Business plan entreprenurhip

1. BUSINESS PLAN
Prepared By:
Nijaz N

2. BUSINESS PLAN
• A written document that outlines the future activity for an
existing or proposed business venture.
• Is the formal written expression of the entrepreneurial vision,
describing the strategy and operations of the proposed venture.
• A business plan is a document that brings together the key
elements of a business that include details about the products
and services, the cost, sales and expected profits.
• Blue Print

3. Purpose of a Business Plan
• Alignment of team(s)
• Operating plan
• Communication across company, division, department, business
partners
• Investment capital
• Expansion capital (banks, leases)
• Merger/acquisition process

4. BUSINESS PLAN Drivers
Clear Vision of Purpose  The direction the business venture wants to
achieve.
A long term view
Satisfy Real Customers Needs
& Serve Real Customers
 Exceptional customer service that results in
the loyalty of customers, repeat purchases by
them and greater customer retention.
Differentiate from Competitors  Positioning unique differentiating factors.
Continuously making improvements to
sustain a leadership position.
Resource Focus, Organization
& Commitment to satisfy
Customer needs
 Resources should be optimally utilized to
ensure that maximum possible value gets
added to satisfy customer needs.

5. What Investors Look For
• How does the team think?
• How detail oriented is the team?
• How big is this market?
• Is there sustainable competitive advantage?
• What’s the growth plan?
• What does the technology roadmap look like, short
term or long term play

6. Financial Projections
• Build 5 years
• Detail near years, extrapolate out years
• Build from single unit economics
• Document assumptions
• Compare against top down
• Validate with market comparables

7. 10 Must Answer Questions
• How large is your addressable market?
• How fast is the market growing?
• Who’s make up your management team?
• What’s your “secret sauce?”
• What are the barriers to entry/competitive advantage?
• What do your 5 year financials look like?
• What’s your path to profitability?
• Why is this a company versus a product/service?
• Who’s your competition and how do you beat them?
• Why can’t Microsoft or Google do this? (or name any big, established
company…)

8. Creating Your Company’s Strategy
• Building a strategy is harder work than building your
product
• Think about
– What do you want your business to be when it grows up
– Looking back from 5 years in future
– Perspectives of all stakeholders
– Anything that could go wrong
• Hope is not a strategy

9. Competitive Analysis
• You always have competitors
• Dig deep, be detailed, be honest
• Compare features and benefits
• Technology comparison
• Whole product offering (pricing, support, etc.)
• Channels, funding, customers…

10. Sustainable Competitive Advantage
• Create barriers to entry
• Continually add value for your customers (and your
investors)
• Anticipate competition and make plans for dealing with it
– Better widget, price erosion, market share, different business
model…..
• Avoid the trap of believing that your main competitor is
your exit strategy

11. Format of Business Plan
• TITLE PAGE
 Name of the business
 Owner /Owners
 Contact Details (Addresses, Phone & email etc)
 EXECUTIVE SUMARY
 Business ideas & Goals : Over view of business
 Marketing : Products & services being sold?
 Operations : Business Location & staff
 Finances : Breakeven period, finance required.

12. Format of Business Plan
• BACKGROUND
 Mission Statement
 Company history ( existing business)
 Business Goals (Short term/Long term)
 MARKETING
 Market Research
 Market Analysis (Industry / Seasonality /Competitors /SWOT )
 Marketing Plan (Target market/ distribution channel /pricing)
 Evaluation of Marketing

13. Format of Business Plan
• OPERATIONS & PRODUCTION
 Legal & Licensing requirements
 Management details
 Organization structure & staffing
 Insurance & Security needs
 FINANCIAL PROJECTIONS
 Income & Expenses
 Financial forecasts
 IMPLEMENTATION TIME TABLE
 Time needed to set up & run the business