business-plan-worksh

Business Plan Workbook

Workshop 1

Company ____________________________________________________

Name ____________________________________________________

Date ____________________________________________________

The old adage says: “Plan your work and work your plan.” We created the Business Plan Workbook as a tool for your personal business development. By putting earnest time and attention into your Business Plan Workbook, you will set your course for manifesting your life of abundance!

Stuart Ross Student Business Planning Competition 2008/09 1

“Far better it is to dare mighty things,

to win glorious triumphs even though

checkered by failure, than

to take rank with those poor spirits

who neither enjoy much nor suffer much.

Because…..

they live in the grey twilight

that knows not victory nor defeat.”

Theodore Roosevelt


What Do You Want Out Of These Workshops?

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Business

Business Plan Contents

Executive Summary (Session 4)

Table of Contents

Introduction to the Business and its Management (Session 1)

Products and Services (Session 2)

The Market (Session 1)

Competitive Business Strategy (Session 1)

Marketing Plan (Session 2)

Sales (Session 2)

Business Operations (Session 3)

Financing Requirements (Session 3)

Key Financial Data and Financial Projections (Session 3)

Appendix


Introduction to the Business and its Management


What is your business and what does it do?

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How did you come up with your business idea and progress it to where it is now?

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What stage is your business now? What are the most important features of the company’s products and services – what sets it apart from competitors?

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Why do you believe your business will be successful? What “evidence of success” do you have – from potential customers, market testing, working prototypes, expressions of interest, etc. Are there any other factors that have or will increase the likelihood of success?

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What are your “critical success factors” ie what must happen for your business to be successful?

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Vision

Just what is a vision? It creates a guiding light of part of something much bigger than your team of employees themselves. A vision should stretch the organisation’s capabilities and image of itself. It should give shape and inspirational purpose to the organisation’s future.

Benefits of Visioning

Breaks you out of _____________________________ thinking.

Provides _____________________________.

Answers_____________________________.

Evokes interest and _____________________________.

Promotes laser-like _____________________________ and direction.

Encourages risk taking and creative _____________________________.

Encourages and builds _____________________________ .

Builds _____________________________ and ownership.

Elicits _____________________________.


Vision Killers

As you begin to “draft” your vision, be aware of the following vision challenges:

Tradition- we are already good Remaining comfortable Fear of ridicule Stereotypes of people and cultures Complacency of some key stakeholders Fatigued leadership Short-term thinking

It is five years from today’s date and you have, marvelously enough, created your most desirable business environment. Now it’s your assignment to describe it – as if you were able to see it, realistically around you.

Note: A vision is not true in the present, but only in the _____________________________.

Your vision should project a compelling story about the future. When Steve Jobs said, “An apple on every desk,” well there wasn’t then an Apple on every desk. In fact, there won’t ever be an Apple on every desk. That’s OK. The vision can be figurative, rather than literal.


Sample Envisioned Future Statements

“Year after year, Westin and its people will be regarded as the best and most sought after hotel and resort management group in North America.”

Source: Westin Hotels

“The American Red Cross….. We are the pacesetter and benchmark for excellence in non-profit management and human service delivery for charitable organisations around the world.”

Source: The American Red Cross

“Our vision is to create an innovative and successful environment to achieve customer and employee satisfaction at the highest level.”

Source: Tom Bush BMW Regency

“I will build a motor car for the great multitude… It will be so low in price that no man making a good salary will be unable to own one and enjoy with his family the blessing of hours of pleasure in God’s great open spaces… When I’m through, everybody will be able to afford one, and everyone will have one… The horse will have disappeared from our highways, the automobile will be taken for granted… and we will give a large number of men employment at good wages.”.

Source: Henry Ford, Inc.

“Our vision – to be the world’s best staffing services company and to be recognised as the best.”

Source: Kelly Services, Inc.

“The vision statement for McDonald’s is simply, to continue to be the largest fast food chain in the world.”

Source: McDonald’s vision statement

“We will create products that become pervasive around the world… We will be the first Japanese company to go into the US market and distribute directly… We will succeed with innovations that US companies have failed at – such as the transistor radio… Fifty years from now, our brand name will be as well known as any in the world… and will signify innovation and quality that rival the most innovative companies anywhere. “Made in Japan” will mean something fine, not something shoddy..”

Source: Sony vision statement


“To become the world’s leading consumer company for automotive products and services.”

Source: The Vision Statement for the Ford Motor Company

The vision I have for my business is:

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Mission

Focus is a primary benefit of your mission statement. To begin drafting a mission statement:

Your mission statement must focus on one common ______________________.

Your mission statement must be ______________________ to the organisation.

Your mission statement must be a _________________ ___________________.

Your mission statement describes what business you’re in and who your _______________ is. As such, it captures the very essence of your company.

Your organisation’s success and your personal success depend on how well you define and live by each of these important concepts. In fact:

Companies whose employees understand the mission and goals enjoy a far greater return than other firms (Watson Wyatt Work Study).

U.S. workers want their work to make a difference, but the majority do not think their company’s mission statement has become the way they do business (Workplace 2000 Employee Insight Survey).

So how do I get started?

Each person should complete the mission development exercise by answering the questions below. Answer the questions quickly. Don’t worry about using the perfect words; just get your key concepts down on paper. A mission statement should be one or two paragraphs maximum, and always answer

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Important Characteristics

A clear mission statement should be:

Realistic, ____________ and implies a sizeable ____________, yet ____________

over time

Understandable, concise and offers a certain ____________

Broad and continuing in nature, but not so broad as to be meaningless

Stated in terms of output (results) rather than activities (inputs or throughputs)

Use specific and ____________ words, especially the names of your _____________

(who you serve), your products, services, and talents

A clear picture of “__________”, yet a target that deserves personal commitment

The essence of _________________


Questions you may want to ask yourself about your organisation’s mission include:

1. What is your uniqueness?

2. How do you contribute to society?

3. Who do you serve? Who is your customer? Other customers?


4. What do you want for yourself?

5. What differentiates your company from its competition?

6. How you make a difference in this world?


7. Be selfish for a minute: What do you really, really want?

8. What do you want your legacy to be?

9. What is your business?


10.What are you skilled at doing? What value do you bring to the customer?

11.What products or services do you provide?

12.How do you provide our product or service to your customers?


Sample Mission Statements

“The Ritz – Carlton Hotel is a place where the genuine care and comfort of our guests is our highest mission. We pledge to provide the finest personal service and facilities for our guests who will always enjoy a warm, relaxed, yet refine ambience. The Ritz – Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests.”

Source: The Ritz-Carlton Hotel’s mission statement

“We are a global family with a proud heritage passionately committed to providing personal mobility for people around the world. We anticipate consumer need and deliver outstanding products and services that improve peoples’ lives.”

Source: The Ford Motor Company

“Our mission at Publix is to be the premier quality food retailer in the world.”Source: Publix

“The Home Depot is in the home improvement business and our goal is to provide the highest level of service, the broadest selection of products and the most competitive prices. We are a values-driven company and our eight core values include the following:

Excellent customer service Taking care of our people Giving back Doing the “right” thing Creating shareholder value Respect for all people Entrepreneurial spirit Building strong relationships”

Source: The Home Depot

“The mission of The Clorox Company Foundation is to improve the quality of life in communities where Clorox employees live and work. Community involvement is an integral part of our business and is carried out through a program of grant-making, volunteerism and leadership in community service.”

Source: The Clorox Company

“The mission of Rite Aid is to be a successful chain of friendly, neighborhood drugstores. Our knowledgeable, caring associates work together to provide a superior pharmacy experience, and offer everyday products and services that help our valued customers lead healthier, happier lives.”

Source: Rite Aid-Retailing

“Our mission is to serve our customers, employees, shareholders and society by providing a broad range of staffing services and products.”

Source: Kelly Services, Inc.

“McDonald’s brand mission is to “be our customers’ favorite place and way to eat.”


Source: McDonald’s Corporation

“The mission of Saturn is to market vehicles developed and manufactured in the United States that are world leaders in quality, cost and customer satisfaction through the integration of people, technology and business systems, and to transfer knowledge, technology and experience throughout General Motors.”

Source: Saturn Corporation

”Dedication to being the world’s best at bringing people together—giving them easy access to each other and to the information and services they want—anytime, anywhere.”

Source: AT&T

Mission

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The Management Team

Who is currently involved in the business, what positions will they fill, what relevant experience and qualifications do they have. Include a one-paragraph biography on each (full CV in the Appendix).

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Do you have any advisors or mentors who, through their expertise, will give potential investors more confidence? These might be experts in the market in which you are operating or experienced successful business people. Provide brief biographies.

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Are there any skill gaps? How will you fill them?

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What is your organisational structure? (Draw an organisation chart).


What would you like your Business to look like in;

1 Year

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2 Years

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3 Years

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5 Years

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Introduction to the Business and its Management Summary

Introduce the business and what it does / will do.

Describe how the project came about and progressed to the present situation.

State your vision and mission for the business

State what stage the business is at now. Highlight briefly the important features of the company’s products and services – their competitive advantage.

Explain any evidence of success you may have – from potential customers, market testing, expressions of interest, etc. What are your critical success factors?

Explain who is involved, what are there positions, what relevant experience and qualifications do they have. Include a one-paragraph biography on each (full CV in the Appendix).

Do you have any advisors or mentors who, through their expertise, will give potential investors more confidence? These might be experts in the market in which you are operating or experienced, successful business people. Provide brief biographies.

Outline any skill gaps you still need to fill, and how you intend to do so

What is your organisational structure? (Include an organisation chart if appropriate).

Outline where you want to go from here - what you want to achieve in 1 year, 2 years, 3 years and 5 years?

What further information do I need to complete this section?

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The Market


Define your market….

Market size and segmentation. What is the size of the market? Can it be segmented or grouped into smaller segments?

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Is your market growing or declining?

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Who are your customers/what segments are you particularly targeting?

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Why do they buy?

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Where are your customers and where do they buy?


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When and how do your target customers buy?

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The Market Summary

This section should describe the market you will be operating in – generally and specifically in terms of which segments you will be targeting and who your customer is.

Market Definition

Market size and segmentation. What is the size of the market and how can this be segmented or grouped into sectors? Which segments will you specifically be targeting?

Is the market growing or declining?

Target Customer Insights

Note; this section overlaps with the next section on Competitive Business Strategy and you may choose to combine them.


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Competitive Strategy


What competitors potentially exist currently both directly and indirectly?

Example:

This analysis of your competitive environment sets your competitive strategy in context.

Analysis of Industry Structure – Industry Forces (External)

Forces driving industry competition – ME Porter, 1980

POTENTIAL ENTRANTS

Threat of new entrants

SUPPLIERS

Bargaining power of suppliers

INDUSTRY COMPETITORS

Rivalry amongst

existing firms

Bargaining power of buyers

BUYERS

Threat of substitute products

SUSBSTITUTES

Power of Suppliers

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Threat of new entrants

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Power of buyers

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Threat of substitute products

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Rivalry amongst existing firms

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What do these competitors offer?

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SWOT Analysis (Internal & External)


The Internal Strengths & Weaknesses of the company, and the External Opportunities & Threats it faces, can be summarized as in the example below:

STRENGTHS OPPORTUNITIES

Location

Professional management

Very low variable costs

Innovative product

Low production lead times

Low capital consumption as contract producer funds production

High growth sector

Undifferentiated rival products

Word of mouth marketing

Government legislation

WEAKNESSES THREATS

Experience

Lack of market experience

No brand awareness

Sustained price competition would erode margins

Inability to patent

Recession could impact on spending

Strengths:

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Weaknesses:

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Opportunities:

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Threats:

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How will you set yourself apart from your competition (price, service, quality, convenience, innovation, etc) ?

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Competitive Business Strategy Summary

Who are your main competitors both direct and indirect?

What is the characteristics of the competitive environment, use the Five Forces model and then a SWOT analysis

1. Analysis of Industry Structure (Porter's Five Forces)

- Threat of New Entrants to the Market

- Threat of Substitute Products

- Power of Buyers

- Power of suppliers

- Rivalry Amongst Existing Players

2. SWOT Analysis – This is a summary of your company’s internal strengths and weaknesses, and the external opportunities and threats it faces in the market and its competitive environment.

How is the company going to compete in the market? How will the company differentiate from competitors?


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Assessing Viability


What research have you done (or need to do) to assess the viability of your business?

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Notes


business-plan-worksh

Documents

business idea

business operations

business plan workbookworkshop

personal business development

management session

services session

sales session

financial projectionssession