How to delope a business plan
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Transcript of How to delope a business plan
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DEVELOPING A BUSINESS PLAN
manoj joshi
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DisclaimerThis presentation is designed by me, but I guess I better not called itmine. The credit goes to all those books, presentations, pdf‟s, notesthat I have studies over last few years and then made some fusionTo suits to my requirement. You will find few concepts ofbranding, project planning, balance score card etc merged togetherTo create this presentation. If you feel the blending is not doneproperly then surly it‟s my mistake. And if you feel it is of some helpto you then the credit goes to those intelligent souls ( I prefer toremain in dummies domain anyways)I personally believe that sharing is growing and thus do hope thatsome thing , some line, some page could give you a trigger you are looking for while developing your business plan.This is only for academic purpose and I sincerely hope, that the readerscan develop far better frame work then what is illustrated here.Thank you for reading this page and now you are free to see the next page or goback to your search for more meaningful presentation on‟‟ how to developing the business plan‟‟
God bless you for allowing me to serve you
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TABEL OF CONTENT
This presentation is divided into three parts
1. Crating foundation : Explanation of basic concepts.
2. Process tools to develop a plan : Four Pillars
3. Summery : Quick glance of the subject
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BASIC CONCEPTSFOUNDATION
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What is a Business Plan
A Business Plan is a written statement that describes and analyzes
your business and gives detailed projections about its future.
• Helps get the money
• Helps decide to proceed or stop
• Helps improve business concept
• Helps improve odd of success
• Helps keep on track
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The Planning Process
1. Understanding WHERE YOU ARE
2. Deciding WHERE YOU WANT TO GO
3. Planning HOW TO GET THERE
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Understanding your product/service –competitive advantage
Your (Unique Selling Point)
Understanding your customers
who, why and how are they going to buy from you
Understanding your strengths and weaknesses
(Internal)
Understanding the opportunities and threats(External)
Understanding where you areA
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Deciding where you want to go
• Decide the general aims of your business – in some organization
the aims are also referred to as the „mission statement‟ of the
Organization
• Set specific objectives for the business. The Objectives should be:
B
Quantifiable Bounded in timeRealistically achievable
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Planning how to get there
Need to develop strategies to enable the business to achieve
the targeted objectives
C
Need to develop Resource Plan
Need to develop a Marketing Plan
Need to draw-up financial budgets
Projected Profit & Loss
Cash-flow forecast
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Four Pillars.PROCESS TOOLS
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Personal aimsMission Statement
Businessobjectives
Customer analysisMarket segmentation
Marketing Plan
Operating Plans• Financial plans• Resource plans
Internal Appraisal• Strengths• Weaknesses
External Appraisal• Opportunities•Threats
The business planning process
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STRUCTURE
1. Executive Summary
2. Value Proposition
3. Market Potential & Business Model
4. Competitive Analysis
5. Marketing Plan
6. Technology Plan
7. Resource Plan
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PROCESS TOOLS
Brainstorming sessions
Identifying important facts
Unification
Winning plan/path
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Executive Summary
All Business Plan starts with an Executive Summary
This is only the extraction/summary from what you
have written.
We will Fill this up LAST
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Value Proposition…
This DEFINES the value of your proposed
product or service
Should answer the questions:
"Why should customer buy your product or service?" as well as
"Why should he do anything at all".
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Value Proposition2. Which solution can addresses that problem
3. How customer will value this solution?
1. What is the customer problem
BRAIN STORMING
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Newness
Performance
Customization
Design
Getting the job done
Convenience / Usability
Price
Risk ReductionAccessibility
??
Identifying important facts
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2. The solution that addresses the problem,
3. The value of this solution from thecustomer's perspective.
1. A description of the customer problem
UNIFICATION
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Value Proposition statement
– First Sentence:
• For (target customer)
• Who (statement of the need
or opportunity),
• The (product/service name) is a
(product/service category)
• That (statement of benefit).
– Second Sentence
• Unlike (primary
competitive alternative)
• our product (statement of
primary differentiation).
valueproposition
positioning ofthat value.
Winning plan/path
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Market Potential & Business Model
A business model (also called a business design)
is the mechanism by which a business intends
to generate revenue and profits.
Market Potential normally means market size.
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Market Potential &Business Model
Which is my target market(s) ?
What is the market size and growth opportunity ?
BRAIN STORMING
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??
Identifying important facts
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Which is my target market(s)
Industries
Sectors
sub-sectors
geography UNIFICATION
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Describe business model including revenue stream
( It is a summary of how a company plans to
serve its customers. It involves both strategy
and implementation. )
Describe market size and growth opportunity
for identified market
supported by Market research.
Winning plan/path
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Competitive Analysis
Describes the “strength” of your product or idea.
No products/ideas/services is perfect - but
by identifying the strengths, weaknesses, opportunities and
threats within the business industry - it will help
the entrepreneur to “attack the market”.
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Strengths
• Which attributes of your business that can help in achieving
your business success
• What makes your ideas better than others
• What capabilities you have that makes the business viable
BRAIN STORMING
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Innovative aspects?
Location and geographical?
Accreditations, qualifications, certifications?
Processes, systems, IT,communications?
Management cover succession?
Cultural, attitudinal, behavioral?
Advantages of proposition?
Capabilities?
Competitive advantages?
USP's (unique selling points)?
Resources, Assets, People?
Experience, knowledge, data?
Financial reserves, likely returns?
Marketing - reach, distribution, awareness?
Price, value, quality?
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Weaknesses
• Attributes of your business that are harmful
towards achieving your business success
• Your Weaknesses - and be honest about it!
Define by perhaps cost, resources, product weakness
etc
BRAIN STORMING
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• Disadvantages of proposition?
• Gaps in capabilities?
• Lack of competitive strength?
Reputation, presence and
reach?
• Financials?
•
Own known vulnerabilities?
• Timescales, deadlines and
pressures?
Cash flow, start-up cash-drain?
Continuity, supply chain robustness?
Effects on core activities, distraction?
Reliability of data, plan
predictability?
Morale, commitment, leadership?Accreditations, etc?
Processes and systems, etc?
Management cover, succession?
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Opportunities
• Which Opportunities that you see in the market?
• Which is your competitors‟ weaknesses -YOUR opportunity ?
BRAIN STORMING
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• Market developments?
• Competitors„ vulnerabilities?
• Industry or lifestyle trends?
• Technology development
and innovation?
• Global influences?
• New markets, vertical,
horizontal?
• Niche target markets?
Geographical, export, import?
New USP's?
Tactics - surprise, major contracts, etc?
Business and productdevelopment?
Information and research?
Partnerships, agencies,distribution? Volumes,production, economies?
Seasonal, weather, fashionInfluences?
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Threats
• Your competitors strengths - are THREATS
to your business
• Don‟t forget your indirect competitors too!
Competitive Analysis
BRAIN STORMING
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Political effects?
Legislative effects?
Environmental effects?
IT developments?
Competitor intentions various?
Market demand?
New technologies,
services, ideas?
Vital contracts and partners?
Sustaining internal capabilities?
Obstacles faced?
Insurmountable weaknesses?
Loss of key staff?
Economy - home, abroad?Seasonality, weather effects?
Sustainable financial backing?
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Marketing Plan
A Marketing Plan is a written document that
details the actions necessary to achieve marketing objectives.
It can be for a product or service, a brand, or a product line.
It can cover one year (referred to as an annual
marketing plan), or cover up to 5 years.
Solid marketing strategy is the foundation of a
well-written marketing plan.
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MARKETING STRATEGY
What is the objective for Market share
What is the Product Mix
What is the Pricing Strategy
What is the Promotion Strategy
What is the Distribution Strategy
BRAIN STORMING
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How to rise awareness among customers about
company‟s product / services ?
How customer‟s will evaluate companies
value proposition ?
How to help customers to purchase specific
product/service ?
How to deliver value proposition to customers ?
How to provide post purchase customer support ?
Identifying important facts
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Market share objectives
Product Mix
Pricing Strategy
Promotion Strategy
Distribution Strategy
Product development schedule
State the market share by customer segment or geographical markets
Do you have plans to bundle theproduct with other products or service
Define the pricing objective, method, strategy Figure out your break-even point
Define promotional goals, advertising mix, sales force/sales channels requirements, publicity
Define by geography, market segments, distribution channels,
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Technology Plan
Technology Plan should cover:
Product Development Strategy
Design Strategy
Functional Specs
Technology Platform
Prototyping Plan
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Product Development Strategy
Design Strategy
Functional Specs
List of Product Functions
Prototyping Plan
How do you plan to develop the product: personal, in-house,outsource, with a partner? How long will it take and how much?
What are the key milestones?Technical Architecture (briefly explained)
List of Product Functions
How your technology is different from competitors
Explain what functions will bedevelopedHow long will it take to develop?
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Financial Plan
This generally covers:
Projections for 3 years or 5 years
What is a Financial Plan?
Sales and Cost of Sales
The P&L
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Projections for 3 years or
5 years
Financial Plan?
Sales and Cost of Sales
The P&L
The strategy of fundingyour business proposal
Plan out what your next plan ofaction is . (This is crucial so that you do not waste time when you move to the next stage or when your prototype is done)
The feel of the businesspotential & the bottom line?How much money you actually need to kick off your business ?
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Total G&A
Sample P/L Year 1 Year 2
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Total S&M
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Resource Plan
Key Resources Categories:
Physical
Intellectual
Human
Financial
list the types of resources you require for the
number of years of projection
Listing this out will help you develop the
financial projections later.
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Description/Job title Year 1 Year 2 Year 3
Management Staff1 Chief Executive Officer2 Chief Operating Officer3 Chief Financial Officer4. Consultants
Marketing Staff1.2.3.
Sales staff1.2.3.
Technical Staff1.2,3
Administration Staff1 Receptionist2 Support Executive3 Accounts Assistant
Sample Resource Plan
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Quick glance of the subjectSUMMERY
You can eat an elephant
if you take it in a
small pieces.
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GAINImprove
PAINMinimized
BUSINESS IS ALL ABOUT…..
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Same Product – Same Market
Improved Quality
New Packaging
New Pricing
New Fresh Advertising approach
Loyalty Building program
New marketing strategy/person
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New Product – Same Market
Brand Loyalty encashment
USP ( Unique Selling Proposition)
UEP ( Unique Emotional Proposition)
6P’s Strategy: Product: People: Promotion
Pricing: Place: Performance
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New Product – New Market
Product to brand journey
Geographical/ physiographical
Definition of market
Take-It-To-Market plan
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Same Product – New Market
Establishing Marketing network
Launch plan
Sales tactics/Strategy design
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Revitalizing/reengineering
Process /Practices:
Business
Customers
Learning & Growth
Financial
PAINMinimized
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Thank you for reading this presentation.
God bless you for allowing me to serve you !!
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Enliven BrandCom
Consultant : Brand I communication I films
Manoj Madhukar Joshi
