Upload
timothy212
View
597
Download
1
Tags:
Embed Size (px)
DESCRIPTION
Citation preview
1
Successful Business Planning
Process & Product
February 21, 2006
Mel BravermanCooperative Development Services
608 243 3255
Successful Business Planning
2
Process and ProductProcess and Product
We tend to focus on the product-a written business plan
If the process to produce the business plan is inadequate-the business plan may also be inadequate
Having a plan that is accepted without the ability to achieve that plan is in no one’s interest
Good process enhances the ability to achieve what your plan states!
3
Feasibility Vs PlanningFeasibility Vs Planning Feasibility informs us to what is possible Planning shows how the possible will be
achieved Market feasibility gives us potential sales-our
top line Business planning shows a systematic
approach to achieve these potential sales Areas of focus to determine feasibility prior to
producing the business plan:– Market– Financial– Organizational– Design
4
Moving Ahead to Business PlanningMoving Ahead to Business Planning
Once feasibility of the areas previously mentioned is determined we begin to build
the business plan
The business plan has two main purposes:
1. A document to attract investors (member loans and lending institutions)
2. A document that charts the course for the co-op to follow to success
5
Overview of the planning processOverview of the planning process
Gather Useful Planning Info Initial Planning Session(s) Strategy Session(s) Writing the Plan
6
Gather Useful InformationGather Useful Information
Vision
Mission Statements
S.W.O.T. Analysis Environmental Analysis
Summary of Member Surveys
Community Information
7
Initial Planning Session(s)Initial Planning Session(s)
The goal of the initial sessions is to bring a number of voices into the process
Over time there will be a distillation of the information gathered from these initial sessions
8
Initial Planning Session(s)Initial Planning Session(s)
Stakeholders (Board, Management, Key Community People)
Distribute information to all attendees prior to the first session Have an experienced facilitator Stay open to many points of view Get everyone involved Build organizational team Hear many voices in the beginning Work towards buy-in Review mission Define shared values
Create vision
9
Strategy Session(s)Strategy Session(s)
Board or Committee
Review initial planning session
Finalize vision
Distill information into specific strategies
10
Who Will Write the Business PlanWho Will Write the Business Plan
Determine if it will be written by volunteers or by a professional
If it is to be written by volunteers – do they have the necessary skill set and time?
If it is to be written by a professional - what is the experience of this person
If it is to be written by a professional make sure you budget to pay for this service
11
The Product-Business Plan OverviewThe Product-Business Plan Overview
General Approach:
Areas to Address
Marketing
Operations
Management
Financial Projections
12
Marketing-The Plan’s CoreMarketing-The Plan’s Core
Plan for taking concept to reality Define your market: current & potential
customers, niches Explain how your products & services will
meet market demands Include industry market research -
growth, technology, government, health Detail sales projections & assumptions
13
Operations-Facility & EquipmentOperations-Facility & Equipment
Describe physical facility & equipment needs including costs
Determine location, hours of service, inventory level needs
Project future needs
14
Management ( Talent )Management ( Talent )
Sell your team & its’ abilities to operate the retail cooperative
Key personnel-Board and Management Relevant experience & education Complete resume for key personnel Technical consultants/advisors available
15
Financial ProjectionsFinancial Projections
The culmination of your marketing & operation plans
Income statement - 5 years, first year by month, then quarterly
Cash flow projections - 5 years Pro forma balance sheets for start-up & every
year thereafter Key financial ratios Sources/Uses
16
General Business Plan OutlineGeneral Business Plan Outline
I. Cover Sheet
II. Organizational Info
III. Table of Contents
IV. Executive Summary
V. The Business
VI. The Industry
VII. The Market
VIII. Personnel
IX. Business Objectives
X. Potential Risks
XI. Financial
XII. Supporting Documents
17
General Business Plan OutlineGeneral Business Plan Outline
I. Cover SheetA. Title
B. Presented to
C. Date
D. Applicant
II. Organizational InformationA. Mission
B. Vision
C. Beliefs
III. Table of Contents
18
General Business Plan OutlineGeneral Business Plan Outline
IV. Executive SummaryA. Brief Description of the Business
– Where you operate, what you do
B. The Opportunity– Your market & strategy, the industry, competition,
C. Financials– Sales projections, profit & growth potential, current
financing
D. People– Introduce key personnel & talents
E. The Offering– Needs, wants, and plans for money
19
V. The BusinessA. Type
– Start-up, existing, retail
B. Legal Structure– Cooperative, non-profit
C. General Information– Location, products/services, approach (price, quality,
service)
D. History of Project– Beginning, significant events
E. Opportunity– Sales volume, profitability projections, market share
General Business Plan OutlineGeneral Business Plan Outline
20
General Business Plan OutlineGeneral Business Plan Outline
VI. The Industry
A. Present Status
B. TrendsEconomic, legal, technological, social, political,
demographic
C. Direction Industry is Moving
21
General Business Plan OutlineGeneral Business Plan Outline
VII. The MarketA. Who is Your Customer
– Consumer, business, government, industry
B. What is the need for your product/service– Health, price, environment
C. Geographic Customer Base Coverage– Distance, time, traffic patterns
D. Demographic Target– Age, income, education, family status, employment, sex
E. Psychographics– Sports, diet, alternative healing
22
General Business Plan OutlineGeneral Business Plan Outline
VII. The Market
F. Quantify the Market– Size, trends, local issues
G. Marketing Strategy– Advertising plan, promotions, competitive focus (price,
service, etc.), marketing channels & methods
23
General Business Plan OutlineGeneral Business Plan Outline
VIII. PersonnelA. Organizational Chart
B. Major Responsibilities of Key Managers
C. Board of Directors
D. Resumes of Key Management/Board
E. Strengths & Weaknesses
24
General Business Plan OutlineGeneral Business Plan Outline
IX. Business ObjectivesA. Business Objectives
– S.M.A.R.T.
B. Profit Targets– Annual
C. Financial Ratios– R.O.I. & R.O.E.
D. Sales Growth Rate– Annual
25
General Business Plan OutlineGeneral Business Plan Outline
X. Potential RisksA. Risks and Plan to Address Risks
XI. FinancialA. Projected Income Statement
– 5 Years with assumptions
B. Projected Balance Sheet– 5 Years with assumptions
C. Cash Flow Statement– First year thru third year quarterly, fourth & fifth year
annual
D. Sources/Uses
E. Break-Even Analysis
E. The Offering– Capitalization, terms, sources & fund uses, payback
26
General Business Plan OutlineGeneral Business Plan Outline
Supporting Documents
Industry graphs Historical sales comparisons Credit reports Copies of lease Organizational information Business development schedule
27
Thank You - Questions?Thank You - Questions?