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ENTREPRENEUR WEAPONS. Rudy W. De La Garza. First Dominion FINANCIAL. WEAPONS. What is a Business Plan A Business Plan is a clearly defined management discussion of the operation of the business with projections of future values under certain assumptions. Executive Summary
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ENTREPRENEURWEAPONS Rudy W. De La Garza First Dominion FINANCIAL CITE BootCamp January 2011
WEAPONS What is a Business Plan A Business Plan is a clearly defined management discussion of the operation of the business with projections of future values under certain assumptions. • Executive Summary • Elevator Pitch • Slide Deck CITE BootCamp January 2011
OPPORTUNITIES Look around you! Is there a problem that needs a solution? Is your solution; • At a Better price • With a Better device • In a Better technology • A Better way of Communicating We can built it greener , better, faster, smarter and cheaper. CITE BootCamp January 2011
FEASIBILITY • Opportunity? • Scope of target market Geographic and Demographic • Potential market size • Market penetration • Share of market (realized vs. potential) • Competitors and market shares • Can we do better? If so how? CITE BootCamp January 2011
DEFINE THE CUSTOMER Know your customer CITE BootCamp January 2011
COMPETITIVE ADVANTAGE Why will they buy: • Is it at a Better price? • Is it a Better device? • Is the technology Better? • Will it communicate Better? • Will they make the change? CITE BootCamp January 2011
SUCCESS FACTORS AND TIMING Critical success factors • What three or four things must go right in order to succeed, and in what order? • Is our management team capable of making it happen? Timing considerations • Is the window of opportunity broad or narrow? • Is timing critical to capturing market share? • Who else is trying to get there first? CITE BootCamp January 2011
BUSINESS MODEL AND PROFIT Do we have a viable Business Model? • How will we reach our customer (sales & distribution)? • How will we produce the product? • How will we price the product? • How will we support the product after the sale? Can the business be profitable? • Selling price (to achieve target volume goals) • Cost to manufacture (function of volume)? • Cost to distribute, sell, service, & support? • Other costs? • Breakeven point? CITE BootCamp January 2011
Projection Financials Pro forma • Month to month for 12 months • 3 year projection • Percentage of market reach • Growth • Cost of goods • Operating cost a. Salaries • Equipment cost • Gross Profit • Net profit CITE BootCamp January 2011
Managing Risks • Technical risk – will it work? • Market risk – will they buy? • Competitive risk – can we sustain a competitive advantage? • Implementation risk • Leadership • Resources • A convincing Business Plan • What could go wrong?Everything CITE BootCamp January 2011
Elevator Pitch You want to catch their attention and get invited to give your pitch… K I S S • Start with a question to catch someone’s interest? • Describe the “market pain”? • i.e. The problem you are trying to solve • Say your “value proposition”? • i.e. Why your product is better than others • Tell them the market size? • Tell them your projected revenues? CITE BootCamp January 2011
Slide DeckK I S S • Guy Kawasaki – The Art of the Start • 10 slides • Title • Problem • Solution • Business model • Underlying magic • Marketing and sales • Competition • Team • Financial Projections • Status and timeline • 10 slides, 20 minutes, 30 point font CITE BootCamp January 2011
Executive Summary • 3-5 Pages • Put your slide deck into words CITE BootCamp January 2011
Top 10 Mistakes • Solutions or technologies are stuck in R & D. • Unclear business model • Incomplete competitor analysis • Marketing plan not thought out • Inadequate description of the uncertainties and risks • Gaps in capabilities required of the team • Inadequate description of revenue and profit drivers • Lack of focus and a sound mission • Never sold the market size & % of market unrealistic • Limited confirmation of customer demand CITE BootCamp January 2011
QUESTION ? What is the one single biggest mistake made? CITE BootCamp January 2011
Most missed question What is the one single biggest mistake made? Never trying! CITE BootCamp January 2011
Summary • Entrepreneurial success takes more than a bright idea, luck and hard work. You must also have: • The courage to fail • The flexibility to change • The fortitude to listen to others “MENTORS” • And the means to make a decision • Too many would-be entrepreneurs start with a clever technology or a bright idea and assume that the world will beat a path to their doorstep • Unfortunately, it rarely works that way Are you ready for the greatest adventure of your life, then become an Entrepreneur. CITE BootCamp January 2011