Business Planning BRIAN O'KANE
THE HARSH REALITY <ul><li>50% of start-ups fail </li></ul><ul><li>Poor business planning </li></ul><ul><li>“ Write a busin...
PROCESS vs OUTPUT <ul><li>PROCESS  separate from  OUTPUT </li></ul><ul><li>PROCESS  = Thinking, researching, testing, plan...
BUSINESS PLANNING PROCESS                      Think  Plan  Do
STRATEGY
MISCONCEPTIONS  <ul><li>Strategy is for big companies only </li></ul><ul><li>You need an MBA to do Strategy </li></ul><ul>...
Unsuccessful strategy 1 <ul><li>All fogged up </li></ul>
Unsuccessful strategy 2 <ul><li>Sunday driver </li></ul>
Unsuccessful strategy 3 <ul><li>Rose-tinted spectacles </li></ul>
Unsuccessful strategy 4 <ul><li>If we make it, they'll buy it! </li></ul>
Unsuccessful strategy 5 <ul><li>Blind leap of faith </li></ul>
Unsuccessful strategy 6 <ul><li>Juggling too many things at once </li></ul>
STRATEGY <ul><li>Imagining </li></ul><ul><li>Planning </li></ul><ul><li>Deciding </li></ul><ul><li>Taking control </li></ul>
STRATEGY <ul><li>Where do you want to go? </li></ul><ul><li>Where are you now? </li></ul><ul><li>How do you get there? </l...
STRATEGIC BOX <ul><li>Values </li></ul><ul><li>Passion </li></ul><ul><li>Vision </li></ul><ul><li>Mission </li></ul><ul><l...
OTP STRATEGY <ul><li>Passion </li></ul><ul><ul><li>Our passion is enterprise. Thinking about it. Writing about it. Talking...
Vision  <ul><li>WHAT ? </li></ul><ul><li>WHY ? </li></ul>
Vision 2 <ul><li>I want to own and run a uniquely personalised career advice service, which really understands people’s di...
Vision 3 <ul><li>Challenges: </li></ul><ul><ul><li>Personalised service.  </li></ul></ul><ul><ul><li>Really understanding ...
Vision <ul><li>Must: </li></ul><ul><ul><li>Link to Values & Passion </li></ul></ul><ul><ul><li>Link with future trends </l...
Mission <ul><li>Vision:  Where you want to be </li></ul><ul><li>Mission:  How you bring people  there with you </li></ul>
Positioning <ul><li>Vision:  Where you want to be </li></ul><ul><li>Positioning:  Where market thinks you are </li></ul><u...
Branding <ul><li>Something that makes people pay more for your product, even though it's the same as a competitor's </li><...
Targets <ul><li>Vision:  Where you want to be </li></ul><ul><li>Targets:  Goals that are closer to home </li></ul><ul><ul>...
<ul><li>FORMALITIES </li></ul>
Formalities <ul><li>Legal structure </li></ul><ul><li>Bank account(s) </li></ul><ul><li>Exposure to liabilities & loss  </...
MARKETING
MARKETING <ul><li>Satisfying needs .. profitably </li></ul><ul><li>Elements: </li></ul><ul><ul><li>Customers </li></ul></u...
MARKET RESEARCH <ul><li>Keep it practical </li></ul><ul><li>Sources of information </li></ul><ul><li>What do you want to k...
MARKETING <ul><li>• 4 Ps (PRODUCT) </li></ul><ul><ul><li>Product </li></ul></ul><ul><ul><li>Place </li></ul></ul><ul><ul><...
SALES FORECASTS <ul><li>Evidence </li></ul><ul><ul><li>Get forward orders! </li></ul></ul><ul><li>Be realistic </li></ul><...
MARKETING <ul><ul><ul><ul><li>SALES, SALES, SALES,  </li></ul></ul></ul></ul><ul><ul><ul><ul><li>SALES, SALES, SALES,  </l...
MARKETING <ul><li>Understand your customers' needs </li></ul><ul><li>Set targets </li></ul><ul><li>Combine all elements of...
PROCESS & PEOPLE
BUSINESS PROCESS <ul><li>4 elements: </li></ul><ul><ul><li>Buy </li></ul></ul><ul><ul><li>Make </li></ul></ul><ul><ul><li>...
PEOPLE <ul><li>Analysis of skill levels </li></ul><ul><ul><li>Now </li></ul></ul><ul><ul><li>Future need </li></ul></ul><u...
PEOPLE <ul><li>Human capital more important than financial </li></ul><ul><li>Knowledge base </li></ul><ul><li>Organisation...
MANAGEMENT <ul><li>Delegation </li></ul><ul><li>Communication </li></ul><ul><li>Formalities </li></ul><ul><li>Ongoing deve...
<ul><li>BUSINESS PLANS </li></ul>
BUSINESS PLAN BENEFITS <ul><li>The road map or guide to the future </li></ul><ul><ul><li>Not written in stone, but a plan ...
CRITICAL QUESTIONS <ul><ul><li>Who are you? </li></ul></ul><ul><ul><li>What is your product? </li></ul></ul><ul><ul><li>Wh...
PROCESS & OUTPUT Exec Sum Intro Project Outline Ownership Mkt'g Production Finance & Funding App'x My product I am  Start-...
WRITING A BUSINESS PLAN <ul><li>Assemble information from your research </li></ul><ul><li>Use template / software </li></u...
INTRO / EXEC. SUMMARY <ul><li>Brief / concise / relevant </li></ul><ul><li>Tailored to audience </li></ul><ul><li>Key mess...
TAILORING BUSINESS PLANS <ul><li>Different plans for different audiences </li></ul><ul><ul><li>Level of detail </li></ul><...
BUSINESS PLAN ISSUES <ul><li>Raise your sights! </li></ul><ul><li>Marketing – where will the sales come from? </li></ul><u...
<ul><li>Questions / queries: </li></ul><ul><li>[email_address] </li></ul><ul><li>www.startingabusinessinireland.com </li><...
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Business Planning Brian Okane

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  • Business Planning Brian Okane

    1. 1. Business Planning BRIAN O'KANE
    2. 2. THE HARSH REALITY <ul><li>50% of start-ups fail </li></ul><ul><li>Poor business planning </li></ul><ul><li>“ Write a business plan” </li></ul><ul><li>Emphasis on writing, not on thinking </li></ul><ul><li>THINK, THINK, THINK ! </li></ul>
    3. 3. PROCESS vs OUTPUT <ul><li>PROCESS separate from OUTPUT </li></ul><ul><li>PROCESS = Thinking, researching, testing, planning </li></ul><ul><li>OUTPUT = Business plan document </li></ul>
    4. 4. BUSINESS PLANNING PROCESS        Think Plan Do
    5. 5. STRATEGY
    6. 6. MISCONCEPTIONS <ul><li>Strategy is for big companies only </li></ul><ul><li>You need an MBA to do Strategy </li></ul><ul><li>There's no point planning, since things change </li></ul>
    7. 7. Unsuccessful strategy 1 <ul><li>All fogged up </li></ul>
    8. 8. Unsuccessful strategy 2 <ul><li>Sunday driver </li></ul>
    9. 9. Unsuccessful strategy 3 <ul><li>Rose-tinted spectacles </li></ul>
    10. 10. Unsuccessful strategy 4 <ul><li>If we make it, they'll buy it! </li></ul>
    11. 11. Unsuccessful strategy 5 <ul><li>Blind leap of faith </li></ul>
    12. 12. Unsuccessful strategy 6 <ul><li>Juggling too many things at once </li></ul>
    13. 13. STRATEGY <ul><li>Imagining </li></ul><ul><li>Planning </li></ul><ul><li>Deciding </li></ul><ul><li>Taking control </li></ul>
    14. 14. STRATEGY <ul><li>Where do you want to go? </li></ul><ul><li>Where are you now? </li></ul><ul><li>How do you get there? </li></ul><ul><li>Focus usually on HOW? </li></ul><ul><ul><li>More important questions: WHAT? WHY? </li></ul></ul><ul><li>Strategic box </li></ul><ul><li>Business plan – THINK, not WRITE </li></ul>
    15. 15. STRATEGIC BOX <ul><li>Values </li></ul><ul><li>Passion </li></ul><ul><li>Vision </li></ul><ul><li>Mission </li></ul><ul><li>Positioning </li></ul><ul><li>Resourcing </li></ul>
    16. 16. OTP STRATEGY <ul><li>Passion </li></ul><ul><ul><li>Our passion is enterprise. Thinking about it. Writing about it. Talking about it. Doing it. Helping with it. Making it happen. </li></ul></ul><ul><li>Vision </li></ul><ul><ul><li>OTP will be known worldwide as the best in developing successful methodologies and resources for entrepreneurs, MSMEs and enterprise support organisations. </li></ul></ul><ul><li>Mission </li></ul><ul><ul><li>Helping entrepreneurs to achieve their potential. </li></ul></ul>
    17. 17. Vision <ul><li>WHAT ? </li></ul><ul><li>WHY ? </li></ul>
    18. 18. Vision 2 <ul><li>I want to own and run a uniquely personalised career advice service, which really understands people’s difficulties in choosing a career and works with them to find their best fit in the job market. I want this service to have a 99% first-time success rate in matching people to the right careers (not just the next job), as measured by the people themselves. I want this service to be available not just locally but, in time, nationally and even globally, at a price that everyone can afford. </li></ul>
    19. 19. Vision 3 <ul><li>Challenges: </li></ul><ul><ul><li>Personalised service. </li></ul></ul><ul><ul><li>Really understanding people. </li></ul></ul><ul><ul><li>Finding the best fit in the job market. </li></ul></ul><ul><ul><li>99% first-time success rate. </li></ul></ul><ul><ul><li>Matching people to the right career, not just jobs. </li></ul></ul><ul><ul><li>Success rate measured by customers. </li></ul></ul><ul><ul><li>National – even global – distribution. </li></ul></ul><ul><ul><li>Affordable price. </li></ul></ul>
    20. 20. Vision <ul><li>Must: </li></ul><ul><ul><li>Link to Values & Passion </li></ul></ul><ul><ul><li>Link with future trends </li></ul></ul><ul><ul><li>Set a challenge </li></ul></ul><ul><ul><li>Motivate </li></ul></ul><ul><ul><li>Take the long view </li></ul></ul>
    21. 21. Mission <ul><li>Vision: Where you want to be </li></ul><ul><li>Mission: How you bring people there with you </li></ul>
    22. 22. Positioning <ul><li>Vision: Where you want to be </li></ul><ul><li>Positioning: Where market thinks you are </li></ul><ul><ul><li>VW Phaeton </li></ul></ul><ul><ul><li>Stg£43k – £68k </li></ul></ul><ul><ul><li>€ 65k - €103k </li></ul></ul>
    23. 23. Branding <ul><li>Something that makes people pay more for your product, even though it's the same as a competitor's </li></ul><ul><ul><li>VW Sharan </li></ul></ul><ul><ul><li>€ 38,820 </li></ul></ul><ul><ul><li>SEAT Alhambra </li></ul></ul><ul><ul><li>€ 33,600 </li></ul></ul>
    24. 24. Targets <ul><li>Vision: Where you want to be </li></ul><ul><li>Targets: Goals that are closer to home </li></ul><ul><ul><li>What do you want to achieve next year? </li></ul></ul><ul><ul><li>Next month? </li></ul></ul><ul><ul><li>In the next three or five years? </li></ul></ul><ul><ul><li>Where will you be on your road to achieving your Vision at a particular point in time? </li></ul></ul><ul><li>Your targets are the milestones that make clear and communicate your Vision. </li></ul>
    25. 25. <ul><li>FORMALITIES </li></ul>
    26. 26. Formalities <ul><li>Legal structure </li></ul><ul><li>Bank account(s) </li></ul><ul><li>Exposure to liabilities & loss </li></ul><ul><li>Licences </li></ul><ul><li>Intellectual property rights </li></ul>
    27. 27. MARKETING
    28. 28. MARKETING <ul><li>Satisfying needs .. profitably </li></ul><ul><li>Elements: </li></ul><ul><ul><li>Customers </li></ul></ul><ul><ul><li>Competition </li></ul></ul><ul><ul><li>Image </li></ul></ul><ul><ul><li>4 Ps (product) / 3 Ps (service) </li></ul></ul><ul><ul><li>Marketing plan </li></ul></ul><ul><ul><li>Sales forecast </li></ul></ul>
    29. 29. MARKET RESEARCH <ul><li>Keep it practical </li></ul><ul><li>Sources of information </li></ul><ul><li>What do you want to know? </li></ul><ul><li>Do it yourself </li></ul><ul><li>Core of your business (plan) </li></ul>
    30. 30. MARKETING <ul><li>• 4 Ps (PRODUCT) </li></ul><ul><ul><li>Product </li></ul></ul><ul><ul><li>Place </li></ul></ul><ul><ul><li>Price </li></ul></ul><ul><ul><li>Promotion </li></ul></ul><ul><li>3Ps (SERVICE) </li></ul><ul><ul><li>Physical presence </li></ul></ul><ul><ul><li>Perception </li></ul></ul><ul><ul><li>People </li></ul></ul><ul><li>All linked </li></ul>
    31. 31. SALES FORECASTS <ul><li>Evidence </li></ul><ul><ul><li>Get forward orders! </li></ul></ul><ul><li>Be realistic </li></ul><ul><li>Ultimate purpose of marketing is SALES </li></ul><ul><li>Link sales forecasts to your promotion activities </li></ul>
    32. 32. MARKETING <ul><ul><ul><ul><li>SALES, SALES, SALES, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>SALES, SALES, SALES, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>SALES, SALES, SALES, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>SALES, SALES, SALES, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>SALES, SALES, SALES, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>SALES, SALES, SALES, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>SALES, SALES, SALES, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>SALES, SALES, SALES </li></ul></ul></ul></ul>
    33. 33. MARKETING <ul><li>Understand your customers' needs </li></ul><ul><li>Set targets </li></ul><ul><li>Combine all elements of the marketing mix </li></ul><ul><li>Link to finances / cashflow </li></ul><ul><li>Get hard evidence where possible </li></ul>
    34. 34. PROCESS & PEOPLE
    35. 35. BUSINESS PROCESS <ul><li>4 elements: </li></ul><ul><ul><li>Buy </li></ul></ul><ul><ul><li>Make </li></ul></ul><ul><ul><li>Sell </li></ul></ul><ul><ul><li>Manage / Infrastructure </li></ul></ul><ul><li>Visualise your process </li></ul><ul><li>Resource implications </li></ul><ul><ul><li>Space </li></ul></ul><ul><ul><li>Equipment </li></ul></ul><ul><ul><li>Staff </li></ul></ul>
    36. 36. PEOPLE <ul><li>Analysis of skill levels </li></ul><ul><ul><li>Now </li></ul></ul><ul><ul><li>Future need </li></ul></ul><ul><li>Key staff </li></ul><ul><ul><li>Retention </li></ul></ul><ul><li>Part of resourcing of strategy </li></ul><ul><li>Management capabilities </li></ul>
    37. 37. PEOPLE <ul><li>Human capital more important than financial </li></ul><ul><li>Knowledge base </li></ul><ul><li>Organisational structure </li></ul><ul><li>Passion / unity / commitment </li></ul><ul><li>Entepreneur as manager </li></ul><ul><li>Which areas are critical? </li></ul><ul><li>Job descriptions </li></ul><ul><li>Cost </li></ul><ul><li>Formalities </li></ul><ul><li>Outsourcing </li></ul>
    38. 38. MANAGEMENT <ul><li>Delegation </li></ul><ul><li>Communication </li></ul><ul><li>Formalities </li></ul><ul><li>Ongoing development </li></ul><ul><li>Retention </li></ul><ul><li>Reward </li></ul><ul><li>Develop policy/systems </li></ul><ul><li>Review skills levels </li></ul>
    39. 39. <ul><li>BUSINESS PLANS </li></ul>
    40. 40. BUSINESS PLAN BENEFITS <ul><li>The road map or guide to the future </li></ul><ul><ul><li>Not written in stone, but a plan nonetheless </li></ul></ul><ul><li>Establish objectives, prioritize, specify steps </li></ul><ul><li>Cash flow is not profits and is not intuitive </li></ul><ul><ul><li>It is, however, critical to success </li></ul></ul><ul><li>Communicate </li></ul><ul><ul><li>Banks, investors, partners, family </li></ul></ul>
    41. 41. CRITICAL QUESTIONS <ul><ul><li>Who are you? </li></ul></ul><ul><ul><li>What is your product? </li></ul></ul><ul><ul><li>Who will buy your product? </li></ul></ul><ul><ul><li>Why do they buy your product? </li></ul></ul><ul><ul><li>What price will your customers pay? </li></ul></ul><ul><ul><li>How many will they buy at this price? </li></ul></ul><ul><ul><li>How many can you make? </li></ul></ul><ul><ul><li>How much does each unit of product cost you to make? </li></ul></ul><ul><ul><li>How much investment do you need to get started? </li></ul></ul><ul><ul><li>Have you a viable business? </li></ul></ul>
    42. 42. PROCESS & OUTPUT Exec Sum Intro Project Outline Ownership Mkt'g Production Finance & Funding App'x My product I am Start-up investment Viable business ? My customers: Are / Will buy / Will pay I can make It costs to make In summary
    43. 43. WRITING A BUSINESS PLAN <ul><li>Assemble information from your research </li></ul><ul><li>Use template / software </li></ul><ul><li>Start in the middle </li></ul><ul><li>Reflect your plans in the financials </li></ul><ul><li>Write for the audience </li></ul>
    44. 44. INTRO / EXEC. SUMMARY <ul><li>Brief / concise / relevant </li></ul><ul><li>Tailored to audience </li></ul><ul><li>Key messages – emphasise achievements </li></ul><ul><li>What do you want from the reader? </li></ul><ul><li>Ooomph! </li></ul><ul><li>Last part to be written </li></ul><ul><li>CRITICAL </li></ul>
    45. 45. TAILORING BUSINESS PLANS <ul><li>Different plans for different audiences </li></ul><ul><ul><li>Level of detail </li></ul></ul><ul><ul><li>Level of confidentiality </li></ul></ul><ul><ul><li>Nature of relationship with reader </li></ul></ul><ul><li>Why do YOU want the person to read the BP? </li></ul><ul><li>Why do THEY want to read the BP (if at all)? </li></ul>
    46. 46. BUSINESS PLAN ISSUES <ul><li>Raise your sights! </li></ul><ul><li>Marketing – where will the sales come from? </li></ul><ul><li>Financials – realism/sensitivity? </li></ul><ul><li>Text / Evidence / Numbers </li></ul><ul><li>SHOW ME THE MONEY !! </li></ul>
    47. 47. <ul><li>Questions / queries: </li></ul><ul><li>[email_address] </li></ul><ul><li>www.startingabusinessinireland.com </li></ul>

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