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Business Plan Preparation
Frank MoyesLeeds School of Business
University of ColoradoBoulder, Colorado
1Framework for the Business Plan
Today’s Agenda Decide on concepts & select teams Framework for writing a business plan
Writing a Successful Business Plan from my website
Importance of validation Team meetings Hand in F2F-R Step 1 Gut Check
2Framework for the Business Plan
Next Week MARKET & INDUSTRY ANALYSIS
Opportunity/Need Segmentation Financial COMP’s Model Company
COMPETITIVE ADVANTAGE Hand-in
Interview list F2F-R Step 2 Reality Test I
Critique Net Check Business Plan (download from website)
3Framework for the Business Plan
Business Plan Elements
Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation
4Framework for the Business Plan
Business Plan Elements Executive Summary Product or Service
Description Industry and Marketplace
Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation
Last to be written
5Framework for the Business Plan
Business Plan Elements Executive Summary Product or Service
Description Industry and Marketplace
Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation
Strategy Features and Benefits
6Framework for the Business Plan
Business Plan Elements Executive Summary Product or Service
Description Industry and
Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation
Segmentation Size and Trends Competition
7Framework for the Business Plan
Business Plan Elements Executive Summary Product or Service
Description Industry and Marketplace
Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation
Customer Research Target Customer Positioning Pricing Advertising & Promotion Distribution Sales
8Framework for the Business Plan
Business Plan Elements Executive Summary Product or Service
Description Industry and Marketplace
Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation
Scope of Operations On-going Operations
9Framework for the Business Plan
Business Plan Elements Executive Summary Product or Service
Description Industry and Marketplace
Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation
Key Milestones
10Framework for the Business Plan
Business Plan Elements Executive Summary Product or Service
Description Industry and Marketplace
Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation
Organization Team
11Framework for the Business Plan
Business Plan Elements Executive Summary Product or Service Description Industry and Marketplace
Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation
Sustainable
12Framework for the Business Plan
Business Plan Elements
Executive Summary Product or Service Description Industry and Marketplace
Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding, Valuation
Income Statement Balance Sheet Cash Flow Risks
13Framework for the Business Plan
Business Plan Elements Executive Summary Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Projections Offering, Funding & Valuation
Valuation of Business Request for Funding
14Framework for the Business Plan
Objectives of Market Research Validation of your venture
There is good market You can compete
Evidence that customer Needs the product/service Will buy it
Framework for the Business Plan 15
Primary: Face to Face Research Step 1: Gut Check - Determine concept
potential Step 2: Reality Test I - Get preliminary
feedback on your concept from experts Step 3: Sniff Test - Determine target customer
interest Step 4: Reality Test II - Get feedback on the
entire business venture from experts Step 5: Customer Surveys – Develop an in-
depth understanding of your target customer
16Framework for the Business Plan
Secondary Research Market is
Big enough & growing Positive trends
You can enter Understand competition Competitive environment favorable to new
entries
Feasibility & Mullins
Framework for the Business Plan 17
Market Research - Conclusion
Validation Evidence
Framework for the Business Plan 18
Team Dynamics All team members must meet at least once
per week to review progress and create plan
Set time and place for weekly meeting Assign responsibility for assignments Set completion dates
Framework for the Business Plan 19
Process When One Team Member Not Pulling Weight1. Team meets for frank discussion of what is
the problem & decides how to resolve it2. Team brings problem to Instructor who will
make suggestions on how to resolve3. Instructor meets with entire team to try to
resolve4. Instructor meets with team member who is
the cause of the problem and tries to resolve5. Team fires team member
Framework for the Business Plan 20
Business Plan Critique How good a job have they done in
addressing the next two slides?
Framework for the Business Plan 21
Critical Elements of a Business Plan(& You Must Address) Strong market Attractive industry Compelling Need Clear value proposition Sustainable competitive advantage Understanding of profitability & cash flow Management
22
A Good Business Plan Explains how you are going to do it Provides evidence that customers want to
buy Tells a story - creates excitement Addresses the critical elements Should be painful to write
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