1. BUSINESS PLAN (BP) WORKSHOP
Sharif University of Technology
Graduate School of Management & Economics
BUSINESS PLAN (BP) WORKSHOP
Dr. S. Alireza Feyzbakhsh

2. Overview: Introduction One-Page Business Plan Full Scale Business Plan
Other Suggestions and Comments

3. Introduction What is a Business Plan? Why a BP? Who reads the plan?
Benefits of a BP?

4. One-Page Business Plan:
Uses of the One Page BP
Why the One Page BP works
Main Ideas of One Page BP
The Vision Statement
The Mission Statement
The Objectives
The Strategies
The Plans
Conclusion

5. Full Scale Business Plan
Writing a Business plan
Introductory page
Executive summery
Industry analysis
Description of venture
Production plan
Marketing plan
Organizational plan
Assessment of risk
Financial plan
Appendix
The Elements Of A Business Plan (other two versions)

6. Other Suggestions and Comments
Ten planning pitfalls.
What factors do loan officers look for?
Who reads the plan?
Putting package together.
Five Minute Reading.
Guidelines to Remember
Oral presentation of BP
Why some Business plans Fail

7. Overview: What is a Business Plan? Why a BP? Who reads the plan?
Benefits of a BP?
One Page BP
Parts of BP
Proper preparation benefits
Ten planning pitfalls
What factors do loan officers look for?
Developing a well – conceived BP
Oral presentation of BP
Why some BP’s Fail

8. Planning as a part of the business operation
Business plan:
Written document describing all relevant internal and external elements and strategies for starting a new venture

9. What is the business plan?
The BP, the game plan or road map-answers the questions, where am I now? Where am I going? How will I get there?
Potential investors, suppliers, and even customers will request or require a Bp.

10. Why a business plan? It’s more for you than anybody else
It allows you to organize your thoughts
It allows you to see what you are missing
It shows others that you have a rational organized process
It becomes a historical document to let you see what you were thinking at the time
It is a money raising document
It is a recruiting tool
It keeps you honest
It is a starting point for a tactical operating plan

11. Who reads the plan? It may be read by Investors Employees Bankers
Venture capitalist
Suppliers
Customers
Advisors
Consultants

12. Benefits of a business plan
Business plan help you avoid paying the high tuition
Entrepreneur should prepare his own business plan
For the entrepreneur
For the financial sources

13. FOR THE ENTREPRENEUR View the Venture Critically and Objectively
Close Scrutiny of Assumption
Examine Operating Strategies
Comparing Forecast With Actual Results
Communication Tool for Outside Financial Sources

14. FOR THE FINANCIAL SOURCES
Detail of the market potential and plans for securing share
Illustrate the venture’s ability to service debt
identifies critical risks and crucial events with a contingency plan
clear and concise document with necessary information and financial evaluation
assessing the entrepreneur’s ability in planning and managing

15. THE ONE PAGE BUSINESS PLAN
Start with a vision, build a company!
Dr S. Alireza Feyzbakhsh

16. THE ONE PAGE BUSINESS PLAN

18. Writing a Business plan

19. Writing a Business Plan?
Research, research, research
Honesty, honesty, honesty
Guts
Determination that if it does not hold together, change the model or kill the plan
Recognition that it is cheaper to kill a marginal idea than to try to make it work
Do your financial homework
Talk to your customers; Talk to your competitors
Realize you can never do enough work on your plan
Remember that it is a living document

20. Writing the BP Introductory page A. Name and address of business
B. Name(s) and address(es) of principles
C. Nature of BIZ
D. Statement of financing needed
E. Statement of confidentially of report

21. Writing the BP Executive summery
Three to four pages summarizing the complete business plan

22. Writing the BP Industry analysis A. Future outlook and trends
B. Analysis of competitors
C. Market segmentation
D. Industry forecasts

23. Writing the BP Description of venture A. Product(s) B. Service(s)
C. Size of business
D. Office equipment and personnel
E. Background of entrepreneurs

24. Writing the BP Production plan A. Manufacturing process
B. Physical plant
C. Machinery and equipment
D. Names of suppliers of raw materials

25. Writing the BP Marketing plan A. Pricing B. Distribution C. Promotion
D. Product forecasts

26. Emphasize the market demonstrating user benefit
identifying marketplace interest
documenting market claims

27. Find out the market interest
Having heard our pitch, will you buy?
how can start-up biz gauge market reaction?
1th . Few customers use the prototype.
2th . Offer the product at price
discount.

28. Writing the BP Organizational plan A. Form of ownership
B. Identification of partners
C. Authority of principles
D. Management-team background
E. Roles and responsibilities of members of organization

29. Writing the BP Assessment of risk A. evaluate weakness of business
B. New technologies
C. Contingency plans

30. Writing the BP Financial plan A. Pro forma income statement
B. Cash flow projections
C. Pro forma balance sheet
D. Break-even analysis
E. Sources and applications of funds

31. Writing the BP Appendix A. Letters B. Market research data
C. Leases contracts
D. Price lists from suppliers

32. The Elements Of A Business Plan
Executive summary
Company history
Business profile
Business strategy
Product or service
Marketing strategy

33. Continued: Competitors analysis Resumes of officers or owners
Plan of operation
Financial data
Loan proposal
Implementation timetable

34. Executive summary last section written
The purpose of financial request
The dollar amount requested
The way the funds will be used
Plan to repay the loan
last section written

35. Company History For exiting small Business History of the operation
Financial and operational events

36. Business profile Nature General description of it’s operation
Influences by government regulation and legislation
Overall mission
Goals
Objectives (time frame)

37. Business Strategy How you can run your Business?
How you make your profits
The ways your industry and Business are likely to change in the immediate future
Anticipate the changes

38. Description of firm’s product or service
Their position in the product life cycle
applicable patents
manufactures
production process employed
strategic raw and materials required
source of supply used
Honest comparison with competitors

39. Marketing strategy How we are going to attract enough customers?
Showing marketplace interest
Documenting market claims
target market
market size and trends
pricing
advertising
distribution
warranties, guarantees and servicing

40. Competitor analysis Red Flag to lenders and investors sources of data:
trade associations
customers
industry journals
marketing representative
sales literature

41. Resume Individual education Work history Relevant Business experience
They are look for the
experience, talent, and integrity of the people who will breath life into the plan

42. Plan of operation Functional organizational chart
Key positions and the personnel occupying them
Employment contracts, share of ownership and perks
Form of ownership

43. Financial data The dollars and cents of the proposed deal
monthly projected financial statement
cash flow

44. Loan proposal Purpose of the loan the amount requested
plans for repayment

45. Implementation Timetable
Market
Money
Methodology
Management
Menaces

46. Business Plan The people The opportunity The external context The deal
Risk & Reward management
Financial projection

47. People:
How is the team that create the Business plan?

48. Opportunity: Buy low, sell high, collect early, and pay late.
Competition
Graphical analysis tools for assessing opportunity.

49. Competition :
A business plan must address the current competitors and potential competitors in a sensible way.

50. Graphic analysis: Simple cash flow diagram
Entails assigning probability of certain outcomes.

51. Context : Opportunity exist in a context
There is the macroeconomic environment, including the level of economic activity, inflation exchange rates, and interest rate and … .

52. Deal :
From whom you raise capital is often more important than the terms.

53. Risk Management :
You must assess the risks and find mechanisms to manage them.
DUE DILIGENCE

54. Financial projection :
Every business plan contains the following phase “ We conservatively project” but only about 1 in 20 plans are conservative.

55. ELEMENTS OF A BUSINESS PLAN
Summary
Business Description
Marketing Segment
Research, Design, And Development Segment
Location Segment
Management Segment
Financial Segment
Critical Risk Segment
Harvest Strategy Segment
Milestone Schedule Segment
Appendix And/or Bibliography Segment

56. Proper preparation benefits
Evaluation of the company chance in the market
Determination of the primary risk confronting the business
Game plan for successful management
Comparing actual results against targeted performance
Primary tool for attracting capital

57. The Business Plan
To guide the operation of a company by charting it’s future course and devising a strategy for following it.
To attract lenders and investors.
Ten planning pitfalls and how to avoid them

58. Ten planning pitfalls 1. Single-purpose use 2. One-person commitment
3. Benign neglect
4. Unworkable document
5. Unbalanced application

59. 8. No performance standard 9. Poor progress control
1. Single-purpose use
2. One-person commitment
3. Benign neglect
4. Unworkable document
5. Unbalanced application
6. Disillusionment
7. Too action-oriented
8. No performance standard
9. Poor progress control
10. Early consumption

60. A Plan Must Pass Three Tests
The Reality Test - proving that:
a market really does exist for your product or service.
you can actually build or provide it for the cost estimates in the plan.
The Competitive Test - evaluates:
a company’s position relative to its customers.
management’s ability to create a company that will gain an edge over its rivals.
The Value Test – proving that:
a venture offers investors or lenders an attractive rate of return or a high probability of repayment.

61. What factors do loan officers look for?
Capital
Capacity
Collateral
Character
Conditions
5 C's

62. Developing a Well-conceived Business Plan
Who reads the plan?
Putting package together
Five minute reading
Guidelines to remember

63. Who reads the plan? Three main viewpoints The entrepreneur’s
The marketability
The financial forecast

64. Putting package together
Appearance
Length
The Cover and Title Page
The Executive Summary
The Table of Contents

65. Five Minute Reading
Step 1: characteristic of the venture and it’s industry
Step 2: financial structure of the plan
Step 3: the latest balance sheet
Step 4: the quality of the entrepreneur in the venture
Step 5: the unique feature in this venture
Step 6: read the entire plan over lightly

67. Guidelines to Remember
Keep the plan respectably short
Organize and package the plan appropriately
Orient the plan toward the future
Avoid exaggeration
Highlight critical risks
Give evidence of an effective entrepreneurial team
Do not over diversify
Identify the target market
Keep the plan written in the third person
Capture the reader’s interest

68. Presenting the Plan
Demonstrate enthusiasm, but don’t be overemotional.
Know your audience thoroughly.
“Hook” investors quickly with an up-front explanation of the venture, its opportunities, and its benefits to them.
Hit the highlights; focus on the details later.
Keep your presentation simple – 2 or 3 major points.

69. Presenting the Plan
(continued)
Avoid overloading your audience with technological jargon.
Use visual aids.
Close by reinforcing the nature of the opportunity.
Be prepared (with details) for potential investors’ questions.
Follow up with every investor to whom you make your presentation.

70. Oral presentation of BP
Answer the fundamental questions as discussed in the preceding section on the body of the BP
Keep the presentation under a half hour
Be sure to catch the audience’s attention in the first 60 seconds
Stand without using a podium
Move around but don’t pace
Maintain eye contact with everyone

71. Oral presentation of BP
Use visual aids
Make sure the key members of the founding team are involved in the presentation
Do a demonstration of the product or service where possible
Practice the presentation in advance for a small group of friends
Anticipate questions that may be asked by founders and determine how they should be answered

72. Why some Business plans Fail
Goals set by the entrepreneur are unreasonable.
Goals are not measurable.
The entrepreneur has not made a total commitment to the business or to the family.
The entrepreneur has no experience in the planned business.
The entrepreneur has no sense of potential threats or weaknesses to the business.
No customers need was established for the purposed product or service.

73. Why some Business plans Fail
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