1. Business Plan Preparation Frank Moyes Leeds School of Business University of Colorado Boulder, Colorado 1 Framework for the Business Plan

2. Tonight’s Agenda Present concepts & select teams Review Writing a Successful Business Plan Research - i mportance of validation Team meetings 2 Framework for the Business Plan

3. Team Dynamics All team members must meet at least once per week to review progress and create plan Set time and place for weekly meeting Assign responsibility for assignments Set completion dates Framework for the Business Plan 3

4. Process When One Team Member Not Pulling Weight 1. Team meets for frank discussion of what is the problem & decides how to resolve it 2. Team brings problem to Instructor who will make suggestions on how to resolve 3. Instructor meets with entire team to try to resolve 4. Instructor meets with team member who is the cause of the problem and tries to resolve 5. Team fires team member Framework for the Business Plan 4

5. Market Research Primary Interviews - talk to people Customer surveys – talk to customers Secondary – research market & industry 5 Framework for the Business Plan

6. Interviews Each team member talk to 5 people Complete Call Reports (must be typed) Remember 2 questions must ask at the end What question haven’t I asked that I should? Who else should I talk to? 6 Framework for the Business Plan

7. Customer Surveys Do customers recognize that they need your product/service? Are features compelling? Criteria for buying decisions? Who influences the decision? How much will they pay? Why would they not buy? Do they understand the benefits? Framework for the Business Plan 7

8. Secondary Research Market is Big enough & growing Positive trends You can enter Understand competition Competitive environment favorable to new entries Framework for the Business Plan 8

9. Market Research - Conclusion Validation of your venture There is good market You can compete Evidence that customer Needs the product/service Will buy it Framework for the Business Plan 9

10. Business Plan Elements Executive Summary Product or Service Description Market & Industry Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation 10 Framework for the Business Plan

11. Business Plan Elements Executive Summary Last to be written 11 Framework for the Business Plan

12. Business Plan Elements Product/Service Description Features and Benefits 12 Framework for the Business Plan

13. Business Plan Elements Market & Industry Analysis Segments Size and Trends Competition 13 Framework for the Business Plan

14. Business Plan Elements Marketing Plan Target Customer Positioning Pricing Advertising & Promotion Distribution Sales 14 Framework for the Business Plan

15. Business Plan Elements Operations Plan Scope of Operations On-going Operations 15 Framework for the Business Plan

16. Business Plan Elements Development Plan Key Milestones 16 Framework for the Business Plan

17. Business Plan Elements Management Organization Team 17 Framework for the Business Plan

18. Business Plan Elements Competitive Advantage Sustainable 18 Framework for the Business Plan

19. Business Plan Elements Financial Projections Income Statement Balance Sheet Cash Flow Risks 19 Framework for the Business Plan

20. Business Plan Elements Offering, Funding & Valuation Valuation of Business Request for Funding 20 Framework for the Business Plan

21. Next Week MARKET & INDUSTRY ANALYSIS Opportunity/Need Segmentation Value Chain Financial COMP’s COMPETITIVE ADVANTAGE Hand-in Interview list – 20 names Gene Hayworth – Leeds School librarian No review of business plan examples 21 Framework for the Business Plan