Business Plan Preparation

1. Business Plan Preparation Frank MoyesLeeds School of BusinessUniversity of ColoradoBoulder, Colorado Framework for the Business Plan

2. Today’s Agenda • Decide on concepts & select teams • Framework for writing a business plan • Writing a Successful Business Plan from my website • Importance of validation • Team meetings • Hand in F2F-R Step 1 Gut Check Framework for the Business Plan

3. MARKET & INDUSTRY ANALYSIS Opportunity/Need Segmentation Financial COMP’s Model Company COMPETITIVE ADVANTAGE Hand-in Interview list F2F-R Step 2 Reality Test I Critique Net Check Business Plan (download from website) Next Week Framework for the Business Plan

4. Business Plan Elements • Executive Summary • Product or Service Description • Industry and Marketplace Analysis • Marketing Plan • Operations Plan • Development Plan • Management • Competitive Advantage • Financial Projections • Offering, Funding, Valuation Framework for the Business Plan

5. Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Last to be written Business Plan Elements Framework for the Business Plan

6. Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Strategy Features and Benefits Business Plan Elements Framework for the Business Plan

7. Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Segmentation Size and Trends Competition Business Plan Elements Framework for the Business Plan

8. Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Customer Research Target Customer Positioning Pricing Advertising & Promotion Distribution Sales Business Plan Elements Framework for the Business Plan

9. Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Scope of Operations On-going Operations Business Plan Elements Framework for the Business Plan

10. Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Key Milestones Business Plan Elements Framework for the Business Plan

11. Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Organization Team Business Plan Elements Framework for the Business Plan

12. Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Sustainable Business Plan Elements Framework for the Business Plan

13. Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Income Statement Balance Sheet Cash Flow Risks Business Plan Elements Framework for the Business Plan

14. Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding & Valuation Valuation of Business Request for Funding Business Plan Elements Framework for the Business Plan

15. Objectives of Market Research Framework for the Business Plan • Validation of your venture • There is good market • You can compete • Evidence that customer • Needs the product/service • Will buy it

16. Primary: Face to Face Research • Step 1: Gut Check - Determine concept potential • Step 2: Reality Test I - Get preliminary feedback on your concept from experts • Step 3: Sniff Test - Determine target customer interest • Step 4: Reality Test II - Get feedback on the entire business venture from experts • Step 5: Customer Surveys – Develop an in-depth understanding of your target customer Framework for the Business Plan

17. Secondary Research Framework for the Business Plan • Market is • Big enough & growing • Positive trends • You can enter • Understand competition • Competitive environment favorable to new entries • Feasibility & Mullins

18. Market Research - Conclusion Framework for the Business Plan Validation Evidence

19. Team Dynamics Framework for the Business Plan All team members must meet at least once per week to review progress and create plan Set time and place for weekly meeting Assign responsibility for assignments Set completion dates

20. Process When One Team Member Not Pulling Weight Framework for the Business Plan Team meets for frank discussion of what is the problem & decides how to resolve it Team brings problem to Instructor who will make suggestions on how to resolve Instructor meets with entire team to try to resolve Instructor meets with team member who is the cause of the problem and tries to resolve Team fires team member

21. Business Plan Critique Framework for the Business Plan How good a job have they done in addressing the next two slides?

22. Critical Elements of a Business Plan(& You Must Address) Strong market Attractive industry Compelling Need Clear value proposition Sustainable competitive advantage Understanding of profitability & cash flow Management

23. A Good Business Plan • Explains how you are going to do it • Provides evidence that customers want to buy • Tells a story - creates excitement • Addresses the critical elements • Should be painful to write