1 / 39

ENTREPRENEURSHIP

ENTREPRENEURSHIP. Lecture No : 15 Resource Person: Malik Jawad Saboor Assistant Professor Department of Management Sciences COMSATS Institute of Information Technology Islamabad. Previous Lecture Review. Conducting a Feasibility Analysis The Feasibility Study

hung
Download Presentation

ENTREPRENEURSHIP

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ENTREPRENEURSHIP Lecture No: 15 Resource Person: Malik JawadSaboor Assistant Professor Department of Management Sciences COMSATS Institute of Information Technology Islamabad.

  2. Previous Lecture Review • Conducting a Feasibility Analysis • The Feasibility Study • Five Forces Model • Product or Service Feasibility Analysis • Financial Feasibility Analysis

  3. Objectives Why Develop a Business Plan? The Elements of a Business Plan What Lenders and Investors Look for in a Business Plan Making the Business Plan Presentation Concluding remarks Business Plan Format

  4. The Business Plan • A written summary of: • an entrepreneur’s proposed business venture • its operational and financial details • its marketing opportunities and strategy • its managers’ skills and abilities.

  5. A Plan Must Pass Three Tests • 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. • The Competitive Test - evaluates: • a company’s position relative to its customers. • management’s ability to create a company that will gain an edge over its rivals. • The Value Test – proving that: • a venture offers investors or lenders an attractive rate of return or a high probability of repayment.

  6. Why Take the Time to Build a Business Plan? • Although building a plan does not guarantee success, it does increase your chances of succeeding in business. • A plan is like a road map that serves as a guide on a journey through unfamiliar, harsh, and dangerous territory. Don’t attempt the trip without a map!

  7. Strategic Guide • Where Do You Want To Go? • How Are You Going to Get There? • What Market Niches? • How Much is it Going to Cost? • Greatest Profit Opportunity?

  8. Lender Expectations • Good Business Track Record • Ability to Repay • Collateral

  9. Investor Expectations • Competitive Advantage • Huge Market • Strong Management Team • Strong Marketing and Sales Plan • Obscene Return • Exit Strategy

  10. Entrepreneurs Start Businesses: • To Capitalize on an Invention • To Pursue a Passion • To Be Their Own Boss • To Get Rich

  11. Exit Strategies • Selling the Business • Transferring the Business to a Family Member • Taking the Company Public • Being Acquired by a Larger Company

  12. Funding Sources: • Savings • Friends and Family • Financial Institutions / Banks • Angel Investors • Venture Capital

  13. Business Plan Content • The Cover • Executive Summary • Company Description • Product/Services Description • Industry Overview • Market Analysis • Competitors

  14. Business Plan Content • Customers • Marketing and Sales Plans • Development • Operations • Management

  15. Business Plan Content • Personnel • Financial Summary • Financials • Offering • Appendices

  16. Cover Page • Should contain • COMPANY NAME • TAG LINE • CONTACT PERSON • ADDRESS • PHONE • DISCLAIMER • COPY #

  17. Executive Summary • A mini-business plan in one or two pages • Highlights the most important points of your business plan • It is NOT an introduction to the plan • It must grab your reader, and entice him/her to read further

  18. Executive Summary • Identify the company, its background, structure and location • Describe what the company does, and the market it serves • Describe the market potential for the company’s products and services, market trends, etc.

  19. Executive Summary • Outline the backgrounds and experience of the top management team • Describe the funding required, the purposes for which it will be used, the collateral available (if for a lender), and the expected outcomes

  20. Company Overview • Brief Company Introduction • Mission statement • Location, size, history • Market and products • Overview of company capabilities • Objectives

  21. Products/Services • Products / Services • What does it do? • Uniqueness • Competitive Advantage • Technology • Brief description • Applications • Commercialization Status • Brief overview

  22. Industry Overview • Set The Stage • Industry Definition and Description • Major players within the industry • Factors driving dynamics • New products and developments • Legislation and Policies Driving the Industry • Historical and Future Trends

  23. Market Analysis • Market Definition • Primary Market • Secondary Markets • Market Size and Trends • Current total revenues • Predicted annual growth rate

  24. Competitors • Direct Competitors • Who are they? • Size and product breadth • Revenues and profitability • Strengths and weaknesses • Market shares • Indirect Competitors

  25. Customers • Customer Characteristics • Who are they? • Why do they buy? • Need satisfied by the product/service • How is the need currently filled? • What are the alternatives? • Who makes the decision to buy? • How frequently do they purchase?

  26. Marketing and Sales Plans • Statement of Opportunity • Marketing and Sales Objectives • Existing Customers • Potential Customers

  27. Marketing Strategies • Product/Service Strategy • Pricing Strategy • Distribution Strategy • Advertising and Promotion Strategy • Sales Strategy • Marketing and Sales Forecasts

  28. Marketing and Sales Plans • Marketing Programs • Direct Mail • Trade Shows • Advertising • Internet • Publicity/Public Relations • Marketing Budget • Pricing • Basis for targeted price point • Margins and profitability by volume levels

  29. Marketing and Sales Plans • Sales Plan • Sales force structure – (direct or reps) • Sales expectations/quotas • Margins given to intermediaries • Service and warranties • Sales Budget • Organizational chart indicating planned growth

  30. Development • R & D Plan • Objectives • Milestones and current status • Difficulties and risks • Staffing • R & D Budget and assumptions

  31. Operations • Manufacturing/Production Plan • Objectives • Facilities • Staffing • Subcontractors • Quality Control • Budget / Operating Expenses

  32. Management • Company Organization • Management Team • Administrative Expenses

  33. Management Team • President • VP Finance • VP Sales • VP Marketing • VP Manufacturing • Board of Advisors

  34. Personnel • Human Resource Plan • Staffing Objectives • Organizational Structure • 3-5 year growth plan • Budget

  35. Summary of Financials • Financial Objectives • Time to Cash Flow Positive • Time to profitability • Financial Assumptions • Capital Requirements • Exit Scenario

  36. Financials • Pro-forma Cash Flow Projections • Pro-forma Profit & Loss Statements • Pro-forma Balance Sheet

  37. Offering • Investment Requirements • Pro-forma Valuation of Business • Offer

  38. Appendices • Resumes of Key Management • Patent Information • Customer List • Testimonials • Supplemental Financial Spreadsheets • References

  39. Lecture Review Why Develop a Business Plan? The Elements of a Business Plan What Lenders and Investors Look for in a Business Plan Business Plan Format

More Related