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    Business Plan

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    Tahreem Syed
    This document provides an overview of an effective business plan, including its importance, common pitfalls, key elements, and tips for writing and presenting it. It discusses that a business plan personifies a company, outlines its current status and projected results, and is essential for raising funds. A good plan avoids pitfalls like unrealistic goals and lack of commitment. It includes elements like executive summary, business description, marketing plan, operations, management, and financial forecasts. Regular updates may be needed to reflect changes. The presentation should focus on the solution and market, use visual aids, and motivate the audience.

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    Business Plan

    Uploaded by

    Tahreem Syed
    115 views20 pages
    This document provides an overview of an effective business plan, including its importance, common pitfalls, key elements, and tips for writing and presenting it. It discusses that a business plan personifies a company, outlines its current status and projected results, and is essential for raising funds. A good plan avoids pitfalls like unrealistic goals and lack of commitment. It includes elements like executive summary, business description, marketing plan, operations, management, and financial forecasts. Regular updates may be needed to reflect changes. The presentation should focus on the solution and market, use visual aids, and motivate the audience.

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    This document provides an overview of an effective business plan, including its importance, common pitfalls, key elements, and tips for writing and presenting it. It discusses that a business plan personifies a company, outlines its current status and projected results, and is essential for raising funds. A good plan avoids pitfalls like unrealistic goals and lack of commitment. It includes elements like executive summary, business description, marketing plan, operations, management, and financial forecasts. Regular updates may be needed to reflect changes. The presentation should focus on the solution and market, use visual aids, and motivate the audience.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    115 views20 pages

    Business Plan

    Uploaded by

    Tahreem Syed
    This document provides an overview of an effective business plan, including its importance, common pitfalls, key elements, and tips for writing and presenting it. It discusses that a business plan personifies a company, outlines its current status and projected results, and is essential for raising funds. A good plan avoids pitfalls like unrealistic goals and lack of commitment. It includes elements like executive summary, business description, marketing plan, operations, management, and financial forecasts. Regular updates may be needed to reflect changes. The presentation should focus on the solution and market, use visual aids, and motivate the audience.

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    Business Plan Preparation for New

    Ventures

    Lecture # 7

    Agenda

    Business plan and its value

    Planning pitfalls that plague many new ventures

    Benefits of a business plan

    Outline of an effective business plan

    Helpful hints for writing an effective business plan

    Points to remember in the presentation of a business


    plan

    It is well established that you cannot raise money


    without a business plan a business plan is a
    work of art in its own right. Its the document that
    personifies and expresses your company. Each
    plan, like every snowflake, must be different. Each
    is a separate piece of art. Each must be reflective of
    the individuality of the entrepreneur. Just as you
    wouldnt copy someone elses romancing
    techniques, so should you seek to distinguish your
    plan for its differences.
    Joseph R. Mancuso (How to Write a Winning Business Plan

    The Importance of Planning


    Planning is essential to the success of any

    undertaking. Critical factors that must be


    addressed when planning are:

    Realistic goals. These must be specific, measurable,


    and set within time parameters
    Commitment. The venture must be supported by all
    involvedfamily, partners, employees, team members
    Milestones. Subgoals must be set for continual and
    timely evaluation of progress
    Flexibility. Obstacles must be anticipated, and
    alternative strategies must be formulated

    Pitfalls to Avoid in Planning


    Pitfall 1: No Realistic Goals
    Pitfall 2: Failure to Anticipate Roadblocks
    Pitfall 3: No Commitment or Dedication
    Pitfall 4: Lack of Demonstrated Experience

    (Business or Technical)

    Pitfall 5: No Market Niche (Segment)

    What is a Business Plan?


    A written document that details the proposed

    venture:

    Describes the current status, expected needs, and


    projected results of the new business

    Covers the project, marketing, research and


    development, manufacturing, management, critical
    risks, financing, and milestones or a timetable

    Demonstrates a clear picture of what that venture is,


    where it is projected to go, and how the entrepreneur
    proposes it will get therea roadmap for a successful
    enterprise

    Benefits of a Business Plan


    For the Entrepreneur:

    The time, effort, research, and discipline required to


    create a formal business plan forces the entrepreneur
    to view operating strategies and expected results
    critically and objectively
    A business plan may help an entrepreneur avoid a
    project doomed to failure!

    For Outside Evaluators:

    The business plan provides a tool for use in


    communications with outside financial sources

    Benefits of the Business Plan (contd)


    Specifically for the Financial Sources:

    Details the market potential and plans for securing a


    share of that market

    Shows how the venture intends to provide an


    adequate return on equity

    Identifies critical risks and crucial events with a


    discussion of contingency plans

    Contains the necessary information for a thorough


    business and financial evaluation

    Developing a Well-Conceived Business Plan


    The Five-Minute Reading
    1. Determine the characteristics of the venture and its industry

    2. Determine the financial structure of the plan (amount of debt or


    equity investment required)
    3. Read the latest balance sheet (to determine liquidity, net worth,
    and debt/equity)

    4. Determine the quality of entrepreneurs in the venture (sometimes


    the most important step)
    5. Establish the unique feature in this venture (find out what is
    different)

    6. Read the entire plan over lightly (this is when the entire package
    is paged through for a casual look at graphs, charts, exhibits, and
    other plan components)

    Putting the Package Together


    Appearance
    Length Should be no more than 50 pages long
    The cover page Cover should include name of the company,
    its address & contact number, and the month & year in which the
    plan is issued

    The executive summary Max 2 pages immediately

    following the title page explaining the companys current status, its
    products or services, benefits to customers, ventures objectives for
    coming years, amount of financing needed, and how investors will
    benefit

    The table of contents

    Guidelines to Remember
    Keep the plan respectably short
    Organize and package the plan appropriately

    Orient the plan toward the future


    Avoid exaggeration
    Highlight critical risks
    Give evidence of an effective entrepreneurial team
    Do not over-diversify
    Identify the target market
    Keep the plan written in the third person
    Capture the readers interest

    Questions to Be Answered
    Is your plan organized so key facts leap out at the reader?
    Is your product/service and business mission clear and simple?

    Are you focused on the right things?


    Who is your customer?
    Why will customers buy? How much better is your product/service?
    Do you have a competitive advantage?
    Do you have a favorable cost structure?
    Can the management team build a business?
    How much money do you need?

    How does your investor get a cash return?

    Elements of a Business Plan


    Section I: Executive Summary
    Section II: Business Description
    A. General description of business
    B. Industry background
    C. Goals and potential of the business and milestones (if any)
    D. Uniqueness of product or service

    Section III: Marketing


    A. Research and analysis
    1. Target market (customers) identified (Convince that a market exists)

    2. Market size and trends


    3. Competition
    4. Estimated market share

    Elements of a Business Plan (contd)


    Section III: Marketing (contd)
    B. Marketing plan
    1. Market strategysales and distribution
    2. Pricing policy
    3. Advertising and promotions plans

    Section IV: Operations


    A. Identify location
    1. Advantages
    2. Taxes

    B. Proximity to suppliers
    C. Access to transportation

    Elements of a Business Plan (contd)


    Section V: Management
    A. Management teamkey personnel

    B. Legal structurestock and employment agreements, and


    ownership
    C. Board of directors, advisors, and consultants

    Section VI: Financial


    A. Financial forecast (pro forma financial statements)
    1. Profit and loss
    2. Cash flow
    3. Break-even analysis
    4. Cost controls
    5. Budgeting plans

    Elements of a Business Plan (contd)


    Section VII: Critical Risks
    A. Potential problems
    B. Obstacles and risks
    C. Alternative courses of action
    Section VIII: Harvest Strategy
    A. Transfer of asset
    B. Continuity of business strategy
    C. Identity of successor
    Section IX: Milestone Schedule
    A. Timing and objectives
    B. Deadlines and milestones
    C. Relationship of events
    Section X: Appendix or Bibliography

    Updating the Business Plan


    Financial
    Changes

    Additional
    Financing

    Launch of a New
    Product or
    Service

    Reasons to
    Update the
    Plan

    Reflect the New


    Reality

    Changes in
    the Market

    New
    Management
    Team

    Presentation of the Business Plan: The Pitch


    Know the outline thoroughly
    Use key words that help recall examples, visual aids, or

    other details
    Rehearse the presentation to get the feel of its length
    Be familiar with any equipment to be used in the
    presentationuse your own laptop
    The day before, practice the complete presentation using
    all visual aids and equipment

    Suggestions for Presentation


    Focus on the pain for which your venture will be

    the solution
    Demonstrate the reachable market
    Explain the business model
    Tout the management team
    Explain your metrics
    Motivate the audience
    Why you and why now?

    THANK YOU!

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