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8/8/2019 Business Plan Course
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1(c) John Mullins 2004
What to Do Before Your
Business Plan CourseJohn W. Mullins
London Business SchoolREE 2004
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The Problem:This Turkey Wont Fly!
Occurs for many student teams partwaythrough the courseToo late to turn back and write a planfor a better opportunityStudents are faced with convincing your panel of judges why their turkey will fly(when really it wont)
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The SolutionCreate a preceding course to focus onopportunity assessment anddevelopment Market, industry, team dimensions Deliverable: a feasibility study, based on
actual primary and secondary research Either conclusion is welcomedFeed the best into the business plancourse
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The Genesis of the CourseWh en a bus i ness wit h a repu t a ti on
for poor fundamen t a l s mee t s amanagemen t t eam wit h a
repu t a ti on for br illi ance, it s t h erepu t a ti on of t h e former t h a t
rema i ns i n t ac t. W arren Buffe tt
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Research Question
How do successful entrepreneurs
(and investors, too) assessmarket opportunities?
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Point of Confusion #1:The Market / Industry Distinction
Whats a market?Whats an industry?These are frequently confused!
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The Seven Domains of
Attractive OpportunitiesMarket Domains Industry DomainsMarket Attractiveness Industry Attractiveness
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Point of Confusion #2:The Macro / Micro Distinction
Large and growing markets areimportant, butStructurally attractive industries (in afive forces sense) are also important,but
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The Seven Domains of
Attractive Opportunities
MacroLevel
MicroLevel
Market Domains Industry Domains
Market Attractiveness
Target Segment Benefitsand Attractiveness
Industry Attractiveness
Sustainable Advantage
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Point of Confusion # 3 :
Whats Crucial aboutEntrepreneurs and Their
Teams
Its not found on their CVsNot simply about chemistry or
character or entrepreneurial drive
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The Seven Domains of
Attractive Opportunities
MacroLevel
MicroLevel
Market Domains Industry Domains
Mission, Ability to Aspirations, ExecutePropensity on CSFsfor Risk
Connectedness upand down Value Chain
TeamDomains
Market Attractiveness
Target Segment Benefitsand Attractiveness
Industry Attractiveness
Sustainable Advantage
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Putting the
Seven Domains to WorkNo opportunity is perfect all havesignificant question marks or negatives atthe outsetThus, the opportunity developmentchallenge: Reshape: turn question marks or minuses into
pluses (different market, industry, or team) Mitigate: weaknesses offset with compensating
strengths
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The Seven DomainsIdentify key weaknesses Questions to be answeredSuggest avenues for reshaping the
opportunityIdentify key strengths, jump-startbusiness planning Crucial in telling the story to resource
providersIntegrate and bring to life materialseen (learned?) in the core
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A Final NoteFor the seven domains Scores are not additive: summing the
scores across the seven domains ismeaningless
Strong scores at the micro level can
mitigate poor macro-level scores
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But dont just take it from meWh en a bus i ness wit h a repu t a ti on
for poor fundamen t a l s mee t s amanagemen t t eam wit h a
repu t a ti on for br illi ance, it s t h erepu t a ti on of t h e former t h a t
rema i ns i n t ac t. W arren Buffe tt
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If You Need a TextbookT h e Ne w Bus i ness Road T es t
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To Download Chapter 1 for Your
Business Plan Course:www.london.edu/faculty/jwmullins