MB0036 – Strategic Management & Business Policy Assignment Set- 2

1. What is the purpose of a Business Plan? Explain the features of the component of the Plan dealing with the Company and its product description. Answer: A good business plan will help attract necessary financing by demonstrating the feasibility of your venture and the level of thought and professionalism you bring to the task. The first step in planning a new business venture is to establish goals that you seek to achieve with the business. You can establish these goals in a number of ways, but an inclusive and ordered process like an organizational strategic planning session or a comprehensive neighborhood planning process may be best. The board of directors of your organization should review and approve the goals, because these goals will influence the direction of the organization and require the allocation of valuable staff and financial resources. Your goals will serve as a filter to screen a wide range of possible business opportunities. If you fail to establish clear goals early in the process, your organization may spend substantial time and resources pursuing potential business ventures that may be financially viable but do not serve the mission of your organization in other important ways. A liquor store on the corner may be a clear money-maker; however, it may not be the retail to assist your community desires. The following are examples of goals you may seek to achieve through the creation of a new business venture: Revenue Generation – Your organization may hope to create a business that will generate sufficient net income or profit to finance other programs, activities or services provided by your organization. Employment Creation – A new business venture may create job opportunities for community residents or the constituency served by your organization. Neighborhood Development Strategy – A new business venture might serve as an anchor to a deteriorating neighborhood commercial area, attract additional businesses to the area and fill a gap in existing retail services. You may need to find a use for a vacant commercial property that blights a strategic area of your

MB0036 – Strategic Management and Business Policy


neighborhood. Or your business might focus on the rehabilitation of dilapidated single family homes in the community. Whenever possible, goals should have quantifiable outcomes such as “to generate a minimum of $50,000 of net income or profit within three years”; “to employ at least 15 community residents within two years in new permanent jobs at a livable wage”; “to occupy and support a minimum of 10,000 square feet of neighborhood commercial space”; or “to rehabilitate 50 single-family houses over three years.” Clearly defined and quantifiable goals provide objective measurements to screen potential business opportunities. They also establish clear criteria to evaluate the success of the business venture. Establish Goals Once you have identified goals for a new business venture, the next step in the business planning process is to identify and select the right business. Many organizations may find themselves starting at this point in the process. Business opportunities may have been dropped at your doorstep. Perhaps an entrepreneurial member of the board of directors or a community resident has approached your organization with an idea for a new business, or a neighborhood business has closed or moved out of the area, taking jobs and leaving a vacant facility behind. Even if this is the case, we recommend that you take a step back and set goals. Failing to do so could result in a waste of valuable time and resources pursuing an idea that may seem feasible, but fails to accomplish important goals or to meet the mission of your organization. Depending on the goals you have set, you might take several approaches to identify potential business opportunities. Local Market Study: Whether your goal is to revitalize or fill space in a neighborhood commercial district or to rehabilitate vacant housing stock, you should conduct a local market study. A good market study will measure the level of existing goods and services provided in the area, and assess the capacity of the area to support existing and additional commercial or home-ownership activity. This assessment is based on the shopping and traffic patterns of the area and the demographic and socio-economic characteristics of the community. A bad or insufficient market study could encourage your organization to pursue a business destined to fail, with potentially disastrous results for the organization as a whole. Through a market study you will be able to identify gaps in existing products and services and unsatisfied demand for additional or expanded products and services. If your organization does not have staff capacity to conduct a market study, you might hire a consultant or solicit the assistance of business administration students from a local college or university. Conducting a solid and thorough market

MB0036 – Strategic Management and Business Policy


study up front will provide essential information for your final business plan. Analysis of Local and Regional Industry Trends: Another method of investigating potential business opportunities is to research local and regional business and industry trends. You may be able to identify which business or industrial sectors are growing or declining in your city, metropolitan area or region. The regional or metropolitan area planning agency for your area is a good source of data on industry trends. Internal Capacity: The board, staff or membership of your organization may possess knowledge and skills in a particular business sector or industry. Your organization may wish to draw upon this internal expertise in selecting potential business opportunities. Internal Purchasing Needs / Collaborative Procurement: Perhaps, your organization frequently purchases a particular service or product. If nearby affiliate organizations also use this service or product, this may present a business opportunity. Examples of such products or services include printing or copying services, travel services, transportation services, property management services, office supplies, catering services, and other products. You will still need to conduct a complete market study to determine the demand for this product or service beyond your internal needs or the needs of your partners or affiliates. Identify Business Opportunities Buying an Existing Business: Rather than starting a new business, you may wish to consider purchasing an existing business. Perhaps a local retail or small light manufacturing business that has been an anchor to the local retail area or a much-needed source of jobs in the neighborhood is for sale. Its closure would mean the loss of jobs and services for your neighborhood. Your organization might consider purchasing and taking over the enterprise instead of starting a new business. If you decide to pursue this option, you still need to go through the steps of creating a business plan. However, before moving ahead, these are just a few important areas to research in assessing the business you plan to purchase: Be sure to conduct a thorough review of the financial statements for the past three to five years to determine the current fiscal status and recent financial trends, the validity of the accounts receivable and the status of the accounts payable. Are all the required licenses and permits in place and can they be transferred to a new owner?

MB0036 – Strategic Management and Business Policy


The following table lists the advantages and disadvantages of several options for getting the work done. As a non-profit corporation. attract investment. Now you are ready to test the feasibility of the venture and to present your business concept to the world. have a qualified attorney advise you on the proper corporate structure for your new venture. You will also need to assess the customer or client base and determine whether its members will remain loyal to the business after it changes hands. commercial lenders or the community to gain financial backing and political support for the proposed venture? The content and emphasis of the plan will shift according to the audience. After you have decided on a particular business activity. Will this be an internal plan the board will use to assess the feasibility and appropriateness of the business? Or will this plan be distributed to a larger external audience such as funding sources. Inspect the facilities and talk to suppliers. seek the expertise of an experienced professional in that particular industry. You may also wish to protect your organization from any liability issues connected with the proposed business activity. You might consider a combination of the options. A solid business plan will clearly explain the business concept. Advisory You have decided on a business opportunity that meets the goals of your organization. engaging in income-generating activities not related to your mission may affect your tax-exempt status. may need to remain with the business. He or she will bring valuable knowledge and insights regarding the industry that will prove extremely useful during the business planning process. because of their expertise. Another area to evaluate is the perception or image of the business. be sure to consult an attorney experienced in corporation law. In addition to qualified legal counsel. You will also need to decide who will conduct the necessary research and write the plan. The first step in writing your business plan is to identify your target audience. describe the market for your product or service. and establish operating goals and guidelines. MB0036 – Strategic Management and Business Policy -4- . customers and other businesses in the area to learn more about the reputation of the business. At this early stage of your planning process.Also look at the quality of key employees who.

volunteers. attract investment. A business plan can be completed by one staff member working full time in as little as a week. Tell the audience why the business is a great idea. you are ready to begin assembling the elements of the plan. Your business plan should contain the following sections: • • • • • • • Executive summary Company and product description Market description Operations Management and ownership Financial information and timeline Risks and their mitigation A solid business plan will clearly explain the business concept. and the product or service you plan to offer. Executive Summary In this section of your business plan. and the group’s facilitation needs. although a thorough market analysis will add several days at least. experience with planning and research. describe the market for your product or service. Combinations of staff. 1. provide a description of your company. Sell your concept! The executive summary may be the first and only section of your business plan that most of your audience will read.Creating One’s Own Business Plan It is also important to establish a timeline for completing the plan. consultants and a board committee may lengthen or shorten the process depending on skill level. Some readers MB0036 – Strategic Management and Business Policy -5- . Now that you have decided who will put together your business plan and have set a timeline for its completion. available time. the industry you will be competing in. A committee will probably need much more time. and establish operating goals and guidelines.

research journals or other publications. if any. Company and Product Description In describing your company be sure to include what type of business you are planning (homeownership development.will look at this section to determine whether or not they want to learn more about a business. Other readers will look to the executive summary as a sample of the quality and professionalism of the overall plan. Include these references in the attachments of your business plan. 2. Also include a description of your non-profit organization. describing historic and current growth trends. for example. Provide as much detail as necessary to inform the reader about the particular characteristics of your product that distinguish it from its competition – many nonprofits. you should write it after you have written the other sections of the plan in order to include the most important points of each section. retail. You should discuss why you are creating this new venture. Discuss what will attract consumers to your product or service. describe the products or services you plan to provide. Mention any distinctive elements in the manufacture of the product. the role it has played in developing this new venture and the on-going role. provide documentation or references supporting your trend analysis such as articles from business-oriented newspapers and magazines. referencing the goals you set at the beginning of the business planning process. expect to produce higher-quality housing than otherwise exists in the area. Focus on what distinguishes your product or service from the rest of the market. manufacturing or service) and the legal structure (corporation or partnership). it will play in operations. The executive summary should be no more than one to three pages long and should answer the following questions: • • • • • • Who are you? (describe your organization) What are you planning? (describe the service or product) Why are you planning it? (discuss the demand and market for the service or product) How will you operate your business? When will you be in operation? (overview of timeline) What is your expected net profit? (discuss your projected sales and costs) Although the executive summary is the first part of your business plan. such as MB0036 – Strategic Management and Business Policy -6- . wholesale. Whenever possible. Give the reader a brief overview of the industry. Product or Service After describing your company and its industry context.

Who will purchase your product or use your service? How large is your customer base? Define the characteristics of your target market in terms of its: • Demographics – Measures of age. you will also need to describe your competition (other local developers or nearby businesses providing a similar service to your potential customer base). Place Describe the location where you will produce or distribute your product or provide your service. or information MB0036 – Strategic Management and Business Policy -7- . Describe where this price positions you in the marketplace: at the high end. race. explain the steps you will take to provide a service that is better than your competition. • Socioeconomic Status – Measures based on individual or household annual income. and discuss the rationale behind that price. surrounding amenities and other characteristics that may enhance your business. Customers In this section of your business plan. religion and family size. In other sections of the plan you will discuss the target market for your product or service and also provide additional details on how the price of your product fits into the overall financial projections for the enterprise. Discuss the advantages of the location.being “hand-made by a particular people from a specific area. you will describe the customer base or market for your product or service. Sources for this information may include recent data from the Bureau of Statistics. low end or in the middle of the existing range of prices for a similar product or service. Price Provide a realistic estimate of the price for your product or service. Provide statistical data to describe the size of your target market. such as its accessibility. In addition to providing a detailed description of your customer base.” If you are providing a service. gender. • Geography – Measures based on location. Depending on your anticipated customer base. state or local census data. An unrealistic price estimate may undermine the credibility of your plan and raise concerns that your product or service may not be of sufficient quality or that you will not be able to maintain profitability in the long run. accessibility to your location via public transportation could affect the marketability of your product or service.

such as membership lists. Provide a description of any subcontractors or external services you plan to use in the production MB0036 – Strategic Management and Business Policy -8- . Cite any research forecasting population increases in your target market or other trends and factors that may increase the demand for your product or service. what are the local markets for purchase and rental? How much are people currently paying for similar products or services? Briefly describe what differentiates your proposed venture from these existing businesses and discuss why you are entering this market. Your estimate should be based on the size of your market. Sales Projections Present an estimate of how many people you expect will purchase your product or service. Production Description Describe the steps for creating your product. 3. if any. A key component of the operation of your business will be your sales and marketing strategy. Competition Discuss how people identified in your target market currently meet their need for your product or service. and final presentation. describe the process of service deliver (such as the initial interview. Account for initial presentation and market penetration of your product and any seasonal variations in sales. for a housing business. packaged and ready for distribution and sale. you will describe how you plan to operate the business. the characteristics of your customers and the share of the market you will gain over your competition. Market Description In this section. Be sure to list the sources for your data. If you plan to provide a service. describe the staff required to operate and manage the business. so you must describe how you will inform your target market about your product or service and how you will convince customers to purchase it.gathered by your organization. What other businesses exist in your area that are similar to your proposed venture? For example. as this will further validate your market assumptions. if you are offering consulting services). if appropriate. from the raw material or initial stage to the finished product. The initial year should be broken down in monthly or quarterly increments. Project how many units you will sell at a specified price over several years. discuss the equipment and materials necessary. and define the site or facility requirements. neighborhood surveys and group or individual interviews. assessment. for instance. You will present information on how you plan to create your product or provide your service. Include any relevant information regarding the growth potential for your target market if your business is expected to rely on growth. research and design.

telemarketing. 4. what type of equipment will you need? Describe any machinery and vehicles necessary in the production. Staffing Describe the staff required to operate your business: discuss how many people you will need. individual sales agents or representatives. describe the tasks they will carry out. The reader of the plan may be unfamiliar with the industry. furniture. Discuss the product’s or service’s features you plan to emphasize to gain the attention of your target market. Facility Describe the type of facility in which you will house your business. If you have already identified a location and a facility that meets your requirements. you need to demonstrate that you will have adequate space for administrative functions and other activities related to the service you plan to provide. informing or educating customers about your product or service and convincing them to purchase it. Equipment and Materials To manufacture your product or provide your service. such as print media (advertisements in newspapers. direct mail. Also discuss the types of materials you will use in the production process and describe the source and cost of those materials. Market Description Describe your strategy for locating your target market. Provide details on the methods you will use to advertise your product. packaging and distribution of your product. describe its features. electronic media (television. Also detail how you will distribute and sell your product or service. Also discuss any building features required for the production process such as high ceilings. Even if you are planning to provide a service instead of manufacturing a product. or directly distribute your product through a delivery service such as United Parcel Service. or other approaches. radio and the Internet).process. copiers. Operations MB0036 – Strategic Management and Business Policy -9- . Will you use sales agents or existing retail outlets. so avoid using industry jargon to describe the production process. specialized ventilation and heating systems. Federal Express or independent trucking company? 5. and the skills they will need. Prepare a chart outlining the salaries and benefits you will provide to your workforce. sanitized laboratory space or vehicular accessibility. magazines or trade journals). fixtures and telephone systems. including any office equipment such as computers. Provide information on how you will recruit staff and provide initial and ongoing training of employees. Indicate the amount of building space you will need for production and administration.

Be sure to provide a complete job description of any vacancies in your management team. equipment and vehicle purchase or rental. Ownership What is its relationship to your existing organization? Who is on the board of directors / board of advisors of the new business and what are their backgrounds and areas of expertise? Potential investors or lenders will be interested in the ownership stake of the board of directors and also in what portion of the company’s equity is available. you should provide a brief descriptive narrative for each of the following financial statements and include a copy in the attachments to your plan: • Start-up budget • Cash flow projection • Income statement • Balance sheet In preparing these statements. the skills. Be sure to highlight your management team’s experience in managing the production. Describe the responsibilities. and initial material or supply purchase. At a minimum. their background and their responsibilities in the business.10 - . legal incorporation and licensing expenses. describe the senior managers responsible for overseeing the start-up and operation of your business. MB0036 – Strategic Management and Business Policy . facility purchase or rental. so fully describe your business relationships with attorneys. the background required and the steps you plan to take to fill that key position. marketing and administration of similar businesses or within the selected industry and attach the resumes of each member to the plan. Some items you might include in your start-up budget research and product design and development expenses. accountants and advertising or public relations agencies. Management and Ownership In this section you will describe the financial feasibility of your planned venture and provide several financial reports and statements to document why your business will be a viable enterprise and a sound investment. and any industry-specific services such as suppliers and distributors. Success is often due to one’s contacts. You can use Worksheet B as a sample format for preparing your start-up budget. 6. Start-up Budget Describe the initial expenses you will incur to get your business up and running.In this section of your business plan. you may want to seek the advice of a certified public accountant (CPA).

taxes. For an existing business. This statement should indicate to the reader the potential of your business to generate cash and its profitability over time. legal and accounting services. MB0036 – Strategic Management and Business Policy . Are you looking for debt from a lender or equity from an investor? Refer to your start up budget and cash flow statement presented earlier. In preparing this statement. overhead expenses (rent. investors and other sources of capital. maintenance.to five – year) statement of projected revenue.11 - . This schedule should indicate how much money your business will have or need and when you will need it. Itemize your projected expenses. supplies. Also describe any commitments or investments that you may have already secured. 7. interest. insurance. vehicles. Income Statement Prepare a multiyear (three. account for a gradual increase in sales from initial product introduction and any expected seasonal fluctuations in revenue projections. production labor). Describe in your narrative any assets that will be allocated to the start-up of the business. detailing your projected sales revenue and indicating your own or investor equity contribution. expenses. Lenders may look at this statement to determine whether your business can support the additional debt you are requesting. and building repair or renovation expenses). You should describe your sources of income and capital. utilities. also submit an income statement for at least three prior consecutive years. Balance Sheet A start-up business probably will not have any assets or liabilities at the time you are drafting the business plan. provide supporting documentation such as growth patterns of similar companies or studies that forecast an industry-wide growth rate. fees and other ongoing operating expenses) and capital expenditures (land and buildings. furniture. lenders. equipment. If you make assumptions about the growth of your business. marketing. insurance. Discuss how and when you will draw on these funds and how they will affect the bottom line. administrative costs and salaries. Financial Information and Start up Timeline Capital Requirements Describe the amount and type of financing you are seeking for your business.Cash Flow Projection This statement presents a month-to-month schedule of the estimated cash inflows and outflows of your business for the first year. capital expenditures and cost of goods sold. Provide a copy of the balance sheet of the business’s sponsoring organization or individual. distinguishing between the cost of goods sold (materials.

Equity investors are looking for rates of return higher than rates offered by banks or other business lenders. Include deadlines for task completion. • Working Capital – Short-term financing to cover operating expenses and to bridge gaps in cash flow. Check with other businesses (although not direct competitors) to see what return on investment their investors demanded. thinking about different challenges will strengthen your plan. Initial Start-up Timeline Provide a timeline of tasks and events necessary to get your business operational. such as venture capitalists. as will the availability of equity dollars. What is the repayment period and the expected return on investment? Also discuss the nature of their ownership share and how it may change with future investments. building improvements. Set realistic deadlines according to your capacity to complete these tasks. The asset being purchased is usually pledged as security for the loan. The following is a list of some of the steps you may wish to include: • Filing legal incorporation documents • Identifying and securing suitable space • Designing and developing the product • Obtaining required licenses or permits • Securing necessary financing • Leasing or purchasing equipment • Hiring key staff • Hiring and training of production or support staff • Purchasing materials and production supplies • Beginning marketing activities • Opening Although it is impossible to know exactly what will go wrong in starting and running your business. Be sure to describe the current stage you are in and what steps you have taken to date. or lenders. equipment or vehicles.If you are seeking investors. several socially minded investment pools exist and more are in development. describe the type of financing you are seeking: • Seed Capital – Short-term financing to cover start-up costs. The level of risk in your business and industry will help to determine the actual market rate.12 - MB0036 – Strategic Management and Business Policy . Be prepared to negotiate. Potential problems could include: • • Insufficient public subsidy available to new home owners or residents The competition drops its prices . describe what they will receive in return for their capital. • Fixed Asset Financing – Longer-term financing for property. And make sure you research the investment market carefully.

Project how many units you will sell at a specified price over several years. Review the Executive Summary section of this manual for more tips on this critical introduction to your business. this section should be written last.13 - . Risks and their Mitigation Although it is impossible to know exactly what will go wrong in starting and running your business. if you have already written the executive summary. you should focus its presentation. the executive summary should provide an overview of the plan and entice the reader to read the whole plan or to agree to meet with you. and a persuasive plan will help you to convince the reader to invest in your business. MB0036 – Strategic Management and Business Policy . review it to make sure it embodies the following characteristics. Because it is the first and possibly the only section of the plan that many readers may see. The executive summary should be no more than three pages and should briefly describe the most important elements of the plan. the characteristics of your customers and the share of the market you will gain over your competition. However. Your estimate should be based on the size of your market. thinking about different challenges will strengthen your plan. Write short notes on : a) Sales Projections Answer: Sales Projections Present an estimate of how many people you expect will purchase your product or service. A well-organized plan will assist you in communicating the most important elements of your business plan to the reader. 2. Executive Summary As mentioned earlier. additional regulations or population changes tax For each potential problem. The initial year should be broken down in monthly or quarterly increments. After you have completed all of the elements of your business plan.• • • • Not enough customers Production costs exceed estimates Difficulty in finding qualified employees Environmental or governmental changes such as increases. discuss its likelihood and describe possible solutions or actions you might undertake to mitigate the problem.

if appropriate. Step I: Estimate For each product or service. Steps for Developing Sales Projections Your business plan is not just a funding tool. keep in mind that business will start off slowly before people become more aware of your business. supply and staffing needs. make projections for each month. The following are steps for developing sales projections. Step 2: Use a Calendar Estimate your sales and number of customers served during one week. estimate the number of people who are likely to buy and when they will buy it. but also a blueprint for how your business should operate. as well as income. You can get this information from asking your likely customers about their possible use of your business. or you can base your estimates on your knowledge of the market. Using the totals for a week. Materials & Supplies Personnel Key Employees Contract Labour/Temps Training Expenses Marketing Expenses Advertisements Brochures/Literature/Other Insurance Premiums .Account for initial presentation and market penetration of your product and any seasonal variations in sales. Seasonal variations may affect your business as well. You will use these numbers to project your equipment. Cost • • • • • • • • • • • • • • • • • • • • Account Heads: Organizational Start up Costs Product Design/Development Research & Development Legal/Licensing Expenses Property & Facilities Land/Building Purchase Initial Lease Deposit Building Repairs/Improvements Equipment/Machinery Production-related Administrative/Office Equip. Use will most likely increase as people learn about your products and services. For the first few months.14 - MB0036 – Strategic Management and Business Policy .

these are: • • To make Business data available both to decision-makers and as much as possible available in the public domain. (PT Sec.• • Distributor Contracts Contingency (5%) Expenses: Costs of Goods Sold • Materials/Supplies • Labor • Rent • Utilities • Insurance • Admin.15 - MB0036 – Strategic Management and Business Policy . . To ensure all holders of Business information are able to participate. Exp.) • Legal & Accounting • Marketing • Equipment Maintenance/Supplies • Facility Maintenance • Fees/Miscellaneous Debt / Equity Investment: • Equipment Loan • Building Rehabilitation Loan • Grants • Owner Equity Expenses • Cost of Goods Sold • Wages & Benefits • Materials • Supplies Overhead Expenses: • Rent • Utilities • Building Maintenance/Security • Marketing • Accounting • Legal • Administrative Expense • Interest Expense • Depreciation The Business Priorities are based upon six top-level objectives.

• Environmental Impact Assessment (EIA) and Strategic Environmental Assessment – This driver is concerned with providing ready access to data on location. the partners will contribute to the overall realisation of the objectives through work that they initiate on their own account. extent. To enhance the skills base and expertise needed to support and develop the NETWORK. data quality and gaps. To give additional focus to the challenging nature of the task that the NETWORK is setting itself. Data standards and tools C.e.• • • • To ensure that the data available through the NETWORK are of known quality. pattern and quality of Business. extent. These are: • It is assumed that the present way of working. but which does not necessarily fall under the focussed objectives for the Network. • The plan is not intended to represent all the work that could be undertaken. Working with the wider public E. ii) A series of assumptions have been made in formulating the Business Priorities and their associated work programme. i) The objectives have cross-cutting themes which are: A. To promote knowledge. • It is anticipated that other work towards the principal aim of adding content and providing a fully functional gateway will be adopted by the NETWORK as part of its programme. pattern of distribution. Capacity building D. It also has the potential for engaging more partners in the NETWORK. a series of principle drivers have been recognised. a lead partner approach for each project will be retained. but this work would have to be prioritised against this core activity and separately resourced. The drivers are: • Processes – This driver relates to facilitated targeted action on the ground through providing knowledge of resource location. Infrastructure development B. national and international levels. To ensure that the NETWORK Gateway gives access to data on Location and species used to inform decisions affecting Business at local. Co-ordination and promotion i) In addition. regional. • Data contributor engagement – This driver is concerned with accessing sources of data for the NETWORK enabling the MB0036 – Strategic Management and Business Policy . i. use and awareness of the NETWORK.16 - .

You have a ton every day. Generic enhancement – This driver encompasses capacity building and Recording Schemes and other contributing organisations and user groups. But most of the time. Don’t invest in a presentation class called “How to Use PowerPoint”…. and to communicate the progress and successes of the work programme. • Enhancing the Internet Gateway in terms of its functionality and the data it accesses. Some of the least creative people perhaps are in advertising. • Ensuring that the benefits already secured through the earlier work are maintained. They actually CREATE products that change the world. Some of most creative people are in manufacturing.17 - . Look up at people. and calendar into your meetings. you can’t remember them by the day’s end. pen. in order to ensure the continued and enhanced supply and use of information. Technology Last. These lead naturally to three broad areas of work: • Developing the recording network. Get your ideas on paper (Let someone else edit it. They spend most of their creative energy telling manufacturers that they…aren’t creative! Salespeople Are Creative – They are natural born story-tellers.• • assessment of actions and continual improvement in the targeting of actions from the two previous drivers.…until you’ve taken a class called “How to Tell Stories and Connect with Your Audience”.) Go retro: Carry a notebook. Best Creative Exercise Ever Write down your ideas. Accountants are creative. Story First. Operational use – This relates to the use of the NETWORK within the day to day business of agencies as a source of data relevant to local reporting or casework. Don’t let spelling and grammar issues or relentless self-editing stop you. 2b) importance of creativity in Business Answer: Creativity Everyone in business is creative. MB0036 – Strategic Management and Business Policy . The plan also acknowledges the need to co-ordinate activity between the members of the NETWORK and their partners.

Your job is to fix problems.2.18 - . MB0036 – Strategic Management and Business Policy . • Do not read your speech or presentation. Do not attend more than two meetings a day. Avoid Meetings. either. • Don’t just provide data. Your life. especially if you don’t have a better one. Another Lame Excuse… Designers should put more of their passion into designing great work.” How to Lose an Audience… • Show your audience slides with columns of numbers. • Refuse to tell them a story about the meaning of the numbers. Never say. your desk. your home. Get Fresh Ideas. “It’s not my job to be creative. procedures. And you can’t blame a machine for your creative failures. your processes. …. vision. Leave the office building at least once a day. Everything. read your audience.” Everyone in Sales Knows… • Tell stories.” You can’t let a machine take credit for your creativity. It’s only your life’s work. or else you will never get any real creative work done. instead of endless (boring) discussions about the superiority of the Macintosh over the PC! The Lame Excuse … “I can’t [write/design/create] because I don’t have the latest [software/hardware/ upgrade]…. your office. not to complain. Use what works. Master carpenters use fewer tools than novices.the fewer tools you will use. • Instead. policy. Fixing Problems is Creative. • How about a Show? • Try “giving a performance” instead of merely “giving a presentation. So do cooks. Don’t Blame the Tool! The more you become a master of your particular creative form….A: Simple Creative Exercise… Simplify everything. Brainstorming Don’t tell people that their ideas are bad.

The capital markets have learned “the American way”.e. MB0036 – Strategic Management and Business Policy . Global financial markets make sure that capital cannot be used nonproductively. There are lessons learned from the Japanese industry. Technology providers are involved throughout the life cycle of a giga-investment. Creativity takes place every day. not once in a while.a.a. which point to the importance of immaterial investments. Giga-investments are large enough to have an impact on the market for which they are positioned: A 3. Productivity improvements in these industries have slowed down to 1-2% p. and that these are even more important for re-investments and for gradually growing maintenance investments. Facts and observations Giga-investments made in the paper and pulp industry.Creativity: Use it or Lose it. profitability and productivity. Create something every day. as its owners are offered other opportunities and the capital will move (often quite fast) to capture these opportunities.00. These lessons show that investments in buildings. smaller units are no longer cost effective. It’s just been mystified – Own your creativity. A new technology will redefine the CSF:s for the market. The energy sector faces growing competition with lower prices and cyclic variations of demand. i. with gradually more advanced maintenance and financial add-on services.) in their key markets and a growing overcapacity in Europe. New technology and enhanced technological innovations will change the life cycle of a giga-investment. The core products and services produced by giga-investments are enhanced with life-time service.000 ton paper mill will change the relative competitive positions. which has brought (often quite short-term) shareholder return to the forefront as a key indicator of success. It’s not rare. in the heavy metal industry and in other base industries. today face scenarios of slow growth (2-3 % p. there is a shareholder dominance among the actors.19 - . production technology and supporting technology will be enhanced with immaterial investments.

Investment costs X Length of time the decisiont may be deferred. Time value of money. neither can the impact be expected to be covered through the stock market. σ CALL OPTION Stock price. To the extent possible. The proposition that we can describe future cash flows as stochastic processes is no longer valid. rf Risk of the project. Types of options • • • • • • • • Option to Defer Time-to-Build Option Option to Expand Growth Options Option to Contract Option to Shut Down/Produce Option to Abandon Option to Alter Input/Output Mix Table of Equivalences: INVESTMENT OPPORTUNITY VARIABLE Present value of a project’sS operating cash flows. MB0036 – Strategic Management and Business Policy . an audience should hear news from the organization first. What factors are to be taken into account in a crisis communications strategy? Answer: The following items should be taken into account in the crisis communications strategy: • • Communications should be timely and honest.20 - . 3. This means that a solution to both problems (accuracy and flexibility) is a real option model using fuzzy sets. Exercise price Time to expiry.Customer needs are adjusting to the new possibilities of the gigainvestment. Risk-free interest rate Standard deviation of returns on stock Fuzzy numbers (fuzzy sets) are a way to express the cash flow estimates in a more realistic way.

who will manage/disseminate crisis communications to the media and others. Preplanning for communications is critical.21 - . scripts. What elements should be included in a Marketing Plan under Due Diligence while seeking investment in for your Company? Answer: The Process of Due Diligence MB0036 – Strategic Management and Business Policy . Communicate in a manner appropriate to circumstances: o Face-to-face meetings (individual and group) o News conferences o Voice mail/email o Company Intranet and Internet sites o Toll-free hotline o Special newsletter o Announcements using local/national media. if possible. 4. Give bad news all at once – do not sugarcoat it. This individual should be trained in media relations prior to a crisis. Provide regular updates and let audiences know when the next update will be issued. In some situations. Provide opportunity for audiences to ask questions. It should be stressed that personnel should be informed quickly regarding where to refer calls from the media and that only authorized company spokespeople are authorized to speak to the media. Procedures to ensure that communications can be distributed at short notice should also be established. and statements can be crafted in advance for threats identified in the Risk Assessment. Drafts of message templates. an appropriately trained site spokesperson may also be necessary. particularly when using resources such as Intranet and Internet sites and toll-free hotlines. Treat audiences as you would like to be treated. All employees should be informed at approximately the same time. All information should be funneled through a single source to assure that the messages being delivered are consistent. Official Spokesperson The organization should designate a single primary spokesperson.• • • • • • • Communications should provide objective and subjective assessments. with back-ups identified.

Only one person represents the company. essentially. more serious. the management is interviewed and a team of financial experts. First Rule: The firm must appoint ONE due diligence coordinator. Both employees and management must realize that this is a top priority.A business which wants to attract foreign investments must present a business plan. The DD is a process which is more structured than the preparation of a Business Plan. This person interfaces with all outside due diligence teams. a second. Second Rule: Brief your workers. The introduction is very important – but. who are the investors.22 - . lawyers and accountants descends on the firm to analyze it. Give them the big picture. guarantees and after-sales service • Development of new products or services MB0036 – Strategic Management and Business Policy . Why is the company raising funds. how will the future of the firm (and their personal future) look if the investor comes in. Marketing. It is confined both in time and in subjects: Legal. The firm must have ONE VOICE. makes presentations and serves as a coordinator when the DD teams wish to interview people connected to the firm. The Marketing Plan Must include the following elements: • A brief history of the business (to show its track performance and growth) • Points regarding the political. to make sure that all the facts regarding the firm are available and have been independently verified. once the foreign investor has expressed interest. They must be instructed not to lie. Financial. Technical. answers questions. But a business plan is the equivalent of a visit card. it is very similar to an audit. It means. Controls. All the documents of the firm are assembled and reviewed. In some respects. He collects all the materials requested and oversees all the activities which make up the due diligence process. more onerous and more tedious process commences: Due Diligence. "Due Diligence" is a legal term (borrowed from the securities industry). legal (licences) and competitive environment • A vision of the business in the future • Products and services and their uses • Comparison of the firm’s products and services to those of the competitors • Warranties. They must know the DD coordinator and the company’s spokesman in the DD process.

sales targets. shipping. Legal Details • Full name of the firm • Ownership of the firm • Court registration documents • Copies of all protocols of the Board of Directors and the General Assembly of Shareholders • Signatory rights backed by the appropriate decisions • The charter (statute) of the firm and other incorporation documents • Copies of licences granted to the firm • A legal opinion regarding the above licences • A list of lawsuit that were filed against the firm and that the firm filed against third parties (litigation) plus a list of disputes which are likely to reach the courts MB0036 – Strategic Management and Business Policy . invoicing. telemarketing and sales support). • Marketing and advertising campaigns (including cost estimates) – broken by market and by media • Distribution of the products • A flow chart describing the receipt of orders. sales-related incentives. upgrades. complaints.) • Customer loyalty (example: churn rate and how is it monitored and controlled). support. dealerships. • Customer after-sales service (hotline. maintenance. the clients and the competitors Planned market research A sales forecast by product group The pricing strategy (how is pricing decided) Promotion of the sales of the products (including a description of the sales force.• • • • • • • • • • • A general overview of the market and market segmentation Is the market rising or falling (the trend: past and future) What customer needs do the products / services satisfy Which markets segments do we concentrate on and why What factors are important in the customer’s decision to buy (or not to buy) A list of the direct competitors and a short description of each The strengths and weaknesses of the competitors relative to the firm Missing information regarding the markets.23 - . special offers. Attach a flow chart of the purchasing process from the moment that the client is approached by the sales force until he buys the product. training of the sales personnel. etc.

technical specification • Environmental issues and how they are addressed • Leases. or. collections of debts and ageing of receivables • Introduction of international accounting standards • Monitoring of sales • Monitoring of orders and shipments • Keeping of records. references. receivers. archives • Cost accounting system • Budgeting and budget monitoring and controls • Internal audits (frequency and procedures) • External audits (frequency and procedures) • The banks that the firm is working with: history. communications.) • Transport and communications (example: satellites. technological transfer and licensing required • Suppliers of equipment. water.24 - . software. cost and quality • Relations with suppliers and support industries • Import restrictions or licensing (where applicable) • Sites.• Legal opinions regarding the possible outcomes of all the lawsuits and disputes including their potential influence on the firm Financial Due Diligence • Last 3 years income statements of the firm or of constituents of the firm. transmitters) • Raw materials: sources. special arrangements MB0036 – Strategic Management and Business Policy . balances Technical Plan • Description of manufacturing processes (hardware. software. The statements have to include: • Balance Sheets • Income Statements • Cash Flow statements • Audit reports (preferably done according to the International Accounting Standards. other) • Need for know-how. filing. if the firm is the result of a merger. if the firm is looking to raise money in the USA. lines. services (including offers) • Manpower (skilled and unskilled) • Infrastructure (power. etc. in accordance with FASB) • Cash Flow Projections and the assumptions underlying them Controls • Accounting systems used • Methods to price products and services • Payment terms.

You can. make different choices in different countries for exploiting IP rights for the same underlying invention.Integration of new operations into existing ones (protocols. A licence is a grant of permission made by the patent owner to another to exercise any specified rights as agreed. This is a process much more serious and important than the preparation of the Business Plan. selling or importing the patented product. Distinguish between Joint Ventures and Licensing. and similar rights concerning patented processes. and sell or assign the rights in Europe to a Danish company – whether or not this is the best approach in practice is a different matter. 5. they would not be able to give a licence to anyone else in Malaysia while the licence with Company A remained in force. For instance. of course. licences can be exclusive or non-exclusive. However.25 - . If you are based in Malaysia.) A successful due diligence is the key to an eventual investment. grant a licence a Canadian company to use the invention in North America. you could in theory decide to exploit your patent yourself in the East Asian region. or sell or assign the rights to another person. explaining the relative advantages and disadvantages of each. if a patent owner granted an exclusive licence to Company A to make and sell the invention in Malaysia. • MB0036 – Strategic Management and Business Policy . and in maintaining and enforcing the underlying IP right. or to keep your IP rights and license them to others to use. it normally requires the owner of the invention to invest time and resources in monitoring the licensed use. the jurisdiction in which particular IP rights have effect. If a patent owner grants a non-exclusive licence to Company A to make and sell their patented invention in Malaysia. from that use. The patent right normally includes the right to exclude others from making. Licensing is a good way for an owner to benefit from their work as they retain ownership of the patented invention while granting permission to others to use it and gaining benefits. using. the patent owner would still be able to also grant Company B another non-exclusive for the same rights and the same time period in Malaysia. Licenses are normally confined to a particular geographical area – typically. in principle. Answer: Licensing and Assigning IP rights One basic choice is whether you should actively exploit your IP rights yourself. such as financial royalties. In contrast. The license can therefore cover the use of the patented invention in many different ways. etc.

a patent owner can grant an exclusive licence to make and sell their patented invention in Malaysia for the term of the patent. If you assign your rights. Patent licences and assignments of patent rights do not have to cover all patent rights together. For example. a separate exclusive licence to another company to use it for relief of cold symptoms. and the patent holder retains ownership and control of the basic patent. you might choose to sell a half-share to a commercial partner. Portions of a patent right can also be assigned – so that in order to finance your invention. you normally lose any possibility of further licensing or commercially exploiting your intellectual property rights. Therefore. a patent owner could exclusively licence only their importation right to a company for the territory of Indonesia for 12 months.You can grant different exclusive licences for different territories at the same time. they can be in infringement of the patent right if they continue to use it. territories and time periods. If an inventor owns patents on the same invention in five different countries. For example. and a further exclusive licence to a third company to use it for veterinary pharmaceuticals. Separate licences can be granted for different ways of using the same technology. An assignment of intellectual property rights is the sale of a patent right. Licences are often limited to specific rights. the amount you charge for an assignment is usually considerably higher than the royalty fee you would charge for a patent licence. Indeed. For instance. they could assign (or sell) these patents to five different owners in each of those countries. It should be remembered that the person who makes an invention can be different to the person who owns the patent rights in that invention. and grant a separate exclusive licence to manufacture and sell their patented invention in India for the term of the patent. or a share of the patent. you might negotiate an arrangement that gives you licence to use the patented invention in the event that you come up with an improvement on your original MB0036 – Strategic Management and Business Policy . For example. if an inventor creates a new form of pharmaceutical delivery. When assigning the rights. she could grant an exclusive licence to one company to use the technology for an arthritis drug. you might seek to negotiate a licence from the new owner to ensure that you can continue to use your invention. A licence is merely the grant of permission to undertake some of the actions covered by intellectual property rights.26 - . If an inventor assigns their patent rights to someone else they no longer own those rights.

you might sign a partnership agreement with a manufacturing company to develop and market a MB0036 – Strategic Management and Business Policy .27 - . you will normally need specific legal advice from a commercial lawyer. These options require much more work on your part than licensing or assigning your intellectual property rights. preferably one with experience in technology and commercialisation in your jurisdiction. Typically this can be a partnership expressed through a joint venture agreement or a new corporation. Licensing Advantages • An Inventive Incentive • "Licensing". This could be a desirable choice in cases where: • you want to keep your institute’s research activities separate from the development and commercialisation of technology. In working out the right vehicle for your technology. and this discussion is only intended to give a general flavour of the various options. Equally. to commercialise a specific new technology) and for a limited duration. legally binding commitment between two or more partners to work together on a shared enterprise. the new owner of the assigned patent might want to get access to your subsequent improvements on the invention. you might choose to set up a new legal mechanism to exploit your technology. and they will only take on a long-term risk if they can get a share of future profits of the technology. such as a start-up or spin-off company. For instance. especially when your institute has a public interest focus or an educational role. or • you need to attract financial support from those prepared to take a risk with an unproven technology (‘angel investors’ or ‘venture capitalists’). tried and true • Fair and Balanced • Product Exclusivity • Inventions of interest to you • You are free to view our inventions • An informed business decision • A production head start • We are vitally committed to your success • A resource for future projects Joint Venture Agreements and Start-up Companies Rather than simply exploit your IP rights by licensing or assignment. It is normally created for a specific purpose (for example.invention and this falls within the scope of the assigned patent. A joint venture agreement involves a formal. The laws governing partnerships and companies differ considerably from one country to another.

which is one way of bringing in new financial resources to support the development of the technology – in exchange. or own IP in its own right. through receiving its share of the profits and growth in assets of the spin-off company. MB0036 – Strategic Management and Business Policy . while keeping the main research effort of an institute focused on broader scientific and public objectives. A start-up company is a general term for a new company in its early stages of development. If it is a public company. shares in the company can be bought and sold on the open stock market. a partnership which is not a corporation. In other words. the research institute can benefit from the commercialisation of its research. the partners or investors normally cannot lose more than their investment in the company (but officeholders in the company might be personally responsible for their actions in the way they manage the company). Investors can purchase shares in the company. as well as the risks and liabilities. commensurate with the number of shares they own. But this kind of partnership isn’t normally able in itself to enter legal commitments. the investors stand to benefit from the growth in the company’s worth. At the same time. If a company is defined as a limited liability company. if a research institute decided to turn its licensing division or a particular laboratory into a separate company. you need to check out possible commercial partners and make sure that the objectives of your potential commercial partners are consistent with your objectives. Before entering into a joint venture agreement. and insulated from the commercial risks and pressures of the commercialisation process. so that the partners remain directly legally responsible for any losses or other liabilities that the partnership’s operations create. In the joint venture agreement.product based on your invention. thus strengthening the institute’s capacity to do scientific research. An initial public offering is when the shares in a start up company are first made available to the public to purchase. By contrast. the partners typically agree to share the benefits. The company is normally owned through shares (its ‘equity’). These effectively represent a portion of the assets and entitlement to profits of the company. in a specified way.28 - . a company is a new legal entity (a ‘legal person’ recognised by the law as having its own legal identity) which can own and license IP and enter into legal commitments in its own right. This separate legal identity means that a start-up company can be a useful way of developing and commercialising a new technology based on original research. A spin-off company is an independent company created from an existing legal body – for example. as their shares proportionately rise in value. a company or a specific institution doesn’t really separately exist as a legal entity. and to receive a portion of any profits produced by the company’s operations.

A private company’s shares. Properly managed. Advantages of Joint ventures: • Provide companies with the opportunity to gain new capacity and expertise • Allow companies to enter related businesses or new geographic markets or gain new technological knowledge • access to greater resources. Remember that IPRs alone do not guarantee you a financial return on your invention. development and marketing.29 - . and in practice they can overlap. But it also can offer a mechanism for attracting financial backing for research. MB0036 – Strategic Management and Business Policy . and the higher the financial return to your institution may be. You need to make good commercial decisions to benefit financially from your intellectual property rights. are not traded on the open market (but can still be bought and sold). by contrast. intellectual property rights should not be a burden but should yield a return from your hard work in creating an invention. including specialised staff and technology • sharing of risks with a venture partner • Joint ventures can be flexible. In deciding which model of commercialisation is best for you. the higher degree of risk and commitment of finance and resources you can invest. There are many possible variations on each of these general models. wish to be involved and to invest in the subsequent development of the technology. Which model of commercialisation is best for you? Each new technology and associated package of IP rights is potentially difference. For example. One basic consideration is to what extent you. and the mechanism you choose for commercialisation should take into account the particular features of the technology. the higher the degree of control you can secure over exploitation of the technology invention. management skills and substantial capital to draw on for factory premises. which can improve access to the necessary resources and expertise. it is always a good idea to seek commercial or legal advice. marketing skills. You will need to compare the advantages and disadvantages of each model of commercialisation. a joint venture can have a limited life span and only cover part of what you do. as originator of the technology. thus limiting both your commitment and the business' exposure. hiring staff and so on. Generally speaking. The option of starting up your own company to manufacture and market your patented invention requires you to have business skills.

though. When you sell your house. the right to manufacture and sell your invention for a period of time. This will almost invariably result in a win/lose situation. If the value is estimated high. it is initially hard to ascertain what the eventual value of an invention will be. You’re offering a manufacturer. yearly or other basis. Roughly 80% of all joint ventures end in a sale by one partner to the other. Should I Sell or License? You will generally have a better chance of licensing your invention instead of assigning (selling) your rights for two reasons: First. In this case. The terms of this lease are entirely up to you and the person leasing your house. it’s nearly the same as leasing. 6. When you sell your invention. sell it to the other parent company. you may choose to rent out your house. the inventor loses out. the scenario is the same. you retain the title to the house and give someone permission to use it for a limited period of time. for example. and eventually. the inventor wins and the company loses.30 - . MB0036 – Strategic Management and Business Policy . making someone else in charge of and liable for the house from that point on.Defined The difference between licensing and selling your invention is comparable to leasing vs. they pay you on a monthly. In this case you are the “licensor” and the company is the “licensee. the inventor would be the “assignor” and the person receiving the title or ownership of the patent would be the “assignee. On the other hand. Companies can gradually separate a business from the rest of the organisation. you transfer your title. selling house.• • In the era of divestiture and consolidation. except that the process is called “assigning” rather than selling.” Instead of selling. and in consideration for this they pay you on a quarterly basis. What factors would you weigh in choosing an appropriate course? Answer: Following invention. if the estimates are low. You wish to commercialize your invention.” It is up to the parties to negotiate the terms of the license within the boundaries of antitrust laws and other regulations that would affect licenses and similar business arrangements. are the ways to commercialize my Licensing and Assignment . In consideration for this. You. It is up to you to negotiate within the boundaries of the law. When you license an invention. JV’s offer a creative way for companies to exit from non-core businesses.

particularly if you’re interested in the long-range commercial success of your invention. the company has the prerogative to ditch your technology and simply “sit on it” unless you’ve made other arrangements. However. A company that is savvy with licensing negotiations will state that the more money they pay the inventor up front. After all. Should I Go It Alone? Some inventors prefer to keep their inventions close and go into business for themselves. and the marketing team. and promotional expenses. This may eventually be worth more to an inventor than the initial cash he would receive from his first commercialized invention. Although you may have cash in hand from the sale of your invention. If you start with a new company under new management with a new product. At that point.Second. Bear in mind that all negotiations are unique and this is just an example. marketing.31 - . the inventor can argue that the potential licensees should at least reimburse them for these out-of-pocket expenses. you will typically lose control of it. Even when you MB0036 – Strategic Management and Business Policy . the greater the risk of failure. the technology. the fewer resources they will have available to put into the promotion. companies don’t like to pay cash up front unless they absolutely have to. manufacturing setup. There are several different elements at play during the commercialization of an invention: the company. the company may very well come back to the table and agree to reimburse you for such initial expenses. they are already anticipating a substantial financial commitment for tooling. When you assign (sell) your invention. prototyping and research. these are expenses the company would have normally paid if they had developed such a product on their own. Each of these is a variable. The more variables you introduce. the market. In some cases it is just as important to the inventor to see his invention commercialized as it is to receive the cash from it. Inventors have often already incurred substantial initial expenses for patenting. Therefore. when a company makes a commitment to manufacture and promote an invention. the management. This is a hard point to argue against. your chance of success is obviously much slimmer than an existing company already in the field with experience and knowledge in a similar product line. which comes with its own set of risks and rewards. and need to be reimbursed as soon as possible. engineering expenses. they may want to make it an advance against future royalties. At this point. Generally. Having an invention commercialized can give an inventor a substantial head start in attracting interest in his additional inventions. advance purchases of raw materials.

Then if your sales results are positive. Because there are significant startup risks. In time. What will your company sell then? Most single-item companies that are still around after five years have done so by introducing new products and expanding their product line. your success rate may be even less. Buyers (or purchasing agents) for the big outlets want to reduce the number of bills they get and the number of vendors they see each week. Licensing offers another strong advantage when it is time to sell your manufactured invention to customers. This is why the introduction of a new invention to retailers by a new company is particularly challenging. 3-M’s success rate is said to be only 30%. your invention may be replaced by new technology.look at an experienced company like 3-M. Companies need new products to survive.32 - . it’s important to seriously investigate the distinct advantages of having your invention introduced by an existing company with experience in your field can promote your product effectively and already has a skilled sales force with an existing client base. keep careful track of your expenses and MB0036 – Strategic Management and Business Policy . If you find that you must make a substantial investment to actually manufacture an invention to prove its commercial viability and to interest potential licensees. It is easy to get ‘upside down’ financially with invention projects. These factors can greatly reduce the amount of time it takes to introduce your invention to the marketplace. which brings many new products to market. Get some realistic market research as early in the game as possible. Unless you have greater resources. Sometimes starting your own company is the only way to go. you may need to do a small market test with a limited production run to prove your invention has sales potential. Large retail outlets prefer to deal with companies where they can do one-stop shopping. This is especially true since inventors have a tendency to overestimate the ultimate value of their inventions. Manufacturers who introduce only one invention or a very small product line often have a hard time selling to large accounts. With all its resources. and in reducing your risk. If you’ve attempted the licensing route and no manufacturer is interested in your invention at its current stage of development. you’ll find that the company’s new products fail often. Licensing also has advantages over starting your own company because few products have an unlimited life cycle. What you lose in control when you license can be gained tenfold from a timing standpoint. you may pique the interest of a potential licensee who can take your invention to the next step.

it’ll pay off quite well. Inventors always take a risk when they spend time and money on an idea and if they’re lucky. There are too many sad stories of inventors pouring money into inventions that can never provide a return on their investment. money. MB0036 – Strategic Management and Business Policy .constantly weigh these expenses against any royalty potential that may result. It will save you time. and the personal energy you’ll need for future successes. The lesson is to minimize your risks so you can bail out or put the project on hold if warranted.33 - .

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