CRAIG ELIAS - Web viewTitan Contract Welding Ltd. Paws on the Run Pet Services Ltd. 2006. Relaxation...
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c/o Community Futures Lethbridge Region 2626 South Parkside Drive Lethbridge, AB T1K 0C4 p: 403 320 6044 • f: 403 327 8476 e: [email protected] w: www.chinookchallenge.com Pa rt ic ip 20 1 8
Transcript of CRAIG ELIAS - Web viewTitan Contract Welding Ltd. Paws on the Run Pet Services Ltd. 2006. Relaxation...
c/o Community Futures Lethbridge Region2626 South Parkside DriveLethbridge, AB T1K 0C4
p: 403 320 6044 • f: 403 327 8476e: [email protected]
w: www.chinookchallenge.com
Pa rti2018
The Regional Innovation Network of Southern Alberta (RINSA) is a collaborative partnership between, Lethbridge College, Economic Development Lethbridge, and the University of Lethbridge, with support from Community Futures Lethbridge Region, SouthGrow Regional Initiative and NRC-IRAP. With roughly 32 clients and growing, while the “region” was to encompass an area from south of Calgary to the Canada/USA border, and from roughly the Town of Taber to the Alberta/BC border. RINSA’s effect is felt far beyond these informal borders. As mentioned above, RINSA has reached out to a number of clients both in and outside of its “informal geographical area.” For example, RINSA has assisted companies in Calgary, Edmonton and one company that is relocating its business offices from Vancouver to Calgary.
The purpose of RINSA is to offer entrepreneurs and SMEs the following:
Innovation support, technology transfer and commercialization programs; Marketing, business development, training and export development services; Networking and match-making services; Business incubation opportunities; Access to funding at various stages (vouchers, angel investment, venture capital); and Access to funding through Community Futures’ lending services for start-up and/or expansion
www.chinookchallenge.com 2
MAJOR SPONSORS
Alberta SouthwestCrowsnest PassCentral Alberta
Lethbridge RegionTreaty 7
Wild RoseBig Country
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MAJOR SPONSORS
TABLE OF CONTENTSABOUT CEC.........................................................................................................................................................12About Community Futures....................................................................................................................................13GENERAL INFORMATION................................................................................................................................14CALENDAR OF EVENTS 2018..........................................................................................................................15ELIGIBILITY........................................................................................................................................................16TRAINING............................................................................................................................................................18
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COMPETITION....................................................................................................................................................191. Process.................................................................................................................................................192. Submission Requirements...................................................................................................................20
Business Plan WorkbookThe Process..............................................................................................................................................................1Value Proposition....................................................................................................................................................2
Value Proposition Explained...............................................................................................................................3Customer Profile / Initial Market Research.........................................................................................................3
Business Model Canvas...........................................................................................................................................4Business Model Canvas Explained......................................................................................................................5Nine Pillars Defined............................................................................................................................................5
Assumptions............................................................................................................................................................6“The Plan”...............................................................................................................................................................7Who?........................................................................................................................................................................8What?.......................................................................................................................................................................9Why?......................................................................................................................................................................10Where?...................................................................................................................................................................12When?....................................................................................................................................................................13How........................................................................................................................................................................14“The Plan: Validation”..........................................................................................................................................16Validation..............................................................................................................................................................17Market Research....................................................................................................................................................17
Primary Market Research..................................................................................................................................17Secondary Market Research..............................................................................................................................18
Customers..............................................................................................................................................................19Sources...............................................................................................................................................................19
Competition...........................................................................................................................................................20Sources...............................................................................................................................................................20
Cost........................................................................................................................................................................21Sales Forecasting...................................................................................................................................................22Executive Summary...............................................................................................................................................22
HOW TO ENTER
1 – Read this Participant Handbook
2 – Complete and submit the Participant Registration online at www.chinookchallenge.com(You must register to have access to the training sessions and to compete for the Grand Prize)
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3 – To compete and be eligible for the cash prize, complete and attach the Submission Checklist form along with your business plan online at www.chinookchallenge.com(Participant Registration, Submission Checklist and Business Plan must be received prior to 2:00 p.m., March 28, 2018 to be eligible for the competition)
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ABOUT CECWelcome to the 14th Annual Chinook Entrepreneur Challenge (CEC). Since the first CEC in 2005 we have awarded $315,000 in cash, plus thousands more in in-kind prizes to participants just like you. The CEC is more than a competition; it’s an opportunity to build on your dream. Through the program you will gain business skills, write your business plan, get feedback on your ideas from regional professionals, network with key people including other entrepreneurs like yourself and have a chance at winning cash and prizes!Many participants have gone through with their business plan and achieved great entrepreneurial success in their communities. In thirteen years, we have seen more than 1000 teams and individuals participate and 286 eligible business plans.We strive to make the program accessible and a valuable experience for all involved across southern Alberta. Many business experts join us to lend their knowledge for training sessions. Participants are able to access training in a variety of ways: in person at the University of Lethbridge, streaming online through Adobe Connect and through videos of the sessions posted online after.We receive great support from our sponsors. Their contribution is greatly appreciated and invaluable. Please support these donors as they’re supporting you as a local entrepreneur.
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About Community FuturesEntrepreneurs are the key to fueling economic growth. Small businesses help create economic diversity and play an important part in ensuring long-term sustainability for Alberta's rural communities. For over 25 years, Community Futures organizations have been helping businesses and communities with financing, business advisory and economic development services.Community Futures organizations are comprised of volunteers and staff who are actively engaged in helping develop and implement community-based economic development strategies with a focus on rural economic diversification. Implemented strategies result in growth within our rural communities; one idea at a time.OUR CORE SERVICESFinancing (Alternative Lender)ConsultingBusiness TrainingBusiness PlanningCommunity Economic Development
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Not sure what region you’re in?
REGION
Community Futures Alberta Southwest 659 Main St, Pincher Creek403-627-3020www.southwest.albertacf.com
Community Futures Crowsnest Pass 180 – 12501 20th Avenue, Blairmore403-562-8858www.communityfuturescnp.ca
Community Futures Central Alberta 5013 - 49 Ave, Red Deer403-342-2055www.central.albertacf.com
Community Futures Lethbridge Region 2626 South Parkside Drive, Lethbridge403-320-6044 – 1(855) 620-6044www.lethbridgeregion.albertacf.com
Community Futures Treaty 7 Suite 300, 6011-1A Street SE, Calgary403-251-9242www.t7edc.com
Community Futures Wild Rose 331 3rd Avenue, Strathmore403-934-6488www.cfwildrose.ca
Community Futures Big Country 181 Railway Ave E, Drumheller403-823-7703www.bigcountry.albertacf.com
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Alberta SouthwestCrowsnest PassCentral Alberta
Lethbridge RegionTreaty 7
Wild RoseBig Country
GENERAL INFORMATION1. W hat is the Chinook Entrepreneur Challenge?
The Chinook Entrepreneur Challenge is a business plan writing competition designed and targeted toward new or existing business (individuals or teams) who have a sustainable and high-growth business idea. Please see the submission requirements (page 21) and the Competition section for further information. Cash and in-kind prizes are awarded to the top 3 participants in our general and technology streams by an independent panel of Judges (see Competition, page 19). The Judges’ decision is final and non-negotiable. Other prizes may become available (i.e. runner-up prize(s)).Free business training is offered to all participants in January and February, see training schedule and locations on page 18.The Challenge is held in southern Alberta (see Challenge Region, page 13) and facilitated by a group of volunteers representing various organizations throughout southern Alberta.
2. Participant Handbook This Handbook is to be used as an agreement for all CEC participants. The Handbook contains key information regarding the rules and regulations, as well as recommendations, guidelines and important timelines. By signing the Participant Agreement form you acknowledge you have read and agree to the terms and conditions specified herein.
3. Participants Individuals and teams (“Participants”) are eligible; teams must designate a Team Leader who can register four (4) total team members to participate in the training sessions. The Team Leader will be the primary contact person.
4. Guest Speakers Speakers involved in the program, drawing on their own business expertise, help participants develop their business plans by providing advice and consultation. The speakers represent a broad range of industries, therefore can provide a variety of expertise and experience relating to their specific background. Each speaker completes and signs a non-disclosure agreement to protect information shared during training sessions.
5. Minimum Number of Entries There must be a minimum of fifteen (15) eligible business plans entered in the regular stream and three (3) in the technology stream on or before the deadline of 2:00 p.m. Wednesday, March 28, 2018 for the competition to proceed to the screening and judging stages. If the required number of business plans is not received the organizing committee has the right to terminate the Competition with no prizes awarded.
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CALENDAR OF EVENTS 2018
Registration Starts December 2017 Training Sessions January – February 2018
All sessions are Wednesdays from 6:30 to 9:00 p.m.
January 10 Plan, CEC Introduction + Craig EliasJanuary 17 Value Proposition Design - Market ResearchJanuary 24 Business Model Canvas - Entrepreneur PanelJanuary 31 ATB / Validation & Inputting Results + Social MediaFebruary 7 Cash Flow + Funding + FinancialsFebruary 14 Legal / InsuranceFebruary 21 Operations + Location AnalysisFebruary 28 MNP Panel + Executive Summary / Pitches
Business Plan Final Submissions Are Due March 28, 2018
Submissions must be received no later than 2:00 p.m. Participants may submit their plans at www.chinookchallenge.com
Business Plan Screening April 2018Finalists Announced April 20, 2018Finals and Awards Ceremony May 2, 2018
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ALL SESSIONS START AT
6:30
ELIGIBILITY 1. Eligible to participate
a) Individuals or teams, new or existing business owners, researchers, or anyone with a sustainable business plan or concept.
b) Sustainability of the business plan or concept will be determined in the sole discretion of the Organizing Committee, with input where appropriate from the Judges.
c) Teams must be living or working in the Challenge Region (see page 13).d) Teams must have one member designated as the Team Leader. Team Leader will be the
primary contact person for the team, and is responsible for all communications to and from the Chinook Entrepreneur Challenge on behalf of his or her team.
e) If the business plan is being submitted on behalf of an existing business, the prospective entrants confirms its submission outlines expansion plans; the business has fewer than 20 full or part time employees, and that its annual revenues are less than $500,000.
f) The proposed business must be located in the Challenge Region (see page 13).g) All business plans must be submitted no later than 2:00 p.m. on Wednesday, March 28,
2018 to be eligible.2. Ineligible to participate
A participant is ineligible to participate in the Challenge if he or she:a) does not meet all the eligibility requirements.b) is a member of the Chinook Entrepreneur Challenge Organizing Committee, Screener or
Judge, Community Futures staff member, past or present, (or staff equivalent), or any of the immediate family of the above.
c) solicits a Judge directlyd) operates a business that has been a Finalist in the Chinook Entrepreneur Challenge
previouslye) exhibits conduct which is unlawful, would reflect poorly on the reputation of the Challenge,
harms or offends any of the sponsors in any way, or for any other reason at the discretion of the Organizing Committee;
f) submits a plan that:i) does not meet the submission requirements as published in this handbook (see page
20).ii) exceeds the maximum length for any section outlined in this handbook.iii) uses a font, heading, line length, or margins in such a way that the amount of text on
any given page exceeds the limit available using the required page setup and font specifications.
iv) has not submitted a Participant Agreement/Non-Disclosure Agreement or Submission Checklist.
v) does not agree to the terms and conditions outlined in this handbook
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Prizes
Winners must use all proceeds to fund the execution of the proposed business plan in the Challenge Region by December 31, 2018. Finalists must disclose how they would utilize the prize money. The use of funds must be verified in writing by the participant and may be subject to an audit at the discretion of the Organizing Committee. Copies of receipts to verify must be submitted to the Project Coordinator by December 31, 2018.
3. General a) All claims regarding eligibility will be considered until March 28, 2018.b) Decisions made by the Judges are only subject to ratification by the Organizing
Committee. Decisions made by the Judges on May 2, 2018 are final. In the event a winner does not meet the requirements for the use of funds or is disqualified for any reason, the cash will be reallocated to the future operations of the Challenge and any other prizes will be dealt with at the discretion of the Organizing Committee.
c) Organizing Committee has the right to refuse entry to any individual or team.d) All decisions made by the Organizing Committee are final.e) Organizing Committee has the right to amend this document and the conduct of the
Challenge at its discretion even if the Challenge has commenced.f) The Organizing Committee and the Judges have the authority not to award a prize or
prizes if, in their sole unfettered discretion, they feel that the nature of the submissions tendered were not of the type or quality contemplated in the Challenge.
4. Disclaimer h) By registering for the Chinook Entrepreneur Challenge, you will be participating in an
event where video, photography and audio recording may occur. When you participate in the Chinook Entrepreneur Challenge, you consent to video recording, audio recording, photography, and interview(s) and their publication, release and reproduction for social media, news, promotions, telecasts, advertising, inclusion on web sites or any purpose(s) that Community Futures Lethbridge Region deems fit to use. You release Community Futures Lethbridge Region, its Board, officers, employees, sponsors, partners and each and all persons involved from any liability connected with recording, talking, digitising, publication of interviews, photographs, computer images, and video and/or audio recordings.By participating in the event, you waive all rights you may have to any claims for payment or royalties in connection with any exhibition, webcasting, streaming, televising, or other publication of these material, regardless of the purpose or sponsoring of such exhibiting, broadcasting, webcasting or any other publication irrespective of whether a fee for admission or sponsorship is charged. You waive any right to inspect or approve any photo, video, or audio recording taken by Community Futures Lethbridge Region and its partners and sponsors.You have been fully informed of your consent, waiver of liability, and release before participating in the Chinook Entrepreneur Challenge event.
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For every session you attend, earn a ½ point toward your competition submission to a
maximum of four (4) points.
Don’t forget to sign-in!
TRAININGTraining is FREE to registered participants. To register, complete and submit the Participant Registration form found at www.chinookchallenge.com
1. Training Schedule
All sessions are Wednesdays from 6:30 - 9:00pm.
(Course outline subject to change without notice, visit www.chinookchallenge.com for updated information)
January 10 Plan, CEC Introduction + Craig EliasJanuary 17 Value Proposition Design - Market ResearchJanuary 24 Business Model Canvas - Entrepreneur PanelJanuary 31 ATB / Validation & Inputting Results + Social MediaFebruary 7 Cash Flow + Funding + FinancialsFebruary 14 Legal / InsuranceFebruary 21 Operations + Location AnalysisFebruary 28 MNP Panel + Executive Summary / Pitches
2. Locations
Live at University of Lethbridge, Physical Education Building, Room PE275 (free parking in Lot E after 5:00 PM)
o site map - http://www.uleth.ca/campus-map/#44 Online – sessions will be available through streaming online video (Adobe Connect) Red Deer Community Futures Office
3. **BONUS**
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COMPETITION1. Process
a) Round 1 – Screening i) Tech submissions will be vetted through local Technology Development Advisors to
verify eligibility in this stream. If determined not to meet Tech criteria, the businesses will be notified and the business plan will automatically fall into the General Category.
ii) Pre-Screen - Organizers review for basic content, believability, professionalism, plan length, correct number of plans, signed Participant Agreements, and other key deliverables as outlined (see Submission Requirement, page 20 or Submission Checklist form, page 24).**Plans not containing ALL of the required elements are eliminated.
iii) Screening – Each plan is distributed to three Screeners who review the plans according to the Evaluation Criteria (see page 16 - 18). Note the key section of the evaluation is the overall plan and opportunity, where Screeners make their overall assessment.Competitors can request their score sheets after Finalists have been notified.Competition submissions are kept confidential.
Note: the Organizing Committee retains the right to intervene if a recommended submission concerns a product or service that is unlawful, would reflect poorly on the reputation of the Challenge, or is considered potentially harmful and offensive to any of the sponsors or any other reason at the discretion of the Organizing Committee. Decisions of the Organizing Committee are final.
The top three plans from each stream are then submitted to Round 2b) Round 2 – Judging
i) The Judges are provided with hard and/or electronic copies of the three Finalists’ business plans along with the Screeners’ score sheets.
ii) Three Finalists will make 15-minute closed, oral presentations, followed by 15 minutes of discussion (Q&A) with the Judges.Finalists will be disqualified for being late or missing the presentation appointment.Finalists can bring product samples, electronic presentations, props, etc, however finalists are required to notify the Organizing Committee of anything they plan to provide to the judges prior to the presentations.
iii) The Judges use the Evaluation Criteria to rank their top plan. Notwithstanding the evaluation criteria, the decision of the Judges will be in their sole discretion.
iv) On May 2, 2018, the three finalists from each stream will make a summary presentation provide them an opportunity to promote their business. The winners will then be announced that day.
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2. Submission Requirements SUBMISSION DEADLINE: 2:00 PM March 28, 2018
It is recommended to get in touch with the Chinook Entrepreneur Challenge project coordinator prior to deadline to ensure receipt of all elements.a) Participant Agreement and Plan Submission Checklist submitted online.b) Information Page:
i) business nameii) full name of team membersiii) addressiv) phonev) emailvi) list of employeesvii)submission date
c) Table of Contents - Contains page numbers for each sectiond) Business Plan: 1(one) electronic copy submitted through the website by 2:00 PM March 28,
2018. (CEC is not responsible if Competitor becomes ineligible because computer files are corrupt or otherwise incompatible. Submit early so project coordinator can confirm submission reception) The business plan must contain the following headings:i) Executive Summary ii) Customeriii) Team iv) Product / Servicev) Value Proposition vi) Purpose of the Planvii)Competitionviii) Channelsix) Goals / Implementation Planx) Operationsxi) Communication / Marketing Plan
xii)Cashflow
Formatting:
- 11-point, Arial font; bold, underline or italic formatting acceptable- Letter-sized paper (8.5” x 11”) with 1” margins- 20 pages (excluding Cover, Information Page, Table of Contents and Reference
Page)- All pages must have the business concept/business name in either a header or
footer- Page numbers (first page after the Table of Contents is page 1)- Submitted either in a PDF or Microsoft Word format
e) Pictures, graphics, charts are allowed within the business plan (however, may not exceed requirements as per above).
f) Plans that do not have a professional appearance will be rejected.
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BUSINESS PLAN WORKBOOK
Business Name
Contact:
Address:
Phone:
Email:
Team members:
Employees:
Submission Date:
Chinook Entrepreneur Challenge Legacy
Community Futures Lethbridge Region
2626 South Parkside Drive Lethbridge, AB T1K 0C4
P:587.800.8417 f:403.327.8476 e:[email protected]
w:www.chinookchallenge.com
Year
Winner Runner up
2017 Roo’s Hundred Acre Wood Child Care Centre Inc.(General)
Onsite Auto Telematics (Tech)
Direct Dental Hygiene (General)Techbridge Makerspace (General)
BZ-BE.com (Tech)
2016 Halo Headwear (General Stream)WebMonkeys (Tech Stream)
Cisco Plumbing (General)Flannery Safety Consulting (General)
RNAiCARE (Tech)Agrilinks (Tech)
2015 Smudge Art Studios (General Stream)Nomadogen Biotechnologies
Inc.*(Tech and Student Streams)
R&R Reflexology (General Stream)Above The Beyond Inspired Corporate
Events (General Stream)ecoLogics* (Tech Stream)
Jigsaw Collaborative Learning Solutions* (Tech Stream)
Diapers to Doilies (Student Stream)Meddici Incorporated (Student Stream)
2014 ProDynamicEriter Creations*
Integrated Fitness Solutions JB Lines
Lifetimes Preserved2013 Ladybug Arborists
Synbiologica*Lifesavers Designated Driving
Kindred CompanionsPlentlyFULL Services*
Mathfilefoldergames.com*2012 Deerview Meats Lethbridge Tactical
Strait Way Ltd.2011 Pink Tie Events Earthstone Concrete Countertops and
CreationsPlatinum Garages
2010 InspectaCAR Inc. CPR Engineer’s HouseSugar Dreams
2009 Bridge Land & Energy Services Ltd Family Tree Child Care
2008 Inspire Studio and Gallery Clay for Kids Lethbridge
2007 Titan Contract Welding Ltd. Paws on the Run Pet Services Ltd.
2006 Relaxation RoomBioDiesel ReFuel**
2005 Southern Alberta Application Service Providers
Spragg’s Meat Shop**
*Denotes Technology Stream**Denotes Agri-Value Stream
This business plan contains information that is not to be shared, copied, disclosed or otherwise compromised without the consent of the business owner(s).
The Business Planning Guide
ContentsThe Process____________________________________________________________________1Value Proposition_______________________________________________________________2Business Model Canvas__________________________________________________________4Assumptions___________________________________________________________________6“The Plan”____________________________________________________________________7Who?_________________________________________________________________________8What?________________________________________________________________________9Why?________________________________________________________________________10Where?______________________________________________________________________12When?_______________________________________________________________________13How_________________________________________________________________________14“The Plan: Validation”__________________________________________________________16Validation____________________________________________________________________17Market Research_______________________________________________________________17Customers____________________________________________________________________19Competition__________________________________________________________________20Cost_________________________________________________________________________21Sales Forecasting______________________________________________________________22Executive Summary____________________________________________________________22
The ProcessStepping into a business plan template and just writing is one of the most difficult ways to finish a plan. Before you start, there are tools available to help you validate your idea, test your model, and determine whether the business is worth pursuing. This approach will take you through the planning process, through to the validation of your idea. By the end, you will have the ingredients to build a strong business plan supplemented by research and ready to move forward.
Value Proposition
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Value Proposition Explained
The Value Proposition is the “heart” of the business. The goal of the Value Proposition is to determine whether or not there’s a market fit for your product. This first step is about conceptualizing your client and lining up how your product or service fits into their lives. The V.P. and the Business Model Canvas are meant to be done quickly, with input from multiple parties. One of the most difficult thing to do for an entrepreneur is to share and talk openly about their idea, but this is what leads to great innovation and a market fit. The following are some tools that can help you build your value proposition.
1. Strategyzer – Free accounts and there are lots of tools and videos to help understand this process.
2. Video: Value Proposition Canvas Explained 3. Video: Milkshake Example 4. Seven Second Sale is a good way to conceptualize what your Value Proposition is. It’s
about vocalizing what you are offering your client beyond the product or service. The goal is to have a short, concise statement that provokes a response of “How?”
5. Examples: Amazon,
Customer Profile / Initial Market Research
Your value proposition will now help you to build a customer profile. Think of this as your ideal client. Who are they? What are their interests? How much money do they have? This is the person your value proposition was designed to help. This information will form the basis for your Business Model Canvas. The goal of this research is to determine whether or not you’ve assessed your target market correctly. For customer interviews, the sample can be small, 10-15 people. The questions should be designed to not mention your product or service. What you’re looking for here is assessing their needs. The pains they feel, the ways in which they make those purchases now and what problem are they trying to solve. You want to become intimately familiar with your demographic, and understand how they make purchasing decisions. It is important to document these interactions and ask if you can follow up if you find a solution to their pains. To get started check below for more information on how to interview, and do market research in general.
1. Five Simple Steps to Creating an Ideal Customer Profile 2. Prizm5 - Analytics tool with postal code lookup 3. Video Example: Jersey Square
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Business Model Canvas Explained
The Business Model Canvas is the next step in the process. This is the “bones” or the framework of the plan. Once you have mastered your value proposition the Business Model Canvas is used to further map out the business that will deliver the product or service. This is another tool that is meant to be done quickly and to inspire innovation. One of the biggest mistakes you can make at this step is to create a business model for your business because it’s the way it’s always been done before. While the structure of your business may end up being traditional, this is meant to explore business model alternatives that may better reach your ideal client. This tool utilizes a large printed version of the nine pillars, and sticky notes that can be moved easily around the canvas. Keep in mind that you may have multiple value propositions for multiple types of clients. Different coloured notes or ink can reflect this. These resources will help you understand how to work with the canvas.
1. Video: The Business Model Canvas Explained 2. Video: Shorter explanation of the Business Model Canvas 3. Skype Business Model Canvas Example
Nine Pillars Defined
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AssumptionsEven if you haven’t realized it, you’ve made a lot of assumptions with your business idea. It’s important to keep track of those so that they can be validated with customers later to strengthen the plan. Ideally, you will have already done some validation already by talking to your target market and seeing if your business has a fit. Remember, anything that you don’t have market research to back up is an assumption. Listing your assumptions below can help you once you’ve completed the plan and entered the next step.
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“The Plan”
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Who?
Customer
Who is your ideal client? The target market that you’re looking for is the perfect person or business for your product/service. What are their likes and dislikes? How do they make their purchases? What’s their age, occupation or income range? How do they spend their time? How do they make their buying decisions? When do they buy? What do they buy? These are things you need to understand about your customer to ensure a market fit. ______________________________________________________________________________
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Team
This is where you introduce your team, and explain how you can successfully commercialize your business. This should include a copy of your resume and couple of paragraphs describing your skills and passion for the business. ______________________________________________________________________________
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What?
Product / Service
You’ve talked about your ideal client, so let’s discuss what you’re offering. Give a brief description or list of the products and/or services that you offer and their price. No more than a page here at first, just simple descriptions that you can expand on later. Remember this should align with your value proposition customer profile pains and gains.
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Why?
Value Proposition
This is where you describe your value proposition. This is the heart of your business plan and you need to immediately address what your business accomplishes. This should clearly articulate your “market fit” between customer profile and value proposition.
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Purpose of the Plan
Explain your reason for writing the plan. Is it simply in preparation to open? Are you pursuing grant funding? Are you looking for a loan? Is this a guiding document? The person reading the plan needs to understand your motivation in writing it.
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Competition
By this point in the plan you should have an intimate understanding of what drives your customer’s purchasing decision. The next step is to build a perceptual map. This is a way for you to show your understanding of the market and where your business fits, and is a good way to assess the competition as well.
These resources will help you articulate your map.
Sources
1. Video: Perceptual Mapping & Product Positioning Explained 2. Video: How to Make a Perceptual Map Using Excel 3. Step-by-step Guide to Constructing a Perceptual Map 4. Understand Your Competitors
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Where?
Channels
Describe how you will be getting the product to the customer. Will you have a store or a website? Will you have an app? How can your customer purchase from you? If you are not making your own product or service, how is it coming to you?
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When?Goals / Implementation Plan
In this section of the plan you set your goals and timeline. Detail when you want to have research completed, information obtained, or even when you want to open. This is your road map to success.
Action Type Details
How Often(ongoing? One time?)
Metric / Tracking Means/How?
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HowOperations
This is the segment that details the finer details of the business. Hours of operation. Number of employees. How the actual business will be run on a day to day basis. _______________________________________________________________________________________
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Communication / Marketing Plan
This is how you get the message to your consumer. How do they like to be communicated to? This includes your start up and ongoing marketing plan. _______________________________________________________________________________________
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Validation
Now that you have your plan outlined, the next step is validating your assumptions with facts. For the purpose of the Plan, validation is three parts.
1. Customers
2. Competition
3. Cost
Each of these areas will be explained in more detail, with resources that can Validate your assumptions. Once validation is complete, that information is added to the plan, your resources at the end, followed by your cash flow.
Market Research There are two different kinds of market research. Primary and secondary. A business plan is not complete without primary market research. You need to validate by talking to your clients, addressing your competition and knowing the costs that you will incur in your business. You will be provided with resources for both, and your business plan should include both. They have their place and can enhance the plan in different ways. It is important not to rely only on secondary market research, but only in a supporting capacity. Primary research validates assumptions, secondary research backs up primary.
Primary Market Research
Some common types of primary market research include: 1. Surveys2. Focus Groups3. Discussions with Clients4. Observation
It is important to document this primary market research so that you can use it in a constructive and focussed way as you complete your business plan. There are several forms that this market research can take place, but remember nothing replaces the quality of information talking directly to your clients. Many entrepreneurs struggle with talking about their business idea until they feel it’s developed enough, but there are ways to talk about your idea without divulging the “secret sauce” during market research. It’s possible and often ideal if you do your first round of market research without talking about your product or service at all. The purpose of this interview technique is to assess the needs, pains and gains of the potential customer and make sure that your assumptions about them are correct.
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Here are some things to remember when you’re making questions to ask for market research:
1. Keep questions short and simple 2. Keep questions limited in number (probably no more than 10) 3. Make sure that you have them in a logical order4. Don’t use leading questions5. Use open ended and close ended questions appropriately 6. Have a reason for asking the question
If you can, ask to keep these people’s information and ask to follow up if you create a solution for the pain that you’ve found. If you find yourself hesitant to talk to the potential customers, here tips and tricks that may be able to help you:
1. Overcoming Interview Anxiety 2. Video: How to Interview Your Customers 3. Survey Monkey
Secondary Market Research
Secondary market research is used when you need to strengthen your primary market research. For example, in your primary market research you determined that there is a need in your demographic. The secondary market research could then help determine what the size of that market is. There is a place in each business plan for secondary market research. There are a lot of places that you can pull secondary market research from, some of which include:
1. Economic Developement Lethbridge 2. Business Link 3. Google Scholar 4. Government Databases5. Similar Businesses / Mentor6. Strategyzer
It is important when you’re collecting secondary market research that you evaluate it’s relevance. Avoid outdated information. Usually five years is a good cut off, but depending on your industry that timeline might be shorter.
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CustomersBy this point you should have already spoken to your potential customer. The first round of primary market research is a tool used after the Value Proposition Design and Business Model Canvas in order to verify the pains and purchasing habits of your clients. This is key information in forming the rest of the plan. The second round of market research is more solution focussed where you validate your market and discuss the product or service you’re offering. The market research here should focus on a few key things including;
1. Desire for product / service (follow up from first round of research) (primary market research)2. Verifying the pains you identified in your value proposition canvas3. Determine Market Size (secondary market research)4. Determine customer purchasing behaviour. How they make their purchase. (mix of primary and
secondary)
These are critical components to building a successful business. There may be some overlap from your first round, but this will help to further refine your plan. The market size, both potential and realistic, will be used to determine your sales forecast. The purchasing behaviour will help you to determine your own marketing and communication plans.
The following resources that further explain your market projections.
Sources
1. 5 Strategies to determine market size 2. How Big is Your Potential Market, Really? 3. Steve Blank Market Sizing PDF
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CompetitionThis is a section of the business plan that is often neglected. It is important to understand who your competition is and how they impact your business. Every service or product has a competitor. This validation will need to be done with a mix of primary and secondary research. Put yourself in the shoes of your customer and picture yourself through that sales process. Visit competitors’ sites and stores. Make sure you have an understanding of what they offer and how they position in the market. You need to understand what differentiates you from them and how your value proposition will take market share. When you are speaking with your customers during the second round of validation, you need to ensure your assumptions for your perceptual map were accurate. That is, the two variables that you chose to plot the businesses by. If you picked price as one for example, but your target market rarely makes decisions based on price, then it should not factor in to your map. Instead, discover what they DO make their purchasing decisions based on. Once you have performed your validation, add a write up below your positioning map, explaining the competitive environment and how your business fits in the market.
The resources below will help you.
Sources
1. How to conduct competitive research 2. Competitor Analysis Example With Worksheet 3. How to Write a Great Business Plan: Competitive Analysis
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CostOne of the most important aspects to a business plan is establishing your costs. Not only how much it will
cost you to get started, but also how much it will cost you to continue operating. This will take research on
your part, contacting suppliers or service providers to get that information. It is important to take all the
validation you’ve done so far and incorporate it in to this step. Where do your clients prefer to shop? Will
this effect you location, and your rent cost? Will you have a store at all? This is an area of the plan where you
cannot be too detailed. This information will be taken and put into your cash flow when it’s constructed.
An important factor that is often neglected here is marketing. It is important to verify your marketing costs.
Whether radio, paper, social media or some other form, there will be costs involved. Your marketing cost
should not sharply decline month over month because you have “created awareness”, it is a continual part of
the business cycle.
These tools will help you to assess and determine your costs.
1. Lean Plan: Starting Costs
2. Estimating Realistic Start Up Costs
3. Starting Costs Calculator
4. CRA Business Expenses
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Sales ForecastingThis is one of the final and most critical components of your business plan. It is a culmination of your research and validation so far. At this point you work to combine your understanding of your market size, your customer’s price tolerance and your own capacity to deliver. This will also take into account your communication and marketing plan as well. Before you begin forecasting you need to ensure you have the following;
Do you know your market size?Do you know your fixed expenses for the year?Do you know your margin? (This includes price)Do you know your capacity to deliver? Do you know your customer’s purchasing trends? (e.g. seasonality, time frame etc)
With these questions answered, the sales forecast will take the form of a twelve-month pro-forma cash flow. It will take into account the costs you have validated above, and the changing needs of your business for the next year. Below you will find resources and an excel file to help you.
1. Sales Forecasting 2. Bottom-Up Sales Forecasting for Pre-Revenue Start Ups 3. Cash Flow Excel Sheet
Executive Summary This is the last part of your business plan, and the first thing that people read. It is one of the most important factors. This is what draws the interest of the reader and hooks them for the rest of the story. This is the heart of the business plan, and needs to be compelling. Once this is completed, add it to the front of your plan.
The following resources will help you to develop your Executive Summary 1. How to Write an Executive Summary 2. How to Write an Executive Summary That Gets Your Business Plan Read 3. Business Plan: Composing Your Executive Summary
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