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Business plan presentation-updated

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Assessing Businesses Financials by Omar Shawki (Day 2 and repeated on Day 3) …

Assessing Businesses Financials by Omar Shawki (Day 2 and repeated on Day 3)

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  • 1. How to Build A Successful Business Plan for a Small Business Speaker: Omar Shawky
  • 2. Why write a Business Plan
    • 1. Because I have to …
      • Needed for financing
      • Strategic partnering
      • Attract key people/investors
      • Organize my thoughts
  • 3. Why write a Business Plan
    • 2. Because I Need to Understand My Business
      • The Plan is the result of a planning process
      • People Don’t Plan to Fail ; They Fail to Plan
        • Who are my customers?
        • Why will they buy my product or service?
        • What will they pay?
        • How will I make and deliver/sell the service/product?
        • What resources (people, money, technology) do I need?
        • Can I make money / create value?
        • Do I have the right team on board?
  • 4. The Right Ingredients
    • A TEAM with Relevant Experience
    • Market Size
    • Idea
    • Technology
    • Competitive Advantage
    • Reasonable Projections
    • Exit Strategy
  • 5. Company Structure Financials Operations & Production Team Idea Market Competitive Edge Marketing Strategy Business Plan
  • 6. Business Planning Steps
    • Idea generation, Vision, Mission, Objectives, Strategies
    • Market research and Analysis
    • Marketing strategy
    • Production planning
    • Management and Organization
    • Financial plan
    • Company formulation
  • 7. Business Planning Steps
    • Idea generation, Vision, Mission, Objectives, Strategies
    • Market research and Analysis
    • Marketing strategy
    • Production planning
    • Management and Organization
    • Financial plan
    • Company formulation
  • 8. 1. The Idea
    • Innovative product or service
    • Visualize a market gap – you can add value
    • Imported idea
  • 9. Vision 1 st Objective 2 nd Objective 3 rd Objective 4 th Objective Strategy Where do you want to go at the end? What is the road map and major mile stones? How will you reach your objectives? Vision Objectives SMART S pecific M easurable A chievable R elevant T ime-Bound
  • 10. Mission: Stakeholders Family Work Friends Religion Country Community Who are your stakeholders and what is your mission to each one of them?
  • 11. Mission: Stakeholders Shareholders Employees Customers Suppliers Country Community Who are your stakeholders and what is your mission to each one of them?
  • 12. Business Planning Steps
    • Idea generation, Vision, Mission, Objectives, Strategies
    • Market research and Analysis
    • Marketing strategy
    • Production planning
    • Management and Organization
    • Financial plan
    • Company formulation
  • 13. 2. Market Analysis
    • Market size
      • How big is it NOW?
      • Trends – how fast is it or will it grow?
    • Market Players – Competitors
      • Competitive Advantage
      • Estimated market shares
      • Existing/planned products in the marketplace
    • Is this the RIGHT TIME for my product?
    • Is there a GAP that I can fill?
  • 14. How you capitalize on them How you avoid them How maximize them How minimize their effects Strengths Weaknesses Opportunities Threats Internal External SWOT Analysis
  • 15. Business Planning Steps
    • Idea generation, Vision, Mission, Objectives, Strategies
    • Market research and Analysis
    • Marketing strategy
    • Production planning
    • Management and Organization
    • Financial plan
    • Company formulation
  • 16.
    • Who are my TARGET customers?
    • Why would they buy my product?
    • How much would they pay?
    • What are the special features in my product?
    • What is my competitive advantage
    • It is all about your EDGE
    3. Marketing Strategy
  • 17. Marketing Plan Process Marketing Research Segmenting Positioning Targeting Defining Target Market Needs, Wants, Demand Product Variety Quality Design Features Brand Packaging Size Services Warranty Return Price Price List Discounts Allowances Payments Credit Promotion Promotions Advertising Sales Force Public relation Direct marketing Place Channels Coverage Location Inventory Transport Push / Pull Marketing Mix 4 Ps
  • 18. Business Planning Steps
    • Idea generation , Vision, Mission, Objectives, Strategies
    • Market research and Analysis
    • Marketing strategy
    • Production planning
    • Management and Organization
    • Financial plan
    • Company formulation
  • 19. 4. Production plan
    • Technology
    • Equipment
    • Raw Material Sourcing
    • Operation Plan and Capacity
  • 20. Business Planning Steps
    • Idea generation , Vision, Mission, Objectives, Strategies
    • Market research and Analysis
    • Marketing strategy
    • Production planning
    • Management and Organization
    • Financial plan
    • Company formulation
  • 21. 5. Management Plans
    • Getting the RIGHT Team on board
    • Training
    • Delegation
    • Empowerment
  • 22. Business Planning Steps
    • Idea generation , Vision, Mission, Objectives, Strategies
    • Market research and Analysis
    • Marketing strategy
    • Production planning
    • Management and Organization
    • Financial plan
    • Company formulation
  • 23. Financial Assessment
    • What Investors Need To Know :
      • Total Investment Required
      • Breakdown of Investments
      • Income Statement Projections
      • Cash Flow Statement Projections
      • Net Present Value (NPV)
      • Internal Rate of Return (IRR)
      • Breakeven Analysis
      • Payback Period
  • 24.
    • Total Investment Required
    • Breakdown of Investments
    • Income Statement Projections
      • Revenues Assumptions
      • Costs/Expenses Assumptions
      • Depreciation Assumptions
      • Interest Expenses Assumptions
      • Taxes
    • Cash Flow Projections
      • Initial investment
      • Working Capital
      • Capital Expenditure (Capex)
      • Debt Assumptions
    Financial Assumptions
  • 25. Revenue: 100 100% - Cost of Goods Sold (COGS): 60 60% Gross Profit (Profit Margin) 40 40% Operating Expenses: General & Administration 8 8% Sales & Marketing 12 12% - Total Operating Expenses 20 20% Earning Before Interest, Tax, Depreciation & Amortization (EBITDA)20 20% - Depreciation & Amortization 5 5% Earning Before Interest and Tax (EBIT) 15 15% - Interest Expenses 5 5% Net Income Before Tax 10 10% -Taxes 2 2% Net Income 8 8% Income Statement
  • 26. 1- Cash Provided from Operations: + Net Income 8 +Depreciation & Amortization 5 -Increase in Receivables (1) +Increase in Payables 4 Total Cash from Operations 16 2- Cash Provided from Investing: - Capital Expenditure (3) +Sale of equipment, land..etc 1 +Sale of stocks in portfolio 1 Total Cash from Investing (1) 3- Cash from Financing: -Repayment of debt (1) +Sale of common stock 1 -Cash Dividends (5) Total Cash from Financing (5) Total Cash Flow 10 Cash Flow Statement
  • 27.
      • Net Present Value (NPV)
      • Internal Rate of Return (IRR)
      • Break-even Analysis
      • Payback Period
    Financial Measures
  • 28.
    • Project 1: Y0 Y1 Y2 Y3 Y4 Y5
    • Investments -50,000
    • Net Cash In 10,000 15,000 20,000 25,000 30,000
    • Net Free Cash Flow -50,000 10,000 15,000 20,000 25,000 30,000
    • Project 2: Y0 Y1 Y2 Y3 Y4 Y5
    • Investments -200,000
    • Net Cash In 20,000 30,000 50,000 70,000 100,000
    • Net Free Cash Flow -200,000 20,000 30,000 50,000 70,000 100,000
    • Project 3: Y0 Y1 Y2 Y3 Y4 Y5
    • Investments -15,000
    • Net Cash In 3,000 10,000 15,000 20,000 25,000
    • Net Free Cash Flow -15,000 3,000 10,000 15,000 20,000 25,000
    Feasibility Study Test
  • 29.
    • - Which Project 1, 2, or 3 is more Feasible?
    • - Cost of Capital Rate 18%
    • - What is the NPV and IRR for the Project ?
    Feasibility Study Test
  • 30.
    • Estimate Total Costs = Fixed Costs + Variable Costs
    • Estimate Av. Sales Price per Unit
    • Breakeven Point = Fixed Costs / (Av. Price – A. Variable Cost)
    • Project 1:
    • Fixed Costs = 20,000
    • Variable Costs = 760
    • Sales Price = 1,000
    • Breakeven = 20,000 / (1000-760) = 83 unit
    Breakeven Analysis
  • 31. Business Planning Steps
    • Idea generation
    • Market research and Analysis
    • Marketing strategy
    • Production planning
    • Management and Organization
    • Financial plan
    • Company formulation
  • 32. 7. The Company
    • Name – logo - slogan
    • Legal structure
    • Location
    • Mission – Values - Objectives
  • 33. Elements of the Business Plan
    • Executive Summary
    • The opportunity, company, product/service, vision, mission & objectives
    • Market research/analysis / SWOT Analysis
    • Marketing plan
    • Design and development plan
    • Manufacturing and operations plan
    • Management team
    • Financial plan (Capital Required, Projections, Returns)
    • Action Plan
  • 34. Finally: No Risk … No Gain
    • ” ومن لا يتعلم صعود الجبال يعش أبد الدهر بين الحفر “
    • “ If we all did the things we are really capable of doing, we would literally astound ourselves ”
    • Thomas Edison
  • 35. Thank You & May God Bless Omar Shawky

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