How to Write a Business Plan in 40 Steps
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I gave this talk in Germany during an intensive week-long Summer School course at the Entrepreneurship Center in Wolfen
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How to Write a Business Plan in 40 Steps
- 1. How to Write a Business Plan Prof. Steven A. Gedeon BSc, PEng, MSc, MBA, PhD
- 2. Why Write a Plan? • Writing is a Guide to Thinking • Analysis Tool to Research the Market and How to Deliver • Marketing Tool to Excite Others to Join Your Adventure (Investors, Clients, Employees…) • Figure Out What to Do • Guide to Management Action!
- 3. “Try Not! DO or DO NOT, There Is NO TRY!”
- 4. The Entrepreneurial Process Design Marshall Grow Spot Business Business Plan Resources & Adapt Opportunity Model Launch Change
- 5. The Entrepreneurship Program Ent Basics Intellectual Property THEORY Ent Theory Ethics Innovation Law Economics Strategy Operations Management Design Marshall Grow Spot Business Business Plan Resources & Adapt Opportunity Model Launch Change Leadership Marketing Sales Negotiating Finance Accounting SKILLS Communication Teamwork Project Management
- 6. Entrepreneurship DOMAIN KNOWLEDGE Design Marshall Grow Spot Business Business Plan Resources & Adapt Opportunity Model Launch Change BUSINESS INSIGHT
- 7. Design Business Business Plan Model • Business Model Canvas as a Design Tool • Rapid Prototyping • Good for Brainstorming • Good for Explaining • “Figure Out” the Business before you Waste Your Time Writing the Plan
- 8. Viable Spot Opportunity Entrepreneurial Opportunities Your Market Situation Context
- 9. Spot Opportunity • Exciting to YOU! • A Well-Defined “Niche” (“Small Area”) • You Can Acquire the Resources to Pull it Off (i.e. something YOU can actually do) • This is Normally an Entire Course (or Lifetime of Hard Work and Experience!)
- 10. Design Business Model • Most Elements in the Business Model Canvas will end up in your Business Plan • The Canvas is a Design Tool to Visualize Key Business Elements on a Single Page – Good Tool for Brainstorming – Good Tool for Prototyping – Good Tool for Explaining
- 11. The Business Model Canvas Free First Chapter of Book at: http://www.businessmodelgeneration.com/downloads/businessmodelgeneration_preview.pdf
- 12. Customer Segments • Focus Focus Focus • Big Useless Numbers vs a Guide to Management Action • The Market Will Tell You Everything You Need to Know if you Bother to Ask • Get “Into the Mind” of Your Customers
- 13. Value Propositions • Benefits vs. Features • 10X Improvement • Differentiation – How are you Different from your Competition?
- 14. Channels • How do you Find Your Customers? • Is the Channel Part of Your Overall Value Proposition? • Channel Conflict • Cost of Sales
- 15. Customer Relationships • One-Off Purchase or On- going Relationship? • Self-Serve, Full-Serve
- 16. Revenue Streams • How do you Make Money? • Many Revenue Models – Subscription – Advertising – Transaction Fees – Buy Low, Sell High… • Don’t Need More than One!
- 17. Key Resources • What Can You Do that Nobody Else Can Do? • How Different are Your Key Resources? • Core Competencies
- 18. Key Activities • What Specific Activities will lead to Strategic Advantage? • What Activities will Customers Love?
- 19. Key Partnerships • Suppliers vs. Partners • Partners are Involved in Delivering Value • Differentiation through a Bundle of Partners
- 20. Cost Structure • Cost Drivers – Cost of Customer Acquisition vs ARPU • Break-Even
- 21. The Business Model Canvas
- 27. Design Business Business Plan Model • Business Model Canvas as a Design Tool • Rapid Prototyping • Good for Brainstorming • Good for Explaining • “Figure Out” the Business before you Waste Your Time Writing the Plan
- 28. Entrepreneurship Thinking Design Marshall Grow Spot Business Business Plan Resources & Adapt Opportunity Model Launch Change Doing
- 29. Business Plan Overview • Executive Summary 1. Mission, Goals & Objectives 2. The Business Overview 3. Market Analysis 4. Key Success Factors (Strategy) 5. Marketing Plan 6. Operating Plan 7. Management Team 8. Financial Plan 9. Targets and Milestones • Summary
- 30. Marshall Gaining “Traction” Business Plan Resources & Launch
- 31. Marshall Gaining Traction Business Plan Resources & Launch • Identify the Opportunity (Start with an Idea) • Design the Business Model (Use the Canvas) • Analysis (Gather Info, Meet with Customers) • Validate Key Success Factors • Validate Goals and Finances • Verify Customer Interest (Key Reference Accounts) • Marshal Scarce Resources (Signed Contracts) • Implement the Plan (Exchange Cash) • Monitor and Revise the Plan (Reporting and Governance)
- 32. Marshall Grow Keys to Success Resources & Adapt Launch Change ACTIONS GOALS VALUES & BELIEFS REALITY
- 33. Keepin’ It Real • Be Really Good at Something! • Know Your Stuff! – Know your Customers, Competition… • Meritocracy – You Must Deserve to Lead! • Fantasies and B.S. Don’t Work
- 34. Make Deep Connections • Be Really Important! – To Customers, Employees, Stakeholders • Connect at a Deeper Level than $$ • Inspirational Leadership vs. Transactional Leadership
- 35. Set Great Goals • What Gets Measured Gets Done • Higher Goals > Higher Performance – Near and Long-Term Goals – Forward and Backward Looking Goals • Key Business Screamers
- 36. Actions Speak Louder than Words • “Blah Blah” vs. Real Leadership • Character = “Brand Promise” • Lead by Example • Walk the Talk
- 37. Marshall Grow Success and Happiness Resources & Adapt Launch Change come from Harmony ACTIONS GOALS VALUES & BELIEFS REALITY
- 38. Entrepreneurship • Fundamental to the Human Spirit • Not Just a Business Discipline • A Way of Seeing, Thinking and Acting
- 39. ENT is Experiential • Like Playing the Guitar • Need to Build Your Ent Muscles! • Get Started on Something! • Failure is OK!
- 40. Vielen Dank für die Aufmerksamkeit! Mehr Infos unter: www.entrepreneurship-center.de