Business plan

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Business Plans


oA document used to detail plans for a start-up or existing business

oUsed to describe business goals and strategies

oProvides blueprints of financing and sales/marketing plans

oProvides information about growth expectations of a company

oDescribes the industry and competitors in which the company operates

What is a business plan?


Components of a business plan


o This is the most critical component of a business planoThis section summarizes the main points of the business plano Follows the title pageo Usually between ½ - 2 pages long

o Provides a clear description of the businesso Business Concept – the products/solutions the business will bring to marketo Financial Outlook – expected sales, costs, and profits over a 5-year periodo Financial Requirements –investments required to deliver on the financial outlooko Competitive Summary – an overview of the industry in which the business operateso Current Status – information on legal, operations, and development effortso Achievements and other important facts

o This summary is often read before investors decide to delve in to the entire business plan

Executive Summary


o Mission and Vision Statementso Provide insight on what business is trying to create/solve

oCompany Backgroundo How and why did the business come to beingo What is the current status of the company

o Product Informationo Describe product or solution in detailo Expand on why product/solution is different from otherso Elaborate on what the product/solution aims to solveo What is the current status of product development

o Key Team Memberso Details of company leadership (CEO, COO, etc.)

Business Description


o Market Plano How does the business expect to take the product/solution to market?o Who are the customers?o What are the current pain-points for customers?o What market share the company expects?o How the business fits into the market?

o Competitor Analysiso Describe existing customers and their product offerings in detailo Describe how the business is competitive vis-à-vis competitors

o SWOT Analysiso Strengths: Describe key strengths of companyo Weaknesses: Describe most relevant weaknesseso Opportunities: Describe low hanging fruits and other available opportunitieso Threats: Reasons why the business may not succeed

Market and Competition


o Financial Planningo 5-year projections on revenues, costs, and profitso Details to support projectionso Cash flow statement over 5-years

o Financial Requirementso Details on capital requirements to meet financial projectionso Details on uses of funds from investors

Financials


oOperationso Personnel planning – teams and talents required to meet financial objectiveso Manage supply, demand, and other operationso Information on facilities, locations, and inventories (if applicable)o Information on expected company structure and organizationo Information on quality control, legal structure, etc.o Other necessary operations information relevant to the business

o Outlooko Provide growth outlook and how company expects to growo Provide a timeline for major milestones and accomplishments

Operations and Outlook


o Identify the relationship of customers, suppliers, partners, and stakeholders

oHelps companies focus on key activities, partners, and channels used to deliver value proposition

o Identify paths to take value proposition to customer base

o Calculate monetary and resource costs to deliver on value proposition

o Fluid plan – adjusted based on changing needs and structure

o Example of Google’s Business Canvas on next slide

LEAN Business Model Canvas


New Business Modeling Structure


o A Business Plan or Business Canvas is NOT set on stoneo Review, Review, Review – to see what is working and what is noto Get feedback from credible sources, thought leaders, customers, and investorso Be able to modify execution strategies based on business plan

o Action is more important than the plano Execution, execution, execution – show up and execute on the plano Provide clear set of deliverables and milestones for the company

o Be realistic!o It’s better to keep things simple and delivero It’s not worth the effort to up a business that will eventually fail

o Find a team that believes in the business

Things To Remember


The Business Plan Drives SO Many Things


Q&A

Business plan

Business

business o outlook o

o market plan o

o financial planning

investors o

strategies o

o competitor analysis

stakeholders o

o mission