Essentials of B-Plan

(s) Sachidananda Benegal

Business Plan Essentials

Sachidananda B SN S Raghavan Center for Entrepreneurial Learning


DISCLAIMERS UPFRONT

Note:•No Business Plan Template – it’s the elements of a B-Plan•Plan for business, monetization shall follow execution• Attempt to keep it as practical as possible


WHAT?What is a business plan?


A business plan is a map.

It is meant to tell the entrepreneur what he/she has to do to achieve what goals, and by when.


What is the treasure?

How do we get tothe treasure?

Who else is after thistreasure?

How much is there?Is it worth the cost?

Who is on my crew?

What are the dangerson the route?

Do we have the skills?

A lot of questions!


What is the qualitative goal we are targeting?

Do we have adetailed execution

plan?

Who is the competition?How strong are they?

What are the quantitativegoals for the venture?

Who is on theteam?

What are the other dangers that we

will face?

What are the skillsthey have?

Framed Differently


The Startup The Environment

Things/People/Resources you have control over

Things/People/Resources you can influence

Things/People/Resources you don’t have any

influence

“A goal without a plan is just a wish.”

― Antoine de Saint-Exupéry

“By failing to prepare, you are preparing to fail.”

― Benjamin Franklin

Control Influence Acceptance

ZONE OF

GOAL

Planning your business…….Business Plan

http://www.goodreads.com/author/show/1020792.Antoine_de_Saint_Exup_ry

http://www.goodreads.com/author/show/1020792.Antoine_de_Saint_Exup_ry

http://www.goodreads.com/author/show/289513.Benjamin_Franklin


A more formal definition

A written document that formalizes the vision, goals, thoughts and plans for the business for

the near to medium term;

It details the kind of company, the businessesthe company wants to be in and where, the strategy, structure, the operations and the

finances


WHOM & WHO?For whom is the B-Plan written? Who writes it?


For Whom?• Investors• Advisors• Hiring• Key First Customers• Partners• Suppliers


Who Writes the Plan?• CONSULTANTS?• TEAM?• CEO?


Keep these in mind•A Pictures = thousand words•Be clear about:

•HOPE? •ASSERTIONS?

•LOGIC: •FACTS•INFERENCE•IMPLICATION

•Don’t Appear:•Ignorant (RoI)•Consistently Inconsistent•Defensive•Arrogant


BUSINESS PLANPreparation, Elements and Components of a B-Plan


Business Plan: Preparation

15 slides, 20min < 5 pages

25 pages


Business Plan: Elements

Who are we?

Who? What? Where? Why? How Big & Fast?

How will we fix it? Knock socks off others?Customers: reach, retain & support?Costs & Pricing? Support/Service?Partners: Co-opt eco-system players?Money: How much, for what and what will Be made?


BUSINESS MODEL


Components:• Cover Slide – Business Positioning• Market – The Need and What customers have it• Solution – Product/Service, Core Benefits, IP• Competition Position – Who’s the competition & Defense• Marketing/Sales/Support – Channels and Skills• Business Strategy – How will you grow beyond launch• Financial Projections – Cash-flows, P&L, B/S• Funding Sought – How much and for what• Management Team – Complementary? Well rounded?• Milestones – Launch, next funding, break-even• Exit Strategy – IPO? Acquisition?


Business Plan: Milestones

• What are the planned outcomes, say monthly?• What are the activities required to drive these outcomes?• How much will these actions cost?• How much time will these actions take to execute?• What are the dependencies – people, infrastructure,..• Work towards “Fundable Events”


MOST IMPORTANTLYHow does one decide in an entrepreneurial set up?

(s) Sachidananda BenegalEffectuation.org


The Principles

Bird in Hand Principle - Start with your means. Don't wait for the perfect opportunity. Start taking action, based on what you have readily available: who you are, what you know, and who you know.

Affordable Loss Principle - Set affordable loss Evaluate opportunities based on whether the downside is acceptable, rather than on the attractiveness of the predicted upside.

Lemonade Principle - Leverage contingencies Embrace surprises that arise from uncertain situations, remaining flexible rather than tethered to existing goals.

Crazy-Quilt Principle - Form partnerships Form partnerships with people and organizations willing to make a real commitment to jointly creating the future--product, firm, market--with you. Don't worry so much about competitive analysesand strategic planning.


THANK YOU

Essentials of B-Plan

Education

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