Download - Business Plan Overview: Updated 2009
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
Business Plan Business Plan DevelopmentDevelopment
Creating Your Road MapCreating Your Road Map
IMBA Lecture SeriesIMBA Lecture Series
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
AgendaAgenda
Purpose of a Business PlanPurpose of a Business Plan Parts of the PlanParts of the Plan Criteria by SectionCriteria by Section TipsTips
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
ToolsTools
Sample Business PlanSample Business Plan Questionnaires (to get you Questionnaires (to get you
started)started) Detailed Section OutlineDetailed Section Outline Contact: Debra AskanaseContact: Debra Askanase
[email protected]@communityorganizer20.com
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
Yes, but WHY ELSE?Yes, but WHY ELSE?
Know the IndustryKnow the Industry Find your Competitive AdvantageFind your Competitive Advantage Analyze RisksAnalyze Risks Develop Your Idea MethodicallyDevelop Your Idea Methodically Acquire InvestorsAcquire Investors Find Support Find Support Secure FinancingSecure Financing…….SHOULD I START THIS .SHOULD I START THIS
VENTURE??VENTURE??
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
Business Plan SectionsBusiness Plan Sections Narrative SectionNarrative Section
Business DescriptionBusiness Description Products and/or ServicesProducts and/or Services Industry AnalysisIndustry Analysis OperationsOperations Clientele/Target MarketsClientele/Target Markets CompetitionCompetition Marketing PlanMarketing Plan Personnel/ManagementPersonnel/Management Long-term GoalsLong-term Goals Risks and ContingenciesRisks and Contingencies
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
Business Plan SectionsBusiness Plan Sections
Financial ProjectionsFinancial Projections Financial NarrativeFinancial Narrative Start-up Expenses and WorksheetStart-up Expenses and Worksheet Revenue AssumptionsRevenue Assumptions Financial AssumptionsFinancial Assumptions 3-5 Year Financial Projections3-5 Year Financial Projections
Statement of Cash FlowsStatement of Cash Flows Income StatementIncome Statement Balance SheetBalance Sheet Relevant ratiosRelevant ratios
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
Business Plan SectionsBusiness Plan Sections
Supporting DocumentsSupporting Documents Resume/CV Resume/CV Relevant documents/contractsRelevant documents/contracts Past 3 years of tax returns (if Past 3 years of tax returns (if
seeking conventional financing)seeking conventional financing) Academic researchAcademic research Marketing research resultsMarketing research results OtherOther
US vs. Israeli StyleUS vs. Israeli Style
All presentations, section All presentations, section questionnaires in US formatquestionnaires in US format
Sample outline in combined Sample outline in combined stylestyle
Lecture series suggests:Lecture series suggests: create in US format, then convert create in US format, then convert
to any other styleto any other style
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
Products and ServicesProducts and Services
Clear, concise descriptionsClear, concise descriptions Divide into separate sectionsDivide into separate sections
ProductsProducts ServicesServices Further subdivide into categories Further subdivide into categories
Value propositionValue proposition Price menuPrice menu Pricing approach/structurePricing approach/structure
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
Industry AnalysisIndustry Analysis Your Goal:Your Goal:
Give a comprehensive understanding of Give a comprehensive understanding of the industrythe industry
Defend your business relevance!Defend your business relevance!
How?How? Describe current situation Describe current situation Relevant trendsRelevant trends Intervening factorsIntervening factors Size of industry/market potential (total # Size of industry/market potential (total #
businesses, annual revenues, etc.)businesses, annual revenues, etc.) Growth potentialGrowth potential
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
Industry AnalysisIndustry Analysis
Where?Where? Academic sources (trade journals, Academic sources (trade journals,
academic journals, Google scholar)academic journals, Google scholar) Economic census (USA) Economic census (USA)
http://www.census.gov/econ/census/http://www.census.gov/econ/census/ or or http://factfinder.census.govhttp://factfinder.census.gov
Trade Associations Trade Associations Online databases/sources:Online databases/sources:
Emarketer.com, Emarketer.com, bizstats.com,hoovers.com/freebizstats.com,hoovers.com/free
GALE databaseGALE database Articles, studies, etc.Articles, studies, etc.
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
OperationsOperations
StraightforwardStraightforward (If retail) “paint a picture” of the (If retail) “paint a picture” of the
space space (as you walk in you will (as you walk in you will see/experience etc.)see/experience etc.)
Procedures and controlsProcedures and controls Distribution channelsDistribution channels Payment procedures (in/out)Payment procedures (in/out) Business-specific detailsBusiness-specific details
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
Clientele/Target MarketsClientele/Target Markets
Primary Clientele (>= 50%)Primary Clientele (>= 50%) Secondary Clientele (>= 20%)Secondary Clientele (>= 20%) Tertiary ClienteleTertiary Clientele Detailed descriptionsDetailed descriptions
DemographicsDemographics PsychographicsPsychographics SpendingSpending Total market size per market segmentTotal market size per market segment
Use for Revenue ProjectionsUse for Revenue Projections
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
Clientele/Target MarketsClientele/Target Markets
ConsumerConsumer B2BB2B TouristTourist ReligiousReligious
Example: Example:
Witch Tee’s (Salem, MA)Witch Tee’s (Salem, MA)
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
CompetitionCompetition Match Apples to Apples: Segment Match Apples to Apples: Segment
your competitionyour competition Your Value PropositionYour Value Proposition Your Competitive AdvantageYour Competitive Advantage 2 Types of competitors:2 Types of competitors:
DirectDirect IndirectIndirect
Discuss each significant competitor Discuss each significant competitor in depth, can group othersin depth, can group others
Identify potential threats and talk Identify potential threats and talk about them directly about them directly
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
Step Back from the Project!
n SWOT Analysis/PEST Analysis SWOT Analysis/PEST Analysis (next lecture)(next lecture)
n Do you have a Do you have a realreal Value Value Proposition? USP?Proposition? USP?
n Do you want to start this business?Do you want to start this business?n Begin financial projections
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
Marketing PlanMarketing Plan Your GoalYour Goal: you understand your : you understand your
market, industry, competitive and market, industry, competitive and competitive advantage competitive advantage
Within the narrative, consider and Within the narrative, consider and describedescribe Marketing channelsMarketing channels PersonnelPersonnel Geographic reach and richnessGeographic reach and richness ToolsTools 4 (or 5) Ps4 (or 5) Ps Pricing strategy related to marketingPricing strategy related to marketing
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
Marketing PlanMarketing Plan
Quantifiable Goals/Objectives = Quantifiable Goals/Objectives = specific deadline dates, and specific deadline dates, and numerical goalsnumerical goals
Specific, detailed activitiesSpecific, detailed activities Complete budget Complete budget MetricsMetrics Several plans:Several plans:
Start-up/awarenessStart-up/awareness First yearFirst year First three yearsFirst three years Marketing calendars are useful toolsMarketing calendars are useful tools
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
Personnel and ManagementPersonnel and Management
Organizational ChartOrganizational Chart ResponsibilitiesResponsibilities SalariesSalaries Professional AdvisorsProfessional Advisors Advisory BoardAdvisory BoardAA
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
Risks and ContingenciesRisks and Contingencies
Shows you understand your Shows you understand your businessbusiness
Deals with investor concerns up frontDeals with investor concerns up front Make them realMake them real AddressAddress at leastat least two real risks two real risks
(c) 2009 Debra Askanase(c) 2009 Debra Askanase
Recommended ReadingRecommended Reading
Good to GreatGood to Great & & Built to LastBuilt to Last Jim Collins Jim Collins
Blue Ocean StrategyBlue Ocean Strategy W. Chan Kim W. Chan Kim
Getting to Yes: Negotiating Agreement Getting to Yes: Negotiating Agreement Without Giving InWithout Giving In Roger Fisher, William Roger Fisher, William Ury and Bruce PattonUry and Bruce Patton
The E-Myth RevisitedThe E-Myth Revisited Michael E. Gerber Michael E. Gerber
The Tipping PointThe Tipping Point Malcolm Gladwell Malcolm Gladwell
The Little Red Book of SellingThe Little Red Book of Selling Jeffrey Gitomar Jeffrey Gitomar
GroundswellGroundswell Forrester Research Forrester Research
The Wisdom of CrowdsThe Wisdom of Crowds James Surowiecki James Surowiecki