BUSINESS PLAN

Prepared By:

Nijaz N
 BUSINESS PLAN
• A written document that outlines the future activity for an
existing or proposed business venture.

• Is the formal written expression of the entrepreneurial vision,

describing the strategy and operations of the proposed venture.

• A business plan is a document that brings together the key

elements of a business that include details about the products
and services, the cost, sales and expected profits.

• Blue Print
 Purpose of a Business Plan
• Alignment of team(s)

• Operating plan

• Communication across company, division, department, business

partners

• Investment capital

• Expansion capital (banks, leases)

• Merger/acquisition process
 BUSINESS PLAN Drivers
Clear Vision of Purpose  The direction the business venture wants to
achieve.
A long term view
Satisfy Real Customers Needs  Exceptional customer service that results in
& Serve Real Customers
the loyalty of customers, repeat purchases by
them and greater customer retention.
Differentiate from Competitors  Positioning unique differentiating factors.

Continuously making improvements to

sustain a leadership position.
Resource Focus, Organization  Resources should be optimally utilized to
& Commitment to satisfy
Customer needs ensure that maximum possible value gets
added to satisfy customer needs.
 What Investors Look For
• How does the team think?
• How detail oriented is the team?
• How big is this market?
• Is there sustainable competitive advantage?
• What’s the growth plan?
• What does the technology roadmap look like, short
term or long term play
 Financial Projections
• Build 5 years
• Detail near years, extrapolate out years
• Build from single unit economics
• Document assumptions
• Compare against top down
• Validate with market comparables
 10 Must Answer Questions
• How large is your addressable market?
• How fast is the market growing?
• Who’s make up your management team?
• What’s your “secret sauce?”
• What are the barriers to entry/competitive advantage?
• What do your 5 year financials look like?
• What’s your path to profitability?
• Why is this a company versus a product/service?
• Who’s your competition and how do you beat them?
• Why can’t Microsoft or Google do this? (or name any big, established
company…)
 Creating Your Company’s Strategy

• Building a strategy is harder work than building your

product
• Think about
– What do you want your business to be when it grows up
– Looking back from 5 years in future
– Perspectives of all stakeholders
– Anything that could go wrong

• Hope is not a strategy

 Competitive Analysis
• You always have competitors

• Dig deep, be detailed, be honest

• Compare features and benefits

• Technology comparison

• Whole product offering (pricing, support, etc.)

• Channels, funding, customers…

 Sustainable Competitive Advantage

• Create barriers to entry

• Continually add value for your customers (and your
investors)
• Anticipate competition and make plans for dealing with it
– Better widget, price erosion, market share, different business
model…..

• Avoid the trap of believing that your main competitor is

your exit strategy
 Format of Business Plan

• TITLE PAGE

 Name of the business

 Owner /Owners

 Contact Details (Addresses, Phone & email etc)

 EXECUTIVE SUMARY

 Business ideas & Goals : Over view of business

 Marketing : Products & services being sold?

 Operations : Business Location & staff

 Finances : Breakeven period, finance required.

 Format of Business Plan

• BACKGROUND

 Mission Statement

 Company history ( existing business)

 Business Goals (Short term/Long term)

 MARKETING

 Market Research

 Market Analysis (Industry / Seasonality /Competitors /SWOT )

 Marketing Plan (Target market/ distribution channel /pricing)

 Evaluation of Marketing
 Format of Business Plan
• OPERATIONS & PRODUCTION

 Legal & Licensing requirements

 Management details

 Organization structure & staffing

 Insurance & Security needs

 FINANCIAL PROJECTIONS

 Income & Expenses

 Financial forecasts

 IMPLEMENTATION TIME TABLE

 Time needed to set up & run the business