1. BUSINESS
PLAN

2. Why Business Plan ?????????????
A business plan is an effective tool for defining the existing
realities.
A good business plan will reveal weaknesses or omissions in
your planning.
They provide a valuable communication tool presented in an
organized, credible manner, which allows the stakeholders to
obtain a complex view of the business.`

3. BUSINESS PLAN ESSENTIALS
•ALWAYS Prepare the Plan Yourself!
–Professional input from
accountants, consultants, lawyers, etc. can be
helpful.
–Write the Plan. Own the Plan. Know the Plan.
•I am investing in You & in Your Plan!

4. FORMAT OF THE BUSINESS PLAN
– Executive Summary
– General Company Description
– Products & Services Offering
– Strategic Marketing & Sales Plan
– Operational Plan
– Management & Organizational Structure
– Capitalization & Use of Proceeds
– Financial Projections -- to include Assumptions
– Appendices

5. Stages of Project Development
Supply Analysis Supply Analysis
I Business Plan
N Market Analysis Market Analysis
P Financial Model
U Technology Analysis
T
Prototype
Stage 1 Stage 2 Stage 3 Stage 4
Prefeasibility Technical Feasibility Commercial Feasibility Investor Engagement
A Donors
C Grants & Subsidies Strategic Investors Strategic Investors Private Equity
TI Philanthropic Institutions Private Equity Private Equity Social Investors
VI Specialist Development Social Investors Social Investors Development Banks
T Finance Development Agencies Development Banks
Y Risk Capital Venture Capital
O
U
T Supply Analysis Technology Analysis Business Plan
P
U Market Analysis Prototype Financial Model
T

6. What is the value of a Business Plan?
Business Plan
Project Data Sheet
Investment Pitch

7. Business Model
Supply Agreement T o PPAs
e l
Profit Sharing Supply c o Demand Power
h g
Deficit
Transportation n y
Objective: Gain investor confidence

8. Unique Selling Proposition
Discoveries
follow ing a
revolution
Accidental
discoveries
Discovery
copied or
modified from Systematic
a previous search for
idea new products
and services

9. Market Analysis
SWOT Analysis
External
Opportunities Threats
Communicate
Leverage
Internal
Strengths Clearly to
Strengths
Investors
Weaknesses Point of Mitigation
Differentiation Measures

10. Market Analysis
Product Position
TARGET
TM
MARKET
Price Place

11. Porter Analysis
Ease of
Substitution
Power of Industry Power of
Suppliers Customers
Rivalry
Barriers to
Entry

12. Industry Questions
How do we define our industry?
How is the industry segmented?
What are current trends and important
developments?
Who are the largest and most important
players?
What problems is the industry experiencing?
What national and int’l events influence our
industry?
What are growth forecasts?

13. -- Marketplace Analysis
Define and describe your marketplace
Niche, geographic area, subset of larger
industry
What’s happening in your market?
Network! – talk with the marketplace
Customers, competitors, vendors, suppliers, sal
espeople, …
Chambers of commerce
Industry trade groups

14. Marketplace Questions
How do we define our marketplace?
How large is it and how fast is it
growing?
How is our marketplace segmented?
What companies currently service this
market?
What trends are important in our
marketplace?

15. -- Customer Analysis
Identify current buyers in your
marketplace
Segment these customers
What “problems” are not being solved?
What needs are not being met?
Which customer segments are currently
ignored?
Talk with current buyers!

16. -- Competitor Analysis
Identify current sellers in your marketplace
Niche and focus
Target customers
Strengths and weaknesses
Talk with current marketplace sellers!
Sellers themselves
Vendors
Customers
Competitive Matrix Comparison

17. Competitive Matrix
Competitive Matrix Chart
Product or Production Unique Distribution Marketing / Geographic Strengths & Market
Service / Quality Features System Advertising Location Weaknesse Share
Competitor A
Competitor B
Competitor C
Competitor D
Competitor E
Competitor F

18. Competitor Questions
Who are current sellers in the marketplace?
What are the attributes and characteristics of
these sellers and their products/services?
What is there size, location, target market, and
other important characteristics?
For their products or services, identify
price, quality, features, distribution, and other
important attributes.
What problems and concerns to customers
have with these sellers?

19. PROJECT PROFIT AND LOSS
ACCOUNT
Income from Sales/Service
Cost of Manufacturing/Servicing
i) Raw Materials
ii) Utilities
iii) Salaries/Wages
iv) Repairs & maintenance
v) Selling & Distribution Expenses
vi) Administrative Expenses
vii) Interest
viii) Rent
ix) Depreciation
x) Misc. Expenses
c. Gross Profit/Loss (A-B)