1. Entrepreneurship Canadian Edition William D
Entrepreneurship Canadian Edition William D. Bygrave, Andrew Zacharakis, Sean Wise

2. THE BUSINESS PLANNING PROCESS
Chapter 8

3. Learning Objectives The Planning Process
Learning Objective 8.1 Describe the business planning process.
The Story Model
Learning Objective 8.2 Explain what is a story model.
The Business Plan
Learning Objective 8.3 Describe each section of a business plan.
Types of Plans
Learning Objective 8.4 Describe the different types of business plans.
Style Pointers for the Written Plan and Oral Presentation
Learning Objective 8.5 Describe how to do a written or oral business plan presentation.

4. Today’s Key Concepts
Business Plan
The Planning Process
Back of the Napkin Diagram (BoND)
KPIs
UVP
Defensible Competitive Advantage
Elevator Pitching

5. You Need a Business Plan
It is a small investment in time and cost when compared to the time and cost of starting a business.
It forces the entrepreneur to think critically about all aspects of the business venture.
It can later be used as a benchmark to monitor the progress of the business.
***new slide***
“Plans are nothing, but planning is everything” GEN Dwight D. Eisenhower

6. Wait! No One Reads a Business Plan
Many established ventures use business model canvas instead of a business plan. Many startups use a lean startup canvas not a business plan
So why write one?
Helps stakeholders align.
It forces the entrepreneur to think critically about all aspects of the business venture.
It can later be used as a benchmark to monitor the progress of the business.
Not the paper, but the ideas that matter.
***new slide***
“No plan survives first contact with customer” Steve Blank

7. Business Planning Is a Continuous Process
Start business planning when starting to think about a new venture
Organize information into topic areas
Focus on critical aspects of the business model and follow basic/common plan formats
Keep in mind—the business plan is a “living document.” It will continue to evolve as you progress.

8. Your Plan Should Flow Like a Story
How will stakeholders interpret your plan?
A tagline creates a unifying plot line that organizes your thinking
Keep your plan as close to the “general format” as possible

9. What Do Readers Want To Know?
What is your primary reason for starting a business?
What are some personal objectives you have for the business?
Is the Industry growing or declining? How do you know and where will the industry be in 5 years?
What are the past, present and future industry rends?
Have you anticipated technological changes? How will technology affect the business?
In geographic terms, how large is the market area you intend to serve with your product or services?

10. What Do Readers Want To Know? (continued)
What percentage of the market share do you hope to obtain in each of the first three years? How are you going to capture it?
Who are you major potential business customers? Where are they located? How often will they buy your product or service?
Do you know the strength and weaknesses or advantages and disadvantages of your competition?
What will be the image if your business?
How much will it cost you to acquire one customer? How much profit will you make from that one customer? How long will that customer remain a customer?

11. What Do Investors Really Want To Know?
The 9 parts of the Business Model Canvas
The milestones you have hit so far
What you will do with the money, what KPIs will be hit, by when?
Why you? your team?
What is the UVP?
What is the defensible competitive advantage?
Who else is committed?
What stage is the business at? MVP? Product/Market Fit

12. The 7 Ps
People –Who are the people behind the venture? Can they successfully build a company?
Pain – The bigger the “pain” the company is solving, the better
Product – Is the product or service 10 times better, 10 times faster, 10 times cheaper.
Placement (industry) – Is the cumulative annual growth rate (CAGR) of the industry > 25%
Go to market Plan – Is the plan reasonable, not right
Pitch – Is the pitch clear, confident and concise
Proposal – Is the reward worth the risk

13. Business Plans May Be Judged By Their Covers … Have a Good One
The Cover
Design an eye-catching front page
State company name and your contact information
Include the date
Control distribution

14. Summarize Your Business Plan With an Executive Summary
Write Executive Summary last
Hook the reader
Provide compelling information on:
Description of Opportunity
Competitive Advantage
Business Concept
Business Model and Economics
Industry Overview
Team and Offering
Target Market

15. Your Plan Should Cover Eight Main Areas
Executive Summary
Critical Risks
Company/ Product Description
Operations
Marketing Plan
Team
Development Plan
Industry/ Competitor Analysis
Financial Plan
Appendix

16. Start With Your Business Model Canvas

17. Then From a Table Of Contents

18. You’ll Need Three Types Of Business Plans
Operational Plan
for internal use
80+ pages
Formal Plan
for external use
25 to 40 pages
Expanded Executive Summary
for enticing interested stakeholders
3 to 5 pages

19. Other Tools: The Elevator Pitch
Elevator Pitch = Customer Pain + Startup Solution
Must be:
Irrefutable – the pain statement should not be subjective
Greed Inducing – should illustrate how an investor can make money
Easily Understandable - simple enough that both an investor and your grandmother can understand
Succinct – short enough to be said in 3 to 4 sentences or 1 to 2 minutes

20. Elevator Pitch Samples
eBay: One person’s trash is another’s treasure. Our online global garage sale brings together buyers and sellers from around the world through our proprietary trust-based platform.
Wikipedia: Not everyone can afford US$1000+ to access information. Our online platform offers encyclopedic knowledge, available on demand, in the cloud, 24/7 and free. We are 100 x larger than the Encyclopedia Britannica and growing exponentially. Our content is updated by thousands of editors daily. We are the world’s largest repository of human knowledge.

21. Others Tools: BoNDs
Source: Janvier, Magali (2010, July 30). Our Story. Retrieved April 14, 2014, from Wajam Blog,

22. Today’s Case

23. Case: P′kolino
Does the business plan tell a coherent and compelling story?
Does the plan capture all of the learning that Antonio and J.B. have accumulated?
What three questions do you think Antonio and J.B. need to answer through further planning before they launch the venture?
What are the three strongest aspects of the plan?
What areas need improvement?

24. Recap
Business planning allows the entrepreneur to better anticipate instead of react
Entrepreneurs can get feedback from experts, including investors, vendors and customers
A Business Plan:
Help stakeholders align.
Force the entrepreneur to think critically about all aspects of the business venture.
Can later be used as a benchmark to monitor the progress of the business.
It’s not the paper, but the ideas that matter.

25. COPYRIGHT
Copyright © 2015 John Wiley & Sons Canada, Ltd. All rights reserved. Reproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd. The purchaser may make back-up copies for his or her own use only and not for distribution or resale. The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein.