Chapter 8 - The business planning process. The goal of this chapter is to give you an introduction to entrepreneurial financial planning. Unlike in existing businesses, which have an operating history, entrepreneurs must develop their financials from scratch. There are no previous trends in revenue and costs that you can use as a basis to project future revenues and costs.
Trang 1THE BUSI NESS PLANNI NG PROCESS
Chapt e r 8
Trang 2q It is a small investment in time and cost when compared to the time and cost of starting a business.
q It forces the entrepreneur to think critically about all aspects of the business venture.
q It can later be used as a benchmark to monitor the progress of the business.
q Describes the details of how you will exploit your opportunity
q Creates opportunities to raise critical questions …and to research and find answers
q Relatively small investment in time and cost
“Plans are useless, but planning is indispensable”
- GEN Dwight D Eisenhower
Trang 3Business Planning is a Continuous Process
q Begins when you start thinking about a new venture
q Accumulate a critical mass of learning
q Organize summary information to share your idea and to identify gaps
q Focus on critical aspects of the business model
Keep in mind—the business plan is a “living document.” It will continue to evolve as you progress
Trang 4q Key takeaways for your business are found in the
process of developing a well-written story
q How will stakeholders interpret your plan?
q A tagline creates a unifying plot line that organizes your thinking
q Stick to the “general format” of business plans
“A business plan is the persuasive, yet concise, story about where the company came from,
where it’s going and how it will get there.”
Shane Eten, Founder & CEO BluCarbon
Trang 5Keep it Simple!
Trang 6Its Cover Create a Good One!
The Cover
q An “Eyecatcher”
q Control Distribution
q Disclaimer
q Simple…but
Important Details
Imagine the frustration of an excited potential investor who can’t find your contact information – that plan will be rejected.
Clearly Identify
q Contact Information
q Date of Publication
Trang 7q Most Important (and Exciting) Section
q Write it after you have researched your venture
q Capture the reader’s attention – the HOOK
q Highlight the potential of the Opportunity
q Provide compelling information on:
ü Description of the Opportunity
ü Business Concept
ü Industry Overview
ü Target Market
ü Competitive Advantage
ü Business Model & Economics
ü Team & Offering
ü Financial Snapshot
Trang 8Your plan should cover 9 main areas
Trang 9q Operational Plan
q Internal use
q Often 80+ pages
q Formal Plan
q External use
q Roughly 25 to 40 pages
q for enticing interested stakeholders
q In lieu of a full business plan
q Typically 7 to 10 pages
Trang 10Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©
Presentations should be direct
business opportunity in 10-12 slides
1 Cover page w/ product picture
2 Opportunity description
3 Illustration of how your product solves a
problem
4 Details as needed
5 Competition overview
6 Entry and growth strategy
7 Overview of business model
8 Team description
Current status with time line
10
Trang 11q Business planning allows the entrepreneur to better anticipate questions and gaps instead of reacting to them
q Entrepreneurs can get feedback from experts, including investors, vendors and customers