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businessplan
- 1. Components of a BusinessPlan Jill Kline Wyoming SBDC 1
- 2. Wyoming SBDC Strengthen Wyomingbusinesses and create economic growth by providing excellent management assistance, educational programs and helpful resources for Wyoming small businesses and entrepreneurs. 2
- 3. WSBDC Contacts Region I:Bill Ellis (307) 352-6894 Toll Free in WY 800-348-5205 e-mail: bellis@uwyo.eduServing Sublette, Lincoln, Uinta, and Sweetwater counties. Region IV: Arlene Soto (307) 632-6141 Toll Free in WY 800-348-5208 e-mail: sewsbdc@wyoming.com Serving Goshen, Laramie, Albany, and Carbon counties Region II: Robbi Welch (307) 754-2139 Toll Free in WY 800-383-0371 Fax: (307) 754-0368 e-mail: director@wir.net Serving Park, Big Horn, Washakie, Hot Springs, Fremont, and Teton counties. Region IV Satellite Office: Bill Schepeler (307) 766-3515 e-mail: WTSchep@uwyo.edu Region V: Jill Kline (307) 682-5232 Toll Free in WY 888-956-6060 e-mail: sbdc@vcn.com Serving Sheridan, Johnson, Campbell, Crook, and Weston counties. Fremont County Office: Margie Rowell (307) 857-1174 Toll Free in Wyoming 800-969-8639 e-mail: wsbdc@wyoming.com Region III: Leonard Holler (307) 234-6683 Toll Free in WY 800-348-5207 e-mail: sbdc@tribcsp.com Serving Converse, Natrona, Niobrara, and Platte counties. http://www.uwyo.edu/SBDC/offices.html 3
- 4. Why develop a BusinessPlan? “All the work you do in thinking up your idea, testing it, studying it, and producing it, has been for nothing if you can’t sell it. Whether you start you own business to produce and sell your invention, subcontract out the manufacturing part, or sell your rights in return for a percentage of the proceeds, you need a business plan.” - Pamela Riddle Bird, PhD, Inventing For Dummies CEO, Innovative Product Technologies, Inc. 4
- 5. Why develop a BusinessPlan? “You've just come up with an idea. What to do next? There is no exact order of what you should be doing. But we like to suggest two broad areas for inventors to embark on. First, learn all you can about running a business, even if you hope to license your idea. Second, write a business plan. Even if you hope to license your idea, (and that's actually a rarity among the successful inventors we've met) you'll still need to have a plan.” - Mark Ellwood, Past UIA Board of Directors 5
- 6. Why develop a BusinessPlan? “A business plan is vital for enterprises needing investment, grant funding or significant borrowing; more so for innovation ventures, as the greater number of ‘unknowns’ makes it even harder to attract backing. But don’t make the mistake of thinking that only other people need your business plan. It’s primarily a tool to reveal possibly awkward truths about your business to you.” - a Creative Investor 6
- 7. Three Types ofPlans • Summary Plan – 10 pages, 3 important points • Comprehensive Plan – 10-40 pages, seeking capital or alliances • Operational Plan – 40+ pages, for going concerns, part of an annual process 7
- 8. The Summary Plan •The Business – Legal Structure, Products or Services, Management, Personnel, Record Keeping • Marketing – Target Market, Competition, Advertising • Financials – Summary of Needs, Use of Funds, 3 Year Cash Flow Projections, Income Projections 8
- 9. The Comprehensive Plan 1.Executive Summary 2. Problem 3. Solution 4. Business Model 5. Secrets 6. Marketing and Sales 7. Competition 8. Management Team 9. Financials 10.Current Status 9
- 10. Executive Summary • Defineproblem, solution, business model, and why your solution is better • Write it last • Grab readers attention • No more than 2 pages! • Most important part of your plan and usually written last 10
- 11. Problem • What problemare you solving? • Describe how the “state of the art” is insufficient • Get your reader to agree that the current situation isn’t optimal • If there isn’t a problem, take your idea back to the drawing board 11
- 12. Solution • How dowe solve the “Problem”? • Explain what you sell • State your value proposition 12
- 13. Value Proposition Worksheet • FirstSentence: – For (target customer) – who (statement of the need or opportunity), – the (product/service name) is a (product/service category) – that (statement of benefit). • Second Sentence: – Unlike (primary competitive alternative), – our product (statement of primary differentiation). 13
- 14. Business Model • Explainhow you make money – Who pays you? – How do you collect? – What are your channels of distribution? – How do you integrate suppliers? • Use examples if necessary • Be complete 14
- 15. Secrets • Describe yourtechnology, process improvement, etc. • Use charts, diagrams, schematics, as much as possible • Understand your Intellectual Property 15
- 16. Marketing and Sales •Define your primary, secondary, and other audiences • Show some numbers • How will you find, sell, and retain customers? • Advertising and promotion budget • Identify your leverage points 16
- 17. Competition • Everyone hascompetitors! • Provide a complete view of the competitive landscape • Direct and indirect competitors • Current and anticipated competitors • Competitor strengths and weaknesses • Your competitive advantages 17
- 18. Management Team • Describeyour key players – Management Team – Board of Directors – Board of Advisors – Major Investors • Who are you missing? 18
- 19. Financial Projections • • • • Cash FlowProjections Income Projections Balance Sheets Assumptions 19
- 20. Current Status • Describeyour major milestones and tasks – Technology – Fundraising – Customer Development, etc. • Where are you now? • Brag about your accomplishments • Talk about the next steps 20
- 21. Investor Pitch Slides 10/20/30Rule 1. 2. 3. 4. 5. Title Problem Solution Business Model Secrets 6. • • • • Marketing and Sales Competition Management Team Financials Current Status 21
- 22. Good Reading • Crossingthe Chasm – Geoffrey Moore • The Art of the Start – Guy Kawasaki • Inventing For Dummies – Pamela Riddle Bird 22
- 23. Internet Resources WSSI InventorResources Page http://uwadmnweb.uwyo.edu/SBIR/inventorresources.html Innovative Products Technologies, Inc. http://www14.inetba.com/inventonecom/ Business Plan Development Tools (online) – http://www.uwyo.edu/sbdc http://www.sba.gov/starting_business/index.html Sample Plans – http://www.bplans.com/samples/sba.cfm?DCMP=OTC-sba_course 23
- 24. Thank you! Questions? Jill Kline,Region V Director (307) 682-5232 1-888-956-6060 sbdc@vcn.com Serving Sheridan, Johnson, Campbell, Crook, and Weston counties. 24
Editor's Notes
- #2 {"16":"Target markets. Don’t be afraid of leaving someone out. You can’t sell to everyone.\nDo your market research, market size, psychographics, talk about MRC, GroBiz \nMarketing Strategy- it needs to work without breaking the bank. Start-ups usually don’t buy SuperBowl spots\nWhere will you spend money on marketing? Use a supplementary budget when crafting your plan. Tell about pet-peeve of $100/month\nWhat are the key leverage points in your Marketing Strategy? How many contacts must be made, close rate, etc. Make sure that you tell the reader that you understand the importance of having a good strategy.\n","5":"Mark Ellwood, past United Inventors Association Board of Directors recommends that you first learn all you can about running a business and then write your business plan. \n","17":"No one is burying money in the back yard waiting for your product to hit the market.\nMake sure that your readers know that you understand the industry and external environment. \nBe thorough! Too much is better than too little\nDon’t be dismissive. GE is not, “Too big and slow.” They are, “Well capitalized and market savvy.”\nTell your readers why your product is good, not why the competition is bad.\n","6":"And an investor has been noted as saying not only is a business plan important for any business looking for funding but its even more important for ventures involving innovations. He also reminds innovators that the plan is not just for other people, developing the plan gives you the opportunity to really learn the nitty-gritty information about what you want to do.\n","23":"WSSI Inventor's Resources\nWhat If the SBIR Program Is Not Appropriate For My Innovation?\nIn General:United Inventors Association (UIA)UIA Inventor's Ten CommandmentsUnited States Patent and Trademark Office\nIn Wyoming:Wyoming Inventors' GroupWyoming State Library Patent and Trademark Depository LibraryWyoming Research Product CenterManufacturing-WorksWyoming Small Business Development CenterRocky Mountain Inventors Association\nSome Innovation Evaluation Services:Wisconsin Innovation Service CenterWashington State University Innovation Assessment CenterUS Department of Energy Industrial Technology ProgramI² Innovation Institute\n \n","12":"A value proposition is a clear statement of the tangible results a customer gets from using your products or services. The more specific your value proposition is, the better. \nStrong value propositions deliver tangible results like: \nIncreased revenues \nFaster time to market \nDecreased costs \nImproved operational efficiency \nIncreased market share \nDecreased employee turnover \nImproved customer retention levels \nFirst Sentence:\nFor (target customer) \nwho (statement of the need or opportunity), \nthe (product/service name) is a (product/service category) \nthat (statement of benefit). \nSecond Sentence:\nUnlike (primary competitive alternative), \nour product (statement of primary differentiation).\n","18":"One paragraph on each person will do. Not a resume. It’s okay for start-ups to have unproven managers. Describe what skills they bring to the business. \nPut your management team together first. \nIf you need help putting together a Board, talk to your local Economic Development professionals\nIf you already have major investors, tell everyone.\n","7":"Summary-for bankers, first timers, feasibility testing, small businesses.\nFull-comprehensive plan with a good amount of detail\nOperational-describes how your business operates, handles challenges, plans growth, very strategic\nWe can also have business cases, but not covered today.\n","2":"The Small Business administration is our federal funding partner. The Wyoming Business Council is our state funding partner and our program is administered through a partnership with the University of Wyoming. \nIn a nutshell , the SBDC provides free, confidential business consulting to anyone in Wyoming that owns or would like to own a small business. \n","19":"If you need examples, we have worksheets and spreadsheets, or look on the internet.\nProject for at least 3 years, possibly 5.\nYour numbers need to be “defendable.”\nMake sure that your projections jive with what you’ve said earlier in your plan.\nExplain your underlying assumptions in terms that the reader can understand, like # of customers, market share, hits on your web page\nAnything else can be brought in later. Cap tables, etc.\n","8":"Answers 3 major questions: How will we operate, Who are our customers and how will we reach them, and Will we be profitable doing this. \nSummarize 3 sections into one paragraph each, create executive summary, add supporting documents.\nShow how banker reads a business plan.\n","14":"If you have a brand-new, paradigm shifting model, explain it in terms of existing models.\nBe complete. For your reader, this is where your idea becomes a business.\n","20":"It’s easy to update this last section as your business develops rapidly\nShows your readers that there is action behind this plan\n","15":"Make sure that you correctly articulate how your Intellectual Property is protected. Contact the RPC for more information.\n","4":"Founder and Chief Executive Officer of Innovative Product Technologies, Inc. (IPT, Inc.). which is a product and technology based market commercialization corporation \nA business plan is the first step you take toward turning your invention into a marketable reality. \nPotential investors may understand a business proposal much better than they understand the technology of an invention. Investors will look at the profit-and-loss possibilities \n","21":"10 slides, 20 minutes, 30 point font\nThese are the slides you will need.\n","10":"If you don’t get their attention here, they won’t read further.\n"}