Planning, Not Just a Plans3.amazonaws.com/timsstuff/Presentations/Business Plan... · 2007-09-28 · Business Plan Pro Guided TourBusiness Plan Pro Guided Tour Teaching with Business

Business Plan Pro Guided TourBusiness Plan Pro Guided Tour9/28/2007

© Palo Alto Software, Inc. All Rights Reserved 1

Planning, Not Just a Plan

Tim BerryPresident, Palo Alto Software

[email protected]

Business Plan Pro Guided TourBusiness Plan Pro Guided Tour

Yes, We Have a Plan

© Timothy Berry 2007. All rights reserved.

Time Activity Comments

2:00 Introductions Me, you, problems, opportunities

2:15 Hands-on Windows, navigation, help, text, tables, setup options, output options

2:45 Teach Planning The ideal business plan engagement

3:00 Hands-on Plan numbers in 1 hour Part 1

3:20 Break

3:30 Magic Unbusinessplan planning, planagement

3:45 Hands-on Plan numbers in one hour Part 2

4:15 Critical points Cash flow, sample plans

4:30 Advanced tips linking, adding, templates

4:45 Discussion, Q&A, etc.

9/28/2007

© Timothy J. Berry, All Rights Reserved 2



©2007 Palo Alto Software, Inc. All rights reserved.

For Today…

1. Please interrupt

It’s your time, your discussion

I invite comments and discussions

Don’t wait for the end, ask me questions as they come up

2. I may change the order midstream

3. I may skip or add to the presentation

4. I may give some small prizes




Who is this guy?

Tim Berry

Tim Berry bio:President, Palo Alto SoftwareUSASBE corporate entrepreneur of the year, 2006Principle author, Business Plan ProFormer VP, Creative Strategies InternationalCo-founder, Borland InternationalPlanning consultant to Apple Computer, 82-94Stanford MBA (’81)Mexico City ’71-79Published books include

Hurdle: the book on Business PlanningCPA’s Guide to Developing Effective Business PlansOn Target: the Book on Marketing Plans

www.timberry.comRepeat Venture Contest Judge

University of Oregon New Venture Competition (7 times)University of Notre Dame McClosky competition (4 times)University of San FranciscoCarrot Capital $3 million venture contest

Business Plan Pro Guided TourBusiness Plan Pro Guided TourTeaching with Business Plan Pro January 2007

Page 5

Introductions

Business Plan Pro

For more information on Business Plan Pro:

http://www.paloalto.com

Academic pricing is available for SBDCs

Palo Alto Software is donating 1,000 copies for use by SBDCs and counselors in SBDCs.

For more information on donations, academic pricing, SBDC programs, please email Jacqueline Mansfield at [email protected]


Page 6

Planning: Control Your Destiny

You are selling the idea of planning.

Ask your people to start by thinking

What do they want their business to look like in 3 years?

What are the steps to get there?

What’s most important?

What does/will the market/customers want?

Start with the ultimate goal:

Planning is to determine your business future

Proactively direct your future, not reactively discover your future

Planning sets directions, priorities, long-term goals

This avoids the “plan as removing a barrier” mentality.

The plan is much more than just getting through a business plan event

It’s the process, not just the plan. It makes your business better. It’s a management tool.


HANDS ON

Windows, navigation, help, text, tables, setup options, output options


9/28/2007



Page 8

Teach Planning

The proverb:

“Give a person a fish and you’ve fed them once. Teach them to fish and you’ve fed them for a lifetime.”

The business planning version:

It’s about ownership and empowerment. The proper strategy for teaching business planning is to make sure you teach, not do.

Never let it be the teacher’s plan, or the consultant’s plan. It’s the entrepreneur’s plan. They own it.



Business Plans vs Tax Accounting

© Palo Alto Software, Inc. All rights reserved.

Business Plans vs Tax AccountingAccounting: today backwards into the pastObjective is reporting to IRS, SEC, etc. Details are essential

Depreciation in detailAssets in detailLoan payments and interestGraduated tax rates

Reporting responsibility for infinite details

Planning: today forwards into the futureObjective is decision makingPowerful simplifying assumptions:

DepreciationAssetsTaxesLoans and interest

Where is the uncertainty:Sales forecast vs.Detailed depreciationDetailed taxes


HANDS ONComplete plan projections in one hour: part 1


9/28/2007



Form Follows Function

The not so big plan

Leave it on top

Leave it where everybody can see it

Dressing it up when there’s a reason

Literally:Slides and budgets

Formats for tracking & follow-up

Web and projections

In Business Plan Pro

Word and Excel

PowerPoint and Excel

It’s about behavior, management, not form

It’s about better business management11


Inside Out from the Heart

• At the core, your identity complex:• What you do

• Why people want it

• How you’re different: SWOT, core competence, secret sauce, etc.

• Positioning, etc.

• Build outwards • Messages and media

• Keeping the promise

• Making money

• Accountability

• Strategic alignment

• Growing

12


Start Anywhere

You don’t start in order

Don’t go from beginning to the end

Grab a corner of cheese and start eating

SWOT, mantra, keys, budgets, forecasts

Choose your starting point: words, numbers, etc.

Follow back and track and change

Blog post:

http://upandrunning.entrepreneur.com/2007/08/23/business-planning-like-building-blocks/

13


Planning, Mapping, Management

Business mapsThe web

Yellow pages

Books etc.

People who know

AnalogyMapping frontier

Traffic alerts

Manage geography

Mapping, not a map

14


Planning & ParadoxConsistency vs revisionGrowth vs. focusAlways wrong …Never done …

http://blog.timberry.com/2007/06/planning_and_pa.html

15


HANDS ONComplete plan projections in one hour: part 2


9/28/2007



CRITICAL POINTSHands-on: sample plans, cash flow


9/28/2007





Financial Model

Sales ForecastSales

Forecast

Personnel Plan

Personnel Plan

Profit or Loss

Profit or Loss

Start-up Costs

Start-up Costs

Balance Sheet

Balance Sheet

Past ResultsPast

Results

CashCash

Critical:

Profits are not cash

This matters because it can hurt so badly

Examples

I learned the hard way with channels

You don’t need to do it – but know it!

For more information:

http://www.timberry.com/fm/

That is a detailed explanation of the financial model.




Cash Flow Power Tools Specifics

© Palo Alto Software, Inc. All rights reserved.

Cash Flow Power Tools SpecificsAccounts ReceivableInventoryAccounts PayableThe Cash Flow TableThe Cash Chart


CRITICAL POINTSHands-on: linking, adding, templates, etc.


9/28/2007




Summary, Conclusions, Questions, Discussion


Yes, We Have a Plan

© Timothy Berry 2007. All rights reserved.

Activity Comments

Introductions Me, you, problems, opportunities

Hands-on All the numbers

Hands-on Windows, navigation, help

Hands-on Change the outline!

Hands-on Linking tables

Hands-on Working with text

Hands-on Working with tables

Hands-on Templates

Hands-on Optimizing the output

Conceptual The ideal engagement

Conceptual Unbusinessplan; planagement

Break 3:20 – 3:30

9/28/2007


Documents

Planning, Not Just a Plans3.amazonaws.com/timsstuff/Presentations/Business Plan... · 2007-09-28 · Business Plan Pro Guided TourBusiness Plan Pro Guided Tour Teaching with Business