Vnd.ms Power Point

8/6/2019 Vnd.ms Power Point

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How to Build A Successful BusinessPlan for a Small Business


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Bill Gates

Born 1955

15 years: first virus

18 years: Harvard Law School 19 years: read THE article

21 years: started Microsoft

22 years: launched MS DOS

23 years: Sold 2 million copies of MSDOS

NOW: 45+ Billion USD


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Why write a Business Plan

1. Because I have to

Needed for financing

Strategic partnering Attract key people/investors


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Why write a Business Plan

2. Because I Need to Understand My Business

The Plan is the result of a planning process

People Dont Plan to Fail; They Fail to Plan Who are my customers? Why will they buy my product or service? What will they pay? How will I make and deliver/sell the service/product?

What resources (people, money, technology) do I need? Can I make money / create value? Do I have the right team on board?


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The Right Ingredients

ATEAM with Relevant Experience

Market Size

Idea

Technology

Competitive Advantage

Reasonable Projections Exit Strategy


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Company

Structure

Financials

Operations

&

Production

Team

Idea

Market

Competitive

Edge

Marketing

Strategy

Business

Plan


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Business Planning Steps

1. Idea generation, Vision, Mission,Objectives, Strategies

2. Market research and Analysis3. Marketing strategy4. Production planning5. Management and Organization6. Financial plan7. Company formulation


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1. The Idea

Innovative product or service

Visualize a market gap youcan add value

Imported idea


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Vision

1st Objective

2nd Objective

3rd Objective

4th Objective

Strategy

Where do you want to go at

the end?

What is the road

map and major mile

stones?How will

you reach

your

objectives?

Vision

Objectives


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Mission:Stakeholders

Family

Work

Friends

Religion

Country

Community

Who are your stakeholders and what is

your mission to each one of them?


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Mission:Stakeholders

Shareholders

Employees

Customers

Suppliers

Country

Community

Who are your stakeholders and what is

your mission to each one of them?


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2. MarketAnalysis

Market size How big is it NOW?

Trends how fast is it or will it grow? Market Players Competitors

Competitive Advantage

Estimated market shares Existing/planned products in the marketplace


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MarketAnalysis (contd)

Market segmentation Demographical

Age, gender, marital status, income Geographical Life style Consumer buying behavior decision makers

Is this the RIGHT time for my product? Is there a gap that I can fill?


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Who are my TARGET customers?

Why would they buy my product? How much would they pay?

What are the special features in my product?

What is my competitive advantage

It is all about your EDGE

3. Marketing Strategy


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Business Model

How Shall I reachmy target customers?

Direct Sales Mass Media - Advertising Retail The Web Telemarketing / Phone Sales Trade Shows and Conferences Channels, Distributors and Partners


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1. Idea generation , Vision, Mission,Objectives, Strategies



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4. Production plan

Technology

Equipment

Raw Material Sourcing

Operation Plan and Capacity


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5. Management Plans

Getting the RIGHT Teamon board

Training

Delegation

Empowerment


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6. Financial Plans

Income Statement Projections Revenues Assumptions Costs/Expenses Assumptions Depreciation Assumptions Interest Expenses Assumptions Taxes

Cash Flow Projections

Initial investment Working Capital (Payables vs Receivables) Capital Expenditure (Capex) Debt Assumptions


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Income StatementObjective:provides information about the firms operating activities over a

specific period of time.Revenue: 100 100%

- Cost of Goods Sold (COGS): 60 60%

Gross Profit (Profit Margin) 40 40%

Operating Expenses:

General & Administration 8 8%

Sales & Marketing 12 12%

- Total Operating Expenses 20 20%

Earning Before Interest, Tax, Depreciation & Amortization (EBITDA)20 20%

- Depreciation & Amortization 5 5%

Earning Before Interest and Tax (EBIT) 15 15%

- Interest Expenses 5 5%

Net Income Before Tax 10 10%

-Taxes 2 2%

Net Income 8 8%


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Financial Plans (contd)

Financial Measures ROI Break-evenNPV IRR

Providing needed Capital Equity Debt


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1. Idea generation

2. Market research and Analysis

3. Marketing strategy

4. Production planning

5. Management and Organization

6. Financial plan

7. Company formulation


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7. The Company

Name logo - slogan

Legal structure

Location

Mission Values - Objectives


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Elements of the

Business Plan

1. Executive Summary2. The opportunity, the company and

product/service

3. Market research/analysis4. Economics of the business5. Marketing strategy and plan6. Design and development plan7. Manufacturing and operations plan

8. Management team9. Action Plan: Schedule, risks, problems10. Financial plan


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Finally: No Risk No Gain

If we all did the things we are really capable of doing,

we would literally astound ourselves

Thomas Edison


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