2. AGENDA:
1.
Develop a Solid Business Plan
2.
The Ingredient of Business Plan
3.
Failure without proper BP
4.
The Business Plan Framework
5.
Company Description and Operating History
6.
Identify Key Success Factors
7.
The Product or Service
3. Develop a Solid Business Plan. So why bother?
A well written business plan is a crucial ingredient in
preparing for business success.
3
4. THE INGREDIENT OF BP
A Business Plan tells the story about your business
4
5. BUILDING YOUR BUSINESS PLAN
Do you sell product or services?
Is your business is a profit of a non-profit organisation?
Is your business a start-up operation or an ongoing business?
What kind of business plan do you want to create?
Do you include the SWOT Analysis?
Will the business have a Web site?
Do you prepare and set the target of a series of revenue and
expenses – the Financial aspects of your plan.
6. FAILURE: WITHOUT A PROPER
BP!
For every 3,000 new product ideas:
Four make it to the development stage.
Two are actually launched.
One becomes a success in the market.
On average, new products account for 40% of
companies’ sales!!
Creativity is an important source of building a
competitive advantage.
Source from: Norman (2012), Pearson Global Edition.
Y
e
s!
7. The Business Plan Framework
Your plan should encompass the following sections:
1.0 Executive Summary
2.0 Company Description and Operating History
3.0 The Product or Service
4.0 Markets and Competitors
5.0 Marketing Plan
6.0 Production and Operations
7.0 Management and Objectives
8.0 Finance
9.0 Risks, Return and Exit
10. Appendix
8. the progress that has
already been made (e.g.
test market executed,
product development
completed, equity
finance committed from
other sources, recent
trading history etc.)
Advice:
On this section, you should
present the RELEVANT
historical event
(achievement) which should
answer the questions of
(i) Where are you now? and
(ii) What you have
achieved?
the description of your company
(e.g. past and present, vision, mission,
motto, business objectives,
business activities)
Company
Description and
Operating
History
the infrastructure that
the company owes
the stage that your
business/product/service
has now reached
9. Purpose of
the company:
What are we
in business to
accomplish?
Elements of a
mission
statement:
SWOT
Scan
Environment
Business
we are in:
How are we
going to
accomplish
that
purpose?
Step 1: Develop a Vision and
Create a Mission Statement
Vision – the result of an
entrepreneur’s dream of something
that does not exist yet and the
ability to paint a compelling picture
of that dream for everyone to see.
A clearly defined vision:
Provides direction
Determines decisions
Motivates people
Allows for perseverance in
the face of adversity
10. Identify
Key Success Factors
• Key success factors (KSFs): factors that determine the
relative success of market participants.
• The keys to unlocking the secrets of competing
successfully in a
particular market segment.
• Note Objectives: More detailed, specific targets of
performance that are S.M.A.R.T.
• Specific
• Measurable
• Assignable
• Realistic (yet challenging)
• Timely
11. Quick Exercise: Identifying Key Success Factors
List the skills, characteristics, and core competencies
that your business must possess
to be successful in its market segment.
Key Success Factor
How Your Company Rates
1.
Low 1 2 3 4 5 6 7 8 9 10 High
2.
Low 1 2 3 4 5 6 7 8 9 10 High
3.
Low 1 2 3 4 5 6 7 8 9 10 High
4.
Low 1 2 3 4 5 6 7 8 9 10 High
5.
Low 1 2 3 4 5 6 7 8 9 10 High
Conclusions:
12. 3.0 The Product or Service
Features vs. Benefits
• Feature – a descriptive fact about a product or
service:
“an ergonomically designed,
more comfortable handle”
• Benefit – what a customer gains from the
product or service feature:
“fewer problems or syndrome and
increased productivity”
13. The elements should have in this section are:
• The summary began with the definition of the business idea
and then relates your product/service.
• A precise description of what the product/service is and
what it will be used for.
• A realistic assessment of your product’s/service’s:
(i) the technology of your product/service has reached
(globally)
14. The elements should have in this section are:
• A realistic assessment of your product’s/service’s:
• (ii) the business idea of your product/service has reached
• Product Life Cycle
15. The elements should have in this section are:
(iii) unique and distinctive advantages and,
(iv) the way in which these advantages will translate into
benefits for your customers.
Advice:
Quantification of these benefits if possible
(e.g. customers’ financial gain, lower price, lower maintenance
costs,
saving etc.)
(d) An evaluation of the ease with which competitors might
imitate your advantages and match your benefits. Explain how
you can protect your product/service.
(e) Analysis of the risks associated with the product/service.
technical details to an appendix.
16. Conclusion
There are no guarantees for success.
Creating a business plan will be valuable
primarily because of the process itself.
The business planning process may provide
insight to increase the chances for success.
The business plan: Entrepreneurs benefit;
lenders and investors demand it!
