The New Venture
Exploration Plan

8-1
The Exploration Plan
• Objectives
• Carefully articulate the merits, requirements, risks, and
potential rewards of the opp...
What Does It Reveal?
• An exploration plan for a high potential venture
reveals the business’ ability to:
• Create or add ...
Writing the Plan
• Steps outlining the process by which a New Venture
Exploration plan is written:
• Segmenting informatio...
Contents of the Report…
I. EXECUTIVE SUMMARY
• Description of the business concept and the business opportunity and
strate...
Contents…
II.

THE INDUSTRY AND THE COMPANY AND ITS
PRODUCT(S) OR SERVICE(S)
•
•
•
•

The industry
The company and the con...
Contents…
IV.
•
•
•
•
•

THE ECONOMICS OF THE BUSINESS
Gross and operating margins
Profit potential and durability
Fixed, ...
Contents…
VI.
•
•
•
•
•

DESIGN AND DEVELOPMENT PLAN
Development status and tasks
Difficulties and risks
Product improveme...
Contents…
VIII. MANAGEMENT TEAM
• Organization
• Key management personnel
• Management compensation and ownership
• Other ...
Contents…
IX.

SUSTAINABILITY AND IMPACT

• Issues of sustainability of the venture
• Impact on the environment
• Impact o...
Contents…
XII. THE FINANCIAL PLAN – 3 to 5 years visibility
• Cost of project

•
•
•
•
•
•

Means of financing
Profit and ...
IMPORTANT: Don’t Forget!!!!!!

Individual submissions
In addition to group project report submission and
presentations, ea...
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The new venture exploration plan

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The new venture exploration plan

  1. 1. The New Venture Exploration Plan 8-1
  2. 2. The Exploration Plan • Objectives • Carefully articulate the merits, requirements, risks, and potential rewards of the opportunity and how it will be seized • Demonstrate how your team has been able to convert all the research, careful thought, and creative problem solving from the Venture Opportunity Screening Exercises into a New Venture Exploration plan 8-2
  3. 3. What Does It Reveal? • An exploration plan for a high potential venture reveals the business’ ability to: • Create or add significant value to a customer or end user • Solve a significant problem, or meet a significant want or need for which someone will pay a premium • Have robust market, margin, and moneymaking characteristics • Fit well with the founder(s) and management team at the time, in the marketplace, and with the risk-reward balance 8-3
  4. 4. Writing the Plan • Steps outlining the process by which a New Venture Exploration plan is written: • Segmenting information • Creating an overall schedule • Creating an action calendar • Doing the work and writing the plan Key Dates: • Submission of “Draft” report AND Presentation: Sat.3rd August, 2013 (50% weightage) • Submission of “Final “ report AND Presentation: Sat.31st August, 2013 (30% weightage) 8-4
  5. 5. Contents of the Report… I. EXECUTIVE SUMMARY • Description of the business concept and the business opportunity and strategy • Target market and projections • Competitive advantages • Costs • The team • The offering 8-5
  6. 6. Contents… II. THE INDUSTRY AND THE COMPANY AND ITS PRODUCT(S) OR SERVICE(S) • • • • The industry The company and the concept The product(s) or service(s) Entry and growth strategy III. MARKET RESEARCH AND ANALYSIS • • • • • Customers Market size and trends Competition and competitive edge Estimated market share and sales Ongoing market evaluation 8-6
  7. 7. Contents… IV. • • • • • THE ECONOMICS OF THE BUSINESS Gross and operating margins Profit potential and durability Fixed, variable, and semivariable costs Months to breakeven Months to reach positive cash flow V. MARKETING PLAN • • • • • • Overall marketing strategy Pricing Sales tactics Service and warranty policies Advertising and promotion Distribution 8-7
  8. 8. Contents… VI. • • • • • DESIGN AND DEVELOPMENT PLAN Development status and tasks Difficulties and risks Product improvement and new products Costs Proprietary issues VII. • • • • • MANUFACTURING AND OPERATIONS PLAN Operating cycle Geographical location Facilities and improvements Strategy and plans Regulatory and legal issues 8-8
  9. 9. Contents… VIII. MANAGEMENT TEAM • Organization • Key management personnel • Management compensation and ownership • Other investors • Employment arrangements and plans • Supporting professional advisors and services 8-9
  10. 10. Contents… IX. SUSTAINABILITY AND IMPACT • Issues of sustainability of the venture • Impact on the environment • Impact on the community, nation X. OVERALL SCHEDULE XI . CRITICAL RISKS, PROBLEMS, AND POSSIBLE OPTIONS TO MIGATE THEM 8 - 10
  11. 11. Contents… XII. THE FINANCIAL PLAN – 3 to 5 years visibility • Cost of project • • • • • • Means of financing Profit and loss Cash-flow Breakeven chart and calculations Sensitivity analyses Tables can go as an “Appendix” Note: Each line item should have a proper justification/assumptions/basis 8 - 11
  12. 12. IMPORTANT: Don’t Forget!!!!!! Individual submissions In addition to group project report submission and presentations, each participant is expected to submit a separate report that reflects: a) specific contributions made to the project and b)key learnings from the project work as well the process This will impact individual assessment and grading! Deadline: Sat. 31st August, 2013 8 - 12
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