This deck was presented by Mahesh Krishnamurti at the TiE Institute Knowledge Series (TIKS) : Starting Up- Session 1 in July 2011. This session was organised by Tie Mumbai.

1. A BUSINESS PLAN –
WHY BOTHER??
JULY 30, 2011

2. JARGON!!
Mission Statements
That ―Vision Thing‖
Statements of ―Intent‖
―BHAGs‖

3. A Real Mission Statement!!!
―To help our clients achieve their financial objectives by serving as their tax and financial
partner. As the world’s largest tax services company, H & R Block has one-to-one
relationships with millions of clients, helping them benefit from all of the deductions and
credits available to them and build a better financial future. It is the only major company
that offers a full range of software, online and in-office tax solutions, combined with financial
information and suggestions that enable clients to consider how they could achieve their
financial objectives. This advice — the H &R Block Advantage — includes suggestions
about retirement savings, home ownership, saving for their children’s college education,
eligibility for government programs and other alternatives. When clients request in-depth
financial plans and investment advice, their H &R Block tax professional refers them to H &
R Block Financial Advisors Inc., which can assist them with a detailed investment plan and
investment services. H &R Block Financial Advisors, member NYSE, SIPC, employs more
than 1,000 financial advisors serving clients in more than 150 offices in the U.S. H & R
Block Inc. is not a registered broker-dealer. Clients who request information about home
mortgages are referred to H &R Block Mortgage Corp., which offers a full range of retail
mortgage products. Our research shows that our H &R Block Advantage advice package
along with related financial services increased client satisfaction with H & R Block’s tax
services. H & R Block has long been a trusted tax partner to millions of taxpayers. Now we
are enhancing the value of our tax services by helping clients as their tax and financial
partner.‖

4. More Examples
―It is our job to continually foster world-class
infrastructures as well as to quickly create principle-
centered sources to meet our customer's needs.‖
―Our challenge is to assertively network economically
sound methods of empowerment so that we may
continually negotiate performance-based
infrastructures.‖
―To improve lives by mobilizing the caring power of
communities.‖
―Respect, integrity, communication, and excellence.‖

5. Another Example
“We work side-by-side with our clients in 27
countries, as members of their internal teams, to
help solve their most pressing business
challenges; We do so by deploying our 2,600
Consultants only according to when clients
need them, how they need them, and what they
need them for.”
-- RGP Mission Statement

6. What’s Required
in a Strong Mission Statement?
• Quantification
• Direction
• Motivation (Inspiration)
• Challenge (Human beings don’t like
boundaries!)
• Clarity (Not lengthy/Focused/Specific)
• Action
• Guidance

7. A Few Well-Known BHAGs
"A computer on every desk and in every
home, all running Microsoft software."
"Every book ever printed, in any language,
all available in less than 60 seconds.―
―We will put a man on the moon and bring him
back before the end of this decade‖

8. BUSINESS PLANS
IF YOU WANT TO MAKE GOD LAUGH,
SHOW HIM YOUR BUSINESS PLAN!

9. WHAT YOU SAY…. WHAT THEY THINK…..
―The project is 98% complete‖ To complete the last 2% will take as
long as it took to complete the first 98%
―Our business model is proven….‖ If you take the very best evidence from
the very first week of prototyping and
extrapolate it out for the next 5 years
―Customers are desperate for our product‖ We haven’t asked them to pay for it yet,
and oh by the way, all of our customers
up to this point are relatives
―If you invest per our terms, you’ll get a If everything that could ever conceivably
50% IRR‖ go right does go right, you might get
your money back

10. STRATEGIC CHOICES
High CRAZY NO BRAINERS
Attractiveness
Low WASTE OF TIME TACTICS -- ONLY
SHORT TERM
BENEFITS
Low High
Achievable

11. WHAT INFORMATION DOES A
GOOD BUSINESS PLAN CONTAIN?
• PEOPLE (THE TEAM)
• OPPORTUNITY
• CONTEXT
• RISK AND REWARD

12. THE TEAM
• What do you know?
• How will you respond to adversity?
• How well are you known?
• Who do you know?
• Are you realistic?
• How committed are you?
• What’s driving you?
=== EXECUTION SKILLS

13. THE OPPORTUNITY
• Is the total market for the product/service large,
rapidly-growing, or both? Scalability?
• Is the industry structurally attractive (or does it have
the potential to become structurally attractive)?
===Rigorously describe why this is the case

14. THE OPPORTUNITY
=== Describe in detail how you will build and launch
into the marketplace
• Who is/are the customer(s)
• Compelling for the customer?
• Pricing?
• How will you reach targeted customers?
• Cost to produce and deliver?
• Cost to acquire a customer?
• Cost to support customers?
• Ease/difficulty of retaining your customers?
• Cash flows/Timing?
• Competition?
=== Economically viable access to customers

15. THE CONTEXT
• All opportunities exist in a context
-- Macro environment (economic,
inflation, interest rates, etc..)
-- Government rules & regulations
• You should show heightened awareness of context.
• Demonstrate that you know the context will inevitably
change and how it might affect your venture.
• Spell out what your team can and will do if the context
turns unfavorable (context from multiple angles).
• Can you affect context in a positive way?

16. THE RISK & REWARD
• Discuss People/Team, Opportunity, and Context as
a moving target.
• Provide a sense of the type and class of risk your
venture represents.
• It is ultimately your responsibility to improve the
chances of success and mitigate problems.
• Greatest myth: ―Entrepreneurs are risk seekers‖.
Actually, all sane people want to avoid risk!!
• Your business plan must confront the risks ahead.
• Your Exit Strategy –are you ―IPO’able‖? Get acquired?

17. FAIL, FORWARD, FAST!!
=> THINK BIG, START SMALL, SCALE IT UP.
=> LESS TO BE GAINED BY PERFECTING THE
―KNOWN‖, THAN BY IMPERFECTLY SEIZING
THE UNKNOWN.
=> PROTOTYPE, PROTOTYPE, PROTOTYPE!!!!

18. IT’S ALL ABOUT PEOPLE
HARD IS SOFT (PLANS, #s,)
SOFT IS HARD (PEOPLE, CUSTOMERS,
RELATIONSHIPS, VALUES)
(Tom Peters)

19. WE ARE THE COMPANY WE KEEP!
YOU WILL BECOME LIKE THE 5 PEOPLE
YOU ASSOCIATE WITH THE MOST – THIS
COULD BE GOOD OR BAD.
(Tom Peters)

20. BE INTERESTED
EVERYONE WANTS TO BE INTERESTING,
BUT IT’S MUCH MORE ENERGIZING TO
BE INTERESTED. KEEP YOUR
CURIOSITY. DISCOVER NEW THINGS.
CARE, RISK, REACH OUT.

21. “A Goal is a Dream with a Timeline”