Writing a business plan3

1. Writing a Business Plan
Tim C. McAloone
tmca@dtu.dk
With major contributions from: Internet sources, McKinsey & Venture Cup
Unless otherwise stated, this material is under a Creative
Commons 3.0 Attribution–Share-Alike licence and can be
freely modified, used and redistributed but only under the
same licence and if including the following statement:
“Original material by Tim C. McAloone for course 42629 – Innovation and Product Development
Department of Mechanical Engineering, The Technical University of Denmark”

2. Today’s agenda
• How to identify a business idea – concept and presentation
• Developing the business plan
1. Executive summary
2. Product/service concept
3. Marketing strategy
4. Business model/system
5. Business case and risks
6. Implementation plan & Checklists
• Video case exercise
2 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

3. Description of the business system/value
chain
3 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

4. Example of business model
4 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

5. Today’s agenda
• How to identify a business idea – concept and presentation
• Developing the business plan
1. Executive summary
2. Product/service concept
3. Marketing strategy
4. Business model/system
5. Business case and risks
6. Implementation plan & Checklists
• Video case exercise
5 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

6. Profit & Loss statement (P&L) is the
backbone of the business case
6 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

7. Five years projection of Profit and Loss
statement
*
[McKinsey]
* Earnings Before Interest and Tax
7 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

8. Example revenue model – Internet based
business
[McKinsey]
8 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

9. Example cost model – Internet based
business
[McKinsey]
9 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

10. Summary of revenue and EBIT
[McKinsey]
10 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

11. Description of cases
[McKinsey]
11 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

12. Case comparison of Revenue and EBIT in
2013
[McKinsey]
12 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

13. Today’s agenda
• How to identify a business idea – concept and presentation
• Developing the business plan
1. Executive summary
2. Product/service concept
3. Marketing strategy
4. Business model/system
5. Business case and risks
6. Implementation plan & Checklists
• Video case exercise
13 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

14. Implementation action plan and
timeline, 20xx
[McKinsey]
14 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

15. Checklist: Executive summary
15 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

16. Checklist: Product/service concept –
Description
16 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

17. Checklist: Product/service concept – Value
proposition
17 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

18. Checklist: Target Market
18 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

19. Checklist: Competition
19 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

20. Checklist: Marketing strategy
20 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

21. Checklist: Business model
21 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

22. Checklist: Revenue projection
22 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

23. Checklist: Costs projection
23 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

24. Checklist: Business case
24 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

25. Checklist: Implementation plan
25 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

26. Today’s agenda
• How to identify a business idea – concept and presentation
• Developing the business plan
1. Executive summary
2. Product/service concept
3. Marketing strategy
4. Business model/system
5. Business case and risks
6. Implementation plan & Checklists
• Video case exercise
26 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

27. Case example – sketch the business plan for
the following video case…
27 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

28. More help, regarding the core business
28 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

29. … and the way it ended
29 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

30. Summary: Did we achieve the objectives?
• What are the elements of a promising business idea
• How to make your business idea irresistible
• What to keep in mind when presenting your business in a
plan
• How to analyse your market and the competition
• How to choose your target market
• How to determine your market strategy
• What a business system is, and what to look out for when
designing one
• What to include in your financial planning
• How to consider and represent risks
30 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark

31. Questions
?
31 Original material by Tim C. McAloone for course 42629 – Innovation and Product Development 2012
Department of Mechanical Engineering, The Technical University of Denmark