Transcript 2 bus plan overview and first steps.ppt

ENTREPRENEURSHIP II
Babs Bailey Carryer
spring 2002
Business plan overview
First steps for the new venture
Who needs a business plan?
• Majority of Inc 500 companies had
business plans
• This is not your father’s family business
• Forces you to express the essence of the
value proposition, the deal, the
opportunity…
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Business plans
• Difference between business plan and
vosg:
– More detail
– Blueprint for action and implementation
– Vosg is go-nogo predecessor of business
plan
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What they should cover
• Creating or adding value to customer or
end user
• Solving significant market problem
• Robust market and money-making
characteristics
• Good fit with founders and
management team
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Challenges
• Obsolete as soon as they are written
• Selling documents
• Flexible and adaptable to changing
market conditions
• Balance need for positive spin with
legal considerations and regulations
• Numbers don’t matter, but economics
do
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Logisitics
• Hire an outside professional
– Dos and don’ts
• Segment the sections:
– Industry, competition, marketing strategy,
finances, management, deal
• Heart and soul of business and plan is:
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analysis of market opportunity
competitive analysis
strategies that result,
so start here
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Audience
• Funders: some rules with VCs
– Get to no quickly
– Be vague about what other vcs you are talking to
– Don’t ever meet with an associate or junior
member twice without a partner
– Never say no to an offer price
– Don’t stop sellling till the money is in the bank
– Never lie
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Business plan outline
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Executive summary
Description of business
Industry and market
Competition
Strategy
R&D, technical development
Management
Finances and the deal
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