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Business Planing for startups


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Business Planing for startups

Business Planing for startups

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  • 1. Business Planning for StratupsGoa Startup LaunchpadVivek 526 7129
  • 2. About Me• Over 10 years experience in manufacturing industriesinvolved in producing consumer products, constructionhardware, auto parts.• Have worked in various positions from supervisor toVice President• Currently working as consultant and coach for businessowners and startups• Passionate about learning the art and science ofstartups
  • 3. About Goa Startup Launchpad• Mission to Empower Entrepreneurs in Goa tostart and grow their businesses• Promote entrepreneurship of all types fromgrassroots level to high tech• Work with incubators to help acceleratebusinesses• Connect with entrepreneurs, visionaries andgame changers of Goa
  • 4. Join the MissionGoa Startup Launchpadhttp://goastartuplaunchpad.in
  • 5. What is a Business Plan?
  • 6. Business plan is a narrative of various Customer,Product, financial and operational hypotheses ofthe business
  • 7. Many names ….• Presented to a banker, it may be called a "loanproposal." A venture capital group might call itthe "venture plan" or "investmentprospectus."
  • 8. Why do we write a Business Plan?
  • 9. • Communicating the idea• Becomes guide for future decisions• Helps to identify potential risks• Getting fundingMostly this is the only reason youwrite a business plan
  • 10. You cannot use business Plan for…running yourStartupMore about this later….
  • 12. Every Business Plan must have• Executive Summary• Company Description• Market Analysis• Organization and Management Structure• Products or services• Sales and Marketing• Financial Projection
  • 13. Other Things that can be Included• Funding Request• Personal Financial Statements of the founders• Startup expenses and Capitalization• Exit plan for VC, Investors• Operational plan
  • 14. 20 to 40 pages of….Blah… blah…blah…
  • 15. First thing last…
  • 16. Executive Summary• Is the most important part of the plan• May be the only part that is read in detail bythe investors• Should be able to precisely explain the majoraspects of the venture in about 30 seconds• It is always written last
  • 17. Company Description• What business will you be in? What will youdo?• Company Goals and Objectives• To whom will you market your products?• Describe your industry• Describe your most important companystrengths and core competencies• Legal form of ownership
  • 18. Market Analysis• Industry Description and Outlook• Information About Your Target Market• Demographics and critical needs of your potentialcustomers• Size of the Target market• How much market share can you gain?• Pricing gross margin targets• Competitive analysis• Regulatory restrictions
  • 19. Organization and ManagementStructure• Organizational Structure• Ownership Information• Board of Directors Qualifications• Key advisors, consultants, mentors
  • 20. Products or services• A Description of Your Product / Service• Details of lifecycle of products or service• R&D activities• Intellectual property
  • 21. Sales and Marketing• market penetration strategy• growth strategy• Channels of distribution strategy• Sales Force• Sales process
  • 22. Financial Projection• 12-Month Profit and Loss Projection• Projected Cash Flow• Opening Day Balance Sheet• Break-Even Analysis
  • 23. Other items may be included asneeded
  • 24. A Good Plan will Have• Good and unique business concept• Good understanding of the market• Market that is growing or is stable• Capable Management Team• Sound financial understanding• Business Focus
  • 25. EXERCISE
  • 26. Spend two minutes to Answer each setof questions
  • 27. 1. Company Description2. Market Analysis3. Organization and Management Structure4. Products or services5. Sales and Marketing6. Financial Projection
  • 28. This is just the start…you have to spend lot of time doingresearch and fine tune yourcalculations to complete the plan
  • 29. “A good plan violently executed now is better thana perfect plan executed next week.”- George S. Patton
  • 30. Even with all the research it is justa hypothesis
  • 31. Imagine updating this 20 to 40 pagedocument every time your startuplearns more about your market,customer and the offering
  • 32. It is very tedious process…and not suitable for startups
  • 33. Can we avoid it?
  • 34. Not entirely…because the banks or yourinvestors use it as document tojudge your business worthiness
  • 35. Startups are constantly learning…and has to spend their time andenergy to use this knowledge to find astable, scalable business model
  • 36. Startup is different…Startup Business
  • 37. They cannot waste their timeupdating the long business plan…Yet they need something to keeptrack of their learning
  • 38. The solution….
  • 39. Business Model Canvas
  • 40. What Is a Business Model?• Diagram of flows between company andcustomers• Scorecard of hypotheses testing• Rapid change with each iteration and pivot• Founder-driven* Alex Osterwalder
  • 41. 9 building blocks of a businessmodel:Reference: Lean Launchpad Class – Steve Blank
  • 42. 9 GuessesGuess GuessGuessGuessGuessGuessGuessGuessGuess
  • 43. Process of testing the guesses tofind facts isCustomer Development
  • 44. Business starts with an idea….Once we find a scalable businessmodel we can start building thecompany…
  • 45. Scalable Startup ( Focus on Search)IdeaSize of theOpportunityBusinessModel(s)CustomerDiscoveryCustomerValidationLarge Company (Focus on Execution)-Total Available Market > $500m- Company can grow to $100m/year- Business model found- Focused on execution and processReference: Lean Launchpad Class – Steve BlankCompanyBuildingWriteBusiness PlanFunding
  • 46. “If you plan on being anything less than you arecapable of being, you will probably be unhappyall the days of your life.”- Abraham Maslow
  • 47. Think Big!
  • 48. Plan for big things! 526 7129