Business Plan Preparation Frank Moyes Leeds School of Business University of Colorado Boulder, Colorado Framework for the Business Plan

Framework for the Business Plan Today’s Agenda Decide on concepts & select teams Framework for writing a business plan Writing a Successful Business Plan from my website Importance of validation Team meetings Hand in F2F-R Step 1 Gut Check Framework for the Business Plan

Framework for the Business Plan Next Week MARKET & INDUSTRY ANALYSIS Opportunity/Need Segmentation Financial COMP’s Model Company COMPETITIVE ADVANTAGE Hand-in Interview list F2F-R Step 2 Reality Test I Critique Nut Check Business Plan (download from website) Framework for the Business Plan

Business Plan Elements Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Length 20 pages Framework for the Business Plan

Business Plan Elements Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Last to be written Length 20 pages Framework for the Business Plan

Business Plan Elements Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Strategy Features and Benefits Length 20 pages Framework for the Business Plan

Business Plan Elements Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Segmentation Size and Trends Competition Length 20 pages Framework for the Business Plan

Business Plan Elements Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Customer Research Target Customer Positioning Pricing Advertising & Promotion Distribution Sales Length 20 pages Framework for the Business Plan

Business Plan Elements Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Scope of Operations On-going Operations Length 20 pages Framework for the Business Plan

Business Plan Elements Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Key Milestones Length 20 pages Framework for the Business Plan

Business Plan Elements Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Organization Team Length 20 pages Framework for the Business Plan

Business Plan Elements Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Length 20 pages Sustainable Framework for the Business Plan

Business Plan Elements Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation Length 20 pages Income Statement Balance Sheet Cash Flow Risks Framework for the Business Plan

Business Plan Elements Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding & Valuation Length 20 pages Valuation of Business Request for Funding Framework for the Business Plan

Objectives of Market Research Validation of your venture There is good market You can compete Evidence that customer Needs the product/service Will buy it Framework for the Business Plan

Primary: Face to Face Research Step 1: Gut Check - Determine concept potential Step 2: Reality Test I - Get preliminary feedback on your concept from experts Step 3: Sniff Test - Determine target customer interest Step 4: Reality Test II - Get feedback on the entire business venture from experts Step 5: Customer Surveys – Develop an in-depth understanding of your target customer Framework for the Business Plan

Framework for the Business Plan Secondary Research Market is Big enough & growing Positive trends You can enter Understand competition Competitive environment favorable to new entries Feasibility & Mullins Framework for the Business Plan

Market Research - Conclusion Validation Evidence Framework for the Business Plan

Framework for the Business Plan Team Dynamics All team members must meet at least once per week to review progress and create plan Set time and place for weekly meeting Assign responsibility for assignments Set completion dates Framework for the Business Plan

Process When One Team Member Not Pulling Weight Team meets for frank discussion of what is the problem & decides how to resolve it Team brings problem to Instructor who will make suggestions on how to resolve Instructor meets with entire team to try to resolve Instructor meets with team member who is the cause of the problem and tries to resolve Team fires team member Framework for the Business Plan

Business Plan Critique How good a job have they done in addressing the next two slides? Framework for the Business Plan

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

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