Passed to a corporation?
    Is there a continuity of business
    Strategy for orderly transition?
    5 Outstanding (thorough and complete in all areas)
    4 Very good (most areas covered but could use improvement in detail)
    3 Good (some areas covered in detail but other areas missing)
    2 Fair (a few areas covered but very limited detail)
    1 Poor (no written plans)
  • 172. Milestone Schedule
    How have you set your objectives?
    Do you have deadlines for each
    Stage of your growth?
    5 Outstanding (thorough and complete in all areas)
    4 Very good (most areas covered but could use improvement in detail)
    3 Good (some areas covered in detail but other areas missing)
    2 Fair (a few areas covered but very limited detail)
    1 Poor (no written plans)
  • 173. Appendix & Bibliography
    Have you included any documents
    Drawings, agreements, or other
    Materials needed to support
    The plan?
    Are there any names of references,
    Advisors, or technical sources
    You should include?
    Are there any other supporting documents?
    5 Outstanding (thorough and complete in all areas)
    4 Very good (most areas covered but could use improvement in detail)
    3 Good (some areas covered in detail but other areas missing)
    2 Fair (a few areas covered but very limited detail)
    1 Poor (no written plans)
  • 174. Summary
  • 175. Score
    50 Outstanding (the ideal business plan)
    45-49 Very Good
    40-44 Good (the plan is sound with a few areas that need to be refined)
    35-39 Above Average (this plan has some good areas but needs improvement
    Before presentation)
    30-34 Average (some areas covered in detail yet other areas show
    Weaknesses)
    20-29 Below average (most areas need greater detail and improvement)
    Below 20 Poor (plan needs to be researched and documented much better)
  • 176. Thank You