Zainul Muchlas, SE, MM STIE - MCE Business Plans Zainul Muchlas, SE, MM STIE - MCE

Introduction Focus your thinking Establish realistic strategy Financing and other support Reaction by others

Definition Document that can convince the reader that the business can produce enough revenue to make a satisfactory profit and therefore attractive as an investment opportunity

Many reasons to build one BP should sell the writer/reader on the business: Writer: so that you can go out and do it, Reader: to invest in it Confidence of knowing the issues Improve chances of success

Many Purposes in real life Bank Financing Strategic alliances Large contracts Key employees Mergers and acquisitions Mgt team motivation Ours here : Investment by VC or Angels

Principles of BP No right way: plans can differ Be creative but set a limit Concise and focused Captures energy and personality of business leader Include negatives and issues Spend some time on it

Sections of Business Plan Cover Page: contact name and info Table of contents Executive summary The company: past, present and future The market The Product/service

Sections of Business Plan - continued Sales and Promotion Financial projections Profit and loss Balance sheet Cash flow

Other sections: technology based Management team: people who fund other people value management skills above “ideas” Risk factors: shows that you know what could go wrong and plan to avert it Marketing plan: if this is “innovative” how are you going to get people to use it

Packaging the Plan It is a ”living” document No right/wrong way: the need of reader is essential What are the challenges/ questions that can be raised by reader: answer these.

Packaging the Plan Include supporting materials Don’t make unsupported statements Designate an outside reviewer/ reader that can critique plan

Sites with sample plans www.businessplans.org/businessplans.html www.bplans.com/sp/businessplans.cfm www.businessplanarchive.org/