Business Planning  and preparing a  Business Plan Anjana Vivek [email_address] www.bizkul.com
BEFORE YOU START <ul><li>Spend some time on some analysis </li></ul><ul><li>WHAT  is the purpose of the business plan   </...
BEFORE YOU START <ul><li>Think through </li></ul><ul><li>WHAT  are the strengths – that you bring to this business </li></...
AT THE STARTING POINT <ul><li>Before starting on preparing the business plan, think through the following: </li></ul><ul><...
AT THE STARTING POINT <ul><li>Different persons may view the business plan differently </li></ul><ul><li>Try to understand...
AT THE STARTING  POINT <ul><li>Just because someone rejects or scoffs at your idea, does not mean it is bad </li></ul><ul>...
THE PLAN DOCUMENT <ul><li>You may prepare a detailed plan in sections, which you may be stand alone and kept for different...
BUSINESS PLAN <ul><li>The document must be self speaking:  ie minimum clarification must be required from your end (partic...
<ul><li>Plan on format of report and how data, information, analysis, comments etc. are to be presented  </li></ul><ul><ul...
<ul><li>Avoid using graphs for the sake of using graphs; tables for the sake of using tables etc. without substance in the...
CONTENTS <ul><li>Table of contents </li></ul><ul><li>Executive summary </li></ul><ul><li>Sections/chapters/paras </li></ul...
CHAPTERS - Illustrative <ul><li>Company and background information </li></ul><ul><li>Management team, organisation structu...
CHAPTERS - Illustrative <ul><li>Company and background information </li></ul><ul><ul><li>Background history if existing co...
CHAPTERS - Illustrative <ul><li>Company and background information </li></ul><ul><ul><li>Vision and mission statement </li...
CHAPTERS - Illustrative <ul><li>Management team, organisation structure </li></ul><ul><ul><li>Experience and qualification...
CHAPTERS - Illustrative <ul><li>Business idea, strategy and implementation plan, including inter-alia: </li></ul><ul><ul><...
CHAPTERS - Illustrative <ul><li>Business idea, strategy and implementation plan, including inter-alia: </li></ul><ul><ul><...
CHAPTERS - Illustrative <ul><li>Marketing plan  </li></ul><ul><ul><li>Target market size </li></ul></ul><ul><ul><li>Market...
CHAPTERS - Illustrative <ul><li>Financial details  </li></ul><ul><ul><li>Past financials: Balance sheet, P&L account and c...
CHAPTERS - Illustrative <ul><li>Financial details  </li></ul><ul><ul><li>Sensitivity analysis for key parameters, eg sales...
CHAPTERS - Illustrative <ul><li>Other information  </li></ul><ul><ul><li>Time lines, implementation schedule, expected dat...
PREPARING THE BUSINESS PLAN  <ul><li>PRESENTATION IS THE KEY </li></ul><ul><li>CAPTURE THE READER’S INTEREST </li></ul><ul...
<ul><li>Document should be consistent, flow well (date formats, number formats, serial number flow, prefix to names, gramm...
<ul><li>Format and style should be neat, consistent, professional giving attention to details of: </li></ul><ul><ul><li>fo...
BUSINESS PLAN <ul><li>Points to consider </li></ul><ul><ul><li>You must believe in the idea to sell it </li></ul></ul><ul>...
UPDATES &CHANGES IN BUSINESS PLAN <ul><li>Points to consider </li></ul><ul><ul><li>If there has been substantial change, u...
UPDATES &CHANGES IN BUSINESS PLAN <ul><li>Points to consider </li></ul><ul><ul><li>If there is inconsistency between one p...
PRESENTATION OF BUSINESS PLAN <ul><li>Content, value to listener, any take away? </li></ul><ul><li>In preparing a presenta...
PRESENTATION OF BUSINESS PLAN <ul><li>In preparing a presentation </li></ul><ul><ul><li>Avoid clutter (generally not more ...
APPENDIX  <ul><li>Planning for a business </li></ul><ul><li>Plan for advisors / accountants / lawyers </li></ul><ul><li>Ed...
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Business Plan

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Business Plan

  1. 1. Business Planning and preparing a Business Plan Anjana Vivek [email_address] www.bizkul.com
  2. 2. BEFORE YOU START <ul><li>Spend some time on some analysis </li></ul><ul><li>WHAT is the purpose of the business plan </li></ul><ul><ul><li>Is it for internal use </li></ul></ul><ul><ul><li>Is it for investors (VC/bank/angel investor) </li></ul></ul><ul><ul><li>For other purpose (incubation) </li></ul></ul>www.bizkul.com
  3. 3. BEFORE YOU START <ul><li>Think through </li></ul><ul><li>WHAT are the strengths – that you bring to this business </li></ul><ul><li>WHAT are the constraints that you have to either </li></ul><ul><ul><li>Address or </li></ul></ul><ul><ul><li>Accept (and work keeping this in mind) </li></ul></ul>www.bizkul.com
  4. 4. AT THE STARTING POINT <ul><li>Before starting on preparing the business plan, think through the following: </li></ul><ul><ul><li>PUT YOURSELF IN THE READER’S PLACE </li></ul></ul><ul><ul><li>What is the reader looking for in a business plan? </li></ul></ul><ul><ul><li>What is the message you are trying to convey through the business plan? </li></ul></ul>www.bizkul.com
  5. 5. AT THE STARTING POINT <ul><li>Different persons may view the business plan differently </li></ul><ul><li>Try to understand background and experience of person/group to whom plan is shown </li></ul>www.bizkul.com
  6. 6. AT THE STARTING POINT <ul><li>Just because someone rejects or scoffs at your idea, does not mean it is bad </li></ul><ul><li>Try to take some learnings from rejections </li></ul>www.bizkul.com
  7. 7. THE PLAN DOCUMENT <ul><li>You may prepare a detailed plan in sections, which you may be stand alone and kept for different purposes, ie sections for internal use, for investor and for banker </li></ul><ul><li>Keep a track on versions to minimise confusion and possible errors </li></ul><ul><li>Keep control of access to the document </li></ul>www.bizkul.com
  8. 8. BUSINESS PLAN <ul><li>The document must be self speaking: ie minimum clarification must be required from your end (particular attention to be paid to explaining abbreviations/short forms and technical terms) </li></ul><ul><li>The document must be reader friendly: key information that you want to convey should not be hidden amongst too much details </li></ul><ul><li>Do not think only of what you want to tell, rather think about what your target would want to hear </li></ul>www.bizkul.com
  9. 9. <ul><li>Plan on format of report and how data, information, analysis, comments etc. are to be presented </li></ul><ul><ul><li>To move what is not essential to flow of document to main report </li></ul></ul><ul><ul><li>Think of content required to capture attention of reader; avoiding excessive information overload </li></ul></ul>BUSINESS PLAN www.bizkul.com
  10. 10. <ul><li>Avoid using graphs for the sake of using graphs; tables for the sake of using tables etc. without substance in the document </li></ul><ul><li>Avoid information overload, i.e. temptation to disclose all you know and demonstrate your knowledge and experience about the business </li></ul><ul><li>Make attempts to protect your intellectual property if any </li></ul>BUSINESS PLAN www.bizkul.com
  11. 11. CONTENTS <ul><li>Table of contents </li></ul><ul><li>Executive summary </li></ul><ul><li>Sections/chapters/paras </li></ul><ul><li>Summary/conclusion </li></ul><ul><li>Appendix of abbreviations, references, other annexures </li></ul><ul><li>Graphs, tables, figures to be numbered and labelled </li></ul>www.bizkul.com
  12. 12. CHAPTERS - Illustrative <ul><li>Company and background information </li></ul><ul><li>Management team, organisation structure </li></ul><ul><li>Business idea, strategy and implementation plan </li></ul><ul><li>Marketing plan </li></ul><ul><li>Financial details </li></ul><ul><li>Other information such as implementation schedule, statutory environment applicable etc. </li></ul>www.bizkul.com
  13. 13. CHAPTERS - Illustrative <ul><li>Company and background information </li></ul><ul><ul><li>Background history if existing company; current status </li></ul></ul><ul><ul><li>Rationale for existing business or new start up </li></ul></ul><ul><ul><li>General industrial environment of business </li></ul></ul><ul><ul><li>Brief background of promoters </li></ul></ul>www.bizkul.com
  14. 14. CHAPTERS - Illustrative <ul><li>Company and background information </li></ul><ul><ul><li>Vision and mission statement </li></ul></ul><ul><ul><li>Goals and objectives </li></ul></ul><ul><ul><li>Key business drivers and key constraints; SWOT and business strategy </li></ul></ul><ul><ul><li>Other key information to make initial background information complete </li></ul></ul>www.bizkul.com
  15. 15. CHAPTERS - Illustrative <ul><li>Management team, organisation structure </li></ul><ul><ul><li>Experience and qualification of promoters and key team </li></ul></ul><ul><ul><li>Organisation structure </li></ul></ul><ul><ul><li>Any key organisation/HR policies </li></ul></ul>www.bizkul.com
  16. 16. CHAPTERS - Illustrative <ul><li>Business idea, strategy and implementation plan, including inter-alia: </li></ul><ul><ul><li>Vision, mission </li></ul></ul><ul><ul><li>Product/service offered </li></ul></ul><ul><ul><li>Operational details </li></ul></ul><ul><ul><li>USP(unique selling point); barriers to competition </li></ul></ul><ul><ul><li>Differentiator </li></ul></ul><ul><ul><li>Strategy to handle competition </li></ul></ul>www.bizkul.com
  17. 17. CHAPTERS - Illustrative <ul><li>Business idea, strategy and implementation plan, including inter-alia: </li></ul><ul><ul><li>Details of any in-house techonology/process or idea; or source of technology, ie technology transfer through collaboration </li></ul></ul><ul><ul><li>Details of alliance partners, current as well as proposed </li></ul></ul><ul><ul><li>Details of any intellectual property associated with the business </li></ul></ul>www.bizkul.com
  18. 18. CHAPTERS - Illustrative <ul><li>Marketing plan </li></ul><ul><ul><li>Target market size </li></ul></ul><ul><ul><li>Market research details </li></ul></ul><ul><ul><li>Customer profiles; existing, potential/pipeline </li></ul></ul><ul><ul><li>Marketing strategy </li></ul></ul><ul><ul><li>Pricing strategy </li></ul></ul>www.bizkul.com
  19. 19. CHAPTERS - Illustrative <ul><li>Financial details </li></ul><ul><ul><li>Past financials: Balance sheet, P&L account and cash flow summary for five year period if available </li></ul></ul><ul><ul><li>Future forecast – five years in summary (detailed schedules may be in appendix) </li></ul></ul><ul><ul><li>Details of how funds will be raised and utilised </li></ul></ul><ul><ul><li>Details of contribution from promoters (cash/kind) </li></ul></ul>www.bizkul.com
  20. 20. CHAPTERS - Illustrative <ul><li>Financial details </li></ul><ul><ul><li>Sensitivity analysis for key parameters, eg sales variations of + / - 10% </li></ul></ul><ul><ul><li>Scenario analysis: </li></ul></ul><ul><ul><li>optimistic, normal and pessimistic (budget) </li></ul></ul><ul><ul><li>Key ratios, break even, project IRR </li></ul></ul><ul><ul><li>Other information such as quality of key parameters, ie revenue based on geography </li></ul></ul><ul><ul><li>Cash burn, i.e. monthly requirement of cash and requirement for capital investment in phases </li></ul></ul>www.bizkul.com
  21. 21. CHAPTERS - Illustrative <ul><li>Other information </li></ul><ul><ul><li>Time lines, implementation schedule, expected date of commercialisation </li></ul></ul><ul><ul><li>Regulatory environment if applicable, ie environmental laws for pharma company </li></ul></ul><ul><ul><li>Other information which may be relevant to the business </li></ul></ul><ul><ul><li>Include any required references, contact information, data and statistics </li></ul></ul>www.bizkul.com
  22. 22. PREPARING THE BUSINESS PLAN <ul><li>PRESENTATION IS THE KEY </li></ul><ul><li>CAPTURE THE READER’S INTEREST </li></ul><ul><li>Think through the format of report and how data, information, analysis, comments etc. are to be presented </li></ul>www.bizkul.com
  23. 23. <ul><li>Document should be consistent, flow well (date formats, number formats, serial number flow, prefix to names, grammar and tense used, avoid long sentences, spell check, US/British English not to be mixed etc.) </li></ul><ul><li>Source information for data, content to be disclosed </li></ul>PREPARING THE BUSINESS PLAN www.bizkul.com
  24. 24. <ul><li>Format and style should be neat, consistent, professional giving attention to details of: </li></ul><ul><ul><li>format styles, font sizing, colours not too light, legibility, header, footer, headings, para alignment, spacing </li></ul></ul>PREPARING THE BUSINESS PLAN www.bizkul.com
  25. 25. BUSINESS PLAN <ul><li>Points to consider </li></ul><ul><ul><li>You must believe in the idea to sell it </li></ul></ul><ul><ul><li>Homework before hand, adequate knowledge </li></ul></ul><ul><ul><li>Credibility is important, ie if caught with one falsehood, nothing said would be believed </li></ul></ul>www.bizkul.com
  26. 26. UPDATES &CHANGES IN BUSINESS PLAN <ul><li>Points to consider </li></ul><ul><ul><li>If there has been substantial change, update the plan </li></ul></ul><ul><ul><li>The difficulty is when there are too many versions which are around </li></ul></ul>www.bizkul.com
  27. 27. UPDATES &CHANGES IN BUSINESS PLAN <ul><li>Points to consider </li></ul><ul><ul><li>If there is inconsistency between one plan and the other, this is to be reconciled, at least for internal records if not for external communication </li></ul></ul><ul><ul><li>While the plan is to be updated to reflect reality and changes, too many such changes give wrong signals </li></ul></ul>www.bizkul.com
  28. 28. PRESENTATION OF BUSINESS PLAN <ul><li>Content, value to listener, any take away? </li></ul><ul><li>In preparing a presentation </li></ul><ul><ul><li>Master slide can be useful </li></ul></ul><ul><ul><li>Include page numbers </li></ul></ul><ul><ul><li>Use clear headers to demonstrate slide topic </li></ul></ul>www.bizkul.com
  29. 29. PRESENTATION OF BUSINESS PLAN <ul><li>In preparing a presentation </li></ul><ul><ul><li>Avoid clutter (generally not more than 5 points per slide) </li></ul></ul><ul><ul><li>Pay attention to details: colour combinations, business logo legibility, consistency of message </li></ul></ul><ul><ul><li>Clarity, tone, steady speed in speaking </li></ul></ul>www.bizkul.com
  30. 30. APPENDIX <ul><li>Planning for a business </li></ul><ul><li>Plan for advisors / accountants / lawyers </li></ul><ul><li>Educate oneself about the law and regulations to be followed </li></ul><ul><li>Educate oneself on basics of managing a business and finance </li></ul><ul><li>Plan for long term impact of decisions taken with regard to hiring employees, taking office space etc. </li></ul>www.bizkul.com

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