Business Plan Overview: Updated 2009

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Overview of parts of a business plan, suggested resources for creating business plan sections, detailed overview of the business plan narrative section

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Business Plan Overview: Updated 2009

  1. 1. Business Plan Development Creating Your Road Map IMBA Lecture Series (c) 2009 Debra Askanase
  2. 2. Agenda <ul><li>Purpose of a Business Plan </li></ul><ul><li>Parts of the Plan </li></ul><ul><li>Criteria by Section </li></ul><ul><li>Tips </li></ul>(c) 2009 Debra Askanase
  3. 3. Tools <ul><li>Sample Business Plan </li></ul><ul><li>Questionnaires (to get you started) </li></ul><ul><li>Detailed Section Outline </li></ul><ul><li>Contact: Debra Askanase </li></ul><ul><li>[email_address] </li></ul>(c) 2009 Debra Askanase
  4. 4. WHY do we do this? (c) 2009 Debra Askanase
  5. 5. Yes, but WHY ELSE? <ul><li>Know the Industry </li></ul><ul><li>Find your Competitive Advantage </li></ul><ul><li>Analyze Risks </li></ul><ul><li>Develop Your Idea Methodically </li></ul><ul><li>Acquire Investors </li></ul><ul><li>Find Support </li></ul><ul><li>Secure Financing </li></ul><ul><li>… .SHOULD I START THIS VENTURE?? </li></ul>(c) 2009 Debra Askanase
  6. 6. Business Plan Sections (c) 2009 Debra Askanase
  7. 7. Business Plan Sections <ul><li>Narrative Section </li></ul><ul><ul><li>Business Description </li></ul></ul><ul><ul><li>Products and/or Services </li></ul></ul><ul><ul><li>Industry Analysis </li></ul></ul><ul><ul><li>Operations </li></ul></ul><ul><ul><li>Clientele/Target Markets </li></ul></ul><ul><ul><li>Competition </li></ul></ul><ul><ul><li>Marketing Plan </li></ul></ul><ul><ul><li>Personnel/Management </li></ul></ul><ul><ul><li>Long-term Goals </li></ul></ul><ul><ul><li>Risks and Contingencies </li></ul></ul>(c) 2009 Debra Askanase
  8. 8. Business Plan Sections <ul><li>Financial Projections </li></ul><ul><ul><li>Financial Narrative </li></ul></ul><ul><ul><li>Start-up Expenses and Worksheet </li></ul></ul><ul><ul><li>Revenue Assumptions </li></ul></ul><ul><ul><li>Financial Assumptions </li></ul></ul><ul><ul><li>3-5 Year Financial Projections </li></ul></ul><ul><ul><ul><li>Statement of Cash Flows </li></ul></ul></ul><ul><ul><ul><li>Income Statement </li></ul></ul></ul><ul><ul><ul><li>Balance Sheet </li></ul></ul></ul><ul><ul><ul><li>Relevant ratios </li></ul></ul></ul>(c) 2009 Debra Askanase
  9. 9. Business Plan Sections <ul><li>Supporting Documents </li></ul><ul><ul><li>Resume/CV </li></ul></ul><ul><ul><li>Relevant documents/contracts </li></ul></ul><ul><ul><li>Past 3 years of tax returns (if seeking conventional financing) </li></ul></ul><ul><ul><li>Academic research </li></ul></ul><ul><ul><li>Marketing research results </li></ul></ul><ul><ul><li>Other </li></ul></ul>(c) 2009 Debra Askanase
  10. 10. US vs. Israeli Style <ul><li>All presentations, section questionnaires in US format </li></ul><ul><li>Sample outline in combined style </li></ul><ul><li>Lecture series suggests: </li></ul><ul><ul><li>create in US format, then convert to any other style </li></ul></ul>(c) 2009 Debra Askanase
  11. 11. Products and Services <ul><li>Clear, concise descriptions </li></ul><ul><li>Divide into separate sections </li></ul><ul><ul><li>Products </li></ul></ul><ul><ul><li>Services </li></ul></ul><ul><ul><li>Further subdivide into categories </li></ul></ul><ul><li>Value proposition </li></ul><ul><li>Price menu </li></ul><ul><li>Pricing approach/structure </li></ul>(c) 2009 Debra Askanase
  12. 12. Industry Analysis <ul><li>Your Goal: </li></ul><ul><ul><li>Give a comprehensive understanding of the industry </li></ul></ul><ul><ul><li>Defend your business relevance! </li></ul></ul><ul><li>How? </li></ul><ul><ul><li>Describe current situation </li></ul></ul><ul><ul><li>Relevant trends </li></ul></ul><ul><ul><li>Intervening factors </li></ul></ul><ul><ul><li>Size of industry/market potential (total # businesses, annual revenues, etc.) </li></ul></ul><ul><ul><li>Growth potential </li></ul></ul>(c) 2009 Debra Askanase
  13. 13. Industry Analysis <ul><li>Where? </li></ul><ul><ul><li>Academic sources (trade journals, academic journals, Google scholar) </li></ul></ul><ul><ul><li>Economic census (USA) http://www.census.gov/econ/census/ or http://factfinder.census.gov </li></ul></ul><ul><ul><li>Trade Associations </li></ul></ul><ul><ul><li>Online databases/sources: </li></ul></ul><ul><ul><ul><li>Emarketer.com, bizstats.com,hoovers.com/free </li></ul></ul></ul><ul><ul><li>GALE database </li></ul></ul><ul><ul><ul><li>Articles, studies, etc. </li></ul></ul></ul>(c) 2009 Debra Askanase
  14. 14. Operations <ul><li>Straightforward </li></ul><ul><li>(If retail) “paint a picture” of the space (as you walk in you will see/experience etc.) </li></ul><ul><li>Procedures and controls </li></ul><ul><li>Distribution channels </li></ul><ul><li>Payment procedures (in/out) </li></ul><ul><li>Business-specific details </li></ul>(c) 2009 Debra Askanase
  15. 15. Clientele/Target Markets <ul><li>Primary Clientele (>= 50%) </li></ul><ul><li>Secondary Clientele (>= 20%) </li></ul><ul><li>Tertiary Clientele </li></ul><ul><li>Detailed descriptions </li></ul><ul><ul><li>Demographics </li></ul></ul><ul><ul><li>Psychographics </li></ul></ul><ul><ul><li>Spending </li></ul></ul><ul><ul><li>Total market size per market segment </li></ul></ul><ul><li>Use for Revenue Projections </li></ul>(c) 2009 Debra Askanase
  16. 16. Clientele/Target Markets <ul><li>Consumer </li></ul><ul><li>B2B </li></ul><ul><li>Tourist </li></ul><ul><li>Religious </li></ul><ul><li>Example: </li></ul><ul><li>Witch Tee’s (Salem, MA) </li></ul>(c) 2009 Debra Askanase
  17. 17. Competition <ul><li>Match Apples to Apples: Segment your competition </li></ul><ul><li>Your Value Proposition </li></ul><ul><li>Your Competitive Advantage </li></ul><ul><li>2 Types of competitors: </li></ul><ul><ul><li>Direct </li></ul></ul><ul><ul><li>Indirect </li></ul></ul><ul><li>Discuss each significant competitor in depth, can group others </li></ul><ul><li>Identify potential threats and talk about them directly </li></ul>(c) 2009 Debra Askanase
  18. 18. Step Back from the Project! <ul><li>SWOT Analysis/PEST Analysis (next lecture) </li></ul><ul><li>Do you have a real Value Proposition? USP? </li></ul><ul><li>Do you want to start this business? </li></ul><ul><li>Begin financial projections </li></ul>(c) 2009 Debra Askanase
  19. 19. Marketing Plan <ul><li>Your Goal : you understand your market, industry, competitive and competitive advantage </li></ul><ul><li>Within the narrative, consider and describe </li></ul><ul><ul><li>Marketing channels </li></ul></ul><ul><ul><li>Personnel </li></ul></ul><ul><ul><li>Geographic reach and richness </li></ul></ul><ul><ul><li>Tools </li></ul></ul><ul><ul><li>4 (or 5) Ps </li></ul></ul><ul><ul><li>Pricing strategy related to marketing </li></ul></ul>(c) 2009 Debra Askanase
  20. 20. Marketing Plan <ul><li>Quantifiable Goals/Objectives = specific deadline dates, and numerical goals </li></ul><ul><li>Specific, detailed activities </li></ul><ul><li>Complete budget </li></ul><ul><li>Metrics </li></ul><ul><li>Several plans: </li></ul><ul><ul><li>Start-up/awareness </li></ul></ul><ul><ul><li>First year </li></ul></ul><ul><ul><li>First three years </li></ul></ul><ul><ul><li>Marketing calendars are useful tools </li></ul></ul>(c) 2009 Debra Askanase
  21. 21. Personnel and Management <ul><li>Organizational Chart </li></ul><ul><li>Responsibilities </li></ul><ul><li>Salaries </li></ul><ul><li>Professional Advisors </li></ul><ul><li>Advisory Board </li></ul>(c) 2009 Debra Askanase
  22. 22. Long-Term Goals (c) 2009 Debra Askanase
  23. 23. Risks and Contingencies <ul><li>Shows you understand your business </li></ul><ul><li>Deals with investor concerns up front </li></ul><ul><li>Make them real </li></ul><ul><li>Address at least two real risks </li></ul>(c) 2009 Debra Askanase
  24. 24. Financial Narrative (c) 2009 Debra Askanase
  25. 25. Recommended Reading <ul><li>Good to Great & Built to Last Jim Collins </li></ul><ul><li>Blue Ocean Strategy W. Chan Kim </li></ul><ul><li>Getting to Yes: Negotiating Agreement Without Giving In Roger Fisher, William Ury and Bruce Patton </li></ul><ul><li>The E-Myth Revisited Michael E. Gerber </li></ul><ul><li>The Tipping Point Malcolm Gladwell </li></ul><ul><li>The Little Red Book of Selling Jeffrey Gitomar </li></ul><ul><li>Groundswell Forrester Research </li></ul><ul><li>The Wisdom of Crowds James Surowiecki </li></ul>(c) 2009 Debra Askanase

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