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1. ABC Of Business
Planning And Development
Nkem Joseph-Palmer MBA
AGOGO ENTREPRENEURSHIP INITIATIVE
08099901395, 08037093585
nkem@aggogong.com

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3. Oh Dear, What Can The Matter Be?
 “Business is a game, played for fantastic stakes, and you’re in competition with
experts. If you want to be a win, you’ve got to learn to be a master of the
game”- Sydney Sheldon
 The basic decisions are involved in every business:
- The Investment Decision
- The Financing Decision
- The Dividend Decision
 The “Koko” of the matter: MAKING SUSTAINABLE PROFITS!!!
 Current economic downturn has kicked businesses in the guts!
 Businesses must set sustainable goals!

4. Where Do Profits Come From?
 Despite the economy or politics, businesses must survive and be
sustainable!
 Armed robbers and mortuaries make profit too!!
 Simplistically, Profit= Revenue –Expenditure
 Profits can come from either increasing revenue or reducing expenditure!!
 Revenue is generated by OPERATIONS
 Operations give birth to PROFITS!!!
 So does Customer request, Business need/strategic opportunity, Innovation,
Technology, Legal requirements, Market demand and the Environment…

5. What Is Business Planning?
 A business plan is a formal statement of business goals, reasons they are
attainable, and plans for reaching them. It may also contain background
information about the organization or team attempting to reach those
goals.-Wikipedia
 It can be used as a strategy document, management guide or financing
tool.
 For every management system, statistical fluctuations and dependent
events interact to create bottlenecks…Bottlenecks are migratory!!
 Due to anticipated bottlenecks along the business lifecycle, planning the
business is very crucial to sustainability!

6. That’s The Business Life Cycle!

7. The Business Life Cycle…

8. Getting Down To Earth…
 Even as it is true as in America, it is often said that eight out of every ten
businesses fail in their first five years in Nigeria.-EDC/PAU;SMEToolkit
 Excessive focus on products and services, rather than planning and other
management functions, has been identified as the major reason why 60 - 70 per
cent of Small and Medium Enterprises (SMEs) fail in their first three years of
starting operations in Nigeria.-ThisDay Newspapers, Wednesday 15TH July 2015
 Selecting a vibrant industry is a start, but only a start, to improving the
probability of leading a business with staying power. Note that even the industry
with the highest predicted life span of five years barely cleared the 50%
threshold. Thousands of businesses fail even during the best of economic times
and in industries that ride high during those periods.
 The leading cause of business failure was determined to be “Incompetence”.
Fully 46% of failures could be explained by this broad-brush term. The specific
behaviors that underlie this headline, however, are fairly specific and revealing.
These include:

9. Getting Down To Earth…
 Taking an emotional approach to pricing
 Non-payment of taxes
 No knowledge of industry pricing conventions
 No knowledge of financing requirements and conventions
 No experience in record-keeping
 Unbalanced experience or lack of managerial experience
 Living beyond the means of the business
 Lack of planning

10. So How Do We Then Manage
Businesses?
 PLAN ORGANIZE CONTROL
 “Business Management is the activities associated with running a company,
such as controlling, leading, monitoring, organizing, and planning through
the application of knowledge, skills and techniques”
 Scope, scale and complexity is the only differentiation!!
 The first step to managing any business is PLANNING the business!
 Failing to plan, is planning to fail…

11. The Inverted or Reversed Pyramid
Goals- Mission Derived
Objectives- Vision
Derived
Strategies
Targets
Tasks

12. Gleaned From The Reversed Pyramid…
 Mission Statement
 Vision Statement
 Goals
 Objectives
 Strategies
 Organogram
 Team

13. What is Business Development?
 Business development comprises a number of tasks and processes
generally aiming at developing and implementing growth opportunities
within and between organizations. It is a subset of the fields of business,
commerce and organizational theory.
 It is a function that promotes the values of the business plan, and seeks to
meet set goals and objectives, attending to clearly defined baselines.

14. Sales And Business Development Are
Not In The Same Trouser…

15. Business Development Tilts Towards
Marketing…
 The reason behind this, is that typical goals of business development
include brand placement, market expansion, new user acquisition, and
awareness -- all of which are shared goals of marketing. The slight slide
towards sales is simply because of the tactics business development
employs to achieve those goals.

16. Business Development Is A Marketing
Function…

17. The Differentiator…
 Simply stated, the function of sales is to sell directly to the end customer.
The function of business development is to work through partners to sell to
the end customer, in a scalable way.
 Scalability is the differentiator. It allows a company to use pre-existing sales
teams or communities that a partner has developed to reach new
audiences. Sales is very much an equation of capacity, which is why sales
teams tend to grow so large.
 Business development teams, on the other hand, are typically very small,
maintaining their small size by working through existing partner
infrastructures. The art of business development comes in identifying
partners that fit that description, while finding a way to provide value to the
partner's end customer and business.

18. Essentially…
 The foremost word that comes up in the Business Development world is
'relationships'. That's pretty much what it's all about.
 Good business development will help identify, maintain and encourage
relationship building within a firm, building rapport with both suppliers and
customers.
 It helps strengthen the bonds between these links, supporting the marketing
copy and material that establishes your product in the relevant marketplace.
 It helps provide information as to what the client needs to the 'front line' sales
team, assisting them in closing the deal at the end of the process.
 It helps inform management as to how the market is moving, providing insights
into new developments of technology, social media and other digital avenues
that the firm can take advantage of, to build and maintain loyalty.

19. A B C Of Business Planning and
Development
 Business management is both a SCIENCE and an ART
 Throw away the academics and consider these ABCs in the next slides
 We need to get our businesses to work at the desired planned baselines!!!

20. A-BP
 Always properly define what you are involved in: is it a service-oriented business,
a product-focused business or a mix of the two? Conceptualization is key!!!!
 Always clearly state your company’s long-term mission. Try to use words that will
help direct the growth of your company, but be as concise as possible.
 Always summarize your market in the past, present, and future. Review those
changes in market share, leadership, players, market shifts, costs, pricing, or
competition that provide the opportunity for your company’s success.
 Always ensure to identify problems and opportunities. State consumer problems,
and define the nature of product/service opportunities that are created by
those problems.
 Always ensure you summarize the key technology, concept, or strategy on
which your business is based.

21. B-BP
 Be certain that you know who your stakeholders are and ensure proper
stakeholder identification and analysis have been done
 Be smart! Summarize the competition and outline your company’s
competitive advantage
 Beware of constraints: Constraints limit the options of a business manager. A
SWOT Analysis is a useful tool, so is an environmental analysis (PESTLE)
 Be sure to list five-year goals. State specific, measurable objectives for
achieving your five-year goals. List market-share objectives. List
revenue/profitability objectives.
 Be very careful with supply chain management and procurement

22. C-BP
 Cultivate and outline a high-level financial plan that defines your financial
model and pricing assumptions. This plan should include expected annual
sales and profits for the next three years.
 Collect and list requirements for the following resources: Personnel,
Technology, Finances, Distribution, Promotion, Products, Services etc
 Capable business managers must have interpersonal skills and general
management skills such as negotiation, leadership and mentoring
 Cut out waste of every type in terms of money, time or scope
 Consider summarizing the risks of the proposed business and how they will
be addressed. Estimate expected rewards, particularly if you are seeking
funding

23. A-BD
 Always Scouting: The earliest stage of a company. At this point, business development is
about identifying various routes to market, points of leverage and providing the internal
team early market feedback. The ability to work with product and engineering teams is a
key skill.
 Always Testing: At this stage, biz dev will close a few deals to test assumptions and provide
measureable input before you scale the business. Analytical skills to set up a framework for
what to measure, and examining the data, will determine if and where to scale based on
the company’s strengths and vision.Always summarize your market in the past, present,
and future. Review those changes in market share, leadership, players, market shifts, costs,
pricing, or competition that provide the opportunity for your company’s success.
 Always ensure to identify problems and opportunities. State consumer problems, and
define the nature of product/service opportunities that are created by those problems.
 Always Scaling: After gathering data from early deals and validating a path to achieve
your goals, business development is ready to start replicating deals and putting a support
structure in place.

24. B-BD
 Be certain that you know who your stakeholders are and ensure proper
stakeholder identification and analysis have been done
 Business development will identify and create partnerships that enable
leverage for driving revenue, distribution or that enhance the product. Sales is
focused almost exclusively on driving revenue.
 Beware of constraints: All successful deals are a result of accountability and
proactive management — by both business development and account
management
 Be sure to promote quantitative value! Companies sometimes try to build a
business purely around a qualitative value proposition, which is difficult and has
a higher likelihood of failure. The market is less willing to pay for a better user
experience or the promise of increased engagement, even if they like the
product and find it useful. A quantitative value (lowers cost, drives revenue,
more customers, etc.) dramatically increases the odds of success.

25. C-BD
 Cultivate good business development practices that will engage internal resources along
the way to ensure the company can meet the goals and expectations of a partnership. A
lack of support will almost certainly lead to finger pointing and blaming when things go
south. Everyone should own part of the success or failure from the start.
 Create support from your team, and ensure that everyone needs to understand why the
deal makes sense for your company. Does it drive revenue, lead to new users or enable
the company to enter a new market or vertical? When the goal is clear and measurable, it
makes it easier to address issues like, “Why are we converting below projections?”
 Capable business managers know the difference between doing deals and doing the
right deals. A good dealmaker can help identify a false signal –- when there is just enough
market momentum and revenue to mask the greater opportunity. Conversely, a less
experienced dealmaker or one with the wrong incentives can generate enough
momentum and distract the company from the bigger opportunity.
 Consider that a legal agreement codifies a business arrangement and includes
commercial terms as well as what happens if things do not work out. This requires business
development and legal counsel to assess the business opportunity versus the business risk
and explain the trade-offs to management.

26. FINAL ANALYSIS…
 Near term:
 Identify key decisions and issues that need immediate or near-term
resolution.
 State consequences of decision postponement.
 Long term:
 Identify issues needing long-term resolution.
 State consequences of decision postponement.
 If you are seeking funding, be specific about any issues that require
financial resources for resolution.

27. Wrap Up!
QUESTIONS???
THANKS FOR LISTENING…..