131313Welcome toRISE WEEK 2013“In The Land of The Blind”How to Write a Successful Business PlanHosted byJeffrey FryProfit Prophetprofitprophet@austin.rr.commacromental.blogspot.comMay 16, 2013
1313“It must be remembered that there is nothing moredifficult to plan, more doubtful of success, normore dangerous to manage than the creation of anew system. For the Initiator has the enmity of allwho would profit by the preservation of the oldinstitution and merely lukewarm defenders in thosewho would gain by the new.”Niccolo Machiavelli, The Prince, 1513
1313TOPICS COVERED• What is a Business Plan?• Back of a Napkin• It is ALL about PROFITS• The BASICS• The 6 Crucial Questions• Traits of an Entrepreneur• A Simple Outline• In the End…what can I see?
1313WHAT IS A BUSINESS PLAN?BNerdvannahAYou Are HereThe Impenetrable Forest ofFinancial WoesMourningMountainsDeficit Dessert
1313SHOW ME THE PROFIT• If you cannot demonstrate that your returnfor a single transaction can be at least 70%then rethink your plan…..NOW.• So if something costs $1 to make or deliver,then I need to sell it for $3.33SP=Cost /(1-Margin) SP=$1.00/(1-.7)=$3.33Margin= [(Sale Price) – Cost]/(Sale Price)
1313THE BASICS• A Business Plan Should NOT be More than 10Pages• 3 of those Pages should be your financialforecasts• Only forecast out for 3 years• Use this plan as YOUR guidemap…
1313QUESTIONS TO ANSWER• What – Am I Making or Doing, Does the CompanyStand For?• Who – Do I need on my Team, Do I need to help me,Am I (my strengths / weaknesses)?• Where – Is this Idea in comparison with other ideas,how far along are we on our journey, Do We makeMoney, Find Customers?• When – Do I start, expand, know I reached amilestone?• How – Am I Going to get from point A to B?• How Much – Money, Time, Help…etc.
1313WHAT QUESTIONS• What Does My Company Stand For?• What Does My Company Do (Product /Service)• What is MY MAJOR DIFFERENTIATOR?• What is MY SECRET SAUCE?• What should I FOCUS ON?• What are MY Strengths / Weakness
1313WHO ARE YOU?CreativeStrivingPerseveranceSelf-ConfidentIntuitiveIndependentSelf-MotivatedOptimisticFocusedForward-LookingDecisiveEnterprisingDisciplinedCooperativeResults OrientedEnergeticPersuasiveOrganized
1313WHO QUESTIONS• Who Do I need on My Team to fill out whatskills I do NOT have?• Who do I need to help:– Raise Money– Manage the Team– Grow Sales– Spread the Word– Mentor Me– Run Operations
1313WHERE QUETSIONS• Where does my company stand in comparisonto other companies?• Where do we make MONEY?• Where do my customers come from?• Where can I partner?• Where is my company going (stay private, IPO,acquisition, etc.)?
1313WHEN QUESTIONS• When do we start sales?• When do we make operational profits?• When do we expand?• When do we add staff?• When do we sell the company?• When do we run out of money?• When is it time to STOP and try somethingelse?• Tied closely to the financial plan…
1313HOW QUESTIONS• How do we operate?• How do we implement our short / long termstrategies?• How do we reach our customers• How do we generate sales?• How do we compete effectively?• How do we grow (adjacent ponds)?
1313HOW MUCH QUESTIONS• How Much Money do I need to start?• How Much Time until we begin sales?• How Much Time until we turn a profit?• How Much Money do we need to stay afloat?• How Much Outside Help do I need?• How Much Time Do I Give Myself?
1313Suggested Reading• The Experience Economy• How to Make Friends and Influence People• 7 Habits of Highly Effective People• The Art of War for Executives• The Luck Factor• It is Not What You Sell, It is What You StandFor• 21 Irrefutable Laws of Leadership