1 Business Plan Preparation: Introduction Business Plan Preparation Introduction Frank Moyes Leeds School of Business University of Colorado Boulder, Colorado

2 Business Plan Preparation: Introduction Tonight’s Agenda  Introductions  Course organization & syllabus  Writing a business plan  Discuss your ideas

3 Business Plan Preparation: Introduction Communications  Frank Moyes   Office Hours: Fleming 115(165)  Wednesday 3:00 to 5:30pm  Thursday 4:00 to 6:00pm  And by appointment  Website

4 Business Plan Preparation: Introduction Materials  Lawrence and Moyes, “Writing a Successful Business Plan”, 2006  Moyes and Lawrence, “Financial Spreadsheets for the Business Plan”

5 Business Plan Preparation: Introduction Objectives of the Course  Understand what is a business plan & when to write one  Write a plan for viable business  Experience the process

6 Business Plan Preparation: Introduction Course Structure  Weeks 1 & 2: Evaluate opportunities  Week 3: Select concept & team  Weeks 4 & 5: Market & Industry Analysis  Week 6 to 13: Lecture on a Plan section  Weeks 9 to 14: Hand-in and present sections of the business plan for feedback  Week 15: Present business plan & hand in

7 Business Plan Preparation: Introduction Class Structure  Instructor to describe a section of the business plan  Slides posted on eCollege after lecture  In the Fire sessions – weeks 5 to 14  Begin Week 4

8 Business Plan Preparation: Introduction Grading  Individual  Resume  Concept  Participation  Peer evaluation  Team Assignments  In the Fire sessions  Written assignments  Final Business Plan & Presentation

9 Business Plan Preparation: Introduction Business Plan Elements  Executive Summary  Company Overview  Product/Service Description  Market & Industry Analysis  Marketing Plan  Operations Plan  Development Plan  Management  Competitive Advantage  Financial Plan  Funding

11 Business Plan Preparation: Introduction 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 to attract investors, vendors, customers, partners, employees “If we don’t have a plan for ourselves, we will be part of someone else’s.” Joan Lunden

12 Business Plan Preparation: Introduction A Good Business Plan  Living document  Creates excitement  Tells a story  Compelling description of the vision & strategy  Not a substitute for action "You can't overestimate the need to plan and prepare. In most of the mistakes I've made, there has been this common theme of inadequate planning beforehand. You really can't over- prepare in business!“ Chris Corrigan

13 Business Plan Preparation: Introduction 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

14 Business Plan Preparation: Introduction “Writing a business plan is a life changing event.” is a life changing event.”

15 Business Plan Preparation: Introduction Discuss Ideas

16 Business Plan Preparation: Introduction “From Student to Entrepreneur” Approach to Generate Ideas  Doing what you love  What bugs you  Use your experience  Recycle business concept  Steps, pain points & solutions  Developed by Neal Lurie, MBA 2004

17 Business Plan Preparation: Introduction Concept & Team Selection Process  Conduct Idea Exercise (download from website) ( faculty.colorado.edu/moyes/html/resourses/Idea%20Ex ercise.pdf) faculty.colorado.edu/moyes/html/resourses/Idea%20Ex ercise.pdfhttp://leeds- faculty.colorado.edu/moyes/html/resourses/Idea%20Ex ercise.pdf  resume to instructor before Sept 6 as Word attachment (must have your name & Resume on file name)  Discuss your concept in class Sept 6 (use Concept Summary as a framework for explaining your concept)

18 Business Plan Preparation: Introduction Concept & Team Selection Process (continued)  Concept Summary as a Word attachment to instructor by 1:00pm on Sept 8 (Friday) (must have your name & Concept name in file name)  Instructor to all students which concepts with the greatest potential that have been selected on Sept 11 (Monday)  Students whose idea are selected will form a teams of 4 on Sept 13 in class

19 Business Plan Preparation: Introduction Concept Description  Brief description  Why is there an opportunity/need?  What is the product/service? How will it be produced or delivered?  Who is the target market?  What are the unique benefits?  Who is the competition? What advantages do you have over the competition?  Profitability  Revenue model  Contribution margins

20 Business Plan Preparation: Introduction Assignments for Next Week  Resume: to instructor  Review ESBM 3700 materials on Opportunity Recognition  Identify an opportunity to discuss in class