BUSINESS PLAN

Why Business Plan ?????????????

A business plan is an effective tool for defining the existing realities. A good business plan will reveal weaknesses or omissions in your planning.  They provide a valuable communication tool presented in an organized, credible manner, which allows the stakeholders to obtain a complex view of the business.`

BUSINESS PLAN ESSENTIALS

• ALWAYS Prepare the Plan Yourself!

–Professional input from accountants, consultants, lawyers, etc. can be helpful.

–Write the Plan. Own the Plan. Know the Plan.

• I am investing in You & in Your Plan!

FORMAT OF THE BUSINESS PLAN

– Executive Summary– General Company Description– Products & Services Offering– Strategic Marketing & Sales Plan– Operational Plan– Management & Organizational Structure– Capitalization & Use of Proceeds– Financial Projections -- to include Assumptions– Appendices

DonorsGrants & SubsidiesPhilanthropic InstitutionsSpecialist Development FinanceRisk Capital

Strategic InvestorsPrivate EquitySocial InvestorsDevelopment AgenciesVenture Capital

Private EquitySocial InvestorsDevelopment Banks

Stage 2Technical Feasibility

Stage 1Prefeasibility

Supply Analysis Technology Analysis

Stage 3Commercial Feasibility

Market Analysis Prototype

Supply Analysis

Market Analysis

Prototype

Technology Analysis

Supply Analysis

Market Analysis

Business Plan

Financial Model

Strategic InvestorsPrivate EquitySocial InvestorsDevelopment Banks

Stage 4Investor Engagement

Business Plan

Financial Model

INPUT

ACTIVITY

OUTPUT

Stages of Project Development

Business Plan

Project Data Sheet

Investment Pitch

What is the value of a Business Plan?

Business Model

Supply

Supply Agreement

Profit Sharing

Transportation

Demand

PPAs

Power Deficit

Technology

Objective:Gain investor confidence

Accidental discoveries

Systematic search for

new products and services

Discovery copied or

modified from a previous

idea

Discoveries following a revolution

Unique Selling Proposition

Communicate Clearly to Investors

Leverage Strengths

Point of Differentiation

MitigationMeasures

Opportunities ThreatsExternal

Strengths

Weaknesses

Inte

rnal

Market AnalysisSWOT Analysis

Product

Price Place

Position

TM TARGET MARKET

Market Analysis

Porter Analysis

Power ofSuppliers

Power ofCustomers

Ease ofSubstitution

Barriers toEntry

IndustryRivalry

Industry QuestionsHow do we define our industry?  How is the industry segmented?  What are current trends and important

developments? Who are the largest and most important

players? What problems is the industry experiencing? What national and int’l events influence our

industry? What are growth forecasts?

-- Marketplace Analysis

Define and describe your marketplaceNiche, geographic area, subset of larger

industryWhat’s happening in your market?Network! – talk with the marketplace

Customers, competitors, vendors, suppliers, salespeople, …Chambers of commerceIndustry trade groups

Marketplace Questions

How do we define our marketplace? How large is it and how fast is it growing?

How is our marketplace segmented? What companies currently service this market?

What trends are important in our marketplace?

-- Customer Analysis

Identify current buyers in your marketplaceSegment these customersWhat “problems” are not being solved?What needs are not being met?Which customer segments are currently

ignored?Talk with current buyers!

-- Competitor Analysis

Identify current sellers in your marketplaceNiche and focusTarget customersStrengths and weaknessesTalk with current marketplace sellers!Sellers themselvesVendorsCustomersCompetitive Matrix Comparison

Competitive MatrixCompetitive Matrix Chart

Product or Service

Production/ Quality

UniqueFeatures

DistributionSystem

Marketing /Advertising

GeographicLocation

Strengths &Weaknesse

MarketShare

Competitor A

Competitor B

Competitor C

Competitor D

Competitor E

Competitor F

Competitor Questions

Who are current sellers in the marketplace?  What are the attributes and characteristics of

these sellers and their products/services?   What is there size, location, target market, and

other important characteristics? For their products or services, identify price,

quality, features, distribution, and other important attributes.

What problems and concerns to customers have with these sellers?

PROJECT PROFIT AND LOSS ACCOUNT

Income from Sales/Service Cost of Manufacturing/Servicing

i) Raw Materialsii) Utilitiesiii) Salaries/Wagesiv) Repairs & maintenancev) Selling & Distribution Expensesvi) Administrative Expensesvii) Interestviii) Rentix) Depreciationx) Misc. Expenses

c. Gross Profit/Loss (A-B)