Business plan presentation


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Ryerson business plan presentation slides Week 2

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  • To plunder later: for instance, a media kit
  • The natural corollary to this is that if you don’t write it down and you go wrong, you won’t have any idea where, or why. Only a few people of my acquaintance were so capable that they could do without a plan, or carry it in their heads; they usually drove their partners, staff and investors crazy. There are a lot of reasons NOT to do something. Dr. Samuel Johnson (and I’m paraphrasing) said that for every reason to do something most people can think of 50 reasons not to.
  • The boss may be able to keep everything in his head, but he cannot do all the work. So if it’s not written down, much of his time will be spent in explaining it to the people who need to do the work.
  • Every magazine and every magazine plan has some aspects that are unique and particular to the situation. But most plans, most of the time, share a great many things with most other plans. There are as many variables in the planning for any publication as there are variations between magazines. Chile Pepper’s plan is going to be different than Canadian Business’s.
  • If you don’t have something that distinguishes your idea, it will be easy for competitors to duplicate Ideas are cheap, execution is difficult. Investors are galvanized by something that is concrete and tested. A large market is much more likely to yield a substantial profit. If the investor is to get his/her money out with a premium, the magazine has to make lots of money. Do you have some “skin in the game”? That is, are you risking something substantial, that will keep you motivated and committed to the project? Magazines are a people business – one of the big mistakes is underestimating the cost and complexity of management. Investors want to know that they are buying the commitment and the expertise of a team that will take the project to a profitable position as quickly as possible.
  • Enemies of good decision-making are WISHFUL THINKING, RATIONALIZATION AND DISSEMBLING OR VAGUENESS. The reader of the plan relies upon it to give a clear and accurate picture.
  • Executive summary will be read, even if the rest of the plan is only skimmed. It is written last. It is, and should be short and to the point. If your plan is particularly long or complicated, the summary can be longer – a 10-page summary is not unrealistic if the document it is summarizing is 100+ pages. An investor will look at your summary and flip to your financial statements to see if it’s worth reading any further. A funder may read the whole plan, but will refer back more than once to the summary. A table of contents is sometimes overlooked in a short business plan, but ought not to be. Because you are intimately acquainted with the plan, don’t expect all your readers to be. A table of contents is one of many possible reading and comprehension aids for a wide variety of consumers of your plan.
  • In your binder I have put a couple of excellent articles on strategic planning and how to analyze our competition. Once again, it is attention to detail and a willingness to do the hard work of research and analysis that goes into an excellent plan.
  • In other words, will the whole be greater than the sum of the parts?
  • An investor or a director will want to know the level of commitment that the key managers have to the process of growth or renewal. Ideally, they like to have the most important people’s feet “nailed to the floor”. It is a people business. The kind of outside expertise already tapped or available to be called upon That many of the ongoing relationships with suppliers are already in place That the authors of the plan have thought through the money they’ll need and where they will get it (and what alternatives they have in mind if their plans don’t work out) That the planners have already spotted ways of making the publication better by strategic spending and/or strategic cost-cutting. Either way can help lead the magazine to profitability or financial stability.
  • A plan should show enthusiasm, but rigor and caution. It’s a question of balance. Nobody ever got into trouble by under-promising and then over-performing.
  • Business plan presentation

    1. 1. The Business Plan
    2. 2. Why do we need a plan? <ul><li>To keep things straight </li></ul><ul><li>To impose discipline </li></ul><ul><li>To save time and money </li></ul><ul><li>To clarify alternatives </li></ul><ul><li>To make decisions easier </li></ul><ul><li>To plunder later </li></ul><ul><li>To provide benchmarks </li></ul>
    3. 3. <ul><li>It all fits together in the plan… </li></ul>Editorial Advertising Production Circulation
    4. 4. Things to remember <ul><li>A plan is only words and numbers </li></ul><ul><li>It is only an estimate, a forecast, a goal </li></ul><ul><li>There should always be deadlines </li></ul><ul><li>You can always change a plan </li></ul><ul><li>“ The journey is as important as the destination” </li></ul>
    5. 5. Reasons why people don’t plan <ul><li>“ If I write it down, and I’m wrong, it will show I don’t know what I’m doing.” </li></ul><ul><li>“ I’m the owner/boss; it’s all clear to me so who needs a plan?” </li></ul><ul><li>“ I don’t know how and I haven’t time to learn.” </li></ul><ul><li>“ I’m too busy launching this magazine.” </li></ul><ul><li>“ I’m a big picture person.” </li></ul>
    6. 6. Reasons why people don’t plan
    7. 7. If I write it down, and I’m wrong, it will show I don’t know what I’m doing.
    8. 8. I’m the boss; it’s all clear to me so who needs a plan?
    9. 9. I don’t know how and I haven’t time to learn.
    10. 10. I’m too busy launching this magazine.
    11. 11. I’m a big picture person.
    12. 12. What makes magazine plans different? <ul><li>Ideas are cheap, execution is difficult </li></ul><ul><li>People pay for magazines in advance </li></ul><ul><li>Advertisers pay for advertising in arrears </li></ul><ul><li>We sell ideas and audience, not goods </li></ul><ul><li>Growth is geometric; so is decline </li></ul><ul><li>People can do without magazines </li></ul><ul><li>The end user doesn’t pay the freight </li></ul>
    13. 13. What makes a good plan? <ul><li>Concision, specifics, comprehensiveness </li></ul><ul><li>Plain English </li></ul><ul><li>No unwarranted assumptions </li></ul><ul><li>Realistic general objectives </li></ul><ul><li>Realistic specific strategies </li></ul><ul><li>Clear measurement of success or failure </li></ul>
    14. 14. Answering key questions <ul><li>Where has your magazine been? </li></ul><ul><li>Where is it going? </li></ul><ul><li>How is it going to get there? </li></ul><ul><li>Who will take it there? </li></ul><ul><li>How long will it take? </li></ul><ul><li>Who are its competitors? </li></ul><ul><li>How will you know how you’re doing? </li></ul><ul><li>What will it cost? </li></ul><ul><li>How much money will it take in? </li></ul><ul><li>How much money will it make? </li></ul>
    15. 15. There are no magic bullets <ul><li>A plan is only as good as its research </li></ul><ul><li>Nobody else can write it for you </li></ul><ul><li>Readers and advertisers care only about outcomes </li></ul><ul><li>Investors care most about return </li></ul><ul><li>There is always more than one way </li></ul><ul><li>Sometimes good ideas just don’t work </li></ul><ul><li>Sometimes you are wrong </li></ul>
    16. 16. Audiences for the plan <ul><li>Internal </li></ul><ul><ul><li>Board of directors </li></ul></ul><ul><ul><li>Advisory groups </li></ul></ul><ul><ul><li>Management and staff </li></ul></ul><ul><li>External </li></ul><ul><ul><li>Bankers </li></ul></ul><ul><ul><li>Investors </li></ul></ul><ul><ul><li>Funders </li></ul></ul>
    17. 17. Questions investors will ask (and a plan should answer) <ul><li>Is there a unique competitive advantage? </li></ul><ul><li>Have you gone beyond the idea stage? </li></ul><ul><li>Is there a large market? </li></ul><ul><li>Will it make a substantial profit? </li></ul><ul><li>Are you totally committed? </li></ul><ul><li>Does your team have the skills and experience? </li></ul>
    18. 18. Things to remember <ul><li>A business plan is a synthesis of many different sub-plans (editorial, marketing, production, financial, design, advertising and circulation) </li></ul><ul><li>A business plan brings these elements together and presents them in a coherent, obvious and convincing way to win support from the intended audience. </li></ul>
    19. 19. Elements <ul><li>Title Page </li></ul><ul><li>Executive Summary (2 pages max.) </li></ul><ul><ul><li>most important highlights of the plan. </li></ul></ul><ul><li>Table of Contents </li></ul>
    20. 20. Elements <ul><li>Situational analysis </li></ul><ul><ul><li>the challenges and opportunities being presented to the magazine; </li></ul></ul><ul><ul><li>scope of the enterprise; The business background </li></ul></ul><ul><ul><li>what makes it unique; </li></ul></ul><ul><ul><li>outlook as a publication and as a business. </li></ul></ul>
    21. 21. Elements <ul><li>Competitive environment </li></ul><ul><ul><li>the market (pages and revenue); </li></ul></ul><ul><ul><li>major competitors for reader interest and advertiser dollars </li></ul></ul><ul><ul><li>special challenges by market trends, direct or indirect competitors </li></ul></ul><ul><ul><li>SWOT analysis </li></ul></ul>
    22. 22. Image and mission <ul><li>For a going concern, important to restate the “core values” and a degree of passion </li></ul><ul><li>For a startup, important to demonstrate that you’ve thought it through and that the positioning is compelling </li></ul><ul><li>The editorial mission statement is a critical part of establishing the seriousness and attractiveness of what is a risky business. </li></ul>
    23. 23. Which is better? <ul><li>We intend to publish a magazine for people interested in government and politics </li></ul><ul><li>OR </li></ul><ul><li>Our magazine affords a unique opportunity for communicating with the most important and elusive people in Canada in an authoritative setting. Our readers are recognized leaders in their fields who have pronounced intellectual curiosity and little time for nonsense. </li></ul>
    24. 24. Elements <ul><li>Editorial and content strategy </li></ul><ul><ul><li>editorial mission </li></ul></ul><ul><ul><li>audience </li></ul></ul><ul><ul><li>content initiatives </li></ul></ul><ul><ul><li>revised editorial outline </li></ul></ul><ul><ul><li>opportunities for line extensions or spin-off publications? </li></ul></ul><ul><ul><li>What resources will be required (including web resources), and at what cost? </li></ul></ul>
    25. 25. Elements <ul><li>Circulation strategy </li></ul><ul><ul><li>Current and potential readers? </li></ul></ul><ul><ul><li>Price? To reach them? To access them? </li></ul></ul><ul><ul><li>Grow, by how much over what period of time? </li></ul></ul><ul><ul><li>How can the magazine improve </li></ul></ul><ul><ul><ul><li>New business? Conversion? Renewals? Visits? Page views? Click throughs? </li></ul></ul></ul><ul><ul><li>Sources </li></ul></ul><ul><ul><li>Resources </li></ul></ul>
    26. 26. Elements <ul><li>Advertising sales and promotion strategy </li></ul><ul><ul><li>Unique selling proposition </li></ul></ul><ul><ul><li>Strong sectors and how can those be optimized? </li></ul></ul><ul><ul><li>Weak sectors and what will enhance them? </li></ul></ul><ul><ul><li>Key advertisers? And how are you going to get them? </li></ul></ul><ul><ul><li>Revenue forecast, how much, by whom? </li></ul></ul><ul><ul><li>Line extensions and new products </li></ul></ul><ul><ul><li>What resources, research and marketing materials will be necessary? </li></ul></ul><ul><ul><li>How will success be measured? </li></ul></ul>
    27. 27. Elements <ul><li>Production strategy </li></ul><ul><ul><li>What production efficiencies are available? </li></ul></ul><ul><ul><li>What pricing issues are anticipated (paper, outsourced services)? </li></ul></ul><ul><ul><li>Where is the balancing point between production savings, editorial quality and advertiser service? </li></ul></ul><ul><ul><li>Do we have the skills, inside or outsourced, to produce a winning digital product? </li></ul></ul>
    28. 28. Digital publishing strategy I <ul><li>Print + web </li></ul><ul><ul><li>How website, blogs, social media, digital editions will augment and enhance print strategy </li></ul></ul><ul><li>Digital only </li></ul><ul><ul><li>How to build and retain audience, price appropriately, create engagement and multiply opportunities for sales (e.g. rich media, pod- and videocasting) </li></ul></ul>
    29. 29. Digital publishing strategy II <ul><li>What impact will the magazine’s digital strategy have on the enterprise’s bottom line? </li></ul><ul><li>How will print and web strategy complement each other? </li></ul><ul><li>How will a digital-only magazine compete and with whom? </li></ul><ul><li>What resources will be necessary? </li></ul>
    30. 30. Elements <ul><li>Ancillary revenue </li></ul><ul><ul><li>What is the magazine doing now to exploit its brand? </li></ul></ul><ul><ul><li>What opportunities are available to expand outward? </li></ul></ul>
    31. 31. Elements <ul><li>Management, staffing and operations </li></ul><ul><ul><li>Key or critical management and staff </li></ul></ul><ul><ul><li>Outside expertise </li></ul></ul><ul><ul><li>Relationships with key suppliers and lenders </li></ul></ul><ul><ul><li>Investment or working capital the magazine is likely to need </li></ul></ul><ul><ul><li>Likely costs or savings in facilities, equipment, training and recruitment? </li></ul></ul>
    32. 32. Elements <ul><li>Action Plan and timeline </li></ul><ul><ul><li>what will happen, when; </li></ul></ul><ul><ul><li>a visual and/or bulleted presentation of the key events </li></ul></ul>
    33. 33. Elements <ul><li>Financial model and projections </li></ul><ul><ul><li>Detailed supporting modelling and financial projections </li></ul></ul><ul><ul><ul><li>Balance sheet </li></ul></ul></ul><ul><ul><ul><li>Pro forma income (profit & loss) statement </li></ul></ul></ul><ul><ul><ul><li>Cash flow </li></ul></ul></ul><ul><ul><ul><li>Operational budget </li></ul></ul></ul><ul><ul><li>Supporting documents </li></ul></ul>
    34. 34. Elements <ul><li>Appendices </li></ul><ul><ul><li>Rate card and media kit </li></ul></ul><ul><ul><li>Audience profile information </li></ul></ul><ul><ul><li>Detailed management and staff profiles </li></ul></ul>
    35. 35. Special cases <ul><li>Launch </li></ul><ul><ul><li>Lacks historical data </li></ul></ul><ul><ul><li>Needs most situational and competitive data </li></ul></ul><ul><ul><li>Projections and assumptions need to be verified </li></ul></ul><ul><ul><li>Includes one-time start-up costs </li></ul></ul><ul><ul><li>Needs to speak particularly to audience interest and likelihood of success </li></ul></ul>
    36. 36. Special cases <ul><li>Repositioning </li></ul><ul><ul><li>Historical data, but moving on a tangent </li></ul></ul><ul><ul><li>Need emphasis on reasons for repositioning (i.e. the situational analysis) </li></ul></ul><ul><ul><li>Need to provide a cost-benefit analysis </li></ul></ul><ul><ul><li>Need to rationalize payback on investment and comparison with doing nothing </li></ul></ul>
    37. 37. Special cases <ul><li>Expansion or merger </li></ul><ul><ul><li>Combined data – how the whole will be greater than the sum of the parts </li></ul></ul><ul><ul><li>Cost-benefit necessary for disruption and cost of merger or expansion </li></ul></ul><ul><ul><li>Need to detail payback and compare with doing nothing </li></ul></ul>
    38. 38. Special cases <ul><li>Conversion to digital </li></ul><ul><ul><li>Differences in audience </li></ul></ul><ul><ul><li>Cost-benefit analysis of changeover to digital publication </li></ul></ul><ul><ul><li>Medium and long term payback </li></ul></ul><ul><ul><li>Change to competitive environment </li></ul></ul>
    39. 39. Form and structure <ul><li>Be concise and comprehensive </li></ul><ul><li>Use plain English; avoid jargon; use the active voice </li></ul><ul><li>Avoid whimsy, be businesslike; dress your plan for success </li></ul><ul><li>Follow established forms and use standard accounting conventions </li></ul>
    40. 40. And finally… <ul><li>“ By when”, “By whom” and “Howcum?” as important as “What” </li></ul><ul><li>Assume nothing; be realistic and conservative </li></ul><ul><li>Set realistic objectives for the magazine </li></ul><ul><li>Set realistic goals for individuals </li></ul><ul><li>Make comparisons meaningful and measurable (per-page, per-issue, share of market etc.) </li></ul>
    41. 41. <ul><li>It is all about audience </li></ul>