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Business Plan: Inception to Fruition

Business Plan: Inception to Fruition. Bala Mulloth, Ph.D. Office of Innovation Development and Entreprenuership, NYU-Poly. A Word from…. Entourage. http://www.youtube.com/watch?v=NVMdb5CzyLE. Four-Legged Stool. Find Opportunity—Idea—Passion Study It — Student of Industry

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Business Plan: Inception to Fruition

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  1. Business Plan: Inception to Fruition Bala Mulloth, Ph.D. Office of Innovation Development and Entreprenuership, NYU-Poly

  2. A Word from….. Entourage http://www.youtube.com/watch?v=NVMdb5CzyLE

  3. Four-Legged Stool • Find Opportunity—Idea—Passion • Study It — Student of Industry • Execute — Time & Talent • Money—Fuel To Your Engine No Magic Wand...

  4. What Does THE PLAN Reveal? • Create or add significant value to a customer or end user • Solve a significant problem, or meet a significant want or need for which someone will pay a premium • Have robust market, margin, and moneymaking characteristics • Fit well with the founder(s) and management team at the time, in the marketplace, and with the risk-reward balance

  5. Writing a Business Plan • Steps outlining the process by which a business plan is written • Segmenting information • Creating an overall schedule • Creating an action calendar • Doing the work and writing the plan

  6. The Well-Written Business Plan • Orderly • Succinct • Persuasive • Draws readers in, keeps their interest, and convinces them of the potential for this opportunity • Based on reasonable assumptions • Answers the important questions – Articulates how your team will address the 3-5 key drivers of your business

  7. Additional Tips • Prioritize the points you are making into three categories: • Need to know – without this the plan makes no sense • Good to know – directly supports and gives context to your essential points • Nice to know – to Appendix?

  8. Executive Summary • Arguably the most important section of the business plan • Highlights from each section of the BP • Do not cut and paste! • Should be written and re-written during the planning process

  9. New Venture Idea • What existing need or want does the concept fill? What is the problem you solve? • Describe the service/product. How will it change the way people live or work? • Who is your customer? What are your market segments? • What is the unique selling benefit? (e.g. why will they buy?)

  10. Business/Financial Model • Sources of revenue and funding—required investment • Financial returns • What are your cash needs for operations? Cash flow statement—start-up and growth • Financial projections—3 year income statement with revenue, cost of goods sold, expenses and projected margins. • How do you plan to scale the business?

  11. Business Model of Sorts…

  12. Market Analysis • Size of potential market • Target segments • Current competition and possible new entrants • What are the critical success factors/risks and how will you manage them? • What is your competitive advantage? • How will you “go to market?” What is the marketing plan—branding & 4Ps

  13. Operations Plan • How does the business work? • Product development • Logistics • Human resources • Physical facilities • Operating and sales cycle • Articulate milestones for new venture. What is your current status?

  14. Management • What are the team’s qualifications for executing the plan successfully? • Who are the necessary key hires? http://techcrunch.com/2010/10/08/yahoo-startups/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29

  15. A Sample Pitch…Angels to VCs

  16. Ten Questions • Is the business an opportunity with real potential or just an idea? • Does the product or service add significant value to the customer? • Is the industry in which the product or service will compete growing, stable, or declining? • Does the firm have a well-defined target market? • Does the firm have an exciting and sensible business model? Will the firm be able to defend its position?

  17. Ten Questions • How will the firm’s competitors react to its entrance into its markets? • Is the management team experienced, skilled, and up to the task of launching the new firm? • Is the firm organized in an appropriate manner? • Are the financial projections realistic. Do they project a bright future for the firm? What rate of return can investors expect? • What are the critical risks surrounding the business, and does the management team have contingency plans in place if risks become actual problems?

  18. Contact:bmulloth@poly.eduLinkedIn: http://www.linkedin.com/in/bmulloth

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