Business planning

04/12/2304/12/23(c) Expressive Business Strategies,Inc. (c) Expressive Business Strategies,Inc.

2005 - 2010, All rights reserved2005 - 2010, All rights reserved 11

Business PlanningBusiness Planning


2005 - 2010 All rights reserved2005 - 2010 All rights reserved

HOW TO START A BUSINESSHOW TO START A BUSINESS

Identify a need, want or desire, then create Identify a need, want or desire, then create a solutiona solution Make a discovery, recognize it’s utilityMake a discovery, recognize it’s utility Recognize an advantage, exploit itRecognize an advantage, exploit it


2005 - 2007, All rights reserved2005 - 2007, All rights reserved

HOW NOT TO START A HOW NOT TO START A BUSINESSBUSINESS

Create a need, to fit a solutionCreate a need, to fit a solution

(Create a solution, find a need)(Create a solution, find a need)



PURPOSE OF A BUSINESS PLANPURPOSE OF A BUSINESS PLAN

Blueprint for your businessBlueprint for your business

Generate interest from prospective Generate interest from prospective investorsinvestors

Leads to a face-to-face meeting with Leads to a face-to-face meeting with prospective investorsprospective investors



QUALITIES OF A GOOD QUALITIES OF A GOOD BUSINESS PLANBUSINESS PLAN

Reflects major selling points of the Reflects major selling points of the businessbusiness

Concise, persuasive, realisticConcise, persuasive, realistic

FluidFluid

Can be summarized in two sentencesCan be summarized in two sentences



CREATING A BUSINESS PLANCREATING A BUSINESS PLANTHE FOUR BIG BLOCKSTHE FOUR BIG BLOCKS

The Need or Want (market opportunity)The Need or Want (market opportunity)

The Solution (your product/service)The Solution (your product/service)

Management TeamManagement Team

Financial PlanFinancial Plan



THE NEED or WANTTHE NEED or WANTWhat is it?What is it?

What problem is your company trying to What problem is your company trying to overcome?overcome?

How significant is the problem? (need, not How significant is the problem? (need, not size)size)

What is the evidence?What is the evidence?

Do others recognize the need?Do others recognize the need?



THE NEED or WANT THE NEED or WANT Who has it?Who has it?

Who are the customers? Who is feeling Who are the customers? Who is feeling the pain?the pain?

How do they deal with the problem now?How do they deal with the problem now?

How do they make decisions about the How do they make decisions about the problem?problem?



THE SOLUTIONTHE SOLUTION

Why does your product solve the Why does your product solve the problem?problem?

To what extent does it solve the problem?To what extent does it solve the problem?

How unique is your solution?How unique is your solution?

How does your solution differ from How does your solution differ from competitors?competitors?

Is that important?Is that important?

Is that sustainable?Is that sustainable?



THE SOLUTIONTHE SOLUTION(continued)(continued)

Why haven’t others done this?Why haven’t others done this?

What are the key milestones to your What are the key milestones to your success?success?

What are the major risks?What are the major risks?



MANAGEMENT TEAMMANAGEMENT TEAM

Qualifications (e.g., education, training, Qualifications (e.g., education, training, special abilities)special abilities)

ExperienceExperience

Scope of team (including consultants and Scope of team (including consultants and partners)partners)

““to be hired”to be hired”

Have documents and references availableHave documents and references available



FINANCIAL PLANFINANCIAL PLAN

Investors want funds spent on the Investors want funds spent on the business potential, not perksbusiness potential, not perks

The budget reflects potential NOT perks!The budget reflects potential NOT perks!

Must be realistic and achievableMust be realistic and achievable

Should show capital needs until business Should show capital needs until business is self-sustainable.is self-sustainable.

Should explain liquidity path for investors.Should explain liquidity path for investors.



CREATING A BUSINESS PLANCREATING A BUSINESS PLANThe MortarThe Mortar

Executive SummaryExecutive Summary

IndexIndex

Overview or History of CompanyOverview or History of Company

Market Analysis, Competition (SWOT)Market Analysis, Competition (SWOT)

TimelinesTimelines

Intellectual PropertyIntellectual Property

Capital SoughtCapital Sought

AppendicesAppendices

SWOT= strengths, weaknesses, opportunities, threatsSWOT= strengths, weaknesses, opportunities, threats



PRESENTATIONPRESENTATIONElectronic and/or hard copyElectronic and/or hard copy

A chance for investors to meet the team; to A chance for investors to meet the team; to sense your commitment, enthusiasm, sense your commitment, enthusiasm, integrity, thoughtfulness, inter-personal integrity, thoughtfulness, inter-personal skills, knowledgeskills, knowledge

A way to provide details or sensitive A way to provide details or sensitive informationinformation

An opportunity to answer questionsAn opportunity to answer questions

15-20 slides, 3-6 bullets/slide. Don’t read!15-20 slides, 3-6 bullets/slide. Don’t read!



LAUNCH PLANLAUNCH PLAN

Better to use personal contactsBetter to use personal contacts

Allow at least a week, then follow upAllow at least a week, then follow up

Try to get a face-to-face meetingTry to get a face-to-face meeting

Business planning

Business

Transcript of Business planning