Business Plan Preparation

Frank MoyesLeeds College of Business

University of ColoradoBoulder, Colorado

1Product/Service

Tonight’s Agenda Topics

PRODUCT/SERVICE DESCRIPTION Margins Read BP pp 6-7

OneButton (Vilo) business plan Elevator Speech In the Fire

Preliminary Market Analysis Results Preliminary Interview Results

Turn-in 3 alternative value propositions Customer Survey Questionnaire

Product/Service 2

Next Week Team to make

appointment with instructor next week

Marketing Plan Revenue Model Read BP pp 14-18

In the Fire - Prelim Industry Analysis Model company

description Hand in

10 Call Reports Preliminary

Competitive Matrix Model company

description

Product/Service 3

In the Fire Grading

Product/Service 4

Points Criteria25 to 30 Good Clear indication tha time and effort spent has been spent

Creative thought is evidentCan clearly articulate the issuesProvide clear evidence to support points

20 to 25 SatisfactorySome effort is evidentUnderstand the issues, but not clearly explainedSome evidence to support points

< 20 Poor Little to no effort is evidentDon't understand or can't articulate the issuesNo evidence to support

Business Plan Elements

Executive Summary Company Overview Market & Industry AnalysisProduct/Service Description Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Plan Funding

Product/Service 5

Product/Service Sections

Features Benefits Proprietary Rights Stage of Development

Product/Service 6

Features Detailed description

Attributes Environment Use photos, images, schematics

http://leeds-faculty.colorado.edu/moyes/html/documents/Business%20Plan/Amari%20Final%20BPLAN.pdf

What is unique? What is evidence that customers want these features? How produce & deliver – systems approach Don’t assume people know or understand your

product/service

Product/Service 7

Attributes Performance: durability, quality of materials, defect levels,

tolerances, construction, dependability, functional performance (acceleration, nutrition, taste), efficiency, safety, styling, packaging, etc.

Cost: purchase price, quantity discounts, operating costs, repair costs, cost of extras or options, cost of installation, trade in allowance, likely resale value, etc.

Availability: carried by local stores, credit terms, quality of service available from local dealer, delivery time, credit card, on-line transactions, etc.

Service: hours, warrant, guarantee, return/replacement policy, upgrades, maintenance, training, installation, repair service, spare parts, customer support, tech support, training, product design, make to order, level of inventory, quotation response time, lead time, quality certification, employee capabilities, etc.

Environment: location, atmosphere, layout, fixtures, aesthetics, style, sound, lighting, color, etc.

Product/Service 8

Benefits Describe major benefits - be specific What is the evidence that benefits are

understood by the market?

Product/Service 9

Benefits Emotional: ambition, power, independence, achievement,

ambition, pride of ownership, comfort, love, friendship, security, style, self Improvement, etc.

Social: status, image, popularity with friends or family members, reputation of brand, personal relationships, style, fashionable, etc.

Health: stress, fitness, mental capacity, strength, sex life, quality of life, muse, etc.

Financial: revenue, costs, savings, productivity, pricing, profitability, market share, save time, productivity, etc.

Convenience? Objective is distinguish between benefits and features, not

put into categories

Product/Service 10

Feature vs. Benefits

Product/Service 11

NetDogFeature Benefit

Adaptable to new network threats

Protection without a reduction in user productivity

Modular rules based system Adaptable to new business requirement and new threats

Guaranteed zero packet loss Eliminates the risk of false negatives

Intelligent network adaptation Protection is provided regardless of the network topology

Ships with a standard rule set Provides out of the box protection from common attacks

Scripting language and API Customers can develop their own powerful rules

Web based reporting system Improves forensics and visibility into the security of the network

Web based interface Makes administration of the system easy

Product/Service 12

FeaturesDUOBenefits

Ergonomic design

Eliminates back and shoulder pain so parents feel more comfortable while carrying their baby.

Cocoons Allow parents to more easily attach and detach baby from harness, eliminating fear of straining arms, dropping or tightly squeezing baby.

Multiple Cocoons

Parents maintain a look that can be seasonally updated to provide the feeling that they are on the leading edge of fashion. Babies are happier and more comfortable in Cocoons specifically designed to fit their current developmental stage.

Unexpected Attributes

Convenient features allow parents to keep important items, like keys, easily accessible. This saves time and energy spent preparing to get out the door.

Product/Service 13

Product & Service Conclusions

Make it real Photo, rendering, specs Prototype Evocative description

Make it exciting Sell your concept

Product/Service 14

Quality Dimensions I

Performance - the primary operating characteristics of the product or service

Features - the characteristics that supplement the basic functioning of the product or service

Reliability - probability of the product or service failing within a specified period of time

Conformance - the degree to which a product or service meets acknowledged standards

Product/Service 15

Quality Dimensions II

Durability - a measure of product life (both technical and economic)

Serviceability - the speed, courtesy, competence, and ease of repair or recovery

Aesthetics - how a product or service looks, feels, sounds, tastes, or smells

Perceived Quality - various tangible and intangible aspects of the product from which quality is inferred

Product/Service 16

Service Quality Dimensions

Reliability - ability to perform service dependably & accurately

Responsiveness - willingness to help customers & provide prompt service

Assurance - knowledge & courtesy of employees and ability to convey trust and confidence

Empathy - provision of caring, individualized attention to customer

Tangibles - appearance of physical facilities, equipment personnel and communication material

Product/Service 17

Margins

% Gross Profit Margin

% Contribution Margin

% Net Profit Margin

% Operating Expenses

Product/Service 18

Revenue – COG’s Revenue

Revenue – Variable Costs Revenue

Net Earnings Revenue

Sales, General & Admin Revenue

Margins %

ToyotaIntel Dell HP Corp

2005 2005 2005 2005 2004 2005Gross Profit 59.4 17.8 23.6 11.2 17.3 19.5SGA 16.4 9.3 16.6 3.6 2.4 4.8Net Profit 22.3 6.4 2.8 -5.7 1.4 6.5

P & G Whole Fds Kroger Amazon Merck2005 2005 2005 2005 2005

Gross Profit 51.4 35.1 24.8 24.0 76.6SGA 28.2 27.2 19.3 17.5 43.4Net Profit 12.7 2.9 1.6 4.2 21.0

Gen Motors

Product/Service 19