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.

1. Business Plans
Introduction

2. Why a Business Plan?
 Strategic Guide
 Lenders
 Investors

3. Strategic Guide
 Where Do You Want To Go?
 How Are You Going to Get There?
 What Market Niches?
 How Much is it Going to Cost?
 Greatest Profit Opportunity?

4. Lender Expectations
 Good Business Track Record
 Ability to Repay
 Staying Power
 Collateral

5. Investor Expectations
 Competitive Advantage
 Huge Market
 Strong Management Team
 Strong Marketing and Sales Plan
 Exit Strategy

6. Entrepreneurs Start Businesses:
 To Capitalize on an Invention
 To Be Their Own Boss
 To Get Rich
---All Need an Exit Strategy

7. Funding Sources:
 Savings
 Friends and Family
 Financial Institutions / Banks
 Angel Investors
 Venture Capital

8. Business Planning
A business plan is a formal statement of a
set of business goals, the reasons they are
believed attainable, and the plan for
reaching those goals. It may also contain
background information about the
organization or team attempting to reach
those goals.

10. STRATEGIC PLANNNING
 Strategic planning is an organization's process of
defining its strategy, or direction, and making decisions
on allocating its resources to pursue this strategy. In
order to determine the direction of the organization, it is
necessary to understand its current position and the
possible avenues through which it can pursue a particular
course of action. Generally, strategic planning deals with
at least one of three key questions:
 "What do we do?"
 "For whom do we do it?"
 "How do we excel?"

11. Strategic Planning

12. Business planning VS Strategic
Planning
 A strategic plan is primarily used for implementing and
managing the strategic direction of an existing
organization. A business plan is used to initially start a
business, obtain funding, or direct operations.
 A strategic plan is for established businesses, organizations
and business owners that are serious about growing their
organization. Whereas a business plan could be for new
businesses and entrepreneurs who are startups.
 A strategic plan is used to provide focus, direction and
action in order to move the organization from where they
are now to where they want to go. Whereas a business
plan is used to provide a structure for ideas in order to
initially define the business.

13. Cont….
A strategic plan is used to communicate the
direction of the organization to the staff and
stakeholders. However, a business plan is
used to present the entrepreneur’s ideas to a
bank.
 A strategic plan is critical to prioritizing
resources (time, money and people) to grow
the revenue and increase the return on
investment. Whereas a business plan is
critical if the business is seeking funding. s

14. Business planning VS Strategic
Planning

15. Business Plan Content
 Executive Summary
 Company Description
 Product/Services Description
 Industry Overview
 Market Analysis
 Competitors

16. Business Plan Content
 Customers
 Marketing and Sales Plans
 Development
 Operations
 Management

17. Business Plan Content
 Personnel
 Financial Summary
 Financials
 Offering
 Appendices

18. Executive Summary
A mini-business plan in one or two pages
 Highlights the most important points of your
business plan
 It is NOT an introduction to the plan

19. Executive Summary
 Identify the company, its background, structure
and location
 Describe what the company does, and the market
it serves
 Describe the market potential for the company’s
products and services, market trends, etc.

20. Executive Summary
 Outline
the backgrounds and experience of the top
management team
 Describe the funding required, the purposes for
which it will be used, the collateral available (if
for a lender), and the expected outcomes

21. Company Overview
 Brief Company Introduction
– Mission statement
– Location, size, history
– Market and products
– Overview of company capabilities
– Objectives

22. Products/Services
 Products / Services
– What does it do?
– Uniqueness
– Competitive Advantage
 Technology
– Brief description
– Applications
 Commercialization Status
– Brief overview

23. Industry Overview
 SetThe Stage
 Industry Definition and Description
– Major players within the industry
– Factors driving dynamics
– New products and developments
 Legislation and Policies Driving the Industry
 Historical and Future Trends

24. Market Analysis
 Market Definition
– Primary Market
– Secondary Markets
 Market Size and Trends
– Current total revenues
– Predicted annual growth rate

25. Competitors
 Direct Competitors
– Who are they?
– Size and product breadth
– Revenues and profitability
– Strengths and weaknesses
– Market shares
 Indirect Competitors
Indirect competitors in the business world are
those businesses that don't necessarily sell
the same products but offer different
alternatives to satisfying the same customer
need.

26. Customers
 Customer Characteristics
– Who are they?
– Why do they buy?
– Need satisfied by the product/service
– How is the need currently filled?
– What are the alternatives?
– Who makes the decision to buy?
– How frequently do they purchase?

27. Marketing and Sales Plans
 Statement of Opportunity
 Marketing and Sales Objectives
 Existing Customers
 Potential Customers
– Prospects targeted
– How prospects will be targeted and qualified

28. Marketing Strategies
 Product/Service Strategy
 Pricing Strategy
 Distribution Strategy
 Advertising and Promotion Strategy
 Sales Strategy
 Marketing and Sales Forecasts

29. Marketing and Sales Plans
 Marketing Programs
– Direct Mail
– Trade Shows
– Advertising
– Internet
– Publicity/Public Relations
– Marketing Budget
 Pricing
– Basis for targeted price point
– Margins and profitability by volume levels

30. Marketing and Sales Plans
 Sales Plan
– Sales force structure – (direct or reps)
– Sales expectations/quotas
– Margins given to intermediaries
– Service and warranties
– Sales Budget
– Organizational chart indicating planned growth

31. Development
R & D Plan
– Objectives
– Milestones and current status
– Difficulties and risks
– Staffing
– R & D Budget and assumptions

32. Operations
 Manufacturing/Production Plan
– Objectives
– Facilities
– Staffing
– Subcontractors
– Quality Control
– Budget / Operating Expenses

33. Management
 Company Organization
 Management Team
 Administrative Expenses

34. Management Team
 President
 VP Finance
 VP Sales
 VP Marketing
 VP Manufacturing
 Board of Advisors

35. Personnel
 Human Resource Plan
– Staffing Objectives
– Organizational Structure
– 3-5 year growth plan
– Budget

36. Summary of Financials
 Financial Objectives
– Time to Cash Flow Positive
– Time to profitability
 FinancialAssumptions
 Capital Requirements
 Exit Scenario

37. Financials
 Pro-forma Cash Flow Projections
 Pro-forma Profit & Loss Statements
 Pro-forma Balance Sheet

38. Offering
 InvestmentRequirements
 Pro-forma Valuation of Business
 Offer

39. Appendices
 Resumes of Key Management
 Patent Information
 Customer List
 Testimonials
 Supplemental Financial Spreadsheets
 References

40. Questions?