Business PlanConsiderations

Types of Plans

• Complete, Quick/dehydrated, Operational

• Startup, Existing

• For-Profit, Non-Profit

• Customized, Fill-in-the-Blank

Motivation• Why start a new business?

• Profit motive – make lots ‘O money• Better the world• Improve efficiency• Do something you have a passion for• Be your own boss• Provide jobs• Financial independence / job security• Family firms, create jobs for a niche• Ceiling at existing job• Respect / power

Motivation• What prevents people from starting a

new business?• Lack of capital• Opportunity costs• Fear of failure• Not enough time• Content in bad situation / comfortable• Ignorance• Hectic lifestyle (wear a lot of hats)• People skills• Uncertainty

• Strengths• Smart• Funny• Reliable• Productive

• Weaknesses• Avoid uncertainty• Poor decision-maker• Procrastinate tasks I do not enjoy• Naive

Introspection

• Why write a business plan?• Provide a roadmap for yourself

• For investors

• To recruit talent

• Buyer and suppliers

• To give yourself a budget

• Identify all the details of you venture(forces you to answer tough questions)

• Test feasibility (validate the idea)

• Provide a timetable

Rationale

Evaluating Business Plans• What determines small business success?

• Management experience (entrepreneurial experience) (team cohesion)

• What’s my expected ROI? When am I gonna make it?

• Preparation, where are you in the life cycle?

• Size of market, amount/fragmentation of competition, barriers to entry, growth

rate of the market, accessibility (how much of this market can we get?),

timing, cyclical nature of the market

• What’s your competitive advantage (value proposition)

• What’s your financial plan AND does the owner understand them (accounting)

• Is it a job you love.

• Location