1. The New Venture
Exploration Plan
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2. The Exploration Plan
• Objectives
• Carefully articulate the merits, requirements, risks, and
potential rewards of the opportunity and how it will be
seized
• Demonstrate how your team has been able to convert
all the research, careful thought, and creative problem
solving from the Venture Opportunity Screening
Exercises into a New Venture Exploration plan
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3. What Does It Reveal?
• An exploration plan for a high potential venture
reveals the business’ ability to:
• Create or add significant value to a customer or end
user
• Solve a significant problem, or meet a significant want
or need for which someone will pay a premium
• Have robust market, margin, and moneymaking
characteristics
• Fit well with the founder(s) and management team at
the time, in the marketplace, and with the risk-reward
balance
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4. Writing the Plan
• Steps outlining the process by which a New Venture
Exploration plan is written:
• Segmenting information
• Creating an overall schedule
• Creating an action calendar
• Doing the work and writing the plan
Key Dates:
• Submission of “Draft” report AND Presentation:
Sat.3rd August, 2013 (50% weightage)
• Submission of “Final “ report AND Presentation:
Sat.31st August, 2013 (30% weightage)
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5. Contents of the Report…
I. EXECUTIVE SUMMARY
• Description of the business concept and the business opportunity and
strategy
• Target market and projections
• Competitive advantages
• Costs
• The team
• The offering
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6. Contents…
II.
THE INDUSTRY AND THE COMPANY AND ITS
PRODUCT(S) OR SERVICE(S)
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The industry
The company and the concept
The product(s) or service(s)
Entry and growth strategy
III. MARKET RESEARCH AND ANALYSIS
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Customers
Market size and trends
Competition and competitive edge
Estimated market share and sales
Ongoing market evaluation
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7. Contents…
IV.
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THE ECONOMICS OF THE BUSINESS
Gross and operating margins
Profit potential and durability
Fixed, variable, and semivariable costs
Months to breakeven
Months to reach positive cash flow
V. MARKETING PLAN
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Overall marketing strategy
Pricing
Sales tactics
Service and warranty policies
Advertising and promotion
Distribution
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8. Contents…
VI.
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DESIGN AND DEVELOPMENT PLAN
Development status and tasks
Difficulties and risks
Product improvement and new products
Costs
Proprietary issues
VII.
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MANUFACTURING AND OPERATIONS PLAN
Operating cycle
Geographical location
Facilities and improvements
Strategy and plans
Regulatory and legal issues
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9. Contents…
VIII. MANAGEMENT TEAM
• Organization
• Key management personnel
• Management compensation and ownership
• Other investors
• Employment arrangements and plans
• Supporting professional advisors and services
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10. Contents…
IX.
SUSTAINABILITY AND IMPACT
• Issues of sustainability of the venture
• Impact on the environment
• Impact on the community, nation
X.
OVERALL SCHEDULE
XI .
CRITICAL RISKS, PROBLEMS, AND POSSIBLE
OPTIONS TO MIGATE THEM
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11. Contents…
XII. THE FINANCIAL PLAN – 3 to 5 years visibility
• Cost of project
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Means of financing
Profit and loss
Cash-flow
Breakeven chart and calculations
Sensitivity analyses
Tables can go as an “Appendix”
Note: Each line item should have a proper
justification/assumptions/basis
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12. IMPORTANT: Don’t Forget!!!!!!
Individual submissions
In addition to group project report submission and
presentations, each participant is expected to submit a
separate report that reflects:
a) specific contributions made to the project and
b)key learnings from the project work as well the process
This will impact individual assessment and grading!
Deadline: Sat. 31st August, 2013
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