Essentials of a business plan by nurture talentPresentation Transcript
www.nurturetalent.com Business Plan for Entrepreneurs
www.nurturetalent.com Agenda Business Plan documents Presentation Important Ingredients Detailed projections Planning sheet Assumptions sheet Executive Summary Key mistakes to be avoided
www.nurturetalent.com Business Plan Key areas Consumer Team Sales Marketing Operations Financial General Guidelines
www.nurturetalent.com Consumer Who is your consumer/customer? What is her pain point? What is your solution? How will you get your first customer? Key Mistakes “Everyone” is my customer Market Prediction is too high/too low
www.nurturetalent.com Team What is the team’s background and experience? What is the motivation to become an entrepreneur? Are all relevant skills covered by the team?
www.nurturetalent.com Quality of Team Achievements Past performance Sales experience Business expertise Commitment Team bonding Gaps in the team
www.nurturetalent.com Sales What is your sales strategy? Online or offline Direct or distributor Sales team or partners What is the cost of sales?
www.nurturetalent.com Marketing Have you covered all the 4Ps? Product, Price, Place, Promotion How will you market your product? Medium, message, Budgets and Timelines Who are the competitors? How are you better? Have you done market research or made prototype? Key Mistakes We have “no competition” Our 5 friends have told us this will work!
www.nurturetalent.com About the Market Adequately describe the market – check if it is realistic Size Scope Growth Show a clear marketing plan, including distribution Medium and message Budgets and Timelines Cover after sales service – need and benefit Show existing partnerships - whether service providers, manufacturers, distributors, or third-party developers
www.nurturetalent.com Products/Services Describe your company product/services completely Clarify if you own or license the technology Inform whether patent protection is available Can your product be defended against competition? What customer pain do the product/service address Show the difference between you and your competitors Show the potential in future products/services
www.nurturetalent.com Example slide for MistakeMarketing Strategy We are positioning the company as a competitive-cost, high quality, user-friendly as per consumer requirements in the market place. Marketing includes: Traditional information providers such as Print and Radio Media Interned advertising, along with cross promotional offers E-mailers to databases Multiplex branding Distribution of Blue Cards through theaters Outdoor branding (hoardings) and retail activites, leaflet distribution through partnership College networks, social networking sites and blogging sites.
www.nurturetalent.com Operations If you fail to plan, you plan to fail! When will you start? Where will you start? Will you make or buy your product? How will you supply? What are the technology issues? Key Mistakes No “How to” plan
www.nurturetalent.com Financial Plan Have you got all the revenues and costs correct? Do the financials show a sustainable revenue model? Are the profit margins growing? What are the plans to use funds? What are the plans for sourcing funds?
www.nurturetalent.com Question your Financial Plan Has the company provided adequate and understandable current and projected financial statements? Are the company’s projections realistic? Do the financials show a viable and sustainable revenue model? Has the company adequately considered all costs associated with developing and marketing its product/services?
Has the company articulated the use of raised funds? Has the company considered a reasonable exit strategy? Have the founders contributed their own capital into the company? www.nurturetalent.com
www.nurturetalent.com Competition Recognize competitors Show the competitive analysis, with key features and benefits Present a strong and factually based reasoning for its competitive advantage Identify other players in the market Does the company need a first-mover position? Timing advantage to make this approach succeed?
www.nurturetalent.com General Guidelines Make a comprehensive plan Complete information and analysis Spend time and thought on Market characteristics Competition, specially differentiation Follow limits for number of slides, timelines, font sizes, colors etc. Keep it clean – do not clutter
General Guidelines Be Objective – talk in numbers Include a Summary page List out assumptions Be Objective – words like better, faster etc. have to be supported by numbers www.nurturetalent.com
www.nurturetalent.com Key Avoidables Do not say we have “No Competition” 1 friend/5 colleague is not a sample size Prototypes work best - Show a demo Lack of sources of information Clarity of figures – in lakh/crore etc. “Secret” business ideas