BUSINESS PLAN

Prepared By:

Nijaz N

BUSINESS PLAN

• A written document that outlines the future activity for an

existing or proposed business venture.

• Is the formal written expression of the entrepreneurial vision,

describing the strategy and operations of the proposed venture.

• A business plan is a document that brings together the key

elements of a business that include details about the products

and services, the cost, sales and expected profits.

• Blue Print

Purpose of a Business Plan

• Alignment of team(s)

• Operating plan

• Communication across company, division, department, business

partners

• Investment capital

• Expansion capital (banks, leases)

• Merger/acquisition process

BUSINESS PLAN DriversClear Vision of Purpose The direction the business venture wants to

achieve.

A long term view

Satisfy Real Customers Needs & Serve Real Customers

Exceptional customer service that results

in the loyalty of customers, repeat purchases

by them and greater customer retention.

Differentiate from Competitors Positioning unique differentiating factors.

Continuously making improvements to

sustain a leadership position.

Resource Focus, Organization & Commitment to satisfy Customer needs

Resources should be optimally utilized to

ensure that maximum possible value gets

added to satisfy customer needs.

What Investors Look For

• How does the team think?• How detail oriented is the team?• How big is this market?• Is there sustainable competitive advantage?• What’s the growth plan? • What does the technology roadmap look like, short

term or long term play

Financial Projections

• Build 5 years• Detail near years, extrapolate out years• Build from single unit economics• Document assumptions• Compare against top down• Validate with market comparables

10 Must Answer Questions

• How large is your addressable market?

• How fast is the market growing?

• Who’s make up your management team?

• What’s your “secret sauce?”

• What are the barriers to entry/competitive advantage?

• What do your 5 year financials look like?

• What’s your path to profitability?

• Why is this a company versus a product/service?

• Who’s your competition and how do you beat them?

• Why can’t Microsoft or Google do this? (or name any big, established

company…)

Creating Your Company’s Strategy

• Building a strategy is harder work than building your

product

• Think about

– What do you want your business to be when it grows up

– Looking back from 5 years in future

– Perspectives of all stakeholders

– Anything that could go wrong

• Hope is not a strategy

Competitive Analysis

• You always have competitors

• Dig deep, be detailed, be honest

• Compare features and benefits

• Technology comparison

• Whole product offering (pricing, support, etc.)

• Channels, funding, customers…

Sustainable Competitive Advantage

• Create barriers to entry

• Continually add value for your customers (and your

investors)

• Anticipate competition and make plans for dealing with it

– Better widget, price erosion, market share, different business

model…..

• Avoid the trap of believing that your main competitor is

your exit strategy

Format of Business Plan

• TITLE PAGE

Name of the business

Owner /Owners

Contact Details (Addresses, Phone & email etc)

EXECUTIVE SUMARY

Business ideas & Goals : Over view of business

Marketing : Products & services being sold?

Operations : Business Location & staff

Finances : Breakeven period, finance

required.

Format of Business Plan

• BACKGROUND

Mission Statement

Company history ( existing business)

Business Goals (Short term/Long term)

MARKETING

Market Research

Market Analysis (Industry / Seasonality /Competitors /SWOT )

Marketing Plan (Target market/ distribution channel /pricing)

Evaluation of Marketing

Format of Business Plan

• OPERATIONS & PRODUCTION

Legal & Licensing requirements

Management details

Organization structure & staffing

Insurance & Security needs

FINANCIAL PROJECTIONS

Income & Expenses

Financial forecasts

IMPLEMENTATION TIME TABLE

Time needed to set up & run the business