Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Business plan finance

552 views

Published on

  • Be the first to comment

  • Be the first to like this

Business plan finance

  1. 1. Entrepreneurship & Small Business Management<br />Amit Goyal - Experiential Trainer<br />amitgoyal@tkws.co.in <br />+91 9810533760<br />TKWs - The Knowledge Workers<br />
  2. 2. In A Battle, The plans are useless…But planning is dispensable<br />TKWs - The Knowledge Workers<br />Why Make A Business Plan?<br />
  3. 3. An Ideal business plan should be…<br />Professionally typed & bound<br />Varying between 40 to 60 pages<br />Containing a cover page having Title, Contact information & Date<br />Containing an Executive Summary<br />Having a Table of Contents<br />Written in Third Person<br />Containing a lot of visuals or graphics<br />TKWs - The Knowledge Workers<br />
  4. 4. Section 1: Executive Summary<br />Make sure that you write this in the end<br />It should be written in 2-3 Pages<br />Share this with most people and keep rest of the report as confidential as possible<br />Devote 1-2 paragraphs to each section of your report<br />Add an Illustration or Graphic<br />TKWs - The Knowledge Workers<br />
  5. 5. Do not overdiversify<br /> # ENTREPRENEUR FACT 7<br />Focus your people, time & money resources to a single<br />source of revenue. Develop your main strength<br />before you begin to diversify<br />TKWs - The Knowledge Workers<br />
  6. 6. Section 2: Business Description<br />Name of the proposed venture<br />Industry & Business Idea<br />Uniqueness of Product & Service<br />Are you a solution looking for a problem<br />Validate<br />Interview – Poll – Google Ad Words – Why No One Has Filled It – Issues & Problems – Talk to real people - Why will they buy – Why won’t they buy <br />TKWs - The Knowledge Workers<br />
  7. 7. DoN’t BE EverYTHINGTO Everyone<br /> # ENTREPRENEUR FACT 8<br />Because you like your business, everyone won’t. <br />Be very specific in identifying your niche and defining their<br />demographics & psychographics<br />TKWs - The Knowledge Workers<br />
  8. 8. Section 3: Marketing<br />Background<br />Target Market Identified<br />Market size and trends<br />Competition<br />Revenue Model & Pricing<br />Positioning<br />Location & Supply Chain<br />Sales & Distribution<br />Advertising & Promotions<br />Launch<br />TKWs - The Knowledge Workers<br />
  9. 9. Indicators are no experience in business<br /> # ENTREPRENEUR FACT 9<br />Choose a business on basis of your personal experience<br />& expertise and not because of the market potential. <br />Build a team that complements your skills.<br />TKWs - The Knowledge Workers<br />
  10. 10. Section 4: The Team<br />Co Founders<br />Position, Experience & Responsibilities<br />Ownership & Remuneration<br />Independent Directors & Consultants<br />Expected Contributions<br />Stock arrangement or Consulting Fees<br />Early Employees<br />Qualification, Capabilities & KRAs<br />Compensation & Reporting<br />TKWs - The Knowledge Workers<br />
  11. 11. Section 5: Financials<br />Capital Investment<br />5 Year Forecasts For<br />Revenue<br />Profit & Loss Statement<br />Cash Flow<br />Balance Sheet<br />Working Capital<br />Break Even Analysis & RoI<br />TKWs - The Knowledge Workers<br />
  12. 12. Section 6: Critical Risks<br />Potential Problems<br />Obstacles and Risks<br />Alternative courses of Action<br />Salvage Value<br />TKWs - The Knowledge Workers<br />
  13. 13. Section 7: Exit Options<br />Transfer of Assets<br />Continuity of Business Strategy<br />Identify successor<br />Specially Useful In Case Of Fund Raising<br />TKWs - The Knowledge Workers<br />
  14. 14. Section 8: Milestone Schedule<br />Timing & Deadlines<br />Relationship of events<br />Incorporation of Venture<br />Completion of design & development<br />Manpower Recruitment<br />Raw Material Purchase<br />Channel Signups<br />Launch<br />First Sale<br />First Receipt<br />TKWs - The Knowledge Workers<br />
  15. 15. Section 9: Supporting Material<br />Survey Responses<br />Sample Artwork<br />Prototype Designs<br />Resumes<br />Brochures<br />Annexures<br />TKWs - The Knowledge Workers<br />
  16. 16. TKWs - The Knowledge Workers<br />Don’t Fool Yourself<br />or<br />Doubt Intelligence of the Sponsor<br />
  17. 17. Discounted Cash Flow Adjusted PV<br />FCF<br />Cost of Capital, k<br />TV = FCF * (1+g)/(k-g)<br />PV = TV / (1+k)^n<br />TKWs - The Knowledge Workers<br />
  18. 18. What is Your Business Model<br />Auction<br />Bricks & Clicks<br />Collective Business<br />Cutting Out The Middle Man<br />Direct Sales<br />Distribution<br />Franchise<br />Freemium<br />Industrialisation of Service<br />Open Source<br />TKWs - The Knowledge Workers<br />
  19. 19. What is Your Business Model<br />No Frills<br />Loyalty Business<br />Monopolistic Business<br />Multilevel Marketing<br />Pyramid Scheme<br />Network Effects<br />Premium Business<br />Razor & Blades<br />Servicization of Product<br />Subscription Business<br />TKWs - The Knowledge Workers<br />

×