Business Plan and other Communication Tools - Entrepreneurship 101 (2013/2014)
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Transcript of Business Plan and other Communication Tools - Entrepreneurship 101 (2013/2014)
The Business Plan and Other Strategic Communica7on Tools
me
– Venture capital – Founder – Opera1ng execu1ve – Investor – Mentor
The purpose of business is to create and keep a customer.
- Peter Drucker
A few reasons companies fail
• Misunderstanding what customers want • Underes1ma1ng the compe11on • Not enough differen1a1on in the market • Underes1ma1ng 1me and effort to revenue • Lack of financial planning • Poor leadership • Bad partners
Business Planning Helps Avoid Failure
Business Planning and Communica7on Tools
• Elevator Pitch • Execu1ve Summary • Financials • Business Plan
Principles for Business Planning and Communica7on
Factual
Consistent, concise, clear
Dynamic
Visually compelling
Audience-‐centric
Easy to understand
The Elevator Pitch hMp://www.youtube.com/watch?v=Tq0tan49rmc
The Execu7ve Summary
• Most important part of a business plan • Write it last • 1 – 2 pages • Tell your story! • Emphasize the business opportunity • Capture investor’s imagina1on/interest or lose them forever
Essen1al Parts of the Business Plan
Business Plan
Execu7ve Summary
Company Overview
Marke7ng Plan
Market Analysis
Compe77ve Analysis
Customer Analysis
Financials &
Projec7ons
Team
Opera7ons Plan
Company Overview
• “About Us” • Describe clearly and concisely • Make sure the reader understands what your company does
Market Analysis
Research market
Select target market
Project Write market analysis
The purpose of business is to create and keep a customer.
- Peter Drucker
Customer Analysis
Compe11ve Analysis
List of Compe1tors
Compe1tor Product Summary
Compe1tor Strengths
and Weaknesses
Compe1tor Strategies
and Objec1ves
Marke1ng Plan -‐ The Four Ps Corporate Objec1ves
Marke1ng Strategy
Product Promo1on Price Place
Partnerships
Opera1ons Plan
Opera1ng facili1es and equipment
Produc1on and opera1ng procedures
Compliance with regula1ons
Supplies, prices, terms, condi1ons,
alternates
Inventory management Quality control
Customer service Web hos1ng Website development
Possible Components
The Team
Financials
• Don’t ignore financials – they are CRITICAL • It isn’t the spreadsheet that is important, it is the thinking behind it
• You can’t possibly understand your business poten1al if you haven’t forecasted
• Yes, it’s hard to forecast for an early stage company • Yes, they’re going to be wrong • Show what you have anyway and explain your assump1ons
• Be able to explain EVERY number instantaneously
Financials con7nued…
• Must be able to show: – expected revenues – Expenses – How much funding company needs – When you need funding – How lenders will be paid pack/investors will receive a return on their investment
Things you ABSOLUTELY MUST REMEMBER
Jane’s Rule #1: It’s NOT All About the Technology
Jane’s Rule #2: You MUST Understand Your Market
Jane’s Rule #3: Yes, You Have Compe77on
Jane’s Rule #4: Think Hard About Your Exit Strategy
Jane’s Rule #5: Realis7c Valua7on is Important
Jane’s Rule #6: Don’t Ignore Milestones
Jane’s Rule #7: Keep Your Wri7ng Clu]er-‐Free
Jane’s Most Important Rule: Tell Your Story!
“If a story is not about the hearer, he will not listen. And
here I make a rule—a great and interesting story is
about everyone or it will not last.”
- John Steinbeck