These are addiftonal business plan formats: one for start-ups (effectual) and the other one for existing (causal or strategic. The effectual does not start with objective but with one one has. It is iterative

1. Additional
business plan
formats
Prepared by Prof Jorge
Entrep

2. Causative (logical) and
effectual business plan formats
 Causative- the traditional strategic, goal
before hand driven business plan and
choices made later;
 Effectual - inspired by effectual
entrepreneurship of by Saras Savastky of
University of Virginia Dardane; begin with
what you have; planning is iterative

3. Distinction
 Causative - Applicable to existing
businesses
 Effectual business plans – applicable to
start ups

4. Strategic Business Plan
I Strategic: Causative (for existing business
l. Description of the current business:
l. Business Model
2. Business concept, logic
3. Analysis of the market, product, competition,
2. Business objectives:
l. VMO
2. What are the proposed objectives with the plan:
Sales, Financials, C

5. 3. Executive Summary, Board of Directors, Financiers, Top
Management, Middle Managers, Holders of Key
Technologies
4. Organization: Stockholders Customer Impact, Job
Generation
5. Description of the product:
l. USP (How is this being achieved at the
moment) Describe the PTM, Key Activities and Resources
Detailed analysis of the USP. Is this a sound
analysis? How was this arrived at.
2. Competitive Analysis: Product Features: Price,
Benefits

6. 6. Market estimate:
l. How does the product meet the customer needs?
2. Micro market analysis
3. Competitive analysis: market share, what are the
competitive activities vs. you
4. Macro market ANALYSIS: PESTEL PESTE, STEER
5, What is the sales estimate
7. Strategy: What is the choice of activities and resources
to create competitive advantage/differentiation

7. A. On the Demand Side:
l. PTM wants and needs.
2. Customer links: ps of marketing
3. Customer bond - customer service
B. On the supply side:
l. Key resources: raw mat, machineries,
technology, r&d
2. Key processes, hr, controls, audit, etc.
3. Partners

8. C. Financial: What is the ROIC as stated in the
beginnig
l. Revenue Model: per product/aggregate
2. Costs:
l. COGS
2. Opex
3. BE, desired ROE
How are your resources and activities, suppliers going to
help you achieve the financial goals?
Review: are you achieving competitive advantage,
uniqueness; try to use ERRC, to create new market
space? Are your HR, marketing, operations interlinked

9. 8, Financials: (the three FS: cash flow, pnl,
balance sheet) How does your FS support your
strategy to create competitive advantage
9. Compliance wtih regulations/regulators - Discuss
in detail various regulations: local, national and
international so that your company becomes a
good citizen. Are you green.
10. Exit strategy: How do you exit the business at
the start, middle, end of things do not turn out right, if
they turn out right ( as IPO gift, inheritance, donation
to charity, govt

10. Effectual (for start –ups)
l. Current Situation:
l. Who am I, my passion
2. What do I want to be, my dreams, interests
3, My resources: financial, talents
4. My network: financial backers, technology
providers, manufacturing links (die makers, suppliers,
subcontractors), buyers, contacts
2, My range of options
l. Product ideas
2. How do they match # l
3. What is the USP/ MVP (define it well)

11. 3, Opportunity scanning;
l. What are current range of offerings? What pisses off the
customers? What is the hole? Is there no similar product int he
market compared to # 2.
2. FGD and other customer surveys done, traffic count
3. Micro market analysis (you the competition, location)
4. The larger context: PESTEL
' 5, What is the sweet spot: intersection of company,
competitor, customer and the context
4. What is the business model:
l. MVP/USP
2. Demand side: PTM, customer link, customer bond
3. Supply side: Key activities, key resources, partners and the
configuration
4, Revenue and cost model
l. SRP
2. COGS
3. BE
4, Desired ROIC

12. 5, Product:
l. Design: Drawing BOM
2. Production process: how is it to be produced,
engineering, quality control
3. Distribution, logistics needed
4. Product testing: alpha and beta
5. Competitive analysis: why is your product differentiated
6. Sales estimate:
l. Restate customer wants and needs; how are they pissed off
by competitive products
2. Historical industry data, past, what is the trend (micro and
macro market)
3. Estimated market share; what is the basis?
4. What will you do to influence the outcome?
5. Who will achieve you help your sales goal
6. Degree of confidence in the projection

13. 7. Other objectives: (based on six)
l. financial
l. Cash flow
2. P n L
3. balance sheet
At least 3 years
2. Customer impact
3. Job generation and welfare
4. Going international? Global

14. How do you finance the business growth?
8. Compliance with regulations: local, national
international. What do you if you encounter
difficulties
9. Exit strategies:
What difficulties will cause you to give up; What
will be your range of options?
What will you do if you are successful?
Blogs:
profjorgeentrep