This document provides an overview of what should be included in a business plan. It discusses the key elements of a business plan such as an executive summary, industry analysis, marketing plan, management team, operations plan, financial projections, and risks. The summary also highlights important tips for writing an effective business plan such as being clear, concise, and well-researched while avoiding promises and hype. It is important to convince investors of customer demand, focus on the team's experience, and appreciate the financial goals of the business.
The document provides an overview of key components and considerations for an effective business plan, including:
1) A business plan pulls together operational and financial details, marketing opportunities, and management capabilities into a written summary that helps take a realistic look at a proposed business and guide or convince investors.
2) Key sections include an executive summary, business concept, management team, market analysis, financial plan, and growth plan.
3) When seeking funding, investors are most interested in the founding team's track record and potential for growth, while lenders focus on repayment abilities like margins, cash flows, and collateral.
The document discusses the importance of developing a business plan for new ventures. It outlines the key components of an effective business plan, including an executive summary, description of the business and products/services, competitive analysis, marketing strategy, management team, and financial projections. Developing a thorough business plan helps entrepreneurs effectively organize and plan their venture, assess feasibility, and secure financing from investors or lenders. Regular monitoring and updates to the plan are also important as the business evolves.
The document discusses the importance of a business plan for starting a new venture. It defines a business plan as a written document prepared by an entrepreneur that describes the internal and external elements and strategies of a new business. The business plan is valuable for entrepreneurs, investors, and employees. It helps determine the viability of the venture, provides guidance for planning activities, and helps obtain financing. The document outlines the typical sections of a business plan, including an executive summary, environmental analysis, description of the venture, marketing plan, financial plan, and appendix. It also discusses implementing, updating, and measuring the progress of the business plan.
The document provides an overview of strategic planning principles, business planning, and how financial planning and software can assist business innovation centers (BICs). It discusses the importance of strategic planning for BIC clients and outlines key elements that should be included in strategic business plans, such as taking a medium-term view, focusing on strategic matters, and being written down and reviewed periodically. The document also summarizes various aspects that should be considered when preparing a business plan, such as the structure, operations plan, financial plan, and projections.
Venture capital involves investors taking an equity stake in a company in exchange for capital funding, typically for early-stage companies. Venture capitalists provide value beyond funding through knowledge, resources, and operational guidance. Venture capital comes from different types of investors including angel investors, venture capitalists, and private equity funds. The risks of a venture change at different stages from concept risk and execution risk early on to scale-up risk and market risks later. A business plan is used to convince investors that a business concept is viable and that the team can execute the plan and be competitive. An effective plan includes details on the concept, team, market opportunity, product, financial projections, competition, risks, funding needs, and potential exit strategies
This document provides an overview of key aspects to include when writing a business plan. It lists group members and learning outcomes, which include defining a business plan, understanding its value to stakeholders, identifying information needs, and monitoring the plan. It then defines a business plan, discusses its goals and viability sections. It outlines functional plans, external/internal factors, who should write it, and its scope/value. It identifies prerequisites like market, operations, and financial information needs and sources. It discusses evaluating plans based on management strengths, products, and the 4 C's of credit. It covers presenting and writing the plan, including the introduction, executive summary, environmental/industry analysis, venture description, and specific functional plans.
This document provides an overview of key aspects to include when writing a business plan. It discusses the group members, learning outcomes, definition of a business plan, business goals and viability reasons, functional plans, external and internal elements to consider. It also covers who should write the plan, the scope and value of the plan for various stakeholders, prerequisites like market, operational and financial information needs and sources. Additionally, it outlines how to evaluate a plan, presentation considerations, and the various sections to include when writing the actual business plan such as executive summary, industry and environmental analysis, venture description, production, operations, marketing, organizational, risk assessment and financial plans.
The document discusses various aspects of starting a new business, including generating ideas, evaluating ideas through feasibility studies, preparing a business plan, executing the business plan, and the role of society and family. It provides details on conducting industry and market analysis, assessing financial feasibility, and evaluating the entrepreneur. Key components of a business plan like the executive summary, organization description, marketing plan, and financial projections are also outlined. The document emphasizes the importance of alignment between strategy, people and processes for successful business plan execution and ongoing review.
The document provides an overview of key components and considerations for an effective business plan, including:
1) A business plan pulls together operational and financial details, marketing opportunities, and management capabilities into a written summary that helps take a realistic look at a proposed business and guide or convince investors.
2) Key sections include an executive summary, business concept, management team, market analysis, financial plan, and growth plan.
3) When seeking funding, investors are most interested in the founding team's track record and potential for growth, while lenders focus on repayment abilities like margins, cash flows, and collateral.
The document discusses the importance of developing a business plan for new ventures. It outlines the key components of an effective business plan, including an executive summary, description of the business and products/services, competitive analysis, marketing strategy, management team, and financial projections. Developing a thorough business plan helps entrepreneurs effectively organize and plan their venture, assess feasibility, and secure financing from investors or lenders. Regular monitoring and updates to the plan are also important as the business evolves.
The document discusses the importance of a business plan for starting a new venture. It defines a business plan as a written document prepared by an entrepreneur that describes the internal and external elements and strategies of a new business. The business plan is valuable for entrepreneurs, investors, and employees. It helps determine the viability of the venture, provides guidance for planning activities, and helps obtain financing. The document outlines the typical sections of a business plan, including an executive summary, environmental analysis, description of the venture, marketing plan, financial plan, and appendix. It also discusses implementing, updating, and measuring the progress of the business plan.
The document provides an overview of strategic planning principles, business planning, and how financial planning and software can assist business innovation centers (BICs). It discusses the importance of strategic planning for BIC clients and outlines key elements that should be included in strategic business plans, such as taking a medium-term view, focusing on strategic matters, and being written down and reviewed periodically. The document also summarizes various aspects that should be considered when preparing a business plan, such as the structure, operations plan, financial plan, and projections.
Venture capital involves investors taking an equity stake in a company in exchange for capital funding, typically for early-stage companies. Venture capitalists provide value beyond funding through knowledge, resources, and operational guidance. Venture capital comes from different types of investors including angel investors, venture capitalists, and private equity funds. The risks of a venture change at different stages from concept risk and execution risk early on to scale-up risk and market risks later. A business plan is used to convince investors that a business concept is viable and that the team can execute the plan and be competitive. An effective plan includes details on the concept, team, market opportunity, product, financial projections, competition, risks, funding needs, and potential exit strategies
This document provides an overview of key aspects to include when writing a business plan. It lists group members and learning outcomes, which include defining a business plan, understanding its value to stakeholders, identifying information needs, and monitoring the plan. It then defines a business plan, discusses its goals and viability sections. It outlines functional plans, external/internal factors, who should write it, and its scope/value. It identifies prerequisites like market, operations, and financial information needs and sources. It discusses evaluating plans based on management strengths, products, and the 4 C's of credit. It covers presenting and writing the plan, including the introduction, executive summary, environmental/industry analysis, venture description, and specific functional plans.
This document provides an overview of key aspects to include when writing a business plan. It discusses the group members, learning outcomes, definition of a business plan, business goals and viability reasons, functional plans, external and internal elements to consider. It also covers who should write the plan, the scope and value of the plan for various stakeholders, prerequisites like market, operational and financial information needs and sources. Additionally, it outlines how to evaluate a plan, presentation considerations, and the various sections to include when writing the actual business plan such as executive summary, industry and environmental analysis, venture description, production, operations, marketing, organizational, risk assessment and financial plans.
The document discusses various aspects of starting a new business, including generating ideas, evaluating ideas through feasibility studies, preparing a business plan, executing the business plan, and the role of society and family. It provides details on conducting industry and market analysis, assessing financial feasibility, and evaluating the entrepreneur. Key components of a business plan like the executive summary, organization description, marketing plan, and financial projections are also outlined. The document emphasizes the importance of alignment between strategy, people and processes for successful business plan execution and ongoing review.
Managerial skills and Business ethics and Business planSusrit Basnet
The document discusses managerial skills and the business planning process. It begins by outlining the four main types of managerial skills: conceptual skills, human skills, technical skills, and communication skills. It then describes the seven steps of decision making: diagnosing problems, analyzing problems, generating alternatives, evaluating alternatives, reaching decisions, choosing implementation strategies, and monitoring and evaluating. The remainder of the document focuses on building a business plan, outlining the seven essential sections including executive summary, company description, market analysis, organization and management, marketing plan, funding request, and financial projections.
The document provides an overview of what should be included in a business plan and how it can benefit a business. A business plan should include an executive summary that describes the business opportunity, target market, competitive advantages, and management team. It should also include sections on the market research and analysis, business model, management team, and financial plan. Developing a comprehensive business plan can help identify potential issues, structure financial planning, focus development efforts, motivate employees, and attract investors or funding.
How to prepare business plan is what is shown in these slides; Hints for preparing marketing, operations, financial plan and also highlights the risk areas to be covered in the plan, the questions the plan should answer along with milestones etc.
The document discusses the importance of writing a business plan before starting a business. It provides reasons for developing a business plan such as firming up ideas, knowing goals and financial requirements, and avoiding costly mistakes. The document outlines what a business plan should include, such as descriptions of the business, market analysis, marketing strategy, financial projections, and an implementation plan. It emphasizes that planning is invaluable for business success and provides tips for developing an effective plan.
This document provides an overview of how to write an effective business plan in 3 pages or less. It discusses the key elements that should be included such as an executive summary, company description, market analysis, management plan, and financial projections. The document emphasizes that a business plan is an organized way to evaluate all aspects of a business and can be used as a management tool and to seek financing. It provides guidance on how to address each section and examples of the type of information that should be presented.
Business Plan, Business strategies, marketing plan, marketing strategies, sales plan, sales strategies, executive summary, competitors, small business plan, budget, forecast, business analysis, operations, personnel, mission, vision, jose cintron mba, mba4help.com
This document discusses the key elements and purpose of an effective business plan. It begins by defining a business plan as a selling document that conveys the excitement and promise of a business to potential backers. The document then outlines three main purposes of a business plan: to avoid business failures by identifying potential issues, to create an effective strategy, and to determine future financial needs to attract investors. It proceeds to discuss the key elements that should be included in a business plan, such as an executive summary, business description, market analysis, management structure, sales strategies, funding, and financial projections. In closing, the document emphasizes the importance of the executive summary in capturing a reader's attention, as many only read this brief introduction to determine if
A business plan outlines key elements that are important for a business to look ahead, allocate resources, focus on important points, and prepare for potential problems and opportunities. While plans can vary in complexity and format, standard elements generally include descriptions of the company, products/services, market, management team, and financial projections. Of these, cash flow analysis and specific implementation details are often among the most important, as profits alone do not guarantee cash and strategies must be put into action through assigned responsibilities, budgets, and tracking of results.
The document provides an overview of business planning and the business planning process. It discusses that business planning involves setting goals, forecasting the future, and organizing activities to achieve desired goals. Business plans are used both internally for management purposes and externally to obtain financing from investors and lenders. The key sections of a business plan typically include an executive summary, market analysis, value proposition, marketing/sales plan, management team, and financial projections. Developing a thorough business plan helps avoid surprises, organize complexity, align stakeholders, and improve business efficiency.
This is a short overview of the entire business plan
Provides a busy reader with everything that needs to be known about the new venture’s distinctive nature.
Shouldn’t exceed two single-spaced pages.
The document provides an overview of business plans and strategic planning. It explains that a business plan guides strategic direction, is needed for lenders and investors, and helps establish goals, market opportunities, costs, and profitability. A strategic plan communicates organizational direction to stakeholders. Key parts of a business plan include an executive summary, company and product descriptions, market analysis, competitors, marketing/sales plans, management, and financial projections. The document also compares business plans and strategic plans.
The document provides guidance on writing a successful business plan, including key elements and questions to address. It discusses the importance of clearly outlining the business idea, target market, management team, marketing strategy, implementation timeline, risks, and financial projections. Effective business plans force disciplined thinking and convince investors that the idea is worth supporting.
The document discusses developing a business concept and business plan. It provides guidance on key elements to include in a business concept such as the product/service, customer, benefit, and distribution. A business plan should then be developed to test the feasibility of the concept. Key sections of an effective business plan are identified as the executive summary, management team plan, company description, product/service plan, market analysis, financial plan, and contingency plan. Sources of information and common mistakes to avoid in developing a business plan are also reviewed.
The document discusses entrepreneurial workshops and the process of innovation commercialization. It provides an overview of entrepreneurial workshops co-sponsored by Oklahoma State University that teach students about business plans and venture capital. It then outlines the typical stages of commercializing an innovation from initial investigation and product development through growth and maturity. It discusses common risks at each stage and recommends actions to mitigate those risks.
This document discusses tools and processes for innovation and entrepreneurship. It provides an outline for a business plan, including sections on marketing, production, management, and finances. Key points covered include brainstorming techniques for generating ideas, screening ideas through macro and micro analysis, using SWOT to evaluate remaining ideas, and standard components of a business plan like executive summary, products/services, market analysis, operations, and financial projections. The document emphasizes that planning is an ongoing process, not just a static plan, and outlines best practices for an effective business plan.
The document discusses the importance of business plans for new ventures. It provides guidance on developing an effective plan, including gathering necessary information on the market, operations, marketing, organization, risks, and financial projections. An effective plan evaluates the feasibility of the venture, guides planning activities, and is an important tool for obtaining financing. It should be updated over time to reflect changes in the business environment. Lack of proper planning, unreasonable goals, and failure to commit can cause some business plans and ventures to fail.
This document provides an outline for creating a business plan. It includes sections for an executive summary, company description, products/services, marketing plan, economics analysis, competitive analysis, operational plan, financial plan, and appendices. The financial plan section would include a 12-month profit and loss projection, 4-year profit projection, projected cash flow, opening day balance sheet, break-even analysis, and methods for raising capital. The overall document provides a framework to research, describe, analyze, and plan all aspects of starting a new business.
This document outlines the key elements and structure of an effective business plan. It explains that a business plan answers important questions about a company's products/services, customers, business model, competitors, operations, management team, market position, risks, capital requirements, and financial projections. The document provides tips for writing a clear and concise plan, and lists common elements to include, such as an executive summary, SWOT analysis, market research, marketing strategies, operations details, and financial forecasts. It concludes by presenting an outline for the typical sections in a business plan.
This document summarizes an agenda for a business planning session hosted by the Wharton Small Business Development Center. The agenda includes reviewing homework from the previous session, finalizing the business plan, finding expert advisory boards, and accessing additional resources from the SBDC. Participants will work on bringing all parts of their business plan together and discuss next steps for completing and using their plan.
Managerial skills and Business ethics and Business planSusrit Basnet
The document discusses managerial skills and the business planning process. It begins by outlining the four main types of managerial skills: conceptual skills, human skills, technical skills, and communication skills. It then describes the seven steps of decision making: diagnosing problems, analyzing problems, generating alternatives, evaluating alternatives, reaching decisions, choosing implementation strategies, and monitoring and evaluating. The remainder of the document focuses on building a business plan, outlining the seven essential sections including executive summary, company description, market analysis, organization and management, marketing plan, funding request, and financial projections.
The document provides an overview of what should be included in a business plan and how it can benefit a business. A business plan should include an executive summary that describes the business opportunity, target market, competitive advantages, and management team. It should also include sections on the market research and analysis, business model, management team, and financial plan. Developing a comprehensive business plan can help identify potential issues, structure financial planning, focus development efforts, motivate employees, and attract investors or funding.
How to prepare business plan is what is shown in these slides; Hints for preparing marketing, operations, financial plan and also highlights the risk areas to be covered in the plan, the questions the plan should answer along with milestones etc.
The document discusses the importance of writing a business plan before starting a business. It provides reasons for developing a business plan such as firming up ideas, knowing goals and financial requirements, and avoiding costly mistakes. The document outlines what a business plan should include, such as descriptions of the business, market analysis, marketing strategy, financial projections, and an implementation plan. It emphasizes that planning is invaluable for business success and provides tips for developing an effective plan.
This document provides an overview of how to write an effective business plan in 3 pages or less. It discusses the key elements that should be included such as an executive summary, company description, market analysis, management plan, and financial projections. The document emphasizes that a business plan is an organized way to evaluate all aspects of a business and can be used as a management tool and to seek financing. It provides guidance on how to address each section and examples of the type of information that should be presented.
Business Plan, Business strategies, marketing plan, marketing strategies, sales plan, sales strategies, executive summary, competitors, small business plan, budget, forecast, business analysis, operations, personnel, mission, vision, jose cintron mba, mba4help.com
This document discusses the key elements and purpose of an effective business plan. It begins by defining a business plan as a selling document that conveys the excitement and promise of a business to potential backers. The document then outlines three main purposes of a business plan: to avoid business failures by identifying potential issues, to create an effective strategy, and to determine future financial needs to attract investors. It proceeds to discuss the key elements that should be included in a business plan, such as an executive summary, business description, market analysis, management structure, sales strategies, funding, and financial projections. In closing, the document emphasizes the importance of the executive summary in capturing a reader's attention, as many only read this brief introduction to determine if
A business plan outlines key elements that are important for a business to look ahead, allocate resources, focus on important points, and prepare for potential problems and opportunities. While plans can vary in complexity and format, standard elements generally include descriptions of the company, products/services, market, management team, and financial projections. Of these, cash flow analysis and specific implementation details are often among the most important, as profits alone do not guarantee cash and strategies must be put into action through assigned responsibilities, budgets, and tracking of results.
The document provides an overview of business planning and the business planning process. It discusses that business planning involves setting goals, forecasting the future, and organizing activities to achieve desired goals. Business plans are used both internally for management purposes and externally to obtain financing from investors and lenders. The key sections of a business plan typically include an executive summary, market analysis, value proposition, marketing/sales plan, management team, and financial projections. Developing a thorough business plan helps avoid surprises, organize complexity, align stakeholders, and improve business efficiency.
This is a short overview of the entire business plan
Provides a busy reader with everything that needs to be known about the new venture’s distinctive nature.
Shouldn’t exceed two single-spaced pages.
The document provides an overview of business plans and strategic planning. It explains that a business plan guides strategic direction, is needed for lenders and investors, and helps establish goals, market opportunities, costs, and profitability. A strategic plan communicates organizational direction to stakeholders. Key parts of a business plan include an executive summary, company and product descriptions, market analysis, competitors, marketing/sales plans, management, and financial projections. The document also compares business plans and strategic plans.
The document provides guidance on writing a successful business plan, including key elements and questions to address. It discusses the importance of clearly outlining the business idea, target market, management team, marketing strategy, implementation timeline, risks, and financial projections. Effective business plans force disciplined thinking and convince investors that the idea is worth supporting.
The document discusses developing a business concept and business plan. It provides guidance on key elements to include in a business concept such as the product/service, customer, benefit, and distribution. A business plan should then be developed to test the feasibility of the concept. Key sections of an effective business plan are identified as the executive summary, management team plan, company description, product/service plan, market analysis, financial plan, and contingency plan. Sources of information and common mistakes to avoid in developing a business plan are also reviewed.
The document discusses entrepreneurial workshops and the process of innovation commercialization. It provides an overview of entrepreneurial workshops co-sponsored by Oklahoma State University that teach students about business plans and venture capital. It then outlines the typical stages of commercializing an innovation from initial investigation and product development through growth and maturity. It discusses common risks at each stage and recommends actions to mitigate those risks.
This document discusses tools and processes for innovation and entrepreneurship. It provides an outline for a business plan, including sections on marketing, production, management, and finances. Key points covered include brainstorming techniques for generating ideas, screening ideas through macro and micro analysis, using SWOT to evaluate remaining ideas, and standard components of a business plan like executive summary, products/services, market analysis, operations, and financial projections. The document emphasizes that planning is an ongoing process, not just a static plan, and outlines best practices for an effective business plan.
The document discusses the importance of business plans for new ventures. It provides guidance on developing an effective plan, including gathering necessary information on the market, operations, marketing, organization, risks, and financial projections. An effective plan evaluates the feasibility of the venture, guides planning activities, and is an important tool for obtaining financing. It should be updated over time to reflect changes in the business environment. Lack of proper planning, unreasonable goals, and failure to commit can cause some business plans and ventures to fail.
This document provides an outline for creating a business plan. It includes sections for an executive summary, company description, products/services, marketing plan, economics analysis, competitive analysis, operational plan, financial plan, and appendices. The financial plan section would include a 12-month profit and loss projection, 4-year profit projection, projected cash flow, opening day balance sheet, break-even analysis, and methods for raising capital. The overall document provides a framework to research, describe, analyze, and plan all aspects of starting a new business.
This document outlines the key elements and structure of an effective business plan. It explains that a business plan answers important questions about a company's products/services, customers, business model, competitors, operations, management team, market position, risks, capital requirements, and financial projections. The document provides tips for writing a clear and concise plan, and lists common elements to include, such as an executive summary, SWOT analysis, market research, marketing strategies, operations details, and financial forecasts. It concludes by presenting an outline for the typical sections in a business plan.
This document summarizes an agenda for a business planning session hosted by the Wharton Small Business Development Center. The agenda includes reviewing homework from the previous session, finalizing the business plan, finding expert advisory boards, and accessing additional resources from the SBDC. Participants will work on bringing all parts of their business plan together and discuss next steps for completing and using their plan.
Explore the key differences between silicone sponge rubber and foam rubber in this comprehensive presentation. Learn about their unique properties, manufacturing processes, and applications across various industries. Discover how each material performs in terms of temperature resistance, chemical resistance, and cost-effectiveness. Gain insights from real-world case studies and make informed decisions for your projects.
2. Business Plan
Definition: A written document describing the
nature of the business, the sales and marketing
strategy, financial background, and containing a
projected financial statement.
Owners own description of Business
3. What Is a Business Plan?
IDENTIFICATION AND ARTICULATION OF:
Opportunity, Market, Customers
Management Capable of Seizing It
Minimal Required Resources
Entry Strategy & Tangible Vision for Growth
Financial Requirements & Cash Flows
Critical Risks & Assumptions
Harvest Options
4. Why a Business Plan?
Strategic Guide
Lenders
Investors
Alliances
Explain Business
5. Goals of a Business Plan
Evaluate feasibility of the idea
Development of strategy
Entry, early growth, harvest, etc.
Assist in obtaining resources/approval
Establish credibility
6. Essentials of a Successful Plan
Clear description of the idea
Overview of industry to suggest need/opportunity
Evidence that demand exists (or can be created or
stolen)
Clear description of resource requirements:
marketing, operations, financing
Background of management team
Schedule
Discussion of risks, rewards, and offer
7. Elements of Business Plan
Table of Contents
Executive Summary
Industry, Products or
Services
Market Research
Marketing Plan
Management Team
Development Plan
Operations Plan
Schedule
Critical Risks
Financial Plan
Proposed Offer
Appendices
Financial Projections
Start-up Costs
Breakeven Chart
8. Business Plans: Investor Decision Process
Market Attractiveness
•Market Need
•Size of Market
•Market Growth
•Access to Market
Managerial Capabilities
•Management Skills
•Marketing Skills
•Financial Skills
•References
Resistance to Threats
•Barriers to Entry
•Obsolescence Risk
•Downside Risk
•Economic Cycle Risk
Product Differentiation
•Uniqueness
•Product Life
•Profit Margin
•Value Added
Expected
Return
Perceived
Risk
Decision
to Invest
+
--
9. Key Points to Remember
General Guidelines
Clear, concise, professional style
Well-researched and documented
Consistent and cohesive
Business plans are:
Very specific
Not promotional tools, selling is subtle
10. Executive Summary
Clear description of idea
Arguments for success
Overview of Industry, Market, Need, Demand
Benefits to Customer / Company
Fit with Company Objectives
Team
Financial Characteristics
Sales, profits, investment, risk and returns
11. Industry Section
Industry Overview
Size, growth rate, segmentation, trends,
regulatory environment
Opportunity
Product Overview
Competitive Advantage
Entry and Exit Strategies
12. Market Research
Identify Market Area and Size
Description of Primary Customers
Who, how many, what they want, what they do
Research and Support for Demand
Competitor Analysis
strengths, weaknesses, likely competitive
response
13. Marketing Plan
Mission Statement
Product Characteristics
Features
Pricing
Sales/Channel Strategies
IMC
Support Policies
Sales Projections
On-going Evaluation
The key is to build on your market research ...
14. Management Team
Managerial Positions Required
Responsibilities
Biography
Ownership Structure
Key Advisors
Professional Support
15. Design and Development Plans
Development Status and Tasks
Costs
Difficulties and Risks
Proprietary Issues (partial, not complete)
Product Improvement and New Products
16. Operations Plan
Facility and Location Requirements
Equipment Requirements
Non-managerial staffing
Sources of Supply
Production Process and Controls
Distribution logistics
Regulatory and other compliance
issues
18. Critical Risks:
Identification, Evaluation, Mitigation
Identify major risks (7-10 is typical)
Look beyond the simplistic (sales fall short)
Evaluate impact should risk occur
Describe how the risk will be mitigated and
how you will respond should it happen
To get Unbiased Views Ask others what holes they see in your plan.
What can go wrong ?
Entrepreneurs frequently get too close to their ideas.
19. Critical Risks: An Example
Accident during Construction:
Evaluation: All safety precautions will be taken and
regular sessions for construction workers will be
held to update them about safe working. Also poster
will be put up to remind them of saftey precautions
they need to take.
Contingency: All workers will be insured for accidents
as well as third part insurance will be taken
20. Critical Risks: Another Example
Key Member of the Management Team is Injured
Evaluation: Management is in excellent health and will refrain
from dangerous activities. Thus, it is considered unlikely that a
member of the management team will be incapacitated.
Contingency: The company will ensure that key members of
the management team undergo physical examinations
annually.
In addition, the company will provide key-man life insurance
sufficient to protect outside investors’ capital in the event of an
emergency.
21. Financial Plan
Start-up Requirements (Investment required)
Review of Financial Characteristics
Sales, margins, profits
Return Measures (NPV,IRR, ROI)
Be careful not to promise
Breakeven Concerns
Extraordinary financial events
Avoid describing assumptions.
22. Appendices:
(Could Include Such Items As)
Lists, pictures of products, systems, software
List of customers, suppliers, references
Appropriate location factors, facilities or technical
analysis
Independent reports by technical expert, consultants
Detailed resumes of founders, key managers
Any critical regulatory, environmental or other
compliance, licenses or approvals
Sales or other financials assumptions (in brief)
23. Key Considerations
Have a “story to tell”
Be confident but objective and dispassionate
Understand the financial characteristics of your
business
Avoid promises
Tease to stimulate interest, never bore
24. Some Points to Remember
Length is typically 20-40 pages, excl. exhibits
Required appendices
Financial statements (3-5 years)
Statement of Start-up Costs
Breakeven Chart
Resumes
Use bullet points, tables, and small charts
Don’t use first person (“I”, “We”, “Our”)
Be Careful about Format and Spelling (they count (a
lot)
25. Remember:
A business plan is a specific plan to open a new
business or to expand an existing one, not the
writer’s wishes and dreams !
26. Pitfalls and Omissions:
Traps for Entrepreneurs
Seeking premature approval
Believing Plan is more important than Orders
Develop Complete Business Plan First v.
Floating Trial Balloons
Selling the plan to the wrong audience
Selling the plan to the right audience poorly
27. Pitfalls and Omissions:
Traps for Entrepreneurs
Phantom or Gingerbread Advisors
Spreadsheet Diarrhea (Financials = Business)
Poor understanding of product acceptance
Under-estimation of competitive reaction
Pricing strategy too low
Capital requirements too low or undefined
28. Business Plans:
What Investors Look For
Evidence of Customer Acceptance: Orders
Evidence of Focus / Niche
Appreciation of Financial Goals
Proprietary Position, Exclusivity
Team with experience, commitment, and
integrity
29. Business Plans:
What Turns Investors Off
Projects which deviate excessively from
industry norms
Unrealistic growth projections
Inadequate management experience / depth