BA 346 Working as an Entrepreneur Week 3
Agenda Step 2 – Develop a Plan What & why? Plan backwards What is most important? Preliminary business plans Case study Workshop
What is a business plan? A document? A course of action? A tool for communication?
A Little Clarification The term “business plan” is used in two ways The “business plan” is a proposed course of action, a scheme for how to move forward and what to do in certain circumstances. Helps organize and formalize one’s thoughts about a business project. The “business plan” is also a document, and many people attach an almost religious faith to having a Plan (usually with a pre-specified number of pages). Gives an air of professionality Which increases the odds of success?
Why do you need a business plan? Shows serious intent Clarifies milestones Analyzes competition Analyzes customers Makes assumptions clear Explores viability Documents the revenue model Determines financial needs Attracts investors Reduces chance of pursuing wrong opportunity Solidifies market knowledge Attracts employees and management Prioritizes efforts Attracts partners Defines brand and positioning Provides measurement of success Improves ability to adapt to changing conditions Documents marketing plan Understand and forecast staffing needs Uncover new opportunities
Why do you need a business plan? In a word: Communication The story of your firm, told to different audiences in different ways Vision Statement Mission Statement Elevator Pitch Executive Summary Full Plan Operating Plan Growth Plan Who might be interested in each of these?
What is in a Full Business Plan? Product Market Competition Marketing strategy Organization Key personnel and service providers Location Risk analysis Financials Exhibits
A Dose of Reality Your plan will change Special circumstances such as Technology changes New markets Competitor changes Government involvement Expected possibilities Key personnel change Funding sources need to change A business plan is a strategic document
Plan backwards Accounting to Marketing Why? Limitations? Accounting Operations Sales Advertising Finance Marketing
Focus One main idea or one main product Prioritize Fewer distractions Saves resources Build a roadmap for what to do Action oriented Milestones
What is most important? Planning or execution? Who’s on the team? How will you find the right people? The opportunity If this is such a great idea, who else is doing it? The uncertainty What is likely? What is reasonably possible? What will you do?
Preliminary business plans Can you encapsulate your idea on one or two pages? Business summary outline
Business Model Where do you fit? How do you make money? (revenue & profit) What is unique about you (and does uniqueness matter)? Why do your customers buy? Where are you going with all this?
Current Status & History What’s going on right now? What are you, and who owns you? How far have you gotten? Where have you been?
Leadership Who’s on board, and why are they the right people? Managers Other key people Board Advisors
Competition Direct vs Indirect How do you analyze competitors? SWOT VRIO What is the “unfair advantage?”
SWOT Analysis Internal vs External Us vs Them
VRIO Analysis Value: "Is the firm able to exploit an opportunity or neutralize an external threat with the resource/capability?" Rarity: "Is control of the resource/capability in the hands of a relative few?" Imitability: "Is it difficult to imitate, and will there be significant cost disadvantage to a firm trying to obtain, develop, or duplicate the resource/capability?" Organization: "Is the firm organized, ready, and able to exploit the resource/capability?"
Resource for entrepreneurs “How do I…” Equipment People More Info - Business Profile - TechShop
Resource for entrepreneurs “How do I…” Equipment People More Info - Business Profile - TechShop
Resource for entrepreneurs “How do I…” Equipment People More Info - Business Profile - TechShop
Resource for entrepreneurs “How do I…” Equipment People More Info - Business Profile - TechShop
Resource for entrepreneurs “How do I…” Equipment People More Info - Business Profile - TechShop
Resource for entrepreneurs “How do I…” Equipment People More Info - Business Profile - TechShop
Resource for entrepreneurs “How do I…” Equipment People More Info - Business Profile - TechShop
Resource for entrepreneurs “How do I…” Equipment People More Info - Business Profile - TechShop
Resource for entrepreneurs “How do I…” Equipment People More Info - Business Profile - TechShop
Resource for entrepreneurs “How do I…” Equipment People More Info - Business Profile - TechShop
Workshop