Road Map to Success Business Plan Preparation Workshop

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Road Map to Success

Business Plan Preparation Workshop

04/21/23 2

The Innovation CentreInnovator Member Support

Entrepreneurial Programming

Innovation & Project Development

The Hatchery

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Executive Summary• Write this last• Create excitement about the opportunity• Outline benefits and market potential• State clearly any financing required and

terms expected

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Mission Statement• A clear statement of your company’s long-term

mission. Try to use words that will help direct the growth of your company, but be as concise as possible.

WHAT BUSINESS ARE YOU IN?

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Business History & ObjectivesHistory• Reasons whyObjectives• Short Term• Measurable• Believable

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Business Overview• List key management resources• Include previous accomplishments to show

these are people with a record of success• Summarize number of years of experience in

this field• Ownership Structure – Sole Proprietor,

Partnership, Incorporation.• Location and Facilities

04/21/23 8

Products and Services• Description• Features vs Benefits• Production of Products and Services• Future Products and Services• Comparative Advantages• State consumer problems, and define nature of

product/service opportunities created by those problems.

04/21/23 9

Market AnalysisMarket Research• Secondary

– Industry Associations, Trade Journals, Statistics Canada, Economic Information..

• Primary– Focus Groups– Surveys and interviews– Potential customers, suppliers, industry experts…

04/21/23 10

Market Analysis - Conditions• Industry size• Trends and outlook• Economic trends• Product trends

04/21/23 11

Market Analysis - Competition• Summarize competition• Outline your company’s competitive advantage• Strengths and weaknesses• Barriers to entry• Positioning

04/21/23 12

Market Analysis -Customers• Key Product Segments

• Key Market Segments – Describe your typical customer

• Purchase Process and Buying Criteria

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Market Strategy• Price• Product • Promotion• Place –distribution

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Benefits of Segmenting Your Market

• Choose the promotion that will reach most of your target customers

• Ensure the target customers identify with the strategy

• Motivate them to purchase• The compromise between the mistake of treating

all customers alike and the inefficiency of treating them all differently

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Advertising & Promotion• Strategy & execution

– Deliver a message successfully– Generate maximum response at least cost– Objective

• Sell specific amount of product• Position a product or service• Educate the market• Gain response

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Other Promotion• Direct marketing

– Overview of strategy, vehicles & timing– Overview of response targets, goals &

budget• Third-party marketing

– Co-marketing arrangements with other companies

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Marketing Perceptions• Perception IS reality• It is personal and emotional and

based on experience• What you think does NOT

matter• ASK: What does this do to the

perception of my customers?

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Image Creation

• Everything creates image– Policies– Procedures– Product– Service– Location– Colours– Interior– Telephone answering– Promotional Material…..

Be ConsistentKnow Your CustomerBase it on your customer

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Distribution• Distribution strategy

• Channels of distribution– Direct Sales, Dealers, Distributors, Big Box,

Licensing

• Distribution by channel– Wholesale– Retail– Sales rep

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Management and Staffing• Organizational Structure• Management Team• Staffing• Labour Market Issues

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Regulatory Issues

• Intellectual Property Protection• Permits• Environmental issues• Future regulation

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Financial Plan• High-level financial plan that defines financial model,

pricing assumptions, and reviews yearly expected sales and profits for the next three years.

• Cashflow – monthly for first 12 months• 3 year Income Statement and Balance Sheet Projections• Statement of Forecast Assumptions• Sources and Uses of Funds Statement

04/21/23 23

Risks & Rewards• Risks

– Summarize risks of proposed project

• Addressing risk– Summarize how risks will

be addressed • Rewards

– Estimate expected pay-off, particularly if seeking funding

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Key Issues• Near term

– Isolate key decisions and issues that need immediate or near-term resolution

• Long term– Isolate issues needing long-term resolution– State consequences of decision postponement

• If you are seeking funding, state specifics

04/21/23 25

Thank You!Graham Mailhot

NWO Innovation Centre

1294 Balmoral Street

Thunder Bay, ON P7B 5Z5

Phone: 768-6682

Email:

[email protected]

www.nwoinnovation.ca