Entrepreneurship

Giorgi Kekelidze

Session 8

2Agenda Session 8

Presentation / Pitch

Business Plan Guidelines

3Purpose of BP

1. Planning Guidance for future actions

2. Selling - attract attention , interest and financing of investors, partners

3. Communicating serves for getting stakeholders on board in understanding

what the opportunity is about and how organization is exploiting it

4. Analytical - your way of testing and validating analytical thinking behind the

opportunity

He who fails to plan is planning to fail."

Winston Churchill (during WW II)

4Investors like Businesses that

Buy material low Cash

Sell products/services high Cash

Collect from customers early Timing

Pay suppliers late Timing

Have low fixed cost Risk

Keep In mind :

5BP Outline

0. Cover Sheet

1. Executive Summary (~ page)

2. Opportunity Description - Need (Customers) and Product (Value), Value Proposition

3. Market & Industry Analysis

4. Business Model and Key Assumptions

5. Marketing Plan

6. Operational Plan / Financial Projections

7. Entrepreneurial Team Analysis

8. Risk factors / Uncertainties

9. Appendices

Report should be no more than 10 pages in length (excl cover sheet and appendices), and no more than 20 pages [max] long, all together

6Executive Summary

Articulates :

What your opportunity is

Why is it attractive

Why your team is capable of executing the BP

Should be SHORT and Concise, Appealing, Compelling and Motivate the reader to learn more about your Business Plan

SELL vs DESCRIBE

DO NOT describe entire business plan. You need to convey its essence and its energy

7Business Model and Key Assumptions

Question to answer:

What is our business model?

How will we make money? [Revenue sources]

What are the drivers of revenue?

What are the drivers of cost?

Be specific about KEY assumptions underpinning your:1. Revenues2. Costs3. Profit

8Marketing Plan

Describes HOW sales projections will be attained.

Question to answer:

Overall Marketing Strategy: What is marketing philosophy and positioning

behind the venture? Will you be differentiator or a cost-challenger in the

Market? Niche player?

What will be your pricing strategy ? How does your pricing differs from

Competitors? Or substitute products?

What methods will be used to make sales and distribute the product/Service?

Margins?

What are expected sales to be made through each distribution channel?

9Operational Plan / Financial Projections

How will you utilize people and recourses to exploit your opportunity. HOW will you implement your plan, How will you put it into actions?

List Key activates necessary for your Business to succeed.

Question to answer:

What facilities, equipment and logistics will be required?

What processes and systems will you put in place to manage operations?

What are key milestones? What will you do and when?

What components of Value chain will be part of your operations and what will

be outsourced?

How will you manage relations with suppliers, partners, customers

10

Operational Plan / Financial Projections

Financial Details can be described in Appendixes.

Financial Statements , projected costs, Revenues, Cash flow during 3

years of Operations [or as relevant to Business Idea]

Include In Spreadsheet Form together with Assumptions

11

Characteristics of a good BP

Clearly defines nature of the OPPORTUNITY

Strong EXECUTIVE SUMMARY

Clearly identifies essential RESOURCES and how TEAM will marshal them

Realistic, logical and convincing BUSINESS MODEL

Outline of intended STRATEGY and execution plan

Why TEAM is well suited; fills skill gaps

Simple overview of ECONOMICS of business model

12

Tips to write BP

Statements need to be supported with data whenever possible. Include Source of all data (as a footnote or end note) and the methods and/or assumptions used.

Identify own critical assumptions and challenge them

Organize the information as in BP outline, but free to have more subtitles

Make the Presentation and report look like a team report rather than assembly of individual parts

Write Executive Summary last

Avoid Inconsistences: Language/Font, data repetition, financials etc.

and:1. Keep the criticism2. Learn from others mistakes3. Keep an open mind4. Keep sharing the idea

13

Wed 8 Apr Session 12 Business Plan Presentations + Report

Presentation time : 25 min | Presenters: 3

Q&A 10 min

Written Report - Deadline 31-March

PPT/Pitch

Plan your time [time constraint]

Prioritize the information you present

Practice and Rehearse

Prepare Back up Slides

Decide Who answers what

Review the VIDEOs

Q&A tips

Be concise

Do not defensive

Avoid Add this, add that

Pitch tips

Questions ?