Transcript Document

CRAFTING A SUCCESSFUL BUSINESS
PLAN
Ace Institute Of Management
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Business Plan Introduction
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Outline of Presentation
I. Business Plan
a. What is it?
b. Why write it?
II. The content
a. Linking it all together
d. The report format
III. Few Tips
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“Those who fail to plan, plan to
fail”
George Hewell
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What is a business Plan?
Business Plan is the outcome of the
process of planning your business
It is a structured document that
explains your business
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Why write a business plan?
Needed for financing
Strategic partnering
To attract customers/business suppliers
Most importantly, you want to know
more about your business
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Your Business Plan has to answer some
basic questions……..
Who are you?
What is your product?
Who are your customers?
Why will they buy your product or services?
How much will they pay?
What Resources (technology, people, money
etc) will you need?
Can you make the money (create value?)
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Who needs a business plan,
why?
If you are a brand new company- to have a
basis for starting and often to get funding
If you are an up and running company- to be
better prepared
If you are a large company- for everybody to
see the same view ahead
If you are a small company-to ensure that it
survives those crucial first two years
-Everyone in business needs a BP7/17/2015
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Ext. Env.
analysis
Competitor
Analysis
Linking all the elements
Mkt
Assessmen
t
VISION
Mission
Goal/Objective
Demand
forecasting
Corporate
Level
Strategy
Marketing
Strategy
Production/OP
Strategy
Marketing
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Plan
Production/OP
Plan
Organization
Strategy
Finance
Strategy
Organization
Plan
Finance
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Plan
Putting it all together- In a Report
Title Page
Table of Contents
Executive Summary
Company Overview
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The Vision
The mission
The goal and objectives
Value statement
Business Environment
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Putting it together: in a report contd.
Product or service
Market Research and Analysis
Company Strategy
Production and Operation Plan
Marketing Plan
Financial Plan
Organisation and Management Plan
Critical risks and contingencies
Schedules and Milestones
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Appendix
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Executive summary
An executive summary is
NOT an introduction
NOT a summary
NOT a random collection of the
highlights
An executive summary is a business
plan in miniature
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Executive Summary
Here you must capture the entire essence
of your business in maximum three
pages.
It is the most critical part of the plan and
the only part some audience may read.
It is better to write this part at the end.
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Title Page
Should include name of the company
and the words “Business Plan”
Should include your complete contact
information:
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Mailing Address, Office Address, Phone,
Fax, Email etc.
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Table of Content
This is more important than you might
think
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Make sure that topics are properly
arranged
Should give a bird’s-eye-view of the project
Each topic follows a logical sequence
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1. Company Overview
This is where you present the “Big Idea”
Vision, Mission, goal/objectives, values
Show people the ‘seductive’ view of your
dream.
Be Passionate, let them see your grand
design
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2. Assessment of Business Environment
“PESTLE” analysis
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Political
Economic
Social
Technological
Legal
Environment, health
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3. Defining the Product/ Service
This is where you show the important
attributes of the product or service you are
offering or are going to offer.
State how you are going to position this
product in the mind of the customer. [Value
for Money, Convenience, Performance etc.]
Briefly state why did you choose this offering
and why people should be interested in it.
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4. Market
State which market you are going
to address.
Give a brief description of the market
including composition, size, growth etc.
Prepare a brief customer profile; age, sex,
community, genre etc.
State why your product will succeed in this
market.
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5. Competition
Who are they?
What’s their strength or weakness vis-à-vis
you and your product?
Estimated market share.
State why should people choose your product
over theirs.
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6. Company Strategy
State clearly how are you going to
capture the market you have chosen
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Low cost
Differentiation
Focus (niche market)
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7. Production and Operation Plan
Product design/specifications
Production Processes
Resource requirements
Quality assurance
Sales forecasts
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8. Marketing Plan
Overall concept and orientation
Marketing strategy and resources
Marketing Mix decisions
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9. Finance Plan
Financial projections provide the reader an
idea of where you think your business is going.
More importantly they tell a lot about your
intrinsic good sense and understanding of
business, which is absolutely critical for the
success.
Important things to include
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Cash flow Projections
Profit & Loss [& Balance Sheet]
Key Ratios [ROI, Liquidity, ROA etc.]
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10. Organization and management
plan
Description of your organization and how you
expect it to develop over next few years.
What is the composition of your management
team.
What is your management style? Organization
structure? Etc.
What are the key skills needed and how do
you plan to get them?
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It is good idea to include biographies or resumes
of people who would form the management team.
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11. Critical Risks and Contingencies
What are the risks
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Internal
 E.g. Project delay
 Technical production related problem
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External (environment)
 Unforeseen “PESTLE” Problems
 Unforeseen industry trends
 Problem with suppliers and distributors
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Appendices
Photograph or a drawing of the product
Drawing of the intended location
Sales and profitability forecasts in chart
Market surveys and documentation of
size and nature of market (charts)
Sample advertisements, brochures,
telemarketing protocols
Sample press releases
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Contd. Appendices
Detail of footnoted financial statements,
including income statements, cash flow
statements, B/S, BEP calculations and table of
start up costs giving basis of your calculations
Fixed asset acquisition schedules
Company registration documents
Resumes of founders, Board members and
key individuals
Any additional information deemed
appropriate
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SOME TIPS
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Know when to STOP
Many of the very successful products &
services would never have come to
existence if the decision were made on
the basis on the existing market
scenario.
Sony’s Walkman
Coca Cola
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Business Plan is a selling document
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Don’t loose sight of the vision
The excitement must come through
It should project your image as a serious
promoter of the business
But, It must be defensible
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Decision ! Decision !! Decision !!!
Don’t go Paralysis over Analysis
If Xerox had taken a DECISION at the right
time, Xerox, and not Microsoft would have
been the king of software.
It was the first to develop:
GUI [Graphical User Interface]
Mouse
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Don’t make it a Justification
Statement
Don’t get swayed by the emotions:
Make is a sincere study
Give important to facts, figures and
market realities
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Keep it Short !
Nobody reads a long Business Plan
“If your business plan exceeds 30
typed pages, there’s good possibility
that you don’t know what you are
talking about.”
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Who writes the Business Plan?
YOU! – Who else?
The other people are not going to run the
business for your or share your failure,
then why let them write a Business Plan
for you?
Take guidance, suggestions from other
people, but write it yourself.
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Each Business Plan is Unique
“Each plan, like a snowflake, must be
different”- Joseph Mancuso
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And, there are no fixed formats………….
You can create your own format of writing a
business plan as long as it fulfils your
objective. Remember, that your plan must
answer following key questions.
Business: What are you talking about?
Management: Who are you?
Resources: What resources are required?
Projections: Can they be justified?
Exit: How will the investors recoup their
money
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Write your business Plan for
planning your business
Thank You!!
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