Business Planning

THE HARSH REALITY • 50% of start-ups fail • Poor business planning • “Write a business plan” • Emphasis on writing, not on thinking • THINK, THINK, THINK ! © 2004 Oak Tree Press — South East Enterprise Platform Programme

PROCESS vs OUTPUT • PROCESS separate from OUTPUT • PROCESS = Thinking, researching, testing, planning • OUTPUT = Business plan document © 2004 Oak Tree Press — South East Enterprise Platform Programme

MISCONCEPTIONS • Strategy is for big companies only • You need an MBA to do Strategy • There's no point planning, since things change © 2004 Oak Tree Press — South East Enterprise Platform Programme

STRATEGY • Where do you want to go? • Where are you now? • How do you get there? • Focus usually on HOW? • More important questions: WHAT? WHY? • Strategic box • Business plan – THINK, not WRITE © 2004 Oak Tree Press — South East Enterprise Platform Programme

OTP STRATEGY • Passion • Our passion is enterprise. Thinking about it. Writing about it. Talking about it. Doing it. Helping with it. Making it happen. • Vision • OTP will be known worldwide as the best in developing successful methodologies and resources for entrepreneurs, MSMEs and enterprise support organisations. • Mission • Helping entrepreneurs to achieve their potential. © 2004 Oak Tree Press — South East Enterprise Platform Programme

Vision 2 • I want to own and run a uniquely personalised career advice service, which really understands people’s difficulties in choosing a career and works with them to find their best fit in the job market. I want this service to have a 99% first-time success rate in matching people to the right careers (not just the next job), as measured by the people themselves. I want this service to be available not just locally but, in time, nationally and even globally, at a price that everyone can afford. © 2004 Oak Tree Press — South East Enterprise Platform Programme

Vision 3 • Challenges: • Personalised service. • Really understanding people. • Finding the best fit in the job market. • 99% first-time success rate. • Matching people to the right career, not just jobs. • Success rate measured by customers. • National – even global – distribution. • Affordable price. © 2004 Oak Tree Press — South East Enterprise Platform Programme

Branding • Something that makes people pay more for your product, even though it's the same as a competitor's • VW Sharan • €38,820 • SEAT Alhambra • €33,600 © 2004 Oak Tree Press — South East Enterprise Platform Programme

Targets • Vision: Where you want to be • Targets: Goals that are closer to home • What do you want to achieve next year? • Next month? • In the next three or five years? • Where will you be on your road to achieving your Vision at a particular point in time? • Your targets are the milestones that make clear and communicate your Vision. © 2004 Oak Tree Press — South East Enterprise Platform Programme

MARKETING • Satisfying needs .. profitably • Elements: • Customers • Competition • Image • 4 Ps (product) / 3 Ps (service) • Marketing plan • Sales forecast © 2004 Oak Tree Press — South East Enterprise Platform Programme

MARKET RESEARCH • Keep it practical • Sources of information • What do you want to know? • Do it yourself • Core of your business (plan) © 2004 Oak Tree Press — South East Enterprise Platform Programme

MARKETING • 4 Ps (PRODUCT) • Product • Place • Price • Promotion • 3Ps (SERVICE) • Physical presence • Perception • People • All linked © 2004 Oak Tree Press — South East Enterprise Platform Programme

SALES FORECASTS • Evidence • Get forward orders! • Be realistic • Ultimate purpose of marketing is SALES • Link sales forecasts to your promotion activities © 2004 Oak Tree Press — South East Enterprise Platform Programme

MARKETING SALES, SALES, SALES, SALES, SALES, SALES, SALES, SALES, SALES, SALES, SALES, SALES, SALES, SALES, SALES, SALES, SALES, SALES, SALES, SALES, SALES, SALES, SALES, SALES © 2004 Oak Tree Press — South East Enterprise Platform Programme

MARKETING • Understand your customers' needs • Set targets • Combine all elements of the marketing mix • Link to finances / cashflow • Get hard evidence where possible © 2004 Oak Tree Press — South East Enterprise Platform Programme

BUSINESS PROCESS • 4 elements: • Buy • Make • Sell • Manage / Infrastructure • Visualise your process • Resource implications • Space • Equipment • Staff © 2004 Oak Tree Press — South East Enterprise Platform Programme

PEOPLE • Analysis of skill levels • Now • Future need • Key staff • Retention • Part of resourcing of strategy • Management capabilities © 2004 Oak Tree Press — South East Enterprise Platform Programme

PEOPLE • Human capital more important than financial • Knowledge base • Organisational structure • Passion / unity / commitment • Entepreneur as manager • Which areas are critical? • Job descriptions • Cost • Formalities • Outsourcing © 2004 Oak Tree Press — South East Enterprise Platform Programme

MANAGEMENT • Delegation • Communication • Formalities • Ongoing development • Retention • Reward • Develop policy/systems • Review skills levels © 2004 Oak Tree Press — South East Enterprise Platform Programme

BUSINESS PLAN BENEFITS • The road map or guide to the future • Not written in stone, but a plan nonetheless • Establish objectives, prioritize, specify steps • Cash flow is not profits and is not intuitive • It is, however, critical to success • Communicate • Banks, investors, partners, family © 2004 Oak Tree Press — South East Enterprise Platform Programme

CRITICAL QUESTIONS • Who are you? • What is your product? • Who will buy your product? • Why do they buy your product? • What price will your customers pay? • How many will they buy at this price? • How many can you make? • How much does each unit of product cost you to make? • How much investment do you need to get started? • Have you a viable business? © 2004 Oak Tree Press — South East Enterprise Platform Programme

PROCESS & OUTPUT My product I am I can make It costs to make Finance & Funding Project Outline Production App'x Exec Sum Intro Ownership Mkt'g In summary My customers: Are / Will buy / Will pay Start-up investment Viable business ? © 2004 Oak Tree Press — South East Enterprise Platform Programme

WRITING A BUSINESS PLAN • Assemble information from your research • Use template / software • Start in the middle • Reflect your plans in the financials • Write for the audience © 2004 Oak Tree Press — South East Enterprise Platform Programme

INTRO / EXEC. SUMMARY • Brief / concise / relevant • Tailored to audience • Key messages – emphasise achievements • What do you want from the reader? • Ooomph! • Last part to be written • CRITICAL © 2004 Oak Tree Press — South East Enterprise Platform Programme

TAILORING BUSINESS PLANS • Different plans for different audiences • Level of detail • Level of confidentiality • Nature of relationship with reader • Why do YOU want the person to read the BP? • Why do THEY want to read the BP (if at all)? © 2004 Oak Tree Press — South East Enterprise Platform Programme

BUSINESS PLAN ISSUES • Raise your sights! • Marketing – where will the sales come from? • Financials – realism/sensitivity? • Text / Evidence / Numbers • SHOW ME THE MONEY !! © 2004 Oak Tree Press — South East Enterprise Platform Programme

Business Planning