PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 1 This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs License. To view a copy of this license, visit Workshop for training potential and new entrepreneurs in Bulgaria Rita Bonucchi

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 2 Origami Consulting

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 3 Axelle Brown-Videau Linkedin

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 4 GetSolution

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 5 Biscotteria Bettina

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 6 The Business Idea Is it a dream? How to work on ideas with entrepreneurs

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 7 Micro ideas for Micro business?  What is more important, the person or the idea?  Coherence between person and idea  People make the difference

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 8 Micro ideas for Micro business?  The risk of failure  What happen if there are no ideas or too many ideas?  How to analyze and evaluate the business idea

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 9 What means planning?  Planning does not mean to see the future  Planning definition: to allocate resources by objective

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 10 Business plan  What is a business plan  How you write it  What is it for  Specifications for international BP

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 11 What is a Business Plan?  A document written for fund raising  A document written for myself  A description of the plans for a business  The “road map to success”  All the above….

PROJECT MANAGEMENT CYCLE PHASE 1: PROJECT DIMENSION PHASE 2: PROJECT PLANNING FASE 3: PROJECT REALIZATION PHASE 4: PROJECT EVALUATION

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 13 Planning in enterprise creation  Information  (useful to take) Decisions  (to transform in) Action  (do not forget) Controlling

ANALYSIS Who we are B. idea research INFORMATION PLANNING Marketing Ecofin Organization Technical plans DECISIONS PROGRAMMING Who does What When With what resources ACTIONS CONTROLLING

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 15 How to build the business plan  Who we are  Mission + Vision + Business idea  Research  Marketing plan  Economic and financial forecast  Technical plans  Organization  Detailed programs (who does, what does, when, with what resources)

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 16 The What, Why and How of Writing a Business Plan  That First Lasting Impression ◦ A Business Plan is often the first contact entrepreneurs have with a funding source. ◦ Funding sources, e.g., VCs, “angels”, bankers, all review Business Plans.  A powerful, first class Business Plan leads to a meeting with a funding source.

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 17 A Business Plan Describes…  The business - What business are we in?  The markets - Where is the opportunity?  Industry forces - What are the competitive threats? What’s our competitive edge?  Who is the team to implement the Plan?  What resources are available for success?  How much capital is required?  How much risk is to be taken?

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 18 Sections to a Business Plan: general USA model  Executive Summary  Product or Service  Markets and Customers  Competitor/Industry Analysis  Company-Management-Operations  Financials  Appendices

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 19 Executive Summary Describes the Principal Determinants for Success Present an overview of the niche markets your product serves, show how you will market your product, compare your product to competitive products, show revenue/profit/cash flow. Present the amount and types of funds needed and what is the financial return to the investor or partner for funds/partnering. Present a concise Summary of the key points from each Section of the Business Plan.

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 20 Appendices Purpose: to support information presented in the Business Plan Full Financial Statements Management Resumes Photos/drawings of product, brochures Competitive Analyses Industry Comparables for Investors’ Exit: Show how others have made $$$$$ whose performance is similar to your business model

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 21 What Resources are Available?  Text books on “how to”, BPlan “kits”  Consultants to write it… buyer beware!  Small Business Administration (sba.gov)  Incubators

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 22 BUSINESS PLAN BASICS: an overview Technology Intellectual Property Market Analysis Competitive Analysis Sales and Distribution Team Financial Projections Detailed Support/Foundation Full Business Plan PowerPoint Presentation Executive Summary Elevator Speech Mission Statement

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 23 BUSINESS PLAN BASICS: The need to Understand My Business  The Business Plan is a result of a PLANNING PROCESS  Who are your customers?  Why will the buy your service or product?  What will they pay?  How will you make and deliver the service/product  What resources (people, money, technology) will you need?  Can you make money/create value? Why Write a Business Plan?

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 24 BUSINESS PLAN BASICS: What Should Be In A Business Plan? ◦ The Plan is a SELLING DOCUMENT  Don't lose sight of the vision  The excitement must come through  The Plan should project your image ◦ BUT: The Plan Must Be Defensible

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 25 BUSINESS PLAN BASICS: What should be in a Business Plan? ◦ Executive Summary ◦ The Opportunity and the Company and its Services/Products ◦ Market Research/Analysis ◦ Economics of the Business ◦ Marketing Plan ◦ Design and Development Plan ◦ Manufacturing and Operations Plan ◦ Management Team ◦ Schedule ◦ Critical Risks, Problems and Assumptions ◦ The Financial Plan ◦ Appendices

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 26 BUSINESS PLAN BASICS: What should be in a Business Plan? ◦ Cover Page  Name of Company  Address  Telephone/fax/  Confidentiality legend  Securities law legend  Control numbering of copies ◦ Table of Contents  Put one in  Include page numbers

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 27 BUSINESS PLAN BASICS: What should be in a Business Plan? ◦ Executive Summary  An Executive Summary is  NOT an abstract of the plan  NOT an introduction  NOT a preface  NOT a random collection of highlights  An Executive Summary IS the Business Plan in miniature

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 28 Assuring coherence between the Business Idea, opportunity/environmental restriction and personal characteristics  How to assess the entrepreneur  How to analyze and evaluate the business idea

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 29 Introduction to business analysis: identifying and getting to know the competition  Define the business  Analyze the competitors  Learn from competitors  Do we know enough about the competition?

How to project a research Information needed Already available in MIS To be provided through Business analysis Market research Field Desk Existing research reports Research performed by professionals “do-it- yourself” territories

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 31 Business analysis: the tools and the technique  Field work ◦ Direct monitoring of competition ◦ Monitoring the competition through their promotion strategy  Desk work ◦ Main sources of information

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 32 Competitor/Industry Analysis  Identify competitors (domestic and foreign), potential competitors and possible substitutes in your marketplace. How do their products compare? How profitable are these competitors?  What are the Societal and Industry trends affecting your product? Describe regulatory issues - federal, state, local, foreign. Show potential for growth within the industry.  What advantages/disadvantages do you have versus the competition: price, quality, features, maintenance and service. How can you develop or sustain a competitive edge?

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 33 Definition of the Key Success Factors of the Business  What have in common the success businesses?  What is absolutely necessary in order to survive in this specific business?

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 34 Business report outline Sector/industry definition Industry evolution Regulations Sector subjects, competitors list Intensity of competition “Game rules", entry barriers and key success factors Rating Bibliography and sources of information

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 35 Sources  Business reports  Degree papers, grey press  Technical publications  Business magazines  Economic press  Governative documents  Company documents  Directories  Vortals

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 36 Research through Internet  Finding information  Monitoring the competition and studying the industry  Identifying and download reports  Conducting real research programs on Internet (web surveys)

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 37 Market Research  Structure, Contents and Tools  Analyze information about potential client and trends in the market  How to get information and identify information sources

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 38 Market Research  Basic tools for a “do-it-yourself” research  How to draw a questionnaire  How to support the research

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 39 The “do-it-yourself” market research  The entrepreneurs generally need to adapt the data coming from the existing researches to their own territory and to the peculiarity of their business idea.

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 40 Value of the “do-it-yourself“ research  no precise statistic value  it has strong learning objectives  it means a great experience  it’s connected to the drawing up of a marketing plan  it’s the first step of creating the marketing information system

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 41 Phases of marketing research  to decide the research strategy according to the information needs and to check the information already collected through a field analysis  to identify the research tools (questionnaire)  to decide the sampling technique  to decide the recruitment technique  to set up the questionnaire  to test the questionnaire  to revise the questionnaire  to interview people using the questionnaire  to input and elaborate data

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 42 Tips for the questionnaire  prefer personal interviews  prefer closed questions  create closed questions through questionnaire test  use Likert scales  neutralise questions  follow a specific scheme for setting up the questionnaire

THE STARTING SITUATION OF AN ENTREPRENEUR WHO IS PREPARING TO WRITE DOWN A MARKETING PLAN WHAT DO MY CUSTOMERS WANT? WHICH NEEDS HAVE THEY GOT? HOW MUCH DO THEY PAY? (THEY ARE WILLING TO PAY, THEY ARE USED TO PAY FOR FULFILMENT OF NEEDS) WHERE DO THEY BUY? WHERE ARE THEY USED TO REFER TO? HOW DO THEY GET INFORMATION? WHAT AFFECTS THEIR DECISIONS? WHO? WHO SHALL I OFFER TO? WHO IS MY CUSTOMER?

Template for marketing plan WHAT I OFFER: MY PRODUCT POLICY IN EXCHANGE FOR WHAT:MY PRICE POLICY THROUGH WHICH CHANNELS: MY DISTRIBUTION POLICY THROUGH WHICH PROMOTION: MY PROMOTIONAL POLICY SEGMENTATION

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 45 Product or Service  Describe your product or service in sufficient detail for the audience to understand its function and differentiating characteristics.  Pinpoint the value to your customer.  Present current stage of development and your plans to exploit the product fully in the market.  Describe the Life Cycle of your product, i.e., is it new, mature, a commodity? Proprietary? Protected by patent or copyright?

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 46 Addressable Markets  Demonstrate the demand for your product: how many units can you sell at what price.  Support how you determined the above projections, e.g., market survey, current buying habits.  Define your markets – who will buy? e.g., individuals, businesses, government, overseas? Where are customers located?

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 47 Addressable Markets continue…  Describe how you will reach these customers, e.g., direct mail, ads, sales force, trade magazines; describe how long it will take from initial contact to completing a sale to getting revenue (sales cycle).  Present the methods you will use to deliver your product, i.e., distribution.  Describe how your customer will pay for the products. Will you finance?

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 48 What means operations?  A function or system that transforms inputs into outputs of greater value  Operations management: design, operation and improvement of productive system

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 49 Operation as a Transformation Process Input Material Machines Labour Management Capital Output Goods Services

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 50 Operations Planning  The Operations Plan describes the production management system  It describes what you produce and how you produce it  Avoid to disregard it: it helps to better specify timing, costs and also marketing

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 51 Operations Planning  This section should easier for a producer to develop.  If your one is a service company, you may make decisions about servuction (service production)

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 52 Operations Planning  In the operations section of a business plan, the business manager needs to adequately communicate that the business has a sound production management strategy.

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 53 Operations Planning  What are the critical operational procedures that make will make the business successful?  Do you know the critical operational functions that will determine your business’s success?  It is the critical function that you don’t identify that can kill your business.

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 54 Operations Planning  When starting a new enterprise, visit similar business’s to identify critical operational factors.  This is particularly important if you are starting a new or creative niche operation.

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 55 Operations Planning  To communicate the Operations plan, this section should discuss: ◦ The products produced ◦ The production system ◦ Resources available and needed ◦ The role of row materials ◦ Environmental issues ◦ Quantity produced ◦ Production schedule ◦ Quality control systems ◦ Permits and regulations

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 56 Operations vs marketing  Should I determine my marketing opportunities and produce to meet the marketing plan?  Or should I determine my competitive production capacity and develop markets for my products?

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 57 Operations Planning  The production plan may also address how the business will: ◦ Produce value-added products ◦ Specialize on a product or a few products ◦ Diversify the product line ◦ Transition to a new or niche products

PROJECT BG051PO C0001 Entrepreneurial Knowledge The project is implemented with the financial support of Operational Programme Human Resources Development co-financed by the European Social Fund of the European Union. 58. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs License. To view a copy of this license, visit Workshop for training potential and new entrepreneurs in Bulgaria Rita Bonucchi