Business Plan Preparation Introduction Frank Moyes Leeds School of Business University of Colorado Boulder, Colorado FLM background How many in a business? How many starting a business in next 6 months? What kind of businesses? Retail, manufacturing, high-tech, service, non-profit Ask questions

Tonight’s Agenda BIC & TTO concept presentations Discuss Concepts Introductions Course organization & syllabus Writing a business plan Students introduce selves Major What have done that is entrepreneurial? What want from course? What is your wicked idea? Frank Moyes David Drake

Communications George Deriso: geode@usa.net Frank Moyes Communications Frank Moyes frank.moyes@colorado.edu Office Hours: Koelbel 440 Tuesday 10:00 to 12:00 noon Wednesday 3:00 to 5:30pm And by appointment George Deriso: geode@usa.net Website http://leeds-faculty.colorado.edu/Moyes Review materials Website:

Materials Lawrence and Moyes, Writing a Successful Business Plan, 2008 (download from Resource section of Instructor’s website) Moyes and Lawrence, Financial Projections Model (download from Resource section of Instructor’s website)

Objectives of the Course Understand what is a business plan & when to write one Learn to write a viable business plan Experience the process “Everything is vague to a degree you do not realize till you have tried to make it precise.” Bertrand Russell

Course Structure Weeks 1: Is This a Real Business?, F2F-R Week 2: Select concept & teams Weeks 3 & 6: Is This a Real Business? Week 5 to 12: Introduce sections of the B Plan Weeks 4 to 12: In the Fire sessions Week 14: Present business plan & hand in Jan 2009: Competition New material is really old stuff: marketing, finance Who has a concept? Who has done feasibility plan? Who has a team to write the plan? See me after class Concept and team selection: Trade fair Presentations: friendly fire STOP: Introduce Roving Planet

Grading Face to Face Research In the Fire Team Assignments Peer Evaluations Individual Participation

Business Plan Sections Executive Summary Company Overview Product/Service Plan Market & Industry Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Plan Funding

Why Write a Business Plan? Road Map Establish goals to make sure that are on track and heading in the right direction Action Plan Small steps lead to large results Sales Tool Attract investors, vendors, customers, partners, employees So You Can Throw It Away! Process is the key Cauldron - test ideas & strategies Think through problems to solutions Lowers the risk “If we don’t have a plan for ourselves, we will be part of someone else’s.” Joan Lunden

A Good Business Plan Explains how you are going to do it Provides evidence that customers want to buy Tells a story - creates excitement Addresses the critical elements Should be painful to write Not a substitute for action Living document

Critical Elements of a Business Plan (& You Must Address) Strong market Attractive industry Compelling Need Clear value proposition Sustainable competitive advantage Understanding of profitability & cash flow Management

Why Not Write a Business Plan? Lack experience Information Time & cost to get causes too great a delay Can’t get Situation changes too quickly Founder has great experience, successful track record & has a “gut feel” for the business

“Writing a business plan is a life changing event.” Comfortable with Uncertainty Lack of information Working in groups Frustrating Puzzle pieces keep changing shape May not be a lot of information Synthesis vs. Analysis - creative Conflict - normal, desirable All consuming Most common criticism on FCQ; should be 4 credits Ultimately, very rewarding Put your education together Excellent resume item Accomplishment Who said that? STOP: Exercise teams of 4, 10 minutes Is this a good opportunity?

Is This a Real Business? Objective: set the stage Face to Face research Secondary research Present to entrepreneurs & investors Week 6 Oct 15

Discuss Concepts

Concept & Team Selection Process ASAP email Business Concept Description as a Word attachment to Instructors Must have your name & concept name in file name and on the attachment One day later instructor to will approve concepts Sept 17 (Wed) Complete formation of teams

Concept Description Brief description Why is there an opportunity/need? What is the product/service? Who is the target market? What are the benefits to the target market? Who is the competition? Your competitive advantage. Profitability.

Assignments for Next Week Review MBAX 6100 Download Writing a Successful Business Plan Decide on a concept & select team, email Instructors for approval Hand in F2F-R Step 1: Gut Check