Professional Documents
Culture Documents
Page 2
Page 3
Page 4
The BDP has to reflect the needs of: The strengths and weaknesses of:
CUSTOMERS COMPETITORS
The skills, knowledge and experience of: ENTREPRENEUR(S) The criteria of:
INVESTORS
CORPORATION
Page 5
Can we win?
Competitive Analysis The Business Strategy of the Venture Functional Plans (e.g., Marketing, Sales)
Page 7
Is it worth it?
Financial plan Proforma capital budget Proforma income statement Proforma balance sheet Proforma sources and uses statement Financing plan Type and amount of capital Timing and source of capital Intended use of proceeds Financial evaluation Pricing, breakeven, sensitivities, etc.
Page 8
NEED
Is the Product Real?
PRODUCT
Can We Win?
OVERALL STRATEGY
Is It Worth It?
Risk Evaluation
Page 10
ISSUES IN PREPARING THE BUSINESS PLAN Who should prepare the business plan? What should be the role of the external team members (e.g., accountant and lawyer) in preparing the business plan? How and where can you obtain the needed market research information?
Page 11
Page 12
BUSINESS PLAN
Page 13
Market Analysis
Articulate the market opportunity (including size and growth potential of your market) Describe customer groups served, customer functions fulfilled and technologies utilized
Page 14
Strategy
Derive the required set of Strategic Assets in your chosen market segments, and identify the ones you will exploit in your competitive strategy State your overall business strategy - the specific action plan that will:
Create isolating mechanisms to prevent imitation Lead to establishing the venture's sustainable competitive advantage
Page 15
Marketing Plan
Target market segments and selected distribution channels Present sales forecast (include volume, market share, assumptions and exhibits) Describe how you will achieve your plan, present pricing, discounting, advertising, promotion and service policies
Operations Plan
Discuss your production technology and manufacturing processes. Included are:
Equipment requirements Facility requirements Component make/buy decisions Raw material, labor and supply requirements Present a cost analysis Raw material and finished goods inventory policies Quality control policies
Page 16
Financial Section Integrates all of the BDP data in a cohesive manner to produce:
The Financial Plan--a five-year:
Proforma Capital Budget Proforma Profit and Loss Sheet Proforma Balance Sheet Proforma Cash Flow Report
(Quarterly data for the first two years; annual thereafter)
NOTE: All exhibits should explicitly state the assumptions that were made.
Page 17
Milestone Events
Present a realistic schedule of events, their anticipated timing, and the interrelationship between the major events necessary to launch and grow the venture.
Key Risks
Identify and discuss critical environmental risks, customer-response issues and alternate competitor- reaction scenarios Evaluate their impact on your base-case plan Outline your contingency plan
Page 18
The Challenge:
To integrate these elements into the ventures
Business Strategy
Page 19
Source: Derek F. Abell, Defining the Business: The Starting Point Of Strategic Planning, Prentice-Hall, 1980
Page 20