Business Plan Preparation

1. Business Plan Preparation Frank Moyes Leeds School of Business University of ColoradoBoulder, Colorado Operations & Development Strategy

2. Tonight Business Analysis Presentation Operations Plan Development Plan Peer evaluations Review Plan status Team meetings Operations & Development Strategy

3. Next Week • Business Analysis Assignment • PowerPoint 10 minutes, 6-8 • Market & Industry Analysis • Product/Service Description • Profitability Operations & Development Strategy

4. Critical Elements of a Business Plan(& You Must Address) Strong market Attractive industry Clear value proposition Sustainable competitive advantage Understanding of profitability & cash flow Management – not this week Frank Moyes

5. Use Market Analysis & Industry Analysis Provide validation that this is a good opportunity Explain why you will succeed Show how you will you make money Describe business model Operations & Development Strategy

6. 3 ring binder Market Analysis - draft Industry Analysis - draft Product/Service Description - draft Value Chain analysis Competitive matrix Financial COMP’s Revenue Model 20 interview Call Reports – not if did Feas Plan Operations & Development Strategy

7. Industry Structure 0 Value Chain Distrib Suppliers Consumer Manfg Sources Retailers Goods Information Funds Market & Industry Analysis A T Kearney, Integrating the Supply Chain

8. 0 Business Plan Elements Executive Summary Company Overview Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Financial Projections Offering, Funding Requirements, Valuation Operations & Development Strategy

9. 0 Operations Strategy • Operations section describes the inputs, processes, procedures and activities required to produce goods or services • Operations • How gain a competitive advantage • Operations that add to your value proposition • Supply chain analysis will help write this section Operations & Development Strategy

10. 0 Scope of Operations • In-house vs. subcontract • What is key to the success of your business – core competencies • Consider: • Production • Product development • Order fulfillment • Customer service/Tech support • Warehouse and shipping • Installation • Warranty service & repairs Operations & Development Strategy

11. Operations Analysis (Walk an Order) • Pre-purchase • Contact points • Purchase • Customer support • Fulfillment • Joint Ventures/Partnerships • People • Logistical • Plan & Equipment • People requirements • Systems & Technology • Inventory levels • Information requirements Operations & Development Strategy

12. 0 Ongoing Operations • Identify key vendors, suppliers, strategic partners • Describe the arrangements • Price agreements • Determine manpower requirements • Provide a layout of the production or service process • Determine inventory levels to support marketing • Identify key performance indicators Operations & Development Strategy

13. Production/Service Capacity Determine production/service capacity required based on sales forecast Type of facility – size and type of space (office, labs, production, warehouse & shipping) Location Capital assets (equipment, vehicles, buildings, fixtures, computers & software) Operations & Development Strategy

14. Development Strategy • What must happen to succeed? • Describe 5 -10 key events that must take place with completion dates • Product & process development • Intellectual property • Key agreements • Market & beta tests • Marketing actions • Key hires Operations & Development Strategy

15. Development Timeline Operations & Development Strategy Source: Steve Lawrence