Preparing a business plan
1 / 18

Preparing a Business Plan - PowerPoint PPT Presentation

  • Updated On :

Preparing a Business Plan. Allen Bolton & Stephanie Meadows February 27, 2007. Why create a business plan. Communicates strategic direction Communicates objectives Provides for common agreement and buy-in Benchmark to measure performance Shares budget requirements.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'Preparing a Business Plan' - thurman

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Preparing a business plan

Preparing a Business Plan

Allen Bolton & Stephanie Meadows

February 27, 2007

Why create a business plan
Why create a business plan

  • Communicates strategic direction

  • Communicates objectives

  • Provides for common agreement and buy-in

  • Benchmark to measure performance

  • Shares budget requirements

Why create a business plan in academia
Why create a business plan in academia

  • Considering a new department, division or center (will need BOT approval too)

  • Considering a new clinical service line or research shared facility

  • Considering a spin-off company

  • High-dollar faculty recruits

  • New facilities

  • Developing a new research or training program

Before you begin writing
Before you begin writing

  • Define target audience

  • Determine content and level of detail

  • Map out the plan’s structure

  • Identify main issues to be addressed

Key elements to a business plan
Key elements to a business plan

  • Executive Summary (write this section last)

  • Vision/Mission statement

  • Goals and objectives

  • Description of products and or services

  • Market analysis

  • Operational plan (organizational structure)

  • Financial plan

  • Business Risk

Executive summary write this last
Executive Summary (write this last)

  • Clear definition of the “business”

  • Assessment of markets

  • State competitive advantages

  • Introduce leadership team and roles

  • Financial strengths and use of funds

  • Make it enthusiastic, professional, complete, and concise

Mission statement
Mission Statement

  • Clearly state your long-term mission

    • Try to use words that will help direct growth but be as concise as possible.

    • Explain your reason for being and your guiding principles.

Goals and objectives
Goals and Objectives

  • Goals are destinations – where you want to be

  • Objectives are progress markers on the way to goal achievement

  • List 3-5 year goals

  • State specific, measurable objectives for achieving your goals

    • List market-share objectives

    • List revenue/profitability objectives

Products and or services
Products and or Services

  • Describe in depth your products or services (technical specifications, drawings, photos, brochures, and other bulky items belong in Appendices)

  • State factors that will give you competitive advantages or disadvantages

    • Examples include level of quality or unique or proprietary features.

Marketing analysis
Marketing Analysis

  • Do your market research

  • Summarize your primary target market

    • Include geographic location, demographics, target market needs and how these needs are currently being meet.

  • Highlight trends

    • Emphasize growth trends, trends in consumer preferences, and trends in product development.

Marketing analysis1
Marketing Analysis

  • Growth potential and opportunities

  • Barriers to entry and how you will overcome any barriers

    • Examples include high capital cost, high production cost, high marketing cost

  • Marketing strategies and sales plans

    • The 4P’s – product, price, place and promotion

Operational plan
Operational Plan

  • List key management by name

    • Use a simple organizational chart to illustrate the structure.

  • Include previous accomplishments to show that these are people with a record of success.

  • Summarize number of years of experience in this field.

Financial plan
Financial Plan

  • Outline a high-level financial plan that defines your financial model and key assumptions.

    • The plan should include expected annual revenues and profits for the next three years.

    • All detailed schedules such as P&L projections, cash flow projections, balance sheet and ratio analysis should be included appendix.

    • Comment on expected direct and indirect return on investment.

Common omissions in budget preparation
Common omissions in budget preparation

  • Including salaries but omitting fringe benefit cost

  • Excluding a factor for annual merit increase or a CPI increase for expense

  • Failure to factor in contra revenues examples are taxes on revenue, refunds, bad debt or contract adjustments

  • Underestimating travel expense

  • Related marketing or promotional items for conferences or events (examples t-shirts, bags, coffee mugs)

  • Current pricing for services needed (pharmacy, labs, testing)

Resource requirements
Resource Requirements

  • List requirements for the following resources:

    • Personnel

    • Technology

    • Finances

    • Promotion

    • Products

    • Services

    • Facilities

Risks and rewards
Risks and Rewards

  • Summarize the risks of the proposed project and how they will be addressed.

  • Estimate expected rewards, particularly if you are seeking funding.

Key issues
Key Issues

  • Near term

    • Identify key decisions and issues that need immediate or near-term resolution.

    • State consequences of decision postponement.

  • Long term

    • Identify issues needing long-term resolution.

    • State consequences of decision postponement.

  • If you are seeking funding, be specific about any issues that require financial resources for resolution.

Final tips
Final Tips

  • Avoid unnecessary jargon

  • Economize on words

  • Use short crisp sentences and bullet points

  • Concentrate on relevant and significant issues

  • Relegate detail to appendices

  • Write executive summary last

  • When in doubt, write a business plan… it will usually distinguish your program/project in academia