Business Plan Overview: Updated 2009

(c) 2009 Debra Askanase(c) 2009 Debra Askanase

Business Plan Business Plan DevelopmentDevelopment

Creating Your Road MapCreating Your Road Map

IMBA Lecture SeriesIMBA Lecture Series


AgendaAgenda

Purpose of a Business PlanPurpose of a Business Plan Parts of the PlanParts of the Plan Criteria by SectionCriteria by Section TipsTips


ToolsTools

Sample Business PlanSample Business Plan Questionnaires (to get you Questionnaires (to get you

started)started) Detailed Section OutlineDetailed Section Outline Contact: Debra AskanaseContact: Debra Askanase

[email protected]@communityorganizer20.com


WHY do we do this?WHY do we do this?


Yes, but WHY ELSE?Yes, but WHY ELSE?

Know the IndustryKnow the Industry Find your Competitive AdvantageFind your Competitive Advantage Analyze RisksAnalyze Risks Develop Your Idea MethodicallyDevelop Your Idea Methodically Acquire InvestorsAcquire Investors Find Support Find Support Secure FinancingSecure Financing…….SHOULD I START THIS .SHOULD I START THIS

VENTURE??VENTURE??


Business Plan SectionsBusiness Plan Sections


Business Plan SectionsBusiness Plan Sections Narrative SectionNarrative Section

Business DescriptionBusiness Description Products and/or ServicesProducts and/or Services Industry AnalysisIndustry Analysis OperationsOperations Clientele/Target MarketsClientele/Target Markets CompetitionCompetition Marketing PlanMarketing Plan Personnel/ManagementPersonnel/Management Long-term GoalsLong-term Goals Risks and ContingenciesRisks and Contingencies



Financial ProjectionsFinancial Projections Financial NarrativeFinancial Narrative Start-up Expenses and WorksheetStart-up Expenses and Worksheet Revenue AssumptionsRevenue Assumptions Financial AssumptionsFinancial Assumptions 3-5 Year Financial Projections3-5 Year Financial Projections

Statement of Cash FlowsStatement of Cash Flows Income StatementIncome Statement Balance SheetBalance Sheet Relevant ratiosRelevant ratios



Supporting DocumentsSupporting Documents Resume/CV Resume/CV Relevant documents/contractsRelevant documents/contracts Past 3 years of tax returns (if Past 3 years of tax returns (if

seeking conventional financing)seeking conventional financing) Academic researchAcademic research Marketing research resultsMarketing research results OtherOther

US vs. Israeli StyleUS vs. Israeli Style

All presentations, section All presentations, section questionnaires in US formatquestionnaires in US format

Sample outline in combined Sample outline in combined stylestyle

Lecture series suggests:Lecture series suggests: create in US format, then convert create in US format, then convert

to any other styleto any other style



Products and ServicesProducts and Services

Clear, concise descriptionsClear, concise descriptions Divide into separate sectionsDivide into separate sections

ProductsProducts ServicesServices Further subdivide into categories Further subdivide into categories

Value propositionValue proposition Price menuPrice menu Pricing approach/structurePricing approach/structure


Industry AnalysisIndustry Analysis Your Goal:Your Goal:

Give a comprehensive understanding of Give a comprehensive understanding of the industrythe industry

Defend your business relevance!Defend your business relevance!

How?How? Describe current situation Describe current situation Relevant trendsRelevant trends Intervening factorsIntervening factors Size of industry/market potential (total # Size of industry/market potential (total #

businesses, annual revenues, etc.)businesses, annual revenues, etc.) Growth potentialGrowth potential


Industry AnalysisIndustry Analysis

Where?Where? Academic sources (trade journals, Academic sources (trade journals,

academic journals, Google scholar)academic journals, Google scholar) Economic census (USA) Economic census (USA)

http://www.census.gov/econ/census/http://www.census.gov/econ/census/ or or http://factfinder.census.govhttp://factfinder.census.gov

Trade Associations Trade Associations Online databases/sources:Online databases/sources:

Emarketer.com, Emarketer.com, bizstats.com,hoovers.com/freebizstats.com,hoovers.com/free

GALE databaseGALE database Articles, studies, etc.Articles, studies, etc.

http://www.census.gov/econ/census/

http://factfinder.census.gov/


OperationsOperations

StraightforwardStraightforward (If retail) “paint a picture” of the (If retail) “paint a picture” of the

space space (as you walk in you will (as you walk in you will see/experience etc.)see/experience etc.)

Procedures and controlsProcedures and controls Distribution channelsDistribution channels Payment procedures (in/out)Payment procedures (in/out) Business-specific detailsBusiness-specific details


Clientele/Target MarketsClientele/Target Markets

Primary Clientele (>= 50%)Primary Clientele (>= 50%) Secondary Clientele (>= 20%)Secondary Clientele (>= 20%) Tertiary ClienteleTertiary Clientele Detailed descriptionsDetailed descriptions

DemographicsDemographics PsychographicsPsychographics SpendingSpending Total market size per market segmentTotal market size per market segment

Use for Revenue ProjectionsUse for Revenue Projections


Clientele/Target MarketsClientele/Target Markets

ConsumerConsumer B2BB2B TouristTourist ReligiousReligious

Example: Example:

Witch Tee’s (Salem, MA)Witch Tee’s (Salem, MA)


CompetitionCompetition Match Apples to Apples: Segment Match Apples to Apples: Segment

your competitionyour competition Your Value PropositionYour Value Proposition Your Competitive AdvantageYour Competitive Advantage 2 Types of competitors:2 Types of competitors:

DirectDirect IndirectIndirect

Discuss each significant competitor Discuss each significant competitor in depth, can group othersin depth, can group others

Identify potential threats and talk Identify potential threats and talk about them directly about them directly


Step Back from the Project!

n SWOT Analysis/PEST Analysis SWOT Analysis/PEST Analysis (next lecture)(next lecture)

n Do you have a Do you have a realreal Value Value Proposition? USP?Proposition? USP?

n Do you want to start this business?Do you want to start this business?n Begin financial projections


Marketing PlanMarketing Plan Your GoalYour Goal: you understand your : you understand your

market, industry, competitive and market, industry, competitive and competitive advantage competitive advantage

Within the narrative, consider and Within the narrative, consider and describedescribe Marketing channelsMarketing channels PersonnelPersonnel Geographic reach and richnessGeographic reach and richness ToolsTools 4 (or 5) Ps4 (or 5) Ps Pricing strategy related to marketingPricing strategy related to marketing


Marketing PlanMarketing Plan

Quantifiable Goals/Objectives = Quantifiable Goals/Objectives = specific deadline dates, and specific deadline dates, and numerical goalsnumerical goals

Specific, detailed activitiesSpecific, detailed activities Complete budget Complete budget MetricsMetrics Several plans:Several plans:

Start-up/awarenessStart-up/awareness First yearFirst year First three yearsFirst three years Marketing calendars are useful toolsMarketing calendars are useful tools


Personnel and ManagementPersonnel and Management

Organizational ChartOrganizational Chart ResponsibilitiesResponsibilities SalariesSalaries Professional AdvisorsProfessional Advisors Advisory BoardAdvisory BoardAA


Long-Term GoalsLong-Term GoalsLL


Risks and ContingenciesRisks and Contingencies

Shows you understand your Shows you understand your businessbusiness

Deals with investor concerns up frontDeals with investor concerns up front Make them realMake them real AddressAddress at leastat least two real risks two real risks


Financial NarrativeFinancial Narrative


Recommended ReadingRecommended Reading

Good to GreatGood to Great & & Built to LastBuilt to Last Jim Collins Jim Collins

Blue Ocean StrategyBlue Ocean Strategy W. Chan Kim W. Chan Kim

Getting to Yes: Negotiating Agreement Getting to Yes: Negotiating Agreement Without Giving InWithout Giving In Roger Fisher, William Roger Fisher, William Ury and Bruce PattonUry and Bruce Patton

The E-Myth RevisitedThe E-Myth Revisited Michael E. Gerber Michael E. Gerber

The Tipping PointThe Tipping Point Malcolm Gladwell Malcolm Gladwell

The Little Red Book of SellingThe Little Red Book of Selling Jeffrey Gitomar Jeffrey Gitomar

GroundswellGroundswell Forrester Research Forrester Research

The Wisdom of CrowdsThe Wisdom of Crowds James Surowiecki James Surowiecki

Business Plan Overview: Updated 2009

Business

Transcript of Business Plan Overview: Updated 2009