Your SlideShare is downloading. ×
TiE Institute Early Stage Entrepreneurs
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

TiE Institute Early Stage Entrepreneurs


Published on

This deck was prepared by Kanchan Kumar, Nandini Mansighka and presented by Nandini at the #TiEInstitute session on creating B Plans for early stage companies.

This deck was prepared by Kanchan Kumar, Nandini Mansighka and presented by Nandini at the #TiEInstitute session on creating B Plans for early stage companies.

Published in: Business, Economy & Finance

  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. Business Plan for early stage companies27-Apr-2013TiE Institute Knowledge SeriesTiE Institute Knowledge Series
  • 2. Objective Understand what/why/how of business-plan Outline for our own business-plan Not meant to help you pitch to the investorTiE Institute Knowledge Series
  • 3. Agenda Introduction : what & why of business-plan Identifying the problem Whats your solution Competitors and Differentiators Estimating Market Size Projecting Revenue Estimating Expenses Growth Strategies for 12/18 months Present your business-planTiE Institute Knowledge Series
  • 4. Session Format Each session 30 minutes including Q&A Followed by 15 minutes for you to work on your B-planTiE Institute Knowledge Series
  • 5. What is a Business Plan?What is it? Like a road map for your road trip A script of the movieWhat is not? Just a fancy spreadsheet with projection of revenue & numbers A document to be prepared and left in cold storage A document to be prepared when looking to raise funding Remember : you would revise every ~3 monthsTiE Institute Knowledge Series
  • 6. Why make a Business Plan? Gives you a sense of direction and a baseline Benchmark of planned route vs. diversions BTW Diversions arent necessarily a bad thing Inculcates a sense of discipline Bring your team on a common page Makes it easy to communicate your ideas Forces you to think thru Prevents impulsive decisionsTiE Institute Knowledge Series
  • 7. How?Hopefully youd learn the answer of How in this sessionTiE Institute Knowledge Series
  • 8. Identify the problem & market What is the problem you are trying to solve Do you have personal experience of the problem How big & common is the problem Will someone pay for the solution? Common pitfalls Make a hammer and then look for a nail to hit Gross generalizations Every smart phone user is my customer Every small company is my customerTiE Institute Knowledge Series
  • 9. Whats your solution Segment the market & focus on one segment at a time Avoid being everything to everybody Design a product/service which focus on the pain pointof the identified segment Hit the market early with the product & iterate faster Understand minimum viable product Can you communicate your product/service in onesimple sentence conveying the valueTiE Institute Knowledge Series
  • 10. Competition, Differentiators & G2M Know your competition. There is nothing worthwhile whichdoesnt have competition Do not think only in terms of direct competition & similarproducts Remember : cell phone cam vs. point & shoot cam Focus on differentiators – for your chosen market segment Plan your go-to-market strategy keeping your target customerin mind Focus on communicating value of your product/service offersTiE Institute Knowledge Series
  • 11. Estimating market size Common pitfalls – gross generalizations, e.g. Education is a $18bn market There are 37mn smart phones in India If I get 1% of market wed have xxx Crores of turnover Focus on specific numbers to arrive at market size Who exactly is your target customer In which geography How many of those are willing & capable of paying How much would they pay Value of alternative product they are buying In case of recurring purchase – how often do they buyTiE Institute Knowledge Series
  • 12. Projecting revenue numbers Be realistic & conservative In the identified market & of the market size estimated : Final figures are irrelevant, devil is in the assumptions. Assumptions drive the projection – so write it down Every time you learn about certain assumptions being right or wrong –re-visit the numbers How many prospects can you reach given your g2m strategy & givenyour resource constraints Understand the sales cycle & sales funnel How many of these prospects would convert into sales Now arrive at sales figuresTiE Institute Knowledge SeriesTiE Institute Knowledge Series
  • 13. Key financial conceptsKey concepts Discussion termsRevenue/ Sales Sales Unit / QuantitySales PriceCosts Fixed CostsVariable CostsCapital costs - expenditureProfit Gross ProfitProfit before taxProfit after taxCash Cash requirementCash burnWorking CapitalCash generated by the business
  • 14. Estimating expenses Always over-estimate your expenses How much money do you have? Work back-wards (particularly if you arebootstrapping) Write down every little expense head (including the salary that you need to draw) Benchmark expenses of other similar companies, ask fellow startups,research Understand the customer acquisition cost, cost of delivery etc Understand how every month your expenses will increase with increasedsales/deliveries/procurement/capacity etc Understand Cash flow, how to stretch every rupee – negotiate for earlyreceipt from customer and late payments to vendors Never hurts to run it thru people who have done it beforeTiE Institute Knowledge Series
  • 15. Plan for 6-12-18 months Your Product, market, revenue & expenses – everything wouldchange over a period of time What took you from 0-10 customer is not what would take youfrom 10-100 and so on... Plan for 12-18 months rolling – but revisit the numbers every 3months minimum, if not earlier Make assumptions for hiring, attrition, competition, regulatory,other risksTiE Institute Knowledge Series
  • 16. Putting it all together Present your business-plan Ask audience to critique based on todays learningsTiE Institute Knowledge Series
  • 17. THANK YOUFollow @tiemumbai for entrepreneurial insightsin 140 charactersTiE Institute Knowledge Series