Brought to you by Global Shapers Lanre MessanInfinite Impact Company Lola Talabi-OniBrent Consulting Bode PedroVeda Technology Sponsors Veda Technology Brent Consulting Infinite Impact Company
All About MePersonal Profile Bsc. Computer and ElectricalEngineering, University ofMaryland, BC MD, Veda Technology Limited 2009 Young IT Entrepreneur of theYear at the Nigerian TelecomsAward 2010 Nominee Young ITEntrepreneur of the Year 2011 Winner Business Owner ofthe Year at the Future AwardsCareer Profile Entertainment, Technology,Real Estate and Hospitality Managing Director, VedaTechnology Chairman, Bainstone Limited(Bellanaija.com) Director, Southern Sun Hotels,Ikoyi Director, TransnationalTechnologies Limited
Key Topics Business Planning Elements of an Outstanding Business Plan Factors to Business Success Questions & Answers
Why are we here? For Young Upcoming Entrepreneurs Starting a new business For Current Business Owners To have a birds eye view of current business Where to improve on within your business For Potential Investors For Banks and Short Term Investments
Appetizer Common Misconception: 1 Size Fits All: There is not standard Business Plan Different Business Plan for Different Readers 90% of the work is Preparation Business Plan is only as good as Ingredients Focus should always be on the important parts of the business Business Plan should not be a Novel. No Fool-Proof Business: Its all about understanding,calculating and managing risk versus potential
Who We Are Introduce yourself and your company. This should be asummary of what you talked about in detail in thecompany chapter of your plan. Recap the main points from that chapter. Think aboutwho is going to read this. Tell your story, and makethem want to read more.
What We Sell Talk about the products or services you offer Give your readers a recap of the major points you willmake in the Products and Services chapter keep it brief. Save the full details for later
Who We Sell To Talk about your target customers and how you plan toget your message to them. Remember, this should bea summary of your main points from the Target Marketchapter. Just focus on the most salient details here
Financial Summary Your projected sales and expenses. This should be a summary of what you talked about inthe Financial Plan chapter. Talk about the logic youused to come up with your sales forecast. If you are starting a business, when do you plan toshow a profit?
Objectives Think of the top three or four goals you want to achieve foryour business. Choose goals which you can track and measure. For example, number of new customers, total billing, totalcommissions, number of sales vs. returns, and so on. Find the balancing point between realistic and challenging.Be specific and measureable, such as "increase sales by 10%this year." Then pick the timeframe for each goal to measureyour progress — by day, week, month, or year.
Critical Success Factors Focus on a list of activities, actions, items, resources orobjectives that in your opinion are critical to thesuccess of the business
Company Overview talk about how the company was started. Think of it as "introducing" your company to someone.How long have you been in business? What is the maincompany address? Are there any other locations? Ifthis is a new business, will you be starting from a homeoffice? Who owns the company? Is that ownershipshared? Who else (besides yourself) are members ofyour management team? You can use the other topics in this section to breakdown this information and give the reader moredetails. If you do, then this topic should cover only themain points from those topics.
Management Team List the members of the management team, starting with yourself. Describe what each of you are responsible for doing within thecompany. Include summaries of their backgrounds andexperience. Give as much detail as you can to show how you andyour team will handle the needs of running the business. If you are just getting started, will you be covering multiple functionsby yourself? What area do you feel the most qualified to handle?What functions do you feel least qualified? Do you plan to hiresomeone else to handle these in the future? When do you plan tofill those gaps? Will you be hiring a full-time person or an outsidecontractor? You can also Include your Board of Directors or Advisory Board ifany
Vision & Mission Statement Your company vision is meant to propagate the expectedachievements, successes or breakthrough of the company within aperiod of time (3 to 10 years). Your mission statement is meant to be a simple, internal message foryou and your employees: What is the core value and purpose of the company? What is the vision, which will guide company decisions, now and inthe future? Think of it as the rally cry for you and your future investors, partnersand employees; this is the reason why you do what you do, everyday. All other goals should support this mission
Products explain the products and services you sell to yourcustomers. Describe the main features of each. What need doesthe product or service fill for your customers? If you sell products or services but not both, you canrename the present titles to better match your businessoffering.
Competitors Every business will have competition for theircustomers. Who competes with your company? Dothey compete directly with you (for example, gasstations, restaurants, and dry cleaners)? Or are you astorefront competing with an online catalog? The more you know about them, the better you cancompete against them. List who your maincompetitors are. What they do well? What do youthink your company does better? Why?
Market Overview "who is your customer?" what need your product or service fills for your customers. how (or where) will your customers find you how do they buy from you? Do your products appeal to a certain age group? Do you sell more to men, or more to women? Why? Based onshared reasons or traits, you can divide them into groups andchoose the best groups to market your products to. You also want to show whats going on with this market (growth,trends), and how your business fits into the larger industry thatmeets this markets needs.
Market Needs This is where you want to step back and look at yourbusiness through your customers eyes. What problemdoes your business solve for them? What do you offerthem that they cant get anywhere else? Are yourcompetitors failing them in some key way? If you have more than one group of customers you willbe marketing to, do this exercise for each group. Youmay find the needs of the groups are very different.You want your marketing message to match thesolution your product gives to each customer group.
Market Trends "The only constant is change." This is an old saying, andnot just in business. But having a business is a perfect wayto see change in action. Just when you think you haveyour market figured out, it changes. What you think yourcustomers want or need changes. Theres a shift indirection. Change can happen for many different reasons. Nomatter the reason, it is important to be able to recognizewhen a change can or will affect your business. If yourejust getting started, you might be planning your businessaround a current trend. Either way, you want to look for, and be aware of, markettrends. Think of trends as a way to get ahead of themarket by knowing where it is going before it gets there.
Market Growth Where is the market for your business going? Is it moving in a differentdirection from where it has been? How can you use your strengths totake advantage of this growth? Confirmed market growth can enhance the implied value of yourbusiness. It is important to find data which supports your marketestimates. Especially if you will be presenting your plan for outsidefunding, look to market research firms, trade associations, or crediblejournalists, and include their findings here. The Internet is a greatplace to search for this type of content.
Industry Analysis Here you want to talk about your industry, not just yourcompany. What type of industry is it? What commontraits best describe the industry? How do businesses inthis industry make, buy, sell, and deliver their productsor services? How do customers for this industry maketheir buying decisions? For example, is reputation moreimportant than price?
Effective Marketing Effective marketing is one of the most important — andoften neglected — factors for small-business success. Youcan have the best product in the world, but if you cantfind customers or convince them to try it, your venturewont get far. Fortunately, marketing is mostly common sense, notrocket science. Its about answering basic questionsabout your business. Who has a need for what you offer?How do you stack up against the competition? Howmuch will you charge? How will you promote yourproducts? Will you sell directly or through third parties? Theitems below will walk you through those details and more.
Marketing Plan Overview how you differentiate your business from yourcompetitors; how you will communicate that difference; how you target your message to the right audience. Thepoint of your marketing plan is to generate qualifiedleads. Your sales plan, which comes later, will addresshow to close the sales.
Pricing What does it cost you to create the product or offerthe service? Will your price cover those costs? Will you offer free or low-cost pricing as a promotion?Will you offer discounts to your loyal customers? Whatwill these promotions or discounts cost you? Is pricing part of how you will position your company tothe market? Does your pricing list support thatpositioning message? How does your pricing relate to your competitors pricelists, and pricing in the industry in general?
Distribution How do your reach your customers? How do your customers reach you Will your products be delivered to a store (or morethan one store) who will sell to your customers? Theseare examples of distribution = getting your products toyour customers for sale. Do you need partners? What type of distribution do you need? What will itcost?
Milestones KEY EVENTS When will equipment be shipped and how long will it take to be installed How soon will you find the right team When do you plan to launch this business When will the new product you are developing start generating revenue? Identify the milestone events that are strategically important for yourbusiness, and make your best guess at when you will achieve them. Becareful not to get too granular here.
SWOT Analysis Strengths Start your SWOT analysis by describing the strongest aspects of yourbusiness. What do you do best? What unique or enviable resources doyou have that give you a competitive advantage? Have youinvented a better mousetrap? Do you have a great location in a high-traffic area? Do all the kids in town wear your T-shirts because yourbranding is so hip? Do you make the best pizza in all of Brooklyn Remember, strengths arent always tangible things like equipment orseed money. Less concrete assets are often just as valuable, things likeexisting customer relationships, a reputation for quality and timeliness,or a strong knowledge of the market.
SWOT Analysis Weaknesses Describe your companys shortcomings as clearly and honestly as youcan. Dont be embarrassed about this. Every business has weak points,and acknowledging yours is not a sign of weakness itself but a signalthat you are committed to improvement Weaknesses, like strengths, should be internal factors that are underyour control. (External market factors will come next in opportunitiesand threats.) Also, it sounds counterintuitive, but you may find thatyour weaknesses are closely related to your strengths. (BARCELONA)
SWOT Analysis Opportunities Now shift your focus outward from your company to the market andcustomer base that you serve. What opportunities do you see just waiting for the right company tocome along?. Be sure to think about the timing for each opportunity. Opportunities are mostly External Factors
SWOT Analysis Threats Identifying the major outside threats to your business. What challenges do you face? What potential threats are keeping you up at night? Be sincere, confident and open in discussing these threats
Sales PlanYou create a marketing plan to reach new customers. Your sales plan isthe process to close the deals that your marketing plan opens. You wantyour sales plan to explain: The steps you follow to close a sale. How you reward your salespeople; do they receive a commission foreach sale? How you process and track the order once its received. How you keep in contact with your customers throughout the salesprocess. Do you store customer information by hand, or on acomputer? What is the final step in your sales plan?
Sales Forecast Prepare Sales Forecast Put into words how you decided on the numbers in your salesforecast. What information helped you come up with your numbers? Did you start with customers in your target group to estimate your sales? Did you use a % to show a rise in sales over time? What % did you choose, and why? Will there be higher (or lower) sales atdifferent times of the year?
Others Strategic Alliances Partners Service Providers and Consultants
”“OperationsSoftware and TechnologyPersonnel PlanOffice and Equipment
”“FinancialsSales ForecastCash Flow AssumptionsBudgetProfit and Loss StatementLoan Portfolio
Cash Flow Assumptions Chart Explain how you came up with the plans assumptionson credit sales, payment delays, and other cash flowdetails.
Budget What will it cost to operate your business? Remember that any direct costs of sales are entered in the SalesForecast table, not here. Those are costs that are directly involved increating or delivering your products or services — for example, thewood to build furniture or the ingredients for recipes at a restaurant.Direct costs generally go up or down in direct correlation with theamount you sell. Thats why they are included in the sales forecast. Include startup expenses — things like up-front lease costs, furniture,equipment purchases, and so on. You can add them as one-time orshort-term expenses in the early months of your plan. Just be sure theyare included in your budget.
Profit and Loss Statement The profit and loss statement (also known as the "income statement") isthe most common of the standard financial reports that bankers andinvestors will expect to see in your business plan. It shows your revenues,your expenses, and the difference between the two — that is, your netprofit or "bottom line." Is your company going to make more moneythat it spends?
Assumptions and SensitivityAnalysis Key variables and assumptions Risk Analysis
Appendix Mini Library of Information It holds the entire plan’s supporting documents in aclear, well-organized fashion. The appendix consists of an array of documentationthat ranges from receipts and bank statements tocontracts and inventories. It should be used on an as-needed basis and include only essential information. Financials, Inventory, Loans, Contracts Details should be discretionary based on reader
Appendix Sales Forecast Personnel Plan Budget Profit and Loss Statement
10 Elements of a Good BusinessPlan1. Understanding the Reader2. Clear and Concise Identification of an Opportunity3. Very good knowledge of the Market or Customer4. Understanding Consumer Behaviour5. Understanding Finance and Money Management6. Description of Leadership & Management Team7. Understanding Operational Priorities8. Well Written Cash Flow Statement: Cash is King9. Understanding Risk and Assumptions10. Personal and Professional Investment in the Business
6 Points to Business Success Great Products / Services Great team Reputation Market Knowledge Financial Planning Evolution
Questions, Comments Business Planning What Investors are Interested in My Experiences