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IP INNO FOREST, 11 September 2006, Zvolen
Carmen Nastase
Enterprise level tools for innovation, business plan
Innovations and entrepreneurship
Innovation and entrepreneurship are considerer in European Union as increasing economics vector, competitiveness and rural development.
The successful entrepreneurial is usually based on a significant innovation.
Innovation activities are one of the important reactions to the challenges.
The situation regarding innovation an entrepreneurship
Innovation system presents actors, institutions and their relations and interactions which are involved in the innovations.
Innovation process:- new idea;- interest;- evaluation;- implementation/adaptation.
Innovation behavior of the firm
External factors - market environment characteristics - regional institutional characteristics - policy institutions
Internal factors - organizational - personal
macro-level
micro-
level
labourresourcesknowledgefinance
forest-enterprise
product-, process-,innovation
costumers/consumers
governancesystem
extension services,consultancy
research &education
markets/competitors
informationexchange
structuralchange
Information exchange
Entrepreneurship development
Entrepreneurship can be defined as the process of using private initiative to transform a business concept into a new venture or to grow and diversify an existing venture or enterprise with high growth potential.
Entrepreneurs identify an innovation to seize an opportunity, mobilize money and management skills, and take calculated risks to open markets for new products, processes and services.
Sources for innovative
idea
Sources for innovative
idea
Analyze market, customers and environment;Analyze your existing business
Analyze market, customers and environment;Analyze your existing business
Check your idea;Check yourself
Check your idea;Check yourself
Evaluation level
Evaluation level
ImplementationImplementationResultsResults
Innovation idea
Tools for innovations processes
Idea generation – brainstorming, micro screening, macro screening, SWOT analysis
Feasibility
Capability
Launch & Rollout
Innovation Life Cycle Process
Ideation
Concept development
Evaluation (business and technical)
Commercialization
Improvement innovation
Business plan based on
Entrepreneurship The business idea Business areas
What is outline of your business plan?
Please divided in the working groups and find the standard outline of a business plan – 5 min.
For preparing a Business Plan we must answer a following questions:
1. WHAT is a Business Plan?2. WHO needs a Business Plan?3. HOW to prepare a Business Plan?
1. What is a business plan?
Business planning is about results. A business plan is any plan that works for a
business to look ahead, allocate resources, focus on key points, and prepare for problems and opportunities.
Businesses need plans to optimize growth and development according to priorities.
A business plan is like a map and a compass for a business.
prezentationplan
workingplan
mini-plan
Business plan
The Different Types of Business Plans
Business plans are also called:- strategic plans- investment plans - expansion plans- operational plans- annual plans- internal plans- growth plans- product plans- feasibility plans and many other names.
2. Who needs a business plan?
You need a business plan if you’re running a business;
You need a business plan if you’re applying for a business loan;
You need a business plan if you’re looking for business investment, new products or new services;
You need a business plan to communicate with a management team.
3. How prepare a business plan?
Is There a Standard Business Plan?
A normal business plan, includes a standard set of element. Plan formats and outlines vary, but generally a plan will include components such as descriptions of the company, product or service, market, forecasts, management team, and financial analysis.
Your plan will depend on your specific situation.
Executive summary
Business description: products and services offered
Market strategies
Competitive analysisand positioning
Operations andmanagement plan
Outline of a business plan
Financial components
- condensed informationon each
of the chapters bellow- type of business;- products and services
offered;- ownership of the business
and its legal structure;- profitability consideration.
- market and target market;- demand for the product
or service;- promotion;
- dissemination and delivery;
- pricing strategy.
- competition analysis;- identification of
competitive strenght position.
- operations plan;- management team.
- capital requirements and sources;
- balance sheet;- break-even analysis;- income statement;
- cash flow projection.
Annex
Business aspects advise: adresses for financing advise,legal advice, marketing advice
Figures Tables Graphs Other sectors advice: research institutes,
interests groups, administration, other key innovation areas.
Planning is a Process, Not Just a Plan
Successful implementation starts with a good plan
Is the plan simple? Is the plan specific? specific budgets? Is the plan realistic? Is the plan complete?.
Preparing a business plan
Define and fix objectives, and programs to achieve those objectives.
Create regular business review and course correction.
Define a new business. Support a loan application. Define agreements between partners. Set a value on a business for sale or legal
purposes. Evaluate a new product line, promotion, or
expansion.
Keys to Better Business Plans
Use a business plan to set concrete goals, responsibilities, and deadlines to guide your business.
A good business plan assigns tasks to people or departments and sets milestones and deadlines for tracking implementation.
As part of the implementation of a business plan, it should provide a forum for regular review and course corrections.
Good business plans are practical.
Business Plan "Don'ts"
Don't use a business plan to show how much you know about your business.
Nobody reads a long-winded business plan: not bankers, bosses, nor venture capitalists. Years ago, people were favorably impressed by long plans. Today, nobody is interested in a business plan more than 50 pages long.
How Long Should a Business Plan Be?
Page count is not a good way to measure length. A 20-page plan with dense text and no graphics is
much longer than a 35-page plan broken up into readable bullet points, useful illustrations of locations or products, and business charts to illustrate important projections.
A good business plan should leave a reader a good general idea of its main contents even after only a quick skimming, browsing the main points, in 15 minutes.
Format, headings, white space, and illustrations make a big difference. Summaries are very important. Main points should show up in a business plan as quickly as they do in a business presentation.
The right length of the plan depends on the nature and purpose of the plan
Will it include descriptions of the company and management team for outsiders to read;
Does it need an executive summary good enough to stand alone;
Does it include detailed research, plans, drawings, and blueprints;
Is it worded to withstand legal scrutiny as part of an investment proposal.
BUSINESS PLAN
Standard Outline
EXECUTIVE SUMMARY
Brief Description of the Project Brief Profile of the Entrepreneur Project's Contributions to the Economy
Write this last. It's just a page or two of highlights.
Section 1MARKETING PLAN
Description of the Product Comparison of the Product with Its Competitors' Location Market Area Main Customers Total Demand Market Share Selling Price Sales Forecast Promotional Measures Marketing Strategy Marketing Budget
Section 2 PRODUCTION PLAN
Production Process (fixed capital, life of fixed capital)
Planned Capacity - Future Capacity Terms and Conditions of Purchase of Equipment Factory Location and Layout Raw Materials Needed - Cost of Raw Materials -
Raw Materials Availability Labour Cost of Labour Labour Availability - Labour Productivity Factory Overhead Expenses Production Cost
Section 3 ORGANIZATION & MANAGEMENT PLAN
Form of Business Organisational Structure Business Experience and Qualifications of the
Entrepreneur Pre-Operating Activities Pre-Operating Expenses Office Equipment Administrative Expenses
Section 4 FINANCIAL PLAN
Project Cost Financing Plan and Loan Requirement Security for Loan Profit and Loss Statement Cash Flow Statement Balance Sheet Loan Repayment Schedule Break-even Point (BEP) Return on Investment (ROI) Financial Analysis
When a business plan is being worked out, there are too many big questions, the answers of which only the entrepreneur can know, that are far too important to be left to someone else who claims that he can spare the entrepreneur the trouble of preparing his own business plan - no one can do it better than you!
Summary
- A proper business plan serves as a map. - Use it to establish the points along the route, indicating why each is important and how it can best be reached. - The plan builds from mission and value to justification, strategies, tactics, actions and expected results. - Comprehensive business planning increases the likelihood of the venture’s success.
Every business need an innovation engine to generate the great ideas that will propel the business forward into the future.
Thank you for attention!