1.
Bonuses:
•Tackling the Y OUWIN Questions
•A lternative Fund Options
BUSINESS PLANNING 101
Entrepreneurial Master Class Series
Taiwo O. Adepoju
December 2013

2.
COURSE OUTLINE
•
•
•
•
•
•
•
•
Introduction
Business Concept
Value Chain
Business Planning
Tackling The YOUWIN QUESTIONS
Funding Preparations For Your Business
Conclusion
Questions & Answers

3.
FOOD FOR THOUGHT
Some men see things as they are
and ask why? But I dream things
that never were and I ask why
not?
Bernard Shaw

4.
WE NEED TO START THINKING?
A CASE IN POINT:
• THE TRADITIONAL
GRINDER IN THE
NIGERIAN MARKET
• BINATONE

5.
BUSINESS CONCEPT

6.
TERM DEFINITION
A BUSINESS CONCEPT is a concise
description of an opportunity that
contains four essential elements:
1.
2.
3.
4.
The customer definition
The value proposition and compelling story
The product/service
The distribution channel

7.
THE CUSTOMER DEFINITION
– The customer is the one who pays.
– The end use customer is as important as the
intermediary customer.
WHO CARES…?

8.
THE VALUE PROPOSITION
• The compelling story is the benefit that
the customer derives from the product
or service
–
It is often intangible
• The compelling story answers the
questions:
–
–
Why the interest?
What problem does this solve?
SO WHAT…?

9.
BUSINESS CONCEPT
• The Product/Service
– What does the customer need?
– What
is
the
team’s
core
competency?
• The Distribution Channel
– How will the benefit be delivered to
the customer?

10.
THE CONCEPT STATEMENT
• Creating a clear and concise concept
statement is not difficult but telling a
compelling story can be.
• A compelling story consists of a
problem and a solution.
• The problem being solved should be
presented in a simple clear way.
• Can you make a good pitch for the
concept

11.
CONCEPT QUICK TEST
• Am
I
really
interested
in
this
business
opportunity?
• Is anyone else interested?
• Will people pay for what is being offered?
• Why me?
• Why now?

12.
VALUE CHAIN CONCEPT

13.
TERM DEFINITION

14.
EXAMPLE OF A BAKERY VC

15.
THE VALUE CHAIN AND THE
CONCEPT
• Upstream activities, those related to the production
of a product or service, which may include raw
materials, product development, manufacturing, and
warehousing.
• Downstream activities, those associated with selling
the product or service such as customer acquisition,
sales transactions, and logistics.

16.
THE VALUE CHAIN AND THE
CONCEPT
• Developing a distribution strategy:
– Evaluate strategies of similar companies
– Look for the opportunity gaps
• Factors affecting
strategy:
– Costs
– Market coverage
– Speed and reliability
the
choice
of

17.
BUSINESS PLANNING

18.
BUCKET VERSUS BOREHOLE

19.
TERM DEFINITION
A “Business Plan” is a “Selling/Strategy
Document” that conveys the excitement
and promise of your business to any
potential backers and stakeholders.

20.
BUSINESS PLAN, WHY?
•
•
•
•
•
•
•
•
To sell yourself on the business
To obtain bank financing
To obtain investment funds
To establish strategic alliances
To obtain initial contracts
To attract key employees
To assist in the completion of mergers and
acquisitions
To motivate and focus your management
team

21.
THREE TYPES OF A BUSINESS PLAN
SUMMARY PLAN
10 pages, 3 important points
COMPREHENSIVE PLAN
10-40 pages, seeking capital or
alliances ideally 25 pages
OPERATIONAL PLAN
40+ pages, for going concerns, part of
an annual process

22.
WHAT INVESTORS LOOK FOR
• Experienced & passionate management
team
• Real customer need (pain and/or pleasure)
• Large market
• Salable business
• Cost-effective way to target the market
• Sustainable competitive advantages
• Realistic revenue model
• Return on investment

23.
A GOOD BUSINESS PLAN …
• … tells a compelling story.
• … is clear and concise.
• … is based on documented facts.
• … does not waste the reader’s time or
attention with extraneous material.
• … drives to a conclusion.
• … is not a guarantee of success.

24.
BUSINESS PLAN DOCUMENTS
Document
Executive
Summary
Purpose
Format
Size/Scope
Get attention,
create interest
DOC or
PDF
Two (2) pages
maximum
DOC or
PDF
Approx. 20-25
pages
Business Plan Provide details for
due diligence
Financial
Projections
Provide
justification for
financial
investment
XLS
Span of 3 to 5
years
(one-page
summary in
Business Plan)
Investor
Presentation
Create desire,
close the deal
PPT
10-15 slides max.

25.
BUSINESS PLAN DEVELOPMENT PROCESS
PREPARATION
Research
WORKING
DOCUMENTS
Key Points
Outline
PRODUCTION
Executive
Summary
Business
Plan
Investor
Presentation
Business
Strategy
Networking
.
Financial
Modeling
Financial
Projections

26.
BUSINESS PLAN FORMAT
• Pages: 10 to 30
• Kinko’s white bond
is good enough
• Simple binding
• Examples
– Handout – a good
example B Plan
– Discuss examples of
bad ones
TYPICAL OUTLINE
EXECUTIVE SUMMARY
INTRODUCTION AND BUSINESS PREMISE
MARKET ANALYSIS AND CUSTOMER NEEDS
PRODUCT OVERVIEW
VALUE PROPOSITION
BUSINESS MODEL
BUSINESS OPERATIONS PLAN
MARKETING AND SALES
MARKET ENTRY
TRANSITION TO REVENUE SERVICE
COMPETITIVE ASSESSMENT
PARTNERSHIP STRATEGY
MANAGEMENT TEAM AND ADVISORS
FINANCIAL PROJECTIONS
KEY BUSINESS METRICS
CAPITAL STRUCTURE/FINANCING PLANS
EXIT STRATEGY
RISK ANALYSIS
SUMMARY

27.
TACKLING YOUWIN
QUESTIONS
• CLARITY
• CONCISE
• CONCRETE
• COMPELLING
• CONSISTENCY

28.
FUNDING PREPARATION
• Have A Business Plan
• Register Name
• Obtain Branding / Collateral Materials I.E.
Logos Etc
• Open Two Account
• Create Some Activity
• Approach / Explore Opportunities

29.
IN CONCLUDING: