1. Sneak Peek Exercise

2. Comparing Notes Which summary do you think includes as well as adequately describes the: 1.Product/ Service 2.Market and Opportunity 3.Industry and Growth Potential 4.Experience of the promoters/founding team 5.Business Model 6.Financials 7.Risk& Mitigation National Entrepreneurship Network

3. Key Learnings No standard and single format exists; what you convey depends on your business opportunity and focus Length not more than 3 Pages Contents of a concise executive summary Need for a crisp, comprehensive executive summary Executive Summary is the pitch to enthuse interest in reading the entire B – Plan National Entrepreneurship Network

4. Elements of a Business Plan

5. Business Planning "In preparing for battle I have always found that plans are useless, but planning is indispensable." -Dwight Eisenhower “Those who fail to plan, plan to fail.” -George Hewell National Entrepreneurship Network

6. Understanding business plans is not only important for those who are starting businesses More and more banks are requiring business plans for loans, for new projects and on-going operations Business plans are used in large companies to justify projects No matter where you work, it is increasingly likely that you will need to evaluate somebody else ’ s business plan The Business Plan National Entrepreneurship Network

7. Executive Summary Company Overview Market Environment Industry and Opportunity Marketing and Sales Strategy Team Composition Operations Financial Plan Risk Analysis and Mitigation The (very) Basics of a Business Plan National Entrepreneurship Network

8. Your Business Plan Will... Discuss a particular market opportunity Examine the markets that you will compete in, and explain who your customers will be Describe the products or services that your company will provide Your competition, and how you will defend against it The operation that you will put in place in your company The management team that will implement the plan The size and profitability of your company National Entrepreneurship Network

9. Executive Summary The written version of the “ One minute pitch ” Many people who read your plan, will only read your Executive Summary......and then they may read your financials. NOT an introduction, but a short version of the whole plan National Entrepreneurship Network

10. Company Overview Explanation of history, structure, and organization of your company Strategic direction – Mission statement – Goals and objectives – Values and vision People – Relevant skills and expertise of management team – Directors – Relationships with experts in the field National Entrepreneurship Network

11. The Opportunity and Industry Analysis The industry background and overview Significant trends Growth rate Product or service feature Customer benefits Uniqueness and Intellectual property or other defendable positions Future plans National Entrepreneurship Network

12. Marketing and Sales Strategy Target market Market size and trends Competition analysis Marketing plan – Brand strategy – Distribution strategy – Product strategy – Pricing strategy – Promotion National Entrepreneurship Network

13. Team Composition Capability of the management team to run a promising business – The Management team – Professional experience and past successes National Entrepreneurship Network

14. Operations Practical details required to meet the plan Facilities Manufacturing or out-sourcing Personnel Varies widely depending on type of business National Entrepreneurship Network

15. Financial Plan Three key reports, in a five-year plan: – Income statement – Balance sheet – Statement of cash flows National Entrepreneurship Network

16. Risk Analysis & Mitigation Risk scenario – Market risk – Competition risk – Technology risk – Regulatory risk – Financial risk – Management risk What measures are proposed to counter these risks? National Entrepreneurship Network

17. Writing a great business plan “A great business plan is one that focuses on a series of questions relating to the four factors critical to the success of every new venture: the people, the opportunity, the context, and the possibilities for both risk and reward.” – William Sahlman 1.The questions about people revolve around three issues: – What do they know? Whom do they know? How well are they known? 2.As for opportunity, the plan should focus on two questions: Is the market for the venture's product or service large or rapidly growing (or preferably both)? 3.Is the industry structurally attractive? Source: How to write a Great Business Plan, William Sahlman, Harvard Business Review National Entrepreneurship Network

18. Outline of Business Plan Section Suggested# of pages Executive summary2-3 Market opportunity and Market Size2-4 Your offering/product/service/IP2-5 Competitive landscape -analysis with data1-2 Marketing Strategy- Positioning, Differentiation, Pricing, Distribution 1-2 Financial Plan – Projections, Use of Funds5-6 Risk scenario & mitigation1-2 Your team2-4 Supporting data, research, resume5-10 National Entrepreneurship Network

19. Evaluating Business Plans – what does one look for? 1.The questions about people revolve around three issues: – What do they know? Whom do they know? How well are they known? 2.As for opportunity, the plan should focus on two questions: Is the market for the venture's product or service large or rapidly growing (or preferably both)? 3.Is the industry structurally attractive? Source: How to write a Great Business Plan, William Sahlman, Harvard Business Review National Entrepreneurship Network

20. Evaluating a Business Plan: Tips Objectivity is ensured when the criteria for evaluation are clearly laid out Eliminate possible bias – e.g, you like the idea, you like/are familiar with the industry, you like the student Prioritize content over format and presentation Relevant Content (market opportunity, attractive industry, investment potential, business model and distinctive competence) earns more weightage than a well laid out incomplete plan National Entrepreneurship Network

21. Opportunity to Business Model to B Plan Evaluation – What is common? All three Focus on Market/Customers Industry/Competition Team/People National Entrepreneurship Network

22. Is there any standard format of a B-Plan? Many formats exist Each business plan has to be unique – general templates/software may not be effective to communicate your idea We provide you with a Detailed Guide for writing a B plan and a Sample B Plan –Available on the NEN CD: Kick-Starting the Entrepreneurial Campus National Entrepreneurship Network

24. Videos and Web Links EY Business Plan Guide How to write a great Business Plan NEN Videos on B plan National Entrepreneurship Network

25. Credits Ed Rubesch, Thammasat Business School, Thailand Indus Khaitan, Venture Partner, Morpheus Ventures, Bangalore, India National Entrepreneurship Network