1. Planning for success
By Peter Baskerville
3/11/2019

2. Typical design failures
Falling in love with an idea that is not your opportunity
Align your head with your heart. Test, analyze, learn. Uniquely qualified?
Designed too small
Not a sustainable business. No capacity.
Not designed to the laws of business success
Business is a law like gravity. Ignore its laws at your peril. Built to fly, Sales>all costs, cashflow, ROI.
Incomplete design – missing bits.
Must be comprehensive and cohesive.
3/11/2019

3. Love it, but it will never fly

4. Lots of effort, but no fly.

5. Spent plenty but ……

6. Working hard for wages Failure in business model.
Too expensive to sell – to costly to keep.
Need paid wages + 40% ROI

7. Failures in design Laboring Planing
Need your business plane = less drag and engine labouring = 30% more efficient

8. Failure - Take your pick
Poor execution – no experience
No viable market – bad location
Too much leverage – spend too much
Undercapitalised – working capital
No competitive advantage
Competing with leaders – unfavourable industries
Niche too small – wrong market
Founding team breakup – wrong partner
Poor pricing – maths don’t work
Planning Failure
3/11/2019

9. Why all the pre-planning?
Founders vision
Proof of concept
Launch
Company

10. Why all the pre-planning?
“We need to make changes to our business plans as early as possible while we can still afford to do so. It’s too ineffective and too costly once we launch.”
Founders vision
Proof of concept
Launch
Company

11. How to succeed?
Selling a solution matched perfectly to a clearly defined problem experienced by a financially sustainable market
Having a proven business model with appropriate resources executed by a capable team.
3/11/2019

12. Goal = Profitable business
Exceptional Customer Experience
Revenue
Sustain
Profitable
Proven Scalable Business Model
Secure Repeating Referring Customers
Uniquely qualified to Exploit
Risks
Costs
Leverage your unique advantages to develop a scalable business model, capable of delivering a growing and satisfied customer base.

13. Customer development process
SEARCH
EXECUTE
Vision
Business model
Discovery
Test
Minimum Viable Product
Validation
Build users
Marketing Plan
Creation
Valid model
Company management
Building
Overarching Goal – To turn a set of founding hypotheses (guesses) into a moneymaking venture.

14. Proof of Concept Affordable Loss Learning Zone Commitment Zone IMPACT
CHANCE
Insignificant
Minor
Moderate
Major
Catastrophic
Almost certain
Commercial Risk/return
Skilled Operators Only
Experts
Only
Avoid
Likely
Possible
No markets No learning
Unlikely
Rare
Affordable Loss
Learning Zone
Commitment Zone

15. Foundations of success
Have you found a problem that enough people want you to solve?
Does your solution (product) solve the problem in a compelling way?
Does
your value proposition match the expectations of the customer segment you plan to target?

16. Give Value!
Worthless
Priceless

17. Startup business planning
Convince you
Customer discovery, validation, creation and building
Business Model - exploit
Path – now to sustainability
Convince others
Your enthusiasm - belief
Your commitment – time/$
Your story
Words = Language of people
Numbers = Language of business
3/11/2019

18. Helicopter or magnifying glass?
Both views required for successful planning – move between the two
Need both overview and detailed views

19. 3 planning horizons Achievements Time
H3 – Fully developed opportunities
Achievements
H2 – Short Term Milestone
H1 – Now – Getting Traction
Time

20. Beer Coaster Plan

21. Initial Business Scan SYOB - 2016 Convenience Store CAFE
Personal Trainer
Affiliate marketing – Electronic Accessories