The document discusses the importance of business plans and provides guidance on developing an effective plan. It notes that a business plan is a process, not a product, and should be used and updated as a management tool. Common mistakes include a lack of understanding of the value proposition, customer needs, and competitive advantages as well as unrealistic financial projections. The document outlines a 10-step process for developing a business plan that involves defining the problem being solved, researching the market, identifying critical success factors, and getting feedback to continually revise the plan.

1. Who Needs a Business Plan? … And Why? Some Good Ideas …And Some Bad Ones!

2. To Successfully Launch a New Business... ...Requires Identifying and Bringing Together Necessary Resources Human - Technological Physical - Financial We Do This Through a Business Plan

3. What Is a Business Plan? It’s a Process, Not a Product It’s Written to Develop a Successful Business Not Just to Raise $ Should Be Used & Updated as a Mgmt Tool Most Business Failures Can Be Prevented … If You Have a Good Business Plan

4. Why Do Startups Fail? How Often Can We Predict?

5. Who Do We Write Plans For? Resource Providers Might Be Investors Might Be Internal Sponsors Might Be Strategic Alliance Partners Always for Your Team Many Entrepreneurs Have Multiple Versions

6. What Does the “Product” Look Like? Executive Summary (1-2 pages) It’s All They’ll Read Must Communicate and Capture Attention Industry & Market Opportunity Marketing Plan Product / Operations Management Team Financials Critical Risks Timetable / Milestones Exhibits

7. Appearance (Continued) Length Will Vary Average Today Around 25 Pages + Exhibits Usually Have a “Summary Version” of 10-12 Pages Generally: More $$ Needed = More Pages Less Well Known Audience = More Pages

8. What Are They Looking For? What’s the Problem? How Big Is It? How Will You Solve It? You and Who Else? Do I Believe You Can Do It? The TEAM! Why Should I Help You? Financials / ROI Exit Strategy

9. What Do They Want to Hear? Ingredients of a Successful Plan (What It Takes to Create Successful Enterprises – TiE)

10. Ingredients of a Successful Plan Vision Commitment Strategy Time to Market Team Passion Customer Testimonial Competition Capital Need Milestones

11. Vision Looking for: Market Leadership Proprietary Advantage Realism

12. Commitment Prove You’re Serious About This: Clearly Defined Priorities Understandable Objectives Show You Know the Way!

13. Strategy Can You Execute the Vision? “Go to Market” Strategy Execution Plan Clearly Define Your: Product/Service Pricing Explain How it Solves the Problem

14. Time to Market What is Window of Opportunity? What Features Are Critical Now? What Will Future Products Look Like?

15. Management Team Have a Winning Team We Know How to Execute Plan to Augment As We Grow

16. Passion “Fire in the Belly” Confidence

17. Customer Testimonial Proves Market Traction Referencable Customers In Order of Preference Happy Users MOU Letter of Endorsement They’ll Take a Call

18. Competition Identifies Players Describes Strengths & Weaknesses Explains Our Advantage Describes Barriers to New Entrants Is Respectful of Competition!

19. Capital Need Clear About Amount Requested Clear About Timing Use of Funds Must Match Strategies Ask for Enough to Have a Slight “Cushion”

20. Milestones Both Short Term & Long Term Be Sure to Include: Beta Testing Ready for Shipping

21. What NOT to Do in a BP What is a “BAD” Business Plan? What Are Some of the Common Mistakes We See?

22. What is a “BAD” Business Plan? One That Doesn’t Meet Its Objectives Fails to Help Launch a Successful Business Fails to Identify Key Obstacles / Problems Fails to Attract Interest: Of Investors Of a Team Of Partners Of Other Resource Providers

23. It’s Possible to Launch a Good Business Without One! …And Vice-Versa …But a Good BP Improves Your Odds

24. First Clue That You’re Reading a “Bad Plan”… You Don’t Want to Keep Reading! It Doesn’t Capture Your Attention It’s Hard to Get Through You Just Don’t Get It!

25. Most Common Errors in a Plan Lack of Understanding of Value Proposition …Or Significantly Overstates It Lack of Understanding of Customer And How to Reach Them Lack of Focus Underestimating Inertia Underestimating Effort & Resources Required

26. Most Common Errors in a Plan (Cont’d) Failure to Identify Competition Lack of a Competitive Advantage Unproven Team Inconsistent Facts or Logic Over-Optimistic Financial Projections Lack of a Robust Business Model

27. Business Model (How Will I Make Money Delivering My Product?) What Can I Charge? How Will I Charge? Who Will I Charge? What Will It Cost Me to Deliver? Where Do I Make the $$? Your Business Model Will Define: Critical Success Factors How Much $$ You Need Ultimate Value Creation

28. So, How Do I Develop a Business Plan ? There Is No “Right Way” The Following Generally Makes Sense

29. My 10 Step Process (1-4) Start With “Why Am I Doing This?” Need To Define a Good Outcome to Achieve It Try To Answer the First 2 Questions “ What Problem Am I Solving” “ What Is My Solution?” Outline Your Market Analysis What Do I Know? What Do I Wish I Knew? Begin Talking to People Advisors Potential Customers Friends

30. My 10 Step Process (5-7) Define Your Business Model Both Revenues & Expenses Consider Alternates (List Them) Try to Begin a Rough Spreadsheet Identify Critical Success Factors Begin Formal Market Research What Questions DO You Need to Answer? Where Can You Find This Information? Consider Primary & Secondary Data List the Resources You Need to Succeed Human, Physical, Financial, Etc .

31. My 10 Step Process (8-10) Outline the Business Plan What Parts Can You Begin to Write? How Much More Info Do You Need? Define A Successful Scenario What Has to Happen? What Do You Need to Do? Simulate in Your Model Write the Plan … and READ It! Get Some Feedback Revise and Update

32. How Will I Know When I’m Done? You’re NEVER “Done”! The Environment Is Constantly Changing You Are Constantly Gaining New Information Your Capabilities Are Changing How Do These Things Change Your Plan?