Business Plan Business Plan - Andreas Topp - EFREI 2010/2011

Situation : A small technology company would like to enter a new market. The CEO’s idea : Carry out a project to evaluate the entry into the (depends on the chosen topic) market. Your tasks : Develop a prototype of a registration system. Make up a business plan for a new subsidiary. Votre encadrement : 1 business plan tutor = Marketing Manager 1 technical tutor = Production Manager Business Plan - Andreas Topp - EFREI 2010/2011

The CEO’s idea Carry out a project to evaluate the entry into the (depends on the chosen topic) market. A few remarks: You are a 7-8 people R&D team working for your employer After a about a month of work a stop/go decision will be made The business plan does not analyse the R&D project, but the new company which is to be launched There are no constraints concerning the number of employees or the capital necessary to launch the new company (the model has to be realistic and viable) Business Plan - Andreas Topp - EFREI 2010/2011

The CEO’s idea Carry out a project to evaluate the entry into the (depends on the chosen topic) market. A few remarks: You should start with the market study and a draft of a product definition. The you starts the needs analysis, specifications, design, architecture, technology choice etc. The coherence between the business plan and the prototype is a key factor of succes in this projest! Business Plan - Andreas Topp - EFREI 2010/2011

The projects « Methodologie » & « Business Plan » Briefing MethodologieBriefing Business Plan Kick-off meeting Team meeting Team work Project beginning meeting Project reviewBusiness plan meeting Team work Project acceptance (prototype & business plan) Debriefing

Projet business plan – how to? Delivery and meetings Business plan In the corporate world a business plan is an extremely synthetic document of pages. The synthesis is based on a much more detailed document. You work is to establish this detailed document. The various chapters of the document are to be developed during the year – you will find instruction concerning the work order in this document. Business Plan - Andreas Topp - EFREI 2010/2011

Projet business plan – mode d’emploi Delivery and meetings Presentations The project beginning meeting, end of semester and project presentation start by a formal presentation. The agenda of the project reviews is to be fixed with your tutor – before each meeting, you will have to propose an agenda. Business Plan - Andreas Topp - EFREI 2010/2011

Projet business plan – mode d’emploi Delivery and meetings Business plan Specifications: Characters, margins, etc. according to professional standards Illustrations – charts, graphs, figures Cross-referencing Table of content, table of charts. Bibliography, references in the document Appendix Business Plan - Andreas Topp - EFREI 2010/2011

Projet business plan This document presents a table of content. It is based on a model established by Association Française des Investisseurs en Capital.. The order of information is optimized for the reader. The order in which you should deal with the different tasks is as follows: Semester 7 : Market study, product definition and business model Semestre 8 : Strategy and Finance Business Plan - Andreas Topp - EFREI 2010/2011

Executive summary Short summary of the business plan, 1 page maximum. Present key points of the project which enable the reader to understand the key points and to motivate him to learn more about it. To be written at the very end. Business Plan - Andreas Topp - EFREI 2010/2011

The offer  Description of the offer  General presentation of the offer (outline of: main product or service, target group, usage, specification of needs, sales strategy)  Product or service (fonctions, components, services)  Possible extensions, by-products, complementary services,etc.  Performance  Advantages / Inconveniences  Status and/or planning of product development  Planning of main steps

Business Plan - Andreas Topp - EFREI 2010/2011 The offer  Technology  Technologies used for development  Technologies necessary for users  Software architecture  Related technologies  Proprietorship of these technologies (patents, licences, trademarks, etc.)  Price  Pricing models and prices Except the section « price » all elements must be defined in V1.

Business Plan - Andreas Topp - EFREI 2010/2011 Market  Market environment  Profile of possible target groups  Geographic limits  Market volume  Reglementation ( market access, security, etc. )  Value chain  Customers  Analysis and segmentation of possible target groups  Choice of target group(s)  Needs, preferences, behavior and means of target group(s)  Value-added for target groups

Business Plan - Andreas Topp - EFREI 2010/2011 Market  Competition  Existing and potential competitors  Positionning of companies  Positionning of products and services  Differentiation of products and services  Indirect competition (substitutes) There should be a short description of all these elements in V1. Do not include too many details and figures at that state. The market study will be time-consuming (and it might change your business model,…and therefore the specifications of your prototype,…)

Business Plan - Andreas Topp - EFREI 2010/2011 Objectives  Schedule  Schedule of market entry  Schedule of investments  Market share & turnover  Market share objectives (short – mid – long term)  Turnover development forecast  Profitability  Break-even-point (sales, time)  Profit forecast It is impossible to work on this chapter at the beginning of the project. It is part of the final version. The schedules should include the develoment from the prototype to a sellable version 1.

Business Plan - Andreas Topp - EFREI 2010/2011 Corporate strategy  Production & distribution  Production cost  Definition of distribution channels (sales regions)  Distribution cost  Marketing plan  Company, (brand) and product name  Communication strategy (style, type, media, events, regions, etc.)  Communication cost  Sales management  After-sales-management

Business Plan - Andreas Topp - EFREI 2010/2011 Corporate strategy  Human ressources  Needs at launch  Evolution of needs +2 years  Installations and equipment  Real estate  Equipment (machines, furniture, material, software, etc.) There should be a short description of all these elements in V1. Do not include too many details and figures at this state. This study will be time-consuming.

Business Plan - Andreas Topp - EFREI 2010/2011 Team & Planning of the Business Plan  Presentation of the team  Profiles, Responsability, Tasks  Project Planning  Time  Cost  Critical path, optimisation, etc. This part has to be complete in V1.

Business Plan - Andreas Topp - EFREI 2010/2011 Legal aspects  Protection of industrial property  Patents  Licences  Trademarks  other To be dealt with after the “ Droit de la société de l’information - Information Society Law” class.

Business Plan - Andreas Topp - EFREI 2010/2011 Finance  Financial needs  Detailled budget  Cost analysis( HR, Marketing, etc.)  Fonds de roulement  Documents financiers  Tableaux des financements prévisionnels  Comptes résultats prévisionnels 1 an/3 ans  Identification du coût fixe  Identification du coût variable  Identification du coût de revient du produit  Plan de trésorerie

Business Plan - Andreas Topp - EFREI 2010/2011 Finances  Installations et équipements  Besoins immobiliers  Besoins d’équipements (machines, mobiliers, matériel, logiciels, etc.) Dans la V1 une courte description de tous ces éléments vous est demandée. Ne donnez pas trop de détails ni trop de chiffres. L’étude approfondie prend beaucoup de temps ( attention à votre planning ) et fait partie de la VF.

Business Plan - Andreas Topp - EFREI 2010/2011 Reminder  Objectives semester 7  Complete market study  Product definition and business model complete  Product specification  Prototype with main functionnalities  Objectives semester 8  Strategic development plan complete  Financial analysis of the first three years  Complete prototype

Questions ? Business Plan - Andreas Topp - EFREI 2010/2011