Presented by Richard Campos RC Business Support

RCbusiness support Limited

Presented by

Richard Campos

RC Business Support

Basic Business Planning and Funding


Background

Agenda


Background

Components of a good plan

Agenda


Background

Components of a good plan

Investing in the business

Agenda


Background

BT - Divisional responsibility for £1/2 billion operational budget



BT – Section responsibility for operations planning

Background




BT – Project business plan submissions

Background





ntl and Tiscali - Project and programme planning

- Strategic planning and board advisor

Background




RCBS - Client business and strategic planning- Products to market and Due Diligence


ntl and Tiscali - Project and programme planning

- Strategic planning and board advice

Background


Personal experience of running a business

Starting and running the business


Personal experience of planning

Q - What is the definition of a project?


…is a temporary endeavour having a defined beginning and end (usually constrained by date, funding or deliverables), undertaken to meet particular goals and objectives, usually to bring about beneficial change or added value.

Personal experience of planning

Wikipedia



What is a strategy?

“A strategy is a long term plan of action designed to achieve a particular goal”.


What kind of business are you/do you want to be?

Start up – within 3 years maximum

Lifestyle – sub £100k

Large – over £100k

High Growth – over £1million


Strategy can be defined in a hierarchy:

VISION

DELIVERY

Task Action

TacticShort term

Objective Planned target

Strategy/PlanLong term


Where you are today

The Strategy“The Roadmap”

Task

Tactic

Where you want to be(Objective)


Tactical View“Functional”

Where you are today

Where you want to be

X

Fin

anci

al

Mar

keti

ng

Op

erat

ion

sTime


Day to Day View“Task”

Where you are today

Fin

anci

al

Mar

keti

ng

Op

erat

ion

s

MARKETINGBuild marketing plan by …Complete market research by…Confirm budgets by…

Where you want to be


2

3

4

Profit(£k)

Sales (£k)

Employees

Year10 11 12103075

200

75

120

The ideal plan? The Orbit Diagram*

*Courtesy of The Winning Pitch


Raising finance

1. An excellent product or service

To stand a chance of success, an investor requires 3 things from you:



2. A convincing case for giving their money to you

Raising finance



3. A good team of people


2. A convincing case for giving their money to you

Raising finance



Raising finance

Family and friends


Raising finance

Family and friends

RDA and their agents


Raising finance

Family and friends


Banks


Raising finance

Family and friends


Banks

Venture Capitalists


Raising finance

Family and friends


Banks

Business Angels

Venture Capitalists


Raising funds

Venture Capitalists - VC

A venture capitalist will assume high risk in return for high reward.


Raising funds

Business Angels - BA

An angel investor or angel (also known as a business angel or informal investor) is an affluent individual who provides capital for a business start up, usually in exchange for equity


What questions should you ask yourself?

Who?

What?

Why?

Where?

When?

How?

How much?


Example

An environmental recycling company needed to raise £500k matched funds to develop a pre-production prototype. They produced a:

Business plan including the



Operational strategy

Example





Marketing strategy

Example





Marketing strategy

Financial management strategy

Example





Marketing strategy

Financial management strategy

A strong team

Example



Product or Service

What’s unique about what you have?

Ask Yourself:



How much will it cost to make and buy it?

Ask Yourself:

Product or Service



How will people know about it and where can they buy it?

Ask Yourself:

How much will it cost to make or buy it?

Product or Service



Who owns the IP?

Ask Yourself:

How much will it cost to make or buy it?

How will people know about it and where can they buy it?

Product or Service


A good team

Marketing

OperationsFinance

Do you posses the skills or resources in:

TheHoly

Trinity


A CONvincing case?

Evidence of “Hurt Money”

Have you clearly and concisely produced:



The business model

A CONvincing case?




A clear and justifiable financial analysis

The business model

A CONvincing case?




A clear and justifiable financial analysis

The Business Plan

The business model

A CONvincing case?



The Business Plan

Isn’t Is

A profile of your business strategy and how it will help you achieve your objectives

A version of the Encyclopaedia Britannica!


A client presented a business plan for comment. It had:

80 pages of closely typed text plus

Example




20 pages of financial analysis and 20 pages of appendices

Example




20 pages of financial analysis and 20 pages of appendices

Pages and pages of technical terms

Example


The ideal plan…

…should be between 3 and 20 pages (max) plus appendix

but

There will always be exceptions


Risk

Expose to a chance of loss or damage; “We risked losing a lot of money in this venture";

How do you prevent this?


Identifies and assesses factors that may jeopardise the success of a project or achieving a goal.

and

Risk Analysis

Defines preventive measures to reduce probability of this from occurring and identifies actions to deal with these constraints when they develop to avert possible negative effects on the company.


Risk Analysis

Risk L I Mitigation

No customers Build marketing plan to win customers

Excessive demand Identify resources to meet demand

M H

HH


Risk Analysis

Risk L I Mitigation

L H



Legislation restricts trade No government plans

M H

HH


Risk Analysis

Risk L I Mitigation

L H

M H




Exchange fluctuations Ensure adequate margins to absorbContract reviews at regular intervals

M H

HH


Risk Analysis

Risk L I Mitigation

M H

H H

L H

M H






Risk Analysis

Risk L I Mitigation

M H

H H

L H

M H






Risk Analysis

Risk L I Mitigation

M H

H H

L H

M H






Example

A £24million logistics company planning an acquisition to build a £40 million turnover business. They had:

No marketing or sales strategy



No deep experience on the board

Example




No deep experience on the board

Haemorrhaging staff to a competitor

Example



Example

A cautionary tale of mismanagement

An international telecommunications provider was losing money but didn’t know why.

Sales OK

Customer services OK

Technical OK


Example

A cautionary tale of mismanagement

An international telecommunications provider was losing money but didn’t know why.

Sales OK

Customer services OK

Technical OK

£100k stock!

And they went bust!


The morale of this story:

Use the strategy (your plan) to manage your business and measure its effectiveness

Build a convincing case that sells your business to the investor


Questions?


Thank You

Presented by Richard Campos RC Business Support

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