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bhavya-taneja
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BUSINESS PLAN
Why Business Plan ?????????????
A business plan is an effective tool for defining the existing realities. A good business plan will reveal weaknesses or omissions in your planning. They provide a valuable communication tool presented in an organized, credible manner, which allows the stakeholders to obtain a complex view of the business.`
BUSINESS PLAN ESSENTIALS
• ALWAYS Prepare the Plan Yourself!
–Professional input from accountants, consultants, lawyers, etc. can be helpful.
–Write the Plan. Own the Plan. Know the Plan.
• I am investing in You & in Your Plan!
FORMAT OF THE BUSINESS PLAN
– Executive Summary– General Company Description– Products & Services Offering– Strategic Marketing & Sales Plan– Operational Plan– Management & Organizational Structure– Capitalization & Use of Proceeds– Financial Projections -- to include Assumptions– Appendices
DonorsGrants & SubsidiesPhilanthropic InstitutionsSpecialist Development FinanceRisk Capital
Strategic InvestorsPrivate EquitySocial InvestorsDevelopment AgenciesVenture Capital
Private EquitySocial InvestorsDevelopment Banks
Stage 2Technical Feasibility
Stage 1Prefeasibility
Supply Analysis Technology Analysis
Stage 3Commercial Feasibility
Market Analysis Prototype
Supply Analysis
Market Analysis
Prototype
Technology Analysis
Supply Analysis
Market Analysis
Business Plan
Financial Model
Strategic InvestorsPrivate EquitySocial InvestorsDevelopment Banks
Stage 4Investor Engagement
Business Plan
Financial Model
INPUT
ACTIVITY
OUTPUT
Stages of Project Development
Business Plan
Project Data Sheet
Investment Pitch
What is the value of a Business Plan?
Business Model
Supply
Supply Agreement
Profit Sharing
Transportation
Demand
PPAs
Power Deficit
Technology
Objective:Gain investor confidence
Accidental discoveries
Systematic search for
new products and services
Discovery copied or
modified from a previous
idea
Discoveries following a revolution
Unique Selling Proposition
Communicate Clearly to Investors
Leverage Strengths
Point of Differentiation
MitigationMeasures
Opportunities ThreatsExternal
Strengths
Weaknesses
Inte
rnal
Market AnalysisSWOT Analysis
Product
Price Place
Position
TM TARGET MARKET
Market Analysis
Porter Analysis
Power ofSuppliers
Power ofCustomers
Ease ofSubstitution
Barriers toEntry
IndustryRivalry
Industry QuestionsHow do we define our industry? How is the industry segmented? What are current trends and important
developments? Who are the largest and most important
players? What problems is the industry experiencing? What national and int’l events influence our
industry? What are growth forecasts?
-- Marketplace Analysis
Define and describe your marketplaceNiche, geographic area, subset of larger
industryWhat’s happening in your market?Network! – talk with the marketplace
Customers, competitors, vendors, suppliers, salespeople, …Chambers of commerceIndustry trade groups
Marketplace Questions
How do we define our marketplace? How large is it and how fast is it growing?
How is our marketplace segmented? What companies currently service this market?
What trends are important in our marketplace?
-- Customer Analysis
Identify current buyers in your marketplaceSegment these customersWhat “problems” are not being solved?What needs are not being met?Which customer segments are currently
ignored?Talk with current buyers!
-- Competitor Analysis
Identify current sellers in your marketplaceNiche and focusTarget customersStrengths and weaknessesTalk with current marketplace sellers!Sellers themselvesVendorsCustomersCompetitive Matrix Comparison
Competitive MatrixCompetitive Matrix Chart
Product or Service
Production/ Quality
UniqueFeatures
DistributionSystem
Marketing /Advertising
GeographicLocation
Strengths &Weaknesse
MarketShare
Competitor A
Competitor B
Competitor C
Competitor D
Competitor E
Competitor F
Competitor Questions
Who are current sellers in the marketplace? What are the attributes and characteristics of
these sellers and their products/services? What is there size, location, target market, and
other important characteristics? For their products or services, identify price,
quality, features, distribution, and other important attributes.
What problems and concerns to customers have with these sellers?
PROJECT PROFIT AND LOSS ACCOUNT
Income from Sales/Service Cost of Manufacturing/Servicing
i) Raw Materialsii) Utilitiesiii) Salaries/Wagesiv) Repairs & maintenancev) Selling & Distribution Expensesvi) Administrative Expensesvii) Interestviii) Rentix) Depreciationx) Misc. Expenses
c. Gross Profit/Loss (A-B)