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The Business Plan

MANA 3325 – Thurburn Lecture 09-10-13 Slides. The Business Plan. Why Make a Business Plan?. MANA 3325 – Thurburn Lecture 09-10-13 Slides. The Business Plan. Good Planning Improves Results Increase Probability of Successful Financing Helps Prevent Mistakes… I wish we hadn’t !.

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The Business Plan

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  1. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan Why Make a Business Plan?

  2. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan Good Planning Improves Results Increase Probability of Successful Financing Helps Prevent Mistakes… I wish we hadn’t !

  3. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan • Who is the Plan for? • Yourself… essentials may be enough. • Partners… more extensive • Investors… most extensive • The More $$$ the More EXTENSIVE

  4. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan • Who is the Plan for? • Yourself… essentials may be enough. • Marketing Strategy • Competitor Analysis • Financial Projections

  5. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan • Who is the Plan for? • “Partners”… more extensive … add the • Vision & Mission • Business & Industry Profile • Plan of Operations • Partner Buy In T&C

  6. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan Who is the Plan for? Investors… most extensive… add the… …. Full Business Plan…. The More $$$ the More EXTENSIVE

  7. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan A Plan Must Pass Three Tests The Reality Test: The Competitive Test: The Value Test: Define Reality Test…?

  8. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan • The Reality Test – proving that: • A market really does exist for your product or service. • You can actually build or provide it for the cost estimates in the plan. • Next… Define the Competitive Test

  9. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan • The Competitive Test – evaluates: • A company’s position relative to its competitors. • Management’s ability to create a company that will gain an edge over its rivals. • Next define theValue Test

  10. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan • The Value Test – proving that: • A venture offers investors or lenders an attractive rate of return or a high probability of repayment.

  11. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan

  12. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan • Company • Strategy • Marketing • Implementation • Projections • Financing What are the sub-parts of the Company Section of a Business Plan?

  13. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan • Company • Title Page • Table of Contents • Exec Summary • Vision & Missions • History • Industry Profile • Products & Services What is the difference between Features & Benefits?

  14. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan 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 with carpal tunnel syndrome and increased productivity” What are the sub-sections of the Strategy Section?

  15. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan • Strategy • Goals • Objectives • Business Strategy What are the sub-sections of the Marketing Section?

  16. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan • Marketing • Marketing Strategy • Marketing Research • Customer Research • Competitors Analysis What are the sub-sections of the Implementation Section?

  17. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan • Implementation • Management Team • Plan of Operations What are the sub-sections of the Projections Section?

  18. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan • Projections • Assumptions • Projections • Summary & Cash Flow • Income Sources • COG • Expenses • Payroll Detail

  19. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan • Proposed Financing • Loan Details if applicable • Investor Details if applicable

  20. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan Capital – Enough? and Balance of Debt vs Equity Capacity – Cash Flow Collateral – Liquid or Fixed Assets Character – Creditor History Conditions – Terms of Loan

  21. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan Tips on Preparing a Business Plan • Make sure your plan has an attractive cover. (First impressions are crucial.) • Rid your plan of all spelling and grammatical errors. • Make your plan visually appealing. • Include a table of contents to allow readers to navigate your plan easily. • Make it interesting.

  22. MANA 3325 – Thurburn Lecture 09-10-13 Slides The Business Plan Investors Family: The first place you go… need to get some buy in. Friends: The second place… should be interested. Network: Hopefully it is full of people with money. Suppliers: If an extension of an existing business this is a great source of financing. Money People: Angels, Mezzanine, Growth Stage, M&A

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