Strategy and Entrepreneurship: The Elements of a Successful Business Plan Wayne Smith, Ph.D. wayne.smith@csun.edu Department of Management

Entrepreneurship and Intrepreneurship Stanford Entrepreneurial Thought Leader webcasts/podcasts http://ecorner.stanford.edu/podcasts.html (but that’s just more passive, academic study) We need to do the hard work too… That is, let’s design our success… And for that, we need funding… And for funding, we need a plan…

“VRIO” Analysis Often, successful entrepreneurs use “VRIO” Analysis. Value Is the product or process particularly valuable in some way? Rarity Is the product or process particularly rare (i.e., in few hands)? Imitability Is the product or process particularly hard to replicate? Organization Is there organizational capacity available to leverage the first three?

VRIO Analysis (compare to opportunities to expectations) Marketable Products and Operational Processes Value? Rarity? Imitability? Organization? …

A Business Plan (1 of 2) Executive Summary Company Description Overview of business purpose and highlight of key elements of the plan Company Description Mission, Owners, and legal form Industry Analysis Nature of the Industry, including economic trends, important legal or regulatory issues, and potential risks Market Description Size of market, competitor strengths and weaknesses, and five-year sales goals Products and Services Description Major Goods or Services, with special focus on uniqueness vis-à-vis the competition

A Business Plan (2 of 2) Operations Description Staffing Description Manufacturing or Service methods, supplies and suppliers, and control procedures Staffing Description Management and staffing skills needed and available, compensation and human resource management systems Financial Projection Cash flow projections for one to five years Capital Needs Amount of funds needed to run the business, amount available, amount requested from new sources

Relative Importance Very Short-run (1-6 months) (“the pitch”) Products and Services Description Market Description Short-run (6-12 months) (“survival”) Financial Projection Company Description Long-run (1-5 years) (“flourish”) Capital Needs Operations Description Staffing Description Very long-run (5-15 years) (“compete”) Industry Analysis

CSUN Resources Ryan Holbrook (Entrepreneurship Program Director) Office: JH4209 Phone: 818-677-4510 Email: ryan.holbrook@csun.edu www.csunbullring.com Dr. Lois Shelton (Program Director, Entrepreneurship minor) Office: JH4206 Phone: 818-677-3313 Email: lois.shelton@csun.edu Student Club