Creating a Winning Business Plan v.2

Creating a Winning Business Plan v.2For existing businesses or

start ups

What is a Business Plan?

It is a story by the entrepreneur or a CEO

For the following audience

• For the financiers/lenders

• For the stockholders

• For the public at large

• For the employees

What is the story?

• Where are we now?

(The situation/background)

• Where are we going?

(Our goals/objective)

• How do we get there?

(The strategy; the choice of action

and resources)

Business planning – an important skill

Parts of a Strategic Business Plan

Parts of Business Plan

1.Business Concept and Business Model

• Business Concept – “ a description of business in not more than 50 words describing product/services/channel and PTM.”

e.g.

“ WHAT IS VENTE”

e.g.

“ WHAT IS SUNCELL”

• Vision

• Mission

• Objectives

• Key Result Area

• Performance Indicator

2. Business Objectives:

How does a company make money?

Inspired by Peter Drucker

Business Model

• Main Value Proposition (MVP)

• Primary Target Market (PTM)

• How to communicate MVP to PTM

• How to deliver value (MVP) to PTM

CONTAINS

BUSINESS MODEL CANVAS

By: Alex Osterwalder

• Technology providers

• Senior management

• Finance providers

• Middle managers

3. Organization:

4. Executive Summary

5. The Product

Customers

Competitors

Environment:

PESTEL

Micromarket:

Location

Competitor

Customer

6. Sales Estimate:

SPATRES

(what is to be done to meet the objectives)

7. Strategy:

SPATRES

• Strategy

• Program

• Activities

• Tasks

• Resources

ENTERPRISE DELIVERY SYSTEM

• Input

• Throughput

• Output

INPUT

4 MsMaterialsMachinery

MoneyManpower

THROUGHPUT

• Methods

• Process

• Control

• Quality

• Supervision

OUTPUT

• Products

• Services

MARKETING4 Ps

•Product

•Promotion

•Placement

•Price

OUTCOMESThe Objectives:

1.Sales

2.Financial:• Cash Flow

• Net Income

• Turnover

3. Customer Impact

4. Job Generation

8. Must be in a long detailed form

Succession Planning

Harvest Issues - IPO and sales to third parties

Business failures

8. Exit Strategy:

9. Compliance with regulations

– most specially laws on safety, health, and environment

Financials:

• Distinct and separate from sales estimate (that comes from macro / micro/industry/ market data

• BREAK EVEN ANALYSIS

• RATIOS: HORIZONTAL AND VERTICAL

• Du PONT: ROI, ROE

Includes:

1. Cash flow statement (3 years)

2. Profit and loss

3. Statement of condition

Business Plan contains proofs that the plan can be

a success

Supporting Data / Information

Is intuition / guesswork enough?

Degree of confidence

Hopefully??!

The elevator pitch – does it work?

Some entrepreneurs do not have business plan and yet

are successful. Why?

Business Plan writing competition in GSB’s

How much is the cost of having a business plan

outsourced?

Thank You!

Credits

JORGE U. SAGUINSIN

Senior Managing Director