Business Plan Preparation Frank Moyes Leeds School of Business University of Colorado Boulder, Colorado 1 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 2 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 Net Check Business Plan (download from website) 3 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 4 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 5 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 6 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 7 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 8 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 9 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 10 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 11 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 Sustainable 12 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 Income Statement Balance Sheet Cash Flow Risks 13 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 Valuation of Business Request for Funding 14 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 15

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 16 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 17

Market Research - Conclusion Validation Evidence Framework for the Business Plan 18

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 19

Process When One Team Member Not Pulling Weight 1. Team meets for frank discussion of what is the problem & decides how to resolve it 2. Team brings problem to Instructor who will make suggestions on how to resolve 3. Instructor meets with entire team to try to resolve 4. Instructor meets with team member who is the cause of the problem and tries to resolve 5. Team fires team member Framework for the Business Plan 20

Business Plan Critique How good a job have they done in addressing the next two slides? Framework for the Business Plan 21

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 22

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 23