The document provides guidance on writing an effective business plan. It discusses that a business plan forces disciplined thinking about an idea and whether it is viable. An effective plan is 6-9 pages and includes an executive summary, introduction, market analysis, product details, business model, operations plan, team, and financials. The plan should clearly explain how and when the business will make money. Different types of businesses require different levels of investment and have different profit timelines. The business model section is key to explaining the business in a nutshell and how it will create and capture value for stakeholders. An engaging pitch presentation is also important to concisely share the opportunity with potential investors.

1. Business Plan
Johan Bruneel

2. “Writing a Business Plan forces you into disciplined thinking, if you
do an intellectually honest job. An idea may sound great, but when
you put down all the details and numbers, it may fall apart”
Eugene Kleiner,
co-founder of Fairchild Semiconductor
Some views on business plans
‘An honest selling document that explains clearly
and concisely how and when you will make
money’
Simon Barnes
Managing Partner, Tate & Lyle Ventures

3. Business plan
• Why?
- Self-checking tool: don’t fool yourself
- Is there a viable business?
- How much money is needed?
- Roadmap: provides you strategic goals (focus on initial years)
• How long?
- 6 – 9 pages
- + appendices with financials, CV’s…
Goal #1 is raising the money/resources

4. Types of Opportunity and Business plan
Needs (Problems)
Solutions
Fantasy!
Unidentified Identified
Undefined
Defined Business
Formation
Market
Pull
Technology
Push

5. Bankbalance£
-
0
+
Technology-push firm
• Large investment required
• Late break-even
• Huge upside
Consulting firm
• Low investment required
• Early break-even
• Low upside
Different Firms, Different Profiles…
Time
Market-pull firm
• Low investment required
• Early break-even
• Huge upside

6. Business plan: structure
Section Goal
1. Executive Summary • Sell the opportunity on page 1
2. Introduction • Set the scene & describe the unmet need
3. Market • Current solutions and competitors
• Market size
4. Product or Service Offering • How does it works & how is it
protected?
5. Business model • How the business generates profit or
value – how you find and serve customers
6. Operations • Implementation schedule & milestones
7. Team • Outline the team & how it functions
8. Financing planning • Outline the financing strategy & exit
9. Appendices • Due diligence materials
– Financials
– CVs/ IP/ Ownership

7. Business model
• Describes what a firm will do, and how, to build and capture
wealth for stakeholders
• Effective business model: convert idea/technology into economic
value
• Business model = the business in a nutshell
If you cannot explain the business
in 50 words or less, you don’t fully
understand your business

8. How to build a business model?
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• Graphical presentation of your business model
- Easy to communicate
- Quick generation of alternatives
• 3 different elements
- The players
- The flow from company to client
- The flow from client to company
See www.boardofinnovation.com for more information

9. The players
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• The company
- Offers product/service
- You!
• The partners
- Other stakeholders
- e.g. suppliers, content providers
• The cllient
- Individuals (B2C) or companies (B2B)
- Recieves product/service and gives something in return
See www.boardofinnovation.com for more information
or

10. The flow from company to client
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• Product
- Straightforward offer
- Eg BMW car
• Service
- Often in combination with product (eg maintenance of BMW car)
- Shift from product to service (eg laundry service of Eletrolux)
• Experience
- BWM = driving experience
• Reputation
- Extremely valuable
See www.boardofinnovation.com for more information

11. The flow from client to company
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• Money
- Normal value of good
- Incl profit
• Less money
- Additional revenue streams
• Attention
- Typically in free business models
- Clients pay with their attention
• Exposure
- spreading ideas & brand value
See www.boardofinnovation.com for more information

12. Be careful!
• Business models often work great in theory, but fail in the “real
world”
• Why?
- Assumptions
- Research is often “backwards looking”
- Rapidly changing business environment
• Talk to LOTS of stakeholders
- Interest in product/service?
- Price sensitivity?
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13. Business plan essentials: do’s
• Always prepare the plan yourself!
- Input from accountants, consultants, lawyers is necessary
• Executive summary is key!
- Use as stand alone document
- Overview of entire plan
• Make it readable & digestible!
“If I don’t like your executive summary, I probably
won’t read your plan. If I don’t read your plan, I
probably won’t invest” (M Brennan)

14. Business plan essentials: don’ts
• NDA’s
- Investors (VC & BA) won’t sign them
• IPO is NOT your primary exit
- 1 out of 10.000 companies IPO successfully!
 List potential acquirers
• Assumptions you cannot justify
- Use external sources
- Use quotes

15. A word on business plan financials…
• “The Taste test” : can the investor taste the revenues?
 Is the revenue scenario credible or will you have to achieve miracles
to hit your forecast numbers?
• Mistakes to avoid:
- Overestimation of revenues
- Underestimation of costs
- Timing
- Laughable valuation
• Tips for credibility:
- Make assumptions explicit
- Be able to back them up with FACTS!
- Build scenario’s

16. The Pitch: making a killer presentation

17. An entrepreneurs one-minute explanation of
his/her business model, often heard in an elevator
and directed at anyone
who might want to provide funding
for the entrepreneur’s startup
Source: Investorsword.com
The Pitch: what & why?

18. Pitch: some guidelines
• Know your audience: investor have very short attention span
 Don’t bore them or waste their time
 Get to the point… FAST!
• Do not get caught in technical details & complexities
 Do not use jargon
 Do not use video or animation of any nature
• Talk in specifics – provide numbers, estimates…
 But don’t get into the “Law of Big Numbers”!
 Don’t leave audience conclusions to chance
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19. Pitch: some guidelines
• Dress for success
• Practice! Practice! Practice!
 Understand the time constraints
 10/20/30 rule
+ Be passionate and show great enthusiasm for
your business idea
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