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© G. Guerra. “I2C”. “ENTREPRENEURSHIP & BUSINESS PLANNING”. Introduction to Business Assessment and Planning. -Cl1,l2-. Gianni Guerra Incubatore I3P Politecnico di Torino, Tel. 011-5647255; 3487900554 [email protected] Business Plan Developing Outline. (Developing=Writing).

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entrepreneurship business planning

© G. Guerra

“I2C”

“ENTREPRENEURSHIP & BUSINESS PLANNING”

Introduction to

Business Assessment and Planning

-Cl1,l2-

Gianni Guerra

Incubatore I3P

Politecnico di Torino,

Tel. 011-5647255; 3487900554

[email protected]

slide2

Business Plan Developing Outline

(Developing=Writing)

  • Whatis it, what does it do ?
  • Why is necessary (who benefit)?
  • Whohas to developed it ?
  • Whenit has to be developed ?
  • Whereithas to be developed ?
  • How (content and style) ?

(R. Kipling “six honest servants”)

slide3

Business

Plan

What is a Business Plan?

IT ISA WRITTEN DOCUMENT

WITH CONFIDENTIAL AND PROPRIETARY INFORMATIONS

WHICH MAP OUTBEFOREHAND

A COMPANYBASIC ELEMENTS

FROMBUSINESS IDEA

TOOPERATIONAL AND ORGATIONAL STRUCTURE

OF THEACTIVITY

TOECONOMIC/FINANCIAL OUTCOMES

OVER A SPECIFICPERIOD OF TIME

what does it do what the use of it why write it
Test business assumptions

Assure operational coordination

Communicate corporate strategy

Set management objectives

To communicate with board of directors, advisors, consultants

Recruit & motivate employees

Secure financing

What does it do? (what the use of it, why write it)
  • Identify weaknesses in a plan that requires further research and analysis…find out where your plan is weak
slide5

“3 WHY?’” of a Business Plan

I. TO ENABLE THE ENTREPRENEUR TO

TAKE THE RISKS RELATED TO

CARRYING OUT A BUSINESS IDEA

During the plan development, the entrepreneur is compelled to deeply examine every specific issue of the future company: it is probable that doing so, he will discover planty of bad elements and that he try to fix them. If some problems cannot be solved or reveal relevant implications, the fact that have been discovered allow comunque the entrepreneur to adopt the relevant initiatives (comprise not to go on) before take financial engagements.

slide6

“3 WHY?’” of a Business Plan

II. TO CONVINCE OTHER PEOPLE EXTERNAL

TO THE COMPANY TO TAKE PART

IN THE RISK INVOLVED IN THE THE IDEA

(BP AS A MEAN OF INVESTMENT EVALUATION)

  • Lifestyle companies
  • High growth companies
slide7

“3 WHY?’” of a Business Plan

III. TO PROVIDE THE ENTREPRENEUR WITH A

GUIDING TOOL FOR THE UNDERTAKED

MANAGEMENT PATH

(BP AS A “MANAGEMENT TOOL”)

MISSION

VISION

VALUES

PLANS

AIMS/PURPOSES/

STRAT. OBJECTIVES

PRESENT

POSITION

(GOALS)

(what else: nothing than to react)

TIME

slide8

“BUSINESS PLAN” NECESSARY BUT NON ENOUGH

1° Consideration:

THE WORLD BEST BUSINESS PLAN

WILL NEVER BE ABLE TO TURN A FLAWNED IDEA

IN A SUCCESS COMPANY

2° Consideration:

A GOOD BUSINESS PLAN DOESN’T MEAN

THE SUCCESS FORMULA BUT CAN BE DETERMINANT

IN REDUCING THE FAILURE PROBABILITIES

Idea

Plan

Execution

Results

slide9

Who has to prepared it ?

THE ENTREPRENEUR HIMSELF

It can be helpful, in the process of preparing it,

to have professional input and evaluations from

accountants, consultants, lawyers...

Pg.4 O’Donnell

slide10

Entrepreneurs are most often doers rather than proposal writers. They would rather be on the battelfield -the cutting edge of business- than behind the lines planning their assault. In addition, many entrepreneurs have difficulty articulating the business concepts that have often become second nature to them.

Whatever difficulty the preparation of a business plan may

present, a plan is an absolute necessity for any business.

slide11

CONTINOUS

IMPROVEMENT

GOALS/OBJ.

REDEFINITION

GOALS/

OBJECTIVES

CONTROLS&

RECOVERY A.

PLANS

EXECUTION

When?

PLANNING is the complete and continous

process directed to improve business operations

in the light of existing oportunities

slide12

When ?

PLANNING NEEDS TO BE DYNAMIC

(all the more reason for management control)

Rule n° 1: do it in a WORD PROCESSORand using

SPREADSHEETS.

slide13

Where ?

Planning a new business involve much of the work

“on the field”,

to speak with potential customers,

to gather informations on competitors,

to gather the most of possible data related

to investment and expenses that have to be supported.

The “writing work” means the least part

of this activity and mainly deal

with the figure translation of gathered informations

and the project economic/financial assessment.

all organizations need plans
All organizations needplans

Who need/benefit?

  • High/low/no-tech ventures
  • Profit/non profit organization
  • Start up
  • Expansion programs
  • …….
how content and style
Is an art, not a science

Every plan is unique

There is no “ideal” standard format

It is a practiced skill, it can be learned

There are some “best practices”

“Developing” is different than “writing”

It is a never ending process

Everyone is an expert; has an opinion

How? (content and style)
slide16

General guidelines

  • Lenght 20/30 pages +annexes
  • Period covered: 3/5 years
  • Data no more old than 3/5 years

(theren’t a “perfect” lenght.

test: it can and will be easely read in a session? )

business plan reference content
Business Plan Reference Content

PURPOSE

EXECUTIVE SUMMARY

(Synthesis)

1-VENTURE DESCRIPTION

10-ECONOMIC AND

FINANCIAL PLAN

2- ENTREPRENEURIAL/

MANAGERIAL TEAM

9-IMPLEMENTATION

PLAN

3-MARKET ANALYSIS

8-RISK/VULNERABILITY

MASTERING PLAN

4-INDUSTRY ANALYSIS

7-THE ORGANIZATIONAL/

LEGAL PLAN

5-MARKETING STRATEGY

6-OPERATION PLAN (VALUE CHAIN)

5-PRODUCTS PLAN

slide18

PURPOSE

EX. SUMMARY

VENTURE DESCRIPTION

ECONOMIC AND

FINANCIAL PLAN

ENTREPRENEURIAL/

MAN. TEAM

PURPOSE

INDUSTRY

ANALYSYS

IMPLETATION PLAN

MARKET

ANALYSYS

SUSTAINABLE

ADVANTAGE

MARKETING

STRATEGY

ORGANIZATIONAL

PLAN

VALUE CHAIN

(COMPANY STRUCTURE)

  • Nothing irritates more than a Business Plan from what it isn’t clearly understandable what is the proposal made to the receiver of it.
  • Therefore it is advisable to avoid gereric positions and to highlight it’s own proposal in a direct way.
  • WHAT IT IS OFFERED
  • WHAT IS REQUESTED

Potential purposes:

- Definition of Business objectives and Strategies to achieve them.

- Management control guideline definition

- Baseline definition for agreement with potential partners

- Loans/risk capital investments request/proposal support

- Business plans competitions

slide19

PURPOSE

EX. SUMMARY

VENTURE DESCRIPTION

ECONOMIC AND

FINANCIAL PLAN

ENTREPRENEURIAL/

MAN. TEAM

Executive Summary

INDUSTRY

ANALYSYS

IMPLETATION PLAN

MARKET

ANALYSYS

SUSTAINABLE

ADVANTAGE

MARKETING

STRATEGY

ORGANIZATIONAL

PLAN

VALUE CHAIN

(COMPANY STRUCTURE)

IT CHARACTERIZES AND HIGHLIGHTS

IN A CONCISE AND CONCRETE WAY

THE BUSINESS PLAN ESSENCE.

Indeed it is a syntetic version of the whole business plan

not a simple foreword not an introduction!!!

slide20

PURPOSE

EX. SUMMARY

VENTURE DESCRIPTION

Executive Summary

ECONOMIC AND

FINANCIAL PLAN

ENTREPRENEURIAL/

MAN. TEAM

INDUSTRY

ANALYSYS

IMPLETATION PLAN

MARKET

ANALYSYS

SUSTAINABLE

ADVANTAGE

MARKETING

STRATEGY

ORGANIZATIONAL

PLAN

VALUE CHAIN

(COMPANY STRUCTURE)

It must allow the readers to gather

a first general idea of the paper :

after the reading, the potential interested persons

must have in mind a sufficient precise picture of what

it will be presented in more details in the plan.

  • Fast proposal understanding,
  • Attention attraction capability,
  • Immediate interest stiring up capability
executive summary
Always gets read first

It’s the “acid test” of your writing skills

Often sent to investors by itself

If it doesn’t create enough reader interest, the full plan is never read

2 to 3 pages maximum

If can’t arouse interest in 2-3 pgs, how can you market & sell your product?

Most VC won’t open attachements

PURPOSE

EX. SUMMARY

Executive Summary

VENTURE DESCRIPTION

ECONOMIC AND

FINANCIAL PLAN

ENTREPRENEURIAL/

MAN. TEAM

INDUSTRY

ANALYSYS

IMPLETATION PLAN

MARKET

ANALYSYS

SUSTAINABLE

ADVANTAGE

MARKETING

STRATEGY

ORGANIZATIONAL

PLAN

VALUE CHAIN

(COMPANY STRUCTURE)

  • Garage Technology Ventures (www.garage.com) uses a one page summary approach.
  • Tech Coast Angels (www.techcoastangels.org) uses a one page format

(Bob Foster UCLA/ASM)

slide22

PURPOSE

EX. SUMMARY

VENTURE DESCRIPTION

Executive Summary

ECONOMIC AND

FINANCIAL PLAN

ENTREPRENEURIAL/

MAN. TEAM

INDUSTRY

ANALYSYS

IMPLETATION PLAN

MARKET

ANALYSYS

SUSTAINABLE

ADVANTAGE

MARKETING

STRATEGY

ORGANIZATIONAL

PLAN

VALUE CHAIN

(COMPANY STRUCTURE)

  • Although it come before, executive summary should be

prepared after having completed the preparation of BP

other parts.

(indeed, only after having meditate and defined the whole document

we are in a position to make an effective and concise syntesis)

  • Otherwise it could be a reiterative process:

-You first write a “best effort” version

-Then you’ll update it as you more fully develop

other parts of the plan

- Final version will look very different

1 venture company description
Also known as “Company/Venture Introduction”

Second most important part of the plan

Amplifies and expands on what’s in the Executive Summary, but not as detailed as rest of the plan

1-3 pages

These few pages together must present an exciting, compelling investment opportunity

PURPOSE

EX. SUMMARY

VENTURE DESCRIPTION

1-Venture/Company Description

ECONOMIC AND

FINANCIAL PLAN

ENTREPRENEURIAL/

MAN. TEAM

INDUSTRY

ANALYSYS

IMPLETATION PLAN

MARKET

ANALYSYS

SUSTAINABLE

ADVANTAGE

MARKETING

STRATEGY

ORGANIZATIONAL

PLAN

VALUE CHAIN

(COMPANY STRUCTURE)

  • Condense several pages of each plan section (marketing, operations, financials, etc.) into a single paragraph or two

(Bob Foster UCLA/ASM)

1 the value proposition

PURPOSE

EX. SUMMARY

VENTURE DESCRIPTION

1-The Value Proposition

ECONOMIC AND

FINANCIAL PLAN

ENTREPRENEURIAL

TEAM

INDUSTRY

ANALYSYS

IMPLETATION PLAN

MARKET

ANALYSYS

SUSTAINABLE

ADVANTAGE

MARKETING

STRATEGY

ORGANIZATIONAL

PLAN

VALUE CHAIN

(COMPANY STRUCTURE)

Most business plans are focused on the entrepreneur, their idea, and

why the idea is wonderful. They are me-focused or my-idea-focused

rather than customer focused. People do matter -true- but investors

don’t really care very much about you and your idea, at least not at

the beginning. What investors care about is solving significant

customers problems or needs that offer significant profit and growth

potential.

Technology

Product

Market

Needs

(pains/wants)

Benefits

Problems

Value

Proposition

Focus here

2 entrepreneurial managerial team

PURPOSE

EX. SUMMARY

VENTURE DESCRIPTION

2-Entrepreneurial Managerial Team

E.M. TEAM

ECONOMIC AND

FINANCIAL PLAN

INDUSTRY

ANALYSYS

IMPLETATION PLAN

MARKET

ANALYSYS

SUSTAINABLE

ADVANTAGE

MARKETING

STRATEGY

ORGANIZATIONAL

PLAN

VALUE CHAIN

(COMPANY STRUCTURE)

Shown that you (team) can deliver results.

Many investors pay more attentions to people than in ideas/plan

  • Mission, aspirations,

propensity for risk

  • Ability to execute

on CSFs

TEAM

DOMAIN

  • Connectedness
  • up, down, across value chain
3 4 market industry analysis

PURPOSE

EX. SUMMARY

VENTURE DESCRIPTION

3/4-MARKET&INDUSTRY ANALYSIS

E.M. TEAM

ECONOMIC AND

FINANCIAL PLAN

MARKET A.

IMPLETATION PLAN

INDUSTRY A.

SUSTAINABLE

ADVANTAGE

ORGANIZATIONAL

PLAN

MARKETING STRATEGY

VALUE CHAIN

(COMPANY STRUCTURE)

  • A MARKET consists of a group of current and/or

potential customers having the willingness and

ability to buy products –goods or services- to satisfy

a particular class of wants or needs.

Thus, markets consist of buyers -people or organizations

and their needs- not products

  • An INDUSTRY consist of sellers –typically organizations-

that offer product or classes of products that are similar

and close substitutes for one another.

the strategic business unit

PURPOSE

TECHNOLOGIES/

FUNCTIONALITIES

BUSINESS

(SBU)

PRODUCTS

CUSTOMERS

BENEFITS

MARKETS

Value

Proposition

PAINS/

NEEDS/

WANTS

PROBLEMS

EX. SUMMARY

VENTURE DESCRIPTION

THE STRATEGIC BUSINESS UNIT

E.M. TEAM

ECONOMIC AND

FINANCIAL PLAN

MARKET A.

IMPLETATION PLAN

INDUSTRY A.

SUSTAINABLE

ADVANTAGE

ORGANIZATIONAL

PLAN

MARKETING STRATEGY

VALUE CHAIN

(COMPANY STRUCTURE)

5 marketing strategy

PURPOSE

EX. SUMMARY

VENTURE DESCRIPTION

5-MARKETING STRATEGY

ECONOMIC AND

FINANCIAL PLAN

E.M. TEAM

INDUSTRY

ANALYSYS

IMPLETATION PLAN

MARKET

ANALYSYS

SUSTAINABLE

ADVANTAGE

ORGANIZATIONAL

PLAN

MARKETING

STRATEGY

VALUE CHAIN

(COMPANY STRUCTURE)

- I -

MARKET

- II -

COMPETITION

- III -

MARKET OBJECTIVES

AND STRATEGY

PRODUCT

PRICING

PROMOTION

PLACING

- IV -

MARKETING MIX

product section of plan must include
Clear description of the product

What it does and how it’s made

Is it patented or patent pending? Licensed?

What stage of development? Alpha? Beta?

Why will customers buy your product as opposed to others?

Future product plans? When

PURPOSE

EX. SUMMARY

VENTURE DESCRIPTION

Product section of plan must include:

ECONOMIC AND

FINANCIAL PLAN

E.M. TEAM

INDUSTRY

ANALYSYS

IMPLETATION PLAN

MARKET

ANALYSYS

SUSTAINABLE

ADVANTAGE

ORGANIZATIONAL

PLAN

MARKETING

STRATEGY

VALUE CHAIN

(COMPANY STRUCTURE)

slide30
Describe what you’re selling

If it’s new, have to give it a frame of reference….”name it and frame it”

Saleslogix example

Present advantages over current products

Explain why customers will buy it; what’s the value to them?

PURPOSE

EX. SUMMARY

VENTURE DESCRIPTION

ECONOMIC AND

FINANCIAL PLAN

E.M. TEAM

INDUSTRY

ANALYSYS

IMPLETATION PLAN

MARKET

ANALYSYS

SUSTAINABLE

ADVANTAGE

ORGANIZATIONAL

PLAN

MARKETING

STRATEGY

VALUE CHAIN

(COMPANY STRUCTURE)

slide31

INFRASTRUCTURAL ACTIVITIES

HUMAN RESOURCES MANAGEMENT

EC. MARGIN

INDIRECT

ACTIVITIES

TECHNOLOGY DEVELOPMENT

PROCUREMENT

EC. MARGIN

INCOMING

LOGISTICS

MARKETING &

SELING

SERVICES

OUTGOING

LOGISTICS

PRODUCTION

DIRECT

ACTIVITIES

PURPOSE

EX. SUMMARY

VENTURE DESCRIPTION

ECONOMIC AND

FINANCIAL PLAN

E.M. TEAM

6- Operation Plan (Value Chain)

INDUSTRY

ANALYSYS

IMPLETATION PLAN

MARKET

ANALYSYS

SUSTAINABLE

ADVANTAGE

ORGANIZATIONAL

PLAN

MARKETING STRATEGY

VALUE CHAIN

- M. Porter Model -

slide32

PURPOSE

EX. SUMMARY

VENTURE DESCRIPTION

ECONOMIC AND

FINANCIAL PLAN

E.M. TEAM

7- ORGANIZATION/LEGAL PLAN

INDUSTRY

ANALYSYS

IMPLETATION PLAN

MARKET

ANALYSYS

SUSTAINABLE

ADVANTAGE

ORGANIZATION

PLAN

MARKETING STRATEGY

VALUE PLAN

  • orizontal: activities/processes
  • vertical: organizational structure
slide33

PURPOSE

EX. SUMMARY

VENTURE DESCRIPTION

ECONOMIC AND

FINANCIAL PLAN

E.M. TEAM

8-RISK/VULNERAB. MASTERING PLAN

INDUSTRY

ANALYSYS

IMPLETATION PLAN

RISKS PLAN

MARKET

ANALYSYS

MARKETING

STRATEGY

ORGANIZATION

PLAN

VALUE PLAN

IMPACT

low

high

high

RFG

RFC

PROBABILITY

RFB

RFH

RFD

RFA

RFE

low

RFF

(risk matrix)

slide34

PURPOSE

EX. SUMMARY

VENTURE DESCRIPTION

6 BASIC METHODS FOR

RISK CONTROLLING AND REDUCING

ECONOMIC AND

FINANCIAL PLAN

E.M. TEAM

INDUSTRY

ANALYSYS

IMPLETATION PLAN

RISKS PLAN

MARKET

ANALYSYS

MARKETING

STRATEGY

ORGANIZATION

PLAN

VALUE PLAN

FINANCIAL

CONSEQUEN.

DAMAGE

EVENT

1 Elusion

2 Prevenction

4 Assurance

5 Transfer

6 Retention

3 Protection

slide35

PURPOSE

EX. SUMMARY

VENTURE DESCRIPTION

ECONOMIC AND

FINANCIAL PLAN

E.M. TEAM

9-IMPLEMENTATION PLAN

IMPLEMENTATION

PLAN

INDUSTRY

ANALYSYS

MARKET

ANALYSYS

RISKS PLAN

MARKETING

STRATEGY

ORGANIZATION

PLAN

VALUE PLAN

Milestones

- Funding agreements

- Prototype development

- First market test

- Production&selling start up

- Activity enlargement

- …………………..

slide36

PURPOSE

EX. SUMMARY

VENTURE DESCRIPTION

ECONOMIC AND

FINANCIAL PLAN

E.M. TEAM

9-IMPLEMENTATION PLAN

IMPLEMENTATION

PLAN

INDUSTRY

ANALYSYS

MARKET

ANALYSYS

RISKS PLAN

MARKETING

STRATEGY

ORGANIZATION

PLAN

VALUE PLAN

slide37

PURPOSE

EX. SUMMARY

ECO.FIN

PLAN

VENTURE DESCRIPTION

E.M. TEAM

10-FINANCIAL PLAN

IMPLEMENTATION

PLAN

INDUSTRY

ANALYSYS

MARKET

ANALYSYS

RISKS PLAN

MARKETING

STRATEGY

ORGANIZATION

PLAN

VALUE PLAN

WHILE THE OTHER SECTIONS OF BUSINESS PLAN GIVE THE VENTURE GLOBAL PICTURE, THE ECONOMIC/FINANCIAL SECTION ENABLE:

  • THE RISK CAPITAL INVESTOR TO UNDERSTAND
  • THE RETURN HE CAN OBTAIN.
  • THE DEBT INVESTOR TO EVALUATE THE COMPANY ABILITY TO PAY BACK THE LOANS.

In several ways the economic/financial section of the Business Plan is the least flexible. Even if the figures are different, the schemes or templates put in the plan are always the same and are given in a way that is to a great extent a standard.

slide38

10

Cash flow

Risk&Rewards

Probability

inflow

Time

Profitability

outflow

the business opportunity assessment what to do before you write a business plan

Business

opportunity

assessment

MARKET DOMAIN

INDUSTRY DOMAIN

Market

attractiveness

Industry

attractiveness

MACRO

LEVEL

Ability to execute on CSFs

Mission, aspirations, propensity

for risk

Business

Plan

TEAM

DOMAIN

Target segment

benefits

and attractiveness

Sustainable

advantage

Connectedness

up, down, across value chain

MICRO

LEVEL

THE BUSINESS OPPORTUNITY ASSESSMENT (what to do before you write a Business Plan)

John W. Mullins, “The New Business Road Test”, FT Prentice Hall

slide40
Quickly and effectively communicate your vision for a new venture

Excite and motivate people to action

Be selected & read first...before other plans that are poorly written

Increase your chances of funding

Not overcome a “non viable” business venture with a losing business model

STYLE

A well written plan:

slide41
Won’t get read…..period

Can ruin an otherwise good, solid business concept

Normally results in venture not being funded

Reflects negatively on:

the entrepreneurs

their advisors, directors

those who recommend the venture

STYLE

A poorly written plan :

slide42

Pyramid concept of Business Plan

Main text

Business plan

document

Appendixes

Business plans

Have 3 sections

3 ring

binder

  • Details plan for:
  • Market analysis
  • Sales plans
  • Financials
  • Mfg plans
  • Facilities plans
slide43

The business plan document

  • Typically called the “Business Plan”
  • Summary of the “Total Business Plan”
  • Apendix for the important backup detail

-financial spreadsheet

-management resumes

  • Don’t bore the reader with every details

of all your research results and analysis

- no amortization schedules, please

slide44

Detail plans (“The 3 ring notebook”)

  • Where you put the research results
  • Binder with sections for:

- markrt, markrt strategies, sales plan

- manufacturing, facilities

  • Examples sales plan:

- sales rep job description

- sales rep compensation plan

- lead generation plan

- sales cycle assumptions

- sales rep headcount plan

slide45

(3/10)

STYLE

(pyramid concept of Business Plan)

Company Name

One sentence Description

Elevator Statement

Executive Summary

Marketing &Sales

Financials

Rest of Business Plan

document

Appendices

slide46
One sentence description:

“Thomas Bros. Maps produces high quality street maps for metropolitan areas of the western U.S.”

Elevator statement:

“TBM produces high quality street maps for metropolitan areas of the western U.S. Unlike Rand McNally and other similar competitors, TBM’s maps are completely updated every year and have the highest positional map accuracy of +/- 10 feet.”

AKA business or positioning statement

STYLE

slide47
Detailed analysis & worksheets

Backup data to support plan sections

Example: Sales Section

Job description of sales

Sales rep compensation plan

Sales cycle assumptions

Sales rep headcount plan

APPENDIX

slide48

APPENDIX

  • The appendices may be bound as a separate volume.
  • They will include the following:
  • marketing support and collateral
  • CVs of key staff
  • IPR, patents, etc.
  • letters of support or contract intent
  • plans in full
  • financial projections
slide49

XXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXX

………………...

TEXT

SPREADSHEETS/

TEMPLATES

DIAGRAMS

STYLE

FLOW-DIAGRAMS

always
Date plans and Executive Summaries

Present on front page:

Name of Company and contact name

Address, telephone numbers

email and web site addresses

Label each page as “confidential information”

Always:

STYLE

common problems
Market research generalization

Too much general, high level overview

Not enough specific target segment data

Unclear product/service description

Minimal or non-existent compelling value proposition…what makes you different? Why are you going to succeed??????

Common Problems
slide52
Exclude data older than 5 years

Vary use of company name

Also use “we” and “the company”

All plans were wordy

All 12 plans were way too long

need to go on a diet…20-25% cut

average 18 pages

range 14 to 26 pages

With rest of plan added…will be too long

Don’t use “No-No” words or phrases

what get angry investors
What get angry Investors ?
  • Having to read a 50 pages paper in which is never clearly
  • said what is the new venture mission.
  • Not explicity rendering the capital amount required
  • The evident infatuation with the product or service that it is willing
  • to offer instead of familiarity and knowledge of market needs.
  • The stating of growing potential uot of reality.
  • The presence of unjustified economic/financisal forecast.

C. Parolini “Diventare imprenditori”

what impress investors favourably
What impress Investors favourably?
  • Evidence of offered product good acceptance by the customers
  • Understanding of investors needs and knowledge of specific
  • objectives in terms of financial return.
  • Evidence of new venture focousing on a narrow number
  • of products.
  • Having intellectual property rights
  • (patents, trate marks, industrial secrets,…)

C. Parolini “Diventare imprenditori”

slide55

To sum up……

O.K!

What a pity!

but whe can

remedy it

GOOD

BUSINESS

IDEA

That’s not bad!

Many words/data

few ideas/substance

(fried air)

POOR

GOOD

POOR

DEEPENESS OF

DEVELOPMENT

slide56

remember……

  • Business planning deals with risults
  • and the means to reach them.

- Plan contents must be coherent with the purpose

- Don’t accept a standard, acritically, only because there is it.

- Beyond the pointed out specificities, remember that your plan...

is yours!!!

slide57

Suggested readings:

-W.A. Salman “How to write a great business plan” HBR

-Gate2Growt “Guide to business plan writing”

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