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The Business Plan
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What is a Business Plan?
• Why Prepare a Business Plan?
• What to avoid in your Business plan?
Business Plan Format
• Vision Statement
• The People
• Business Profile
• Economic Assessment
• Cash Flow Assessment
• Damage Control Plan
Eight Steps to a Great Business
Plan
• Review Sample Plans
• Focus and Refine Concepts
• Gather Data
• Outline the specifics of your business
• Include experience
• Review language and projections
• Put your plan into a compelling form
• Enhance with graphics
Does your plan include the following
necessary factors
• A sound business concept
• Understanding your market
• Healthy, growing and stable industry
• Capable management
• Able Financial Control
• Financial Management Skills
• Consistent business focus
• Mind set to anticipate change
• Plans for outline business
VALUE IMPORTANCE RECOMMENDATION
• The primary value is to evaluate all aspects of
economic viability of your business venture including a descrip7on and analysis of the business prospects.
• Maintaining a correct assessment of the
changing economics of the business, the plan will
provide a useful roadmap as well as financing tool. • Miscalcula7on of poten7als, the business plan could become a roadmap leading to
failure.
• Crea7ng a business plan is an essen7al step for any prudent entrepreneur to
take. • You must complete each segment of the plan as you
progress through the course.
• Look at the business plan as an ongoing assessment that you will frequently review and change to conform to actual
opera7ng experience.
Define and Focus your Objectives
Used as a selling tool in dealing with important relationships
Can uncover omissions and/or weaknesses in the planning process
Can be used to solicit opinions and advice from people
• Becomes meaningless • Reality of the business can be different from initial concept
Long-term future projections
• Do not ignore spelling out what your strategies will be in the event of business adversities
Spelling
• Don’t depend entirely on the uniqueness of your business or even a patented invention Uniqueness
• Just be extremely conservative in predicting capital requirements, timeliness, sales and profit Optimism
• Avoid language that are difficult to understand Language
\
• YOU are the most important ingredient for the success of your business.
• Prepare a resume for each person who will be involved with you in star=ng the business.
• Be careful to those with whom you will be having rela=onships.
• YOU are the most important ingredient for the success of your business
• YOU could add a partner to your plan or hire key people who will provide skills you don’t have.
Include a one-year cash flow that will incorporate your
capital requirements
Include your assessment of what could go wrong and how you would plan to handle problems.
All businesses will
experience episodes of
distress. Survival will depend on
how well you prepare to cope with
them.
Your damage control plan
should anticipate potential threats to
your business and how you
plan to overcome
them.
Review Sample Plans
Focus and refine concepts
Gather data
Outline specifics of business
Include personal information
Print business plan
Enhance presentation
EIGHT STEPS TO A GREAT BUSINESS PLAN
• Remember that some of the great inventions of all time, like airplanes and cars, did
not result in economic benefit.
• Success comes to those who find businesses with great
economics and not necessarily great inventions
or advances to mankind.
Build a qualified team to evaluate the best op=ons
for u=lizing retained earnings.
Be flexible early in the process and keep it fluid. Expect your first plan to be provisional and subject to revision.
Ask yourself if your experience or expertise gives you the right to an opinion on specific opportunity
Identify your potential deal killers Clearly identify what you see as key drivers of success
Raise money only in sufficient amount to finance the experiment or evaluation your next envision. (with contingencies)
Delay hiring key managers until initial rounds of experimentation have produced a stable business model.
• TEST your product or service • TEST and refine business mode before expanding
TOP TEN DO’S
TOP TEN DONT’S
PO
RT
ER
’S 5 FORCES MODEL
PO
RT
ER
’S 5 FORCES MODEL
What is a Business Plan?
• Why Prepare a Business Plan?
• What to avoid in your Business plan?
Business Plan Format
• Vision Statement
• The People
• Business Profile
• Economic Assessment
• Cash Flow Assessment
• Damage Control Plan
Eight Steps to a Great Business
Plan
• Review Sample Plans
• Focus and Refine Concepts
• Gather Data
• Outline the specifics of your business
• Include experience
• Review language and projections
• Put your plan into a compelling form
• Enhance with graphics
Does your plan include the following
necessary factors
• A sound business concept
• Understanding your market
• Healthy, growing and stable industry
• Capable management
• Able Financial Control
• Financial Management Skills
• Consistent business focus
• Mind set to anticipate change
• Plans for outline business
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