1. CHAPTER 11 Crafting a Winning Business PLAN
MAN 470 – Berk TUNCALI

2. What is a Business Plan?
It is a written summary of an entrepreneur’s proposed
business venture, its operational and financial details, its
marketing opportunities and strategy, and its managers’
skills and abilities.

3. BUSINESS PLAN PRESENTATION
VIDEO
BUSINESS PLAN PRESENTATION

4. Never forget;
It is not about coming up with an idea. It is about those who take these ideas to the market, test them out and make profit.
It doesn’t matter who came up with the idea first, but it matters who first started a business with it.

5. Why design a Business Plan?
REALITY TEST
- Proving that the market for the product or service exist.
Focus on market size, potential customers
Is it different from the existing competiton?
Can the company build at the projected cost estimates?
- Does it offer value to customers?

6. COMPETITIVE TEST
Relative position according to key competitiors
How do the strengths and weaknesses match with competitors?
Do comparisons threaten the company’s success or survival?
Plan must prove quality, skill and experience of the management team

7. VALUE TEST
Convince lenders and investors that the business offers value and profitability.
Smoke and mirrors do not replace financial basics (Dot-com boom)
Venture must have long term strategic vision and practical focus on operations.
- Demonstrate knowledge;
supplies and cost of goods
Unit labour cost
Selling price and gross profit margins
Break even point

8. The Elements of a Business Plan
THE EXECUTIVE SUMMARY
MISSION STAMENT
COMPANY HISTORY
BUSINESS AND INDUSTRY PROFILE
BUSINESS STRATEGY
DESCRIPTION OF FIRM’S PRODUCT/SERVICE
MARKETING STRATEGY
COMPETITOR ANALYSIS
DESCRIPTION OF THE MANAGEMENT TEAM
PLAN OF OPERATION
FORECASTED OR PRO-FORMA FINANCIAL STATEMENTS
LOAN OR INVESTMENT PROPOSAL

9. THE EXECUTIVE SUMMARY
Summarize the presentation. (max 2 pages.)
This is the written version of the Elevator Pitch
Must capture the readers attention (in order to read the rest)
First impression is important

10. MISSION STAMENT
Entrepreneurs vision for the company
Very broad expression of purpose
Set the broad direction that the company will move
COMPANY HISTORY
If the company is pre-existing, a brief history should be included.

11. BUSINESS AND INDUSTRY PROFILE
This part should enlighten the investor in regard to the
industry in which the compnay will take part in.
Therefore, state the Goal of the business. (The long
range, broad statements that the company plans to
achive)
Also state the objectives of the business by which the
goals will be accomplished. (short term, measureable,
performance targetted, attainable and controlable)

12. BUSINESS AND INDUSTRY PROFILE
This part should enlighten the investor in regard to the
industry in which the company will take part in.
Therefore, state the Goal of the business. (The long
range, broad statements that the company plans to
achive)
Also state the objectives of the business by which the
goals will be accomplished. (short term, measureable,
performance targetted, attainable and controlable)

13. BUSINESS STRATEGY This part focusses on how the company will achieve its goals and objectives. How the entrepreneur will gain competitive edge and set its business apart from the rest? What makes the company unique?

14. DESCRIPTION OF FIRM’S PRODUCT/SERVICE
Describe the overall product line.
Overview of how the customer uses goods or services
Product lifecycle – where is the product in this stage
Patents/copyrights from competitors?
Final honest comparison
Feature: a descriptive fact about a product or service.
Benefit: what a customer gains from the product or service.

15. MARKETING STRATEGY
A target market should be identified. A company should
not try to become everything for everybody! The odds of
success is higher if focused on a specific market niche.
Eg: MTV, ESPN, CNN, Cartoon Network,
Finding your target market is the first step in an effective
marketing strategy.
Who are the most promising customers?
Where do they live?
Why do they buy?
Age/Gender/Characteristics
When do they buy?.....etc.

16. MARKETING STRATEGY
Customer Interest;
If your service or business is already available, then it will be easy to guess the customer interest. However, if you are going to offer a new product or service,
Finding your target market is the first step in an effective
marketing strategy.
Who are the most promising customers?
Where do they live?
Why do they buy?
Age/Gender/Characteristics
When do they buy?.....etc.

17. MARKETING STRATEGY
Documenting Market Claims:
In general, busines plans rely on generalizations which
usually turn out to be either wrong or unexpected. There
are easy ways to avoid these. Some of these are;
Surveys/Questionnaires
Demographic studies
Market size and growth rates with facts
Business prototyping
Business prototyping: a process in which entrepreneurs test
their business models on a small scale before commiting
serious resources to a business that may or may not work. (ebay)

18. An effective market analysis should contain the
following;
Advertising
Market size and trends
Location
Pricing
Distibution

19. COMPETITOR ANALYSIS This section should include an analysis of significant competitors. Every business has a competitor. Have a look at trade journals, exhibitions, internet… etc. DESCRIPTION OF THE MANAGEMENT TEAM Most important factor in the success of a business venture is the quality of the management team. The business plan should describe directors, managers or Anyone with more than 20% ownership in the business.

20. FORECASTED OR PRO-FORMA FINANCIAL STATEMENTS
PLAN OF OPERATION
To complete the description of the business, the owner should construct
an organizational chart.
FORECASTED OR PRO-FORMA FINANCIAL
STATEMENTS
One of the most important parts of the proposed business venture is
financial statements. Whether it is a running company or a new start up,
this is a crucial point in securing capital for your company.

21. LOAN OR INVESTMENT PROPOSAL
This part is where the purpose and the amount of the financing required is stated.
Ask for what is required and do no over inflate. Investors face startups every day.
Details on how you will pay back
Beneficial to include an evaluation of the risks

22. General Tips: No typos First impressions are crucial
Should be visually appealing
Include a table of contents
Should be interesting
Must prove that the business will make money
Tell the truth

23. THANK YOU