1. BA 346 Working as an Entrepreneur Week 3

2. Agenda  Step 2 – Develop a Plan What & why? Plan backwards What is most important? Preliminary business plans Case study Workshop

3. What is a business plan?  A document?  A course of action?  A tool for communication?

4. A Little Clarification  The term “business plan” is used in two ways  The “business plan” is a proposed course of action, a scheme for how to move forward and what to do in certain circumstances. Helps organize and formalize one’s thoughts about a business project.  The “business plan” is also a document, and many people attach an almost religious faith to having a Plan (usually with a pre-specified number of pages). Gives an air of professionality  Which increases the odds of success?

5. Why do you need a business plan?  Shows serious intent  Clarifies milestones  Analyzes competition  Analyzes customers  Makes assumptions clear  Explores viability  Documents the revenue model  Determines financial needs  Attracts investors  Reduces chance of pursuing wrong opportunity  Solidifies market knowledge  Attracts employees and management  Prioritizes efforts  Attracts partners  Defines brand and positioning  Provides measurement of success  Improves ability to adapt to changing conditions  Documents marketing plan  Understand and forecast staffing needs  Uncover new opportunities

6. Why do you need a business plan?  In a word: Communication  The story of your firm, told to different audiences in different ways Vision Statement Mission Statement Elevator Pitch Executive Summary Full Plan Operating Plan Growth Plan  Who might be interested in each of these?

7. What is in a Full Business Plan?  Product  Market  Competition  Marketing strategy  Organization  Key personnel and service providers  Location  Risk analysis  Financials  Exhibits

8. A Dose of Reality  Your plan will change Special circumstances such as  Technology changes  New markets  Competitor changes  Government involvement Expected possibilities  Key personnel change  Funding sources need to change  A business plan is a strategic document

9. Plan backwards  Accounting to Marketing Why? Limitations? Accounting Operations Sales Advertising Finance Marketing

10. Focus  One main idea or one main product Prioritize Fewer distractions Saves resources  Build a roadmap for what to do Action oriented Milestones

11. What is most important?  Planning or execution?  Who’s on the team? How will you find the right people?  The opportunity If this is such a great idea, who else is doing it?  The uncertainty What is likely? What is reasonably possible? What will you do?

12. Preliminary business plans  Can you encapsulate your idea on one or two pages?  Business summary outline

13. Business Model  Where do you fit?  How do you make money? (revenue & profit)  What is unique about you (and does uniqueness matter)?  Why do your customers buy?  Where are you going with all this?

14. Current Status & History  What’s going on right now?  What are you, and who owns you?  How far have you gotten?  Where have you been?

15. Leadership  Who’s on board, and why are they the right people? Managers Other key people Board Advisors

16. Competition  Direct vs Indirect  How do you analyze competitors? SWOT VRIO  What is the “unfair advantage?”

17. SWOT Analysis  Internal vs External  Us vs Them

18. VRIO Analysis  Value: "Is the firm able to exploit an opportunity or neutralize an external threat with the resource/capability?"  Rarity: "Is control of the resource/capability in the hands of a relative few?"  Imitability: "Is it difficult to imitate, and will there be significant cost disadvantage to a firm trying to obtain, develop, or duplicate the resource/capability?"  Organization: "Is the firm organized, ready, and able to exploit the resource/capability?"

19.  Resource for entrepreneurs “How do I…” Equipment People  More Info - http://techshop.ws/http://techshop.ws/ Business Profile - TechShop

20.  Resource for entrepreneurs “How do I…” Equipment People  More Info - http://techshop.ws/http://techshop.ws/ Business Profile - TechShop

21.  Resource for entrepreneurs “How do I…” Equipment People  More Info - http://techshop.ws/http://techshop.ws/ Business Profile - TechShop

22.  Resource for entrepreneurs “How do I…” Equipment People  More Info - http://techshop.ws/http://techshop.ws/ Business Profile - TechShop

23.  Resource for entrepreneurs “How do I…” Equipment People  More Info - http://techshop.ws/http://techshop.ws/ Business Profile - TechShop

24.  Resource for entrepreneurs “How do I…” Equipment People  More Info - http://techshop.ws/http://techshop.ws/ Business Profile - TechShop

25.  Resource for entrepreneurs “How do I…” Equipment People  More Info - http://techshop.ws/http://techshop.ws/ Business Profile - TechShop

26.  Resource for entrepreneurs “How do I…” Equipment People  More Info - http://techshop.ws/http://techshop.ws/ Business Profile - TechShop

27.  Resource for entrepreneurs “How do I…” Equipment People  More Info - http://techshop.ws/http://techshop.ws/ Business Profile - TechShop

28.  Resource for entrepreneurs “How do I…” Equipment People  More Info - http://techshop.ws/http://techshop.ws/ Business Profile - TechShop

31. Workshop