Lecture 6 Buss Plan

8/3/2019 Lecture 6 Buss Plan

1/29

Presented by:

Tasawar Javed

Islamia University Bahawalpur

Entrepreneurship


2/29

The Business Plan

What to put in and where!


3/29

Executive Summary

One to Two Pages


4/29

The Company

What business are you in?

What are your company's goals? What are the company's critical success

factors?

What Corporate Governance issues will youneed to consider?


5/29

2 Profile

2.1. Business Definition

2.2. Products / Services 2.3. Operating Profile

2.4. SWOT analysis


6/29

The Products/Services

Does your product have any patents or other proprietaryfeatures? (trademarks, copyrights)

How is your product different from the competition's?-- comparecapabilities, strengths/weaknesses, and characteristics of yourproduct to those of your competitors.'

How up-to-date are your products? -- address potentialobsolescence or losses of market share.

What is the output and sales mix for each of the company'sproducts/services?

What are the sales price, cost, and profit margin for eachproduct line?


7/29

Future Products

Any planned innovations to the existing productlines? Any new products/services?

If the answer is affirmative, provide developmenttime projections.

What are the expected sales price, cost and profitmargin on future products and how is the overall

sales mix and profitability expected to change?


8/29

3. Environment, Industry andMarket Analysis

3.1. Macro Environment Analysis

3.2. Industry Analysis 3.3 Market Analysis

3.4 Competitive Position

3.5. Scope of the Opportunity


9/29

Industry

What is the size, maturity, and competitive nature ofthe industry?

What are the barriers to entry and growth? How do economic developments affect the industry?

What is the industry's financial position andperformance?

What is the role of innovation and technologicalchange?

How is the industry affected by governmentregulation?


10/29

Market Analysis

What is your target market and to whom are

you trying to sell? (may be different) What is the size of your target market?

Historical

Current

Projected (5 years)


11/29

Market Analysis

How can you segment your target market? (byregion, age, income, profession, etc.)

What are the trends in your target market

Where is the market going and why?

What are the economic trends?

Maturity of the market--growth stage or stable?


12/29

Competitors

Who are your competitors? What do youknow about them? Address the followingaspects:

Relative size

Competitive strengths/weaknesses

Markets addressed/market share Reputation

Prospects


13/29

Customers

Who is buying? End users?

Why are they buying? What are they looking for?

What are the factors that drive their buyingdecisions?


14/29

4. Project Summary

4.1. Aims

4.2. Project Summary 4.3. Investment Strategy


15/29

5. Marketing

5.1. Current Marketing Effort 5.2. Marketing Strategy

5.3. Channels to Market

5.4. Pricing Strategy


16/29

Marketing Strategy

What is your target market (by segment)?

Geographic Industry

Type of buyer


17/29

Marketing Strategy

How will you establish credibility (company and product)? Whyshould customers buy a new product from an unprovencompany?

Will your pricing strategy be high, moderate, or low relative tothe market and why?

Will credit be extended and under what conditions?

Will warranty policies be standard or non-standard with yourproduct? Will their cost be included in the cost of the product or

be additional? To generate sales, what product or service attributes will your

company emphasize?


18/29

Marketing Strategy

What will be the image you strive for? Your level of quality,reliability, service, response time should fit neatly with other

strategies (i.e., quality and low price may not appear to makesense--if they do in your case, explain why).

How much will be spent on advertising and public relations? Inwhich channels will these dollars be spent? (These strategiesshould match with others; i.e., are ads in Modern Mechanics

compatible with the objective to develop an image of quality?)


19/29

Marketing Strategy

What distribution channels will you utilise?

Describe the physical means by which theproduct will be delivered to buyers:

Factory distribution

Company-owned regional distribution

Independent remote distribution Order lead times


20/29

6. Organisation and Management

6.1. Corporate Structure 6.2. Management Team


21/29

Management

Functional responsibilities

Management holes& weaknesses Management philosophy

Board of Directors


22/29

7. Operations

7.1. Operational Scalability 7.2 Organisational Structure

7.3 Organisational Style and Culture


23/29

Implementation Plan

Facility requirements: Leased Purchased

Labour requirements: Local labor pool Skilled/unskilled

Subcontracted production: Sole or multi-sourced Quality controlSupply problems

Capital needs: Equipment list Financial requirements

Quality control: Raw materials Manufacturing Finished goods

Critical processes: Capacity Critical paths Cost characteristics

(fixed, variable, semi-variable) Seasonality Inventory control: Inventory turnover Production

size Lead time Storage requirements Waste/shrinkage factors

Obsolescence


24/29

Technology

Process Description & Technology used

Intellectual Copyrights Patents Protection etc Scalability to meet demand increases and

projections

Future Research & Development

Obsolescence


25/29

Investment and Resource

Requirements

Primary Actions Investment Requirements and Sources of

Funds


26/29

Financing

What is the total amount of funds needed by your business? Is itneeded immediately or over the next two to five years?

What part of this financing is being sought from the investors orlending institution who will receive this business plan? (includingthe amount, terms, and any related security agreement)

For equity financing--What percentage of the company are youwilling to give up and what is the proposed return on investmentand anticipated method of taking out the investor (e.g., buy-

back, public offering, sale)? For debt financing--What is your company's proposed interest

rate and repayment schedule?


27/29

Financial Information

3-5 Years Projected P&L Balance Sheets

Cash Flows (broken down into each month)


28/29

Action Plan

Primary Initiatives to be undertaken

Timed Gantt Chart Critical Milestones Identified

Resources Allocated

Key Performance Indicators determined Responsibilities Allocated


29/29

THANK YOU!!!!

Q&A

Lecture 6 Buss Plan

Documents

Transcript of Lecture 6 Buss Plan