Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

The new venture exploration plan


Published on

Published in: Business
  • Be the first to comment

  • Be the first to like this

The new venture exploration plan

  1. 1. The New Venture Exploration Plan 8-1
  2. 2. The Exploration Plan • Objectives • Carefully articulate the merits, requirements, risks, and potential rewards of the opportunity and how it will be seized • Demonstrate how your team has been able to convert all the research, careful thought, and creative problem solving from the Venture Opportunity Screening Exercises into a New Venture Exploration plan 8-2
  3. 3. What Does It Reveal? • An exploration plan for a high potential venture reveals the business’ ability to: • Create or add significant value to a customer or end user • Solve a significant problem, or meet a significant want or need for which someone will pay a premium • Have robust market, margin, and moneymaking characteristics • Fit well with the founder(s) and management team at the time, in the marketplace, and with the risk-reward balance 8-3
  4. 4. Writing the Plan • Steps outlining the process by which a New Venture Exploration plan is written: • Segmenting information • Creating an overall schedule • Creating an action calendar • Doing the work and writing the plan Key Dates: • Submission of “Draft” report AND Presentation: Sat.3rd August, 2013 (50% weightage) • Submission of “Final “ report AND Presentation: Sat.31st August, 2013 (30% weightage) 8-4
  5. 5. Contents of the Report… I. EXECUTIVE SUMMARY • Description of the business concept and the business opportunity and strategy • Target market and projections • Competitive advantages • Costs • The team • The offering 8-5
  6. 6. Contents… II. THE INDUSTRY AND THE COMPANY AND ITS PRODUCT(S) OR SERVICE(S) • • • • The industry The company and the concept The product(s) or service(s) Entry and growth strategy III. MARKET RESEARCH AND ANALYSIS • • • • • Customers Market size and trends Competition and competitive edge Estimated market share and sales Ongoing market evaluation 8-6
  7. 7. Contents… IV. • • • • • THE ECONOMICS OF THE BUSINESS Gross and operating margins Profit potential and durability Fixed, variable, and semivariable costs Months to breakeven Months to reach positive cash flow V. MARKETING PLAN • • • • • • Overall marketing strategy Pricing Sales tactics Service and warranty policies Advertising and promotion Distribution 8-7
  8. 8. Contents… VI. • • • • • DESIGN AND DEVELOPMENT PLAN Development status and tasks Difficulties and risks Product improvement and new products Costs Proprietary issues VII. • • • • • MANUFACTURING AND OPERATIONS PLAN Operating cycle Geographical location Facilities and improvements Strategy and plans Regulatory and legal issues 8-8
  9. 9. Contents… VIII. MANAGEMENT TEAM • Organization • Key management personnel • Management compensation and ownership • Other investors • Employment arrangements and plans • Supporting professional advisors and services 8-9
  10. 10. Contents… IX. SUSTAINABILITY AND IMPACT • Issues of sustainability of the venture • Impact on the environment • Impact on the community, nation X. OVERALL SCHEDULE XI . CRITICAL RISKS, PROBLEMS, AND POSSIBLE OPTIONS TO MIGATE THEM 8 - 10
  11. 11. Contents… XII. THE FINANCIAL PLAN – 3 to 5 years visibility • Cost of project • • • • • • Means of financing Profit and loss Cash-flow Breakeven chart and calculations Sensitivity analyses Tables can go as an “Appendix” Note: Each line item should have a proper justification/assumptions/basis 8 - 11
  12. 12. IMPORTANT: Don’t Forget!!!!!! Individual submissions In addition to group project report submission and presentations, each participant is expected to submit a separate report that reflects: a) specific contributions made to the project and b)key learnings from the project work as well the process This will impact individual assessment and grading! Deadline: Sat. 31st August, 2013 8 - 12