Business plan basics by M. Hariharan (Savior Faire)

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This slide deck was presented by M. Hariharan at the TiE Institute Knowledge Series session by M. Hariharan

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Business plan basics by M. Hariharan (Savior Faire)

  1. 1. Starting Up – Creating a Business Plan<br />June 19, 2010<br />M Hariharan<br />Director<br />Savoir faire <br />Management Services Pvt Ltd<br />
  2. 2. Stability<br />Rigidity<br />Flexibility<br />Confusion<br />
  3. 3. Road Map<br />Understand the “Customer” of the Business Plan<br />Egg or Hen – starting point for the business plan<br />Where do I start? – Market or Capabilities<br />Assumptions<br />Tie-up the loose ends<br />
  4. 4. Customer of the Business Plan<br />Long Term Investor<br />Lender<br />Long Term Profit Earning Potential<br />Will my money be safe?<br />Venture Capitalist/ Private Equity<br />Customer<br />Intention of showing the Business Plan to the Customer?!<br />Scalability; Exit<br />Yourself<br />Convincing yourself<br />
  5. 5. Road Map<br />Understand the “Customer” of the Business Plan<br />Egg or Hen – starting point for the business plan<br />Where do I start? – Market or Capabilities<br />Assumptions<br />Tie-up the loose ends<br />
  6. 6. Investing<br />Application of Funds<br />Source of Funds<br />Financing<br />Money Required<br />Money Funded<br />Fixed Assets<br />Share Capital<br />Net Worth<br />+ Reserves<br />Working Capital<br />Loaned Funds<br />Balance Sheet Basics<br />
  7. 7. Egg or Hen?<br />This is what I require…. ஃ this is the funding required ……. OR<br />This is the funding available … ஃ this is what I’ll do with that fund <br />
  8. 8. Sourcing options<br />Venture Capital<br />Seed Capital<br />Angel Investor<br />Private Equity<br />Lender<br />Boot Strap<br /><ul><li> Long Term
  9. 9. Managerial and Tech expertise
  10. 10. High risk, High return
  11. 11. Long term influence in the venture
  12. 12. Friends and relatives
  13. 13. Pre-revenue stage
  14. 14. To attract the attention of the Venture Capital
  15. 15. To get the business off the ground
  16. 16. “At risk” investment of promoters
  17. 17. More favourable terms than other type of investors
  18. 18. For the person than the project
  19. 19. Focus on helping the business succeed than huge profit for the future
  20. 20. Not quoted on exchanges
  21. 21. Revival, multiple investors
  22. 22. Buy, Strip and Flip
  23. 23. Building company from own finances</li></li></ul><li>Road Map<br />Understand the “Customer” of the Business Plan<br />Egg or Hen – starting point for the business plan<br />Where do I start? – Market or Capabilities<br />Assumptions<br />Tie-up the loose ends<br />
  24. 24. Market or Capabilities<br />Key factor/ Limiting Factor/ Constraint<br />I know the size of the market I am going to address<br />I know the amount I require to run my business to start with<br />
  25. 25. Road Map<br />Understand the “Customer” of the Business Plan<br />Egg or Hen – starting point for the business plan<br />Where do I start? – Market or Capabilities<br />Assumptions<br />Tie-up the loose ends<br />
  26. 26. Assumptions<br />Info.Sources<br />Timing<br />Valid Assumption<br />Growth<br />Controls<br />Ockham’s razor (Pluralis non estponenda sine neccesitate)<br />Explicit vs implicit assumptions<br /><ul><li>Understand the domains of control and influence</li></li></ul><li>Beyond<br />Influence &<br />Control<br />Within<br />Sphere of<br /> Influence<br />Domains of Influence and control<br />Within<br />Span of <br />Control<br />
  27. 27. Assumptions<br />Info.Sources<br />Timing<br />Valid Assumption<br />Growth<br />Controls<br /><ul><li>Ockham’s razor (Pluralis non estponenda sine neccesitate)
  28. 28. Explicit vs implicit assumptions
  29. 29. Understand the domains of control and influence
  30. 30. Assumptions proving incorrect
  31. 31. Mistrust the obvious</li></li></ul><li>Road Map<br />Understand the “Customer” of the Business Plan<br />Egg or Hen – starting point for the business plan<br />Where do I start? – Market or Capabilities<br />Assumptions<br />Tie-up the loose ends<br />
  32. 32. Prosper<br />Purpose<br />Process<br />People<br />
  33. 33. Sales Plan<br />Production Plan<br />Cost Plan<br />Projected <br />Profit and Loss Account<br />Investment Plan<br />Debt/ Equity<br />Plan<br />Projected <br />Balance Sheet<br />Charts/ Graphs and Pictures<br />Milestone reporting<br />Cash Flow Statement<br />Assumptions<br />Critical Annexures<br />
  34. 34. What makes a good plan?<br />Simple<br />Is it easy to understand and to act on? Does it communicate its contents easily and practically? <br />Specific<br />Are its objectives concrete and measurable? Does it include specific actions and activities, each with specific dates of completion, specific persons responsible and specific budgets? <br /><ul><li>Realistic
  35. 35. Are the sales goals, expense budgets, and milestone dates realistic? Is the plan complete?
  36. 36. Complete
  37. 37. Does it include all the necessary elements? </li></ul>Results<br />Simple<br />Specific<br />Plan<br />Actions<br />Realistic<br />Complete<br />Follow <br />up<br />
  38. 38. Have a satisfied customer to have satisfied investor<br />Thank you<br />hari@sfccostmanagment.com<br />www.sfccostmanagement.com<br />+919821160114<br />

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