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Business Plan Preparation Introduction

Business Plan Preparation Introduction. Frank Moyes Leeds School of Business University of Colorado Boulder, Colorado. Tonight’s Agenda. Introductions Course organization & syllabus Writing a business plan Discuss your ideas. Frank Moyes frank.moyes@colorado.edu Office Hours: Koelbel 440

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Business Plan Preparation Introduction

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  1. Business Plan PreparationIntroduction Frank MoyesLeeds School of BusinessUniversity of ColoradoBoulder, Colorado

  2. Tonight’s Agenda • Introductions • Course organization & syllabus • Writing a business plan • Discuss your ideas

  3. Frank Moyes frank.moyes@colorado.edu Office Hours: Koelbel 440 Monday 4:00 to 6:00pm Wednesday 3:00 to 5:30pm And by appointment Websitehttp://leeds-faculty.colorado.edu/Moyes 0 Communications

  4. 0 Materials • Lawrence and Moyes, “Writing a Successful Business Plan”, 2007 (download from Resource section of Instructor’s website) • Moyes and Lawrence, “Financial Spreadsheets for the Business Plan” (download from Resource section of Instructor’s website)

  5. Objectives of the Course • Understand what is a business plan & when to write one • Learn to write a viable business plan • Experience the process “Everything is vague to a degree you do not realize till you have tried to make it precise.” Bertrand Russell

  6. Course Structure • Weeks 1 & 2: Evaluate opportunities • Week 3: Select concept & team • Weeks 4 & 5: Market & Industry Analysis • Week 6 to 13: Instructor to describe a section of the business plan (slides posted on course website) • Weeks 5 to 12: In the Fire sessions • Week 14: Present business plan & hand in • Week 15: Competition

  7. Grading • Individual • Concept & resume • Participation • Peer evaluation • Team Assignments • In the Fire sessions • Written assignments & Presentations • Final Business Plan & Presentation

  8. Business Plan Sections • Executive Summary • Company Overview • Product/Service Description • Market & Industry Analysis • Marketing Plan • Operations Plan • Development Plan • Management • Competitive Advantage • Financial Plan • Funding

  9. Why Write a Business Plan? • Road Map • Establish goals to make sure that are on track and heading in the right direction • Action Plan • Small steps lead to large results • Sales Tool to attract investors, vendors, customers, partners, employees “If we don’t have a plan for ourselves, we will be part of someone else’s.” Joan Lunden

  10. A Good Business Plan • Explains how you are going to do it • Provides evidence that customers want to buy • Tells a story - creates excitement • Addresses the critical elements • Should be painful to write

  11. Critical Elements of a Business Plan(& You Must Address) Strong market Attractive industry Compelling Need Clear value proposition Sustainable competitive advantage Understanding of profitability & cash flow Management

  12. Why Not Write a Business Plan? • Lack experience • Information • Time & cost to get causes too great a delay • Can’t get • Situation changes too quickly • Founder has great experience, successful track record & has a “gut feel” for the business

  13. “Writing a business plan is a life changing event.”

  14. Discuss Ideas

  15. Concept & Team Selection Process • Identify Concept • Conduct Idea Exercise (download from website) • Jan 23 discuss your concept in class • Use Business Concept Description as a framework for explaining your concept

  16. Concept & Team Selection Process (continued) • Jan 25 (Friday) 1:00pm email Business Concept Description as a Word attachment to instructor • Must have your name & concept name in file name and on the attachment • Jan 28 (Monday) Instructor to email all students which concepts with the greatest potential thathave been selected • Jan 30 (Wednesday) Students whose idea are selected will form a teams of four in class

  17. Approach to Generating Business Concepts“From Student to Entrepreneur” • Doing what you love • What bugs you • Use your experience • Recycle business concept • Steps, pain points & solutions • Developed by Neal Lurie, MBA 2004

  18. Concept Description • Brief description • Why is there an opportunity/need? • What is the product/service? • Who is the target market? • What are the benefits to the target market? • Who is the competition? Your competitive advantage. • Profitability

  19. Concept Description • Brief description • Why is there an opportunity/need? • Problem you are solving • Size & Trends • What is the product/service? • What is unique • How will it be produced or delivered?

  20. 0 Unique/Different • You must differentiate your business – it’s already being done by someone • More than unique product/service design • Marketing – positioning • Operations – process or value chain • Channels – create a new channel

  21. Concept Description (continued) • Who is the target market? • Demographics & psychographics • Industry, company size • What are the benefits to the target market? • Features are not benefits • Who is the competition? • Your competitive advantage • Profitability • Revenue model • Contribution margins

  22. Benefits • Emotional: ambition, power, independence, achievement, ambition, pride of ownership, comfort, love, friendship, security, style, self improvement, etc. • Social: status, image, popularity with friends or family members, reputation of brand, personal relationships, style, fashionable, etc. • Health: stress, fitness, mental capacity, strength, sex life, quality of life, muse, etc. • Financial: revenue, costs, savings, productivity, pricing, profitability, market share, save time, productivity, etc.

  23. Concept Description • Brief description • Why is there an opportunity/need? • What is the product/service? • Who is the target market? • What are the benefits to the target market? • Who is the competition? Your competitive advantage. • Profitability

  24. Assignments for Next Week • Review ESBM 3700 materials on Opportunity Recognition • Email resume • “From Idea to Entrepreneur” exercise • Identify an opportunity to discuss in class

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