Business Plan

1. BUSINESS PLAN
• A written document that outlines the future
activity for an existing or proposed business
venture.
• Is the formal written expression of the
entrepreneurial vision, describing the strategy
and operations of the proposed venture.
• A business plan is a document that brings
together the key elements of a business that
include details about the products and services,
the cost, sales and expected profits.
• Blue Print

2. Purpose of a Business Plan
Alignment of team(s) Operating plan
Communication across
company, division,
department, business
partners
Investment capital
Expansion capital (banks,
leases)
Merger/acquisition process

3. BUSINESS PLAN Drivers
Clear Vision of Purpose ✓ The direction the business venture wants to
achieve.
✓A long term view
Satisfy Real Customers Needs
& Serve Real Customers
✓ Exceptional customer service that results in
the loyalty of customers, repeat purchases by
them and greater customer retention.
Differentiate from Competitors ✓ Positioning unique differentiating factors.
✓Continuously making improvements to
sustain a leadership position.
Resource Focus, Organization
& Commitment to satisfy
Customer needs
✓ Resources should be optimally utilized to
ensure that maximum possible value gets
added to satisfy customer needs.

4. What Investors Look For
How does the team think?
How detail oriented is the
team?
How big is this market?
Is there sustainable
competitive advantage?
What’s the growth plan?
What does the technology
roadmap look like, short
term or long term play

5. Financial
Projections Build 5 years
Detail near years,
extrapolate out
years
Build from single
unit economics
Document
assumptions
Compare against
top down
Validate with
market
comparables

6. 10 Must Answer Questions
How large is your addressable market?
How fast is the market growing?
Who’s make up your management team?
What’s your “secret sauce?”
What are the barriers to entry/competitive advantage?
What do your 5 year financials look like?
What’s your path to profitability?
Why is this a company versus a product/service?
Who’s your competition and how do you beat them?
Why can’t Microsoft or Google do this? (or name any big, established company…)

7. Creating Your Company’s Strategy
Building a strategy is harder work than building your
product
Think about
• What do you want your business to be when it grows up
• Looking back from 5 years in future
• Perspectives of all stakeholders
• Anything that could go wrong
Hope is not a strategy

8. Competitive Analysis
You always have
competitors
Dig deep, be
detailed, be
honest
Compare
features and
benefits
Technology
comparison
Whole product
offering (pricing,
support, etc.)
Channels,
funding,
customers…

9. Sustainable Competitive Advantage
Create
Create barriers
to entry
Add
Continually
add value for
your customers
(and your
investors)
Anticipate
Anticipate
competition
and make
plans for
dealing with it
• Better widget,
price erosion,
market share,
different
business
model…..
Avoid
Avoid the trap
of believing
that your main
competitor is
your exit
strategy

10. Format of Business Plan
TITLE PAGE
• Name of the business
• Owner /Owners
• Contact Details (Addresses, Phone & email etc)
EXECUTIVE SUMARY
• Business ideas & Goals : Over view of business
• Marketing : Products & services being sold?
• Operations : Business Location & staff
• Finances : Breakeven period,
finance required.

11. Format of Business Plan
• Mission Statement
• Company history ( existing business)
• Business Goals (Short term/Long term)
BACKGROUND
• Market Research
• Market Analysis (Industry / Seasonality /Competitors
/SWOT )
• Marketing Plan (Target market/ distribution channel
/pricing)
• Evaluation of Marketing
MARKETING

12. Format of Business Plan
OPERATIONS & PRODUCTION
• Legal & Licensing requirements
• Management details
• Organization structure & staffing
• Insurance & Security needs
FINANCIAL PROJECTIONS
• Income & Expenses
• Financial forecasts
IMPLEMENTATION TIME TABLE
• Time needed to set up & run the business