Business plan

2,625 views

Published on

Published in: Business, News & Politics
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,625
On SlideShare
0
From Embeds
0
Number of Embeds
127
Actions
Shares
0
Downloads
183
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Business plan

  1. 1. Business PlanBusiness Plan DevelopmentDevelopment Prof. Purvish ShahProf. Purvish Shah BE , PGDBM (Mech)BE , PGDBM (Mech)
  2. 2. Think before you start…Think before you start…  Know the IndustryKnow the Industry  Find your Competitive AdvantageFind your Competitive Advantage  Analyze RisksAnalyze Risks  Develop Your Idea MethodicallyDevelop Your Idea Methodically  Acquire InvestorsAcquire Investors  Find SupportFind Support  Secure FinancingSecure Financing …….SHOULD I START THIS VENTURE??.SHOULD I START THIS VENTURE??
  3. 3. Business Plan SectionsBusiness Plan Sections
  4. 4. Business Plan SectionsBusiness Plan Sections  Narrative SectionNarrative Section – Business DescriptionBusiness Description – Products and/or ServicesProducts and/or Services – Industry AnalysisIndustry Analysis – OperationsOperations – Clientele/Target MarketsClientele/Target Markets – CompetitionCompetition – Marketing PlanMarketing Plan – Personnel/ManagementPersonnel/Management – Long-term GoalsLong-term Goals – Risks and ContingenciesRisks and Contingencies
  5. 5. Business Plan SectionsBusiness Plan Sections  Financial ProjectionsFinancial Projections – Financial NarrativeFinancial Narrative – Start-up Expenses and WorksheetStart-up Expenses and Worksheet – Revenue AssumptionsRevenue Assumptions – Financial AssumptionsFinancial Assumptions – 3-5 Year Financial Projections3-5 Year Financial Projections  Statement of Cash FlowsStatement of Cash Flows  Income StatementIncome Statement  Balance SheetBalance Sheet  Relevant ratiosRelevant ratios
  6. 6. Business Plan SectionsBusiness Plan Sections  Supporting DocumentsSupporting Documents – Resume/CVResume/CV – Relevant documents/contractsRelevant documents/contracts – Past 3 years of tax returns (if seekingPast 3 years of tax returns (if seeking conventional financing)conventional financing) – Academic researchAcademic research – Marketing research resultsMarketing research results – OtherOther
  7. 7. Products and ServicesProducts and Services  Clear, concise descriptionsClear, concise descriptions  Divide into separate sectionsDivide into separate sections – ProductsProducts – ServicesServices – Further subdivide into categoriesFurther subdivide into categories  Value propositionValue proposition  Price menuPrice menu  Pricing approach/structurePricing approach/structure
  8. 8. Industry AnalysisIndustry Analysis  Your Goal:Your Goal: – Give a comprehensive understanding ofGive a comprehensive understanding of the industrythe industry – Defend your business relevance!Defend your business relevance!  How?How? – Describe current situationDescribe current situation – Relevant trendsRelevant trends – Intervening factorsIntervening factors – Size of industry/market potential (total #Size of industry/market potential (total # businesses, annual revenues, etc.)businesses, annual revenues, etc.) – Growth potentialGrowth potential
  9. 9. OperationsOperations  StraightforwardStraightforward  (If retail) “paint a picture” of the space(If retail) “paint a picture” of the space (as you walk in you will see/experience etc.)(as you walk in you will see/experience etc.)  Procedures and controlsProcedures and controls  Distribution channelsDistribution channels  Payment procedures (in/out)Payment procedures (in/out)  Business-specific detailsBusiness-specific details
  10. 10. Clientele/Target MarketsClientele/Target Markets  Primary Clientele (>= 50%)Primary Clientele (>= 50%)  Secondary Clientele (>= 20%)Secondary Clientele (>= 20%)  Tertiary ClienteleTertiary Clientele  Detailed descriptionsDetailed descriptions – DemographicsDemographics – PsychographicsPsychographics – SpendingSpending – Total market size per market segmentTotal market size per market segment  Use for Revenue ProjectionsUse for Revenue Projections
  11. 11. CompetitionCompetition  Match Apples to Apples: Segment yourMatch Apples to Apples: Segment your competitioncompetition  Your Value PropositionYour Value Proposition  Your Competitive AdvantageYour Competitive Advantage  2 Types of competitors:2 Types of competitors: – DirectDirect – IndirectIndirect  Discuss each significant competitor inDiscuss each significant competitor in depth, can group othersdepth, can group others  Identify potential threats and talk aboutIdentify potential threats and talk about them directlythem directly
  12. 12. (c) 2009 Debra Askanase(c) 2009 Debra Askanase Step Back from theStep Back from the Project!Project! 1)1) SWOT Analysis/PEST AnalysisSWOT Analysis/PEST Analysis (next lecture)(next lecture) 2)2) Do you have aDo you have a realreal ValueValue Proposition? USP?Proposition? USP? 3)3) Do you want to start this business?Do you want to start this business? 4)4) Begin financial projectionsBegin financial projections
  13. 13. Marketing PlanMarketing Plan  Your GoalYour Goal: you understand your: you understand your market, industry, competitive andmarket, industry, competitive and competitive advantagecompetitive advantage  Within the narrative, consider andWithin the narrative, consider and describedescribe – Marketing channelsMarketing channels – PersonnelPersonnel – Geographic reach and richnessGeographic reach and richness – ToolsTools – 4 (or 5) Ps4 (or 5) Ps – Pricing strategy related to marketingPricing strategy related to marketing
  14. 14. Marketing PlanMarketing Plan  Quantifiable Goals/Objectives =Quantifiable Goals/Objectives = specific deadline dates, andspecific deadline dates, and numerical goalsnumerical goals  Specific, detailed activitiesSpecific, detailed activities  Complete budgetComplete budget  MetricsMetrics  Several plans:Several plans: – Start-up/awarenessStart-up/awareness – First yearFirst year – First three yearsFirst three years – Marketing calendars are useful toolsMarketing calendars are useful tools
  15. 15. HRMHRM  Organizational ChartOrganizational Chart  ResponsibilitiesResponsibilities  SalariesSalaries  Professional AdvisorsProfessional Advisors  Advisory BoardAdvisory Board
  16. 16. Risks and ContingenciesRisks and Contingencies  Shows you understand yourShows you understand your businessbusiness  Deals with investor concerns up frontDeals with investor concerns up front  Make them realMake them real  AddressAddress at leastat least two real riskstwo real risks

×