WHAT IS A BUSINESS PLAN? - SESSION 10

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MAIN TOPICS:
- Why the business plan plays a central role in entrepreneurship
- What makes a good business plan
- Business plan content

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WHAT IS A BUSINESS PLAN? - SESSION 10

  1. 1. www.solvayentrepreneurs.be WHAT IS A BUSINESS PLAN? SESSION 10 (out of 10) BUSINESS PLAN This session is part of a 10-weeks course given to master students of the SOLVAY BRUSSELS SCHOOL OF ECONOMICS AND MANAGEMENT by professor Olivier WITMEUR.
  2. 2. Entrepreneurship Course – Session 10 - 2014 © Olivier WITMEUR •  Why the business plan plays a central role in entrepreneurship •  What makes a good business plan QUESTIONS AGENDA RESOURCES •  Business plan content •  Checkliste de l’entrepreneur 2 Desired Outcomes of the Session
  3. 3. Entrepreneurship Course – Session 10 - 2014 © Olivier WITMEUR Multiple BP structures are available. Pick the one you prefer. Repetitions are frequent from one section to another. Avoid them as much as possible. Back to the previous sessions! 3 Warning
  4. 4. Entrepreneurship Course – Session 10 - 2014 © Olivier WITMEUR 1.  The Entrepreneur(s) Why you? 2.  The Value Proposition What are the problem and your solution? 3.  Market Can you make it big? 4.  Competition Why are you better / unique. 5.  Strategy What are your advantages and what makes you different? 6.  Sales & Marketing Plan How do you acquire, get and grow your customer base? 7.  Production How do you deliver your product/service 8.  IP How do you protect your knowhow, technologies… 9.  R&D What need to be done to finalize/improve your offering 10.  Team and Culture What is the DNA of your company? 11.  Roadmap and Milestones What are the steps to build the company and how do you spend money? 12.  Risk Analysis What are the alternative scenarios? 13.  Financials Is it sustainable (and valuable)? 14.  Financings What are you looking for? 15.  Key Success Factors How do you master them 4 Typical detailled business plan content
  5. 5. Entrepreneurship Course – Session 10 - 2014 © Olivier WITMEUR The people The management team •  Bio (CVs as appendixes) •  Individual targets and motivations Boards (can be included in a specific section) •  Board of Directors •  Advisory Board The story Where does the project and the people come from? Achievements to date 5 Management + Achievements-to-date
  6. 6. Entrepreneurship Course – Session 10 - 2014 © Olivier WITMEUR Board Independent directors Advisory/Strategy Board Scientific Board Articles of association Shareholder agreement 6 Governance
  7. 7. Entrepreneurship Course – Session 10 - 2014 © Olivier WITMEUR Scheme, cycles, organization and methodologies Internal resources & partners –  Owned production facilities versus subcontracting –  Production capacity and bottlenecks Production costs : Opex and Capex Economy of scale 7 Production
  8. 8. Entrepreneurship Course – Session 10 - 2014 © Olivier WITMEUR Development roadmap / Product Map Deliverables Risks & potential solutions Project planning –  Deliverables –  Risks & potential solutions Intellectual property Team and partners involved in the project R&D costs 8 Research & Development
  9. 9. Entrepreneurship Course – Session 10 - 2014 © Olivier WITMEUR Future organization chart Corporate culture / Values Human Resource Management Wage and benefit policy Recruitment, appraisal… 9 Team & Culture
  10. 10. Entrepreneurship Course – Session 10 - 2014 © Olivier WITMEUR STAGE 1 STAGE 2 STAGE 3 Roadmap & Milestones 10 R&D OPS ORGANISATION Version 1 Case 1 Salesman 1 Version 2 First case abroad Office abroad TIME
  11. 11. Entrepreneurship Course – Session 10 - 2014 © Olivier WITMEUR MILESTONES The development stages of a start-up 11 0% 25% 50% 75% 100% 1 2 3 4 5 6 7 8 9 10 11 12 13 Typical Milestones Sales Organisation development Recruitment New Branch/BU Product development … SEED START-UP EXPANSION EARLY DEVELOPMENT MATURITY RENEWAL
  12. 12. Entrepreneurship Course – Session 10 - 2014 © Olivier WITMEUR Risk Analysis 12 Risk types •  Management •  Customer •  Competition •  Technology •  Finance •  Environment •  Legal •  … •  … and TIMING !!! PLAN(S) B to be explained
  13. 13. Entrepreneurship Course – Session 10 - 2014 © Olivier WITMEUR Financial Plan 13 Main assumptions (if not explained in the action plan) Profit & Loss statement Cash-flow Balance sheet Sensitivity analysis / alternative scenario
  14. 14. Entrepreneurship Course – Session 10 - 2014 © Olivier WITMEUR Fit between action plan and financial plan 14 ACTION PLAN 1.  Marketing & Sales 2.  Production 3.  Research & Development 4.  Administration P&L STATEMENT (profit & loss) Sales / Revenues -  COGS (cost of goods sold) = Gross Margin -  S&M (Sales & Marketing) -  R&D (Research & Development) -  G&A (General & Administration) = EBIT (Earnings Before Interests and Taxes) TO  BE  BENCHMARKED  
  15. 15. Entrepreneurship Course – Session 10 - 2014 © Olivier WITMEUR Needs –  Explain and differentiate the use of funds. Financing plan –  How do you finance the business? •  Self financing / Bootstrapping •  Equity •  Debts •  Grants –  Proposal to investors •  Including exit if you want to attract BA or VC 15 Funding
  16. 16. Entrepreneurship Course – Session 10 - 2014 © Olivier WITMEUR 16 NEVER STOP WONDERING & ASKING!
  17. 17. Entrepreneurship Course – Session 10 - 2014 © Olivier WITMEUR A real passion for entrepreneurship education and entrepreneurs. •  Student entrepreneurs: 2x •  Full time entrepreneur: once, in a team of 5 •  Coach: 500+ projects over the last 20 years •  (Advisory) Board member in multiple new ventures •  Policy making: 2x •  Director of Solvay Entrepreneurs •  PhD in entrepreneurship in 2008 •  … never as an investor My wife (as Colombo), no kids, one dog (Vicky). 17 Olivier Witmeur (Belgian, 46)
  18. 18. Entrepreneurship Course – Session 10 - 2014 © Olivier WITMEUR Solvay entrepreneurs is the entrepreneurship center of the Université Libre de Bruxelles. We support entrepreneurs through the development of their venture, from an idea to a successful and sustainable business. 18 Solvay Entrepreneurs
  19. 19. Entrepreneurship Course – Session 10 - 2014 © Olivier WITMEUR Let’s keep in touch! 192014%©%Olivier%Witmeur FOLLOW US ON LinkedIn.com/company/ Solvay-Entrepreneurs in Facebook.com/ SolvayEntrepreneurs f Twitter.com/ SolvayStart t SolvayEntrepreneurs.be www YouTube.com/user/ SolvayEntrepreneurs Foursquare.com/ SolvayStart

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