Writing a Business PlanTim C. McAloonetmca@dtu.dk

With major contributions from: Internet sources, McKinsey & Venture Cup

Unless otherwise stated, this material is under a Creative Commons 3.0 Attribution–Share-Alike licence and can be freely modified, used and redistributed but only under the same licence and if including the following statement:

“Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark”

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Today’s agenda

• How to identify a business idea – concept and presentation

• Developing the business plan

1. Executive summary

2. Product/service concept

3. Marketing strategy

4. Business model/system

5. Business case and risks

6. Implementation plan & Checklists

• Video case exercise

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Description of the business system/value chain

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Example of business model

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Today’s agenda

• How to identify a business idea – concept and presentation

• Developing the business plan

1. Executive summary

2. Product/service concept

3. Marketing strategy

4. Business model/system

5. Business case and risks

6. Implementation plan & Checklists

• Video case exercise

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

6

Profit & Loss statement (P&L) is the backbone of the business case

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Five years projection of Profit and Loss statement

*

* Earnings Before Interest and Tax[McKinsey]

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Example revenue model – Internet based business

[McKinsey]

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Example cost model – Internet based business

[McKinsey]

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Summary of revenue and EBIT

[McKinsey]

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Description of cases

[McKinsey]

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Case comparison of Revenue and EBIT in 2013

[McKinsey]

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Today’s agenda

• How to identify a business idea – concept and presentation

• Developing the business plan

1. Executive summary

2. Product/service concept

3. Marketing strategy

4. Business model/system

5. Business case and risks

6. Implementation plan & Checklists

• Video case exercise

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Implementation action plan and timeline, 20xx

[McKinsey]

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Checklist: Executive summary

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Checklist: Product/service concept – Description

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Checklist: Product/service concept – Value proposition

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Checklist: Target Market

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Checklist: Competition

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Checklist: Marketing strategy

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Checklist: Business model

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Checklist: Revenue projection

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Checklist: Costs projection

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Checklist: Business case

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Checklist: Implementation plan

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Today’s agenda

• How to identify a business idea – concept and presentation

• Developing the business plan

1. Executive summary

2. Product/service concept

3. Marketing strategy

4. Business model/system

5. Business case and risks

6. Implementation plan & Checklists

• Video case exercise

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Case example – sketch the business plan for the following video case…

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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More help, regarding the core business

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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… and the way it ended

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Summary: Did we achieve the objectives?

• What are the elements of a promising business idea• How to make your business idea irresistible• What to keep in mind when presenting your business in a plan• How to analyse your market and the competition• How to choose your target market• How to determine your market strategy• What a business system is, and what to look out for when

designing one• What to include in your financial planning• How to consider and represent risks

2012Original material by Tim C. McAloone for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark

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Questions

?