CAPEX or OPEX?

o OPEX (operating expense) is an

ongoing cost for running a product,
business, or system
o CAPEX (capital expenditure) is the cost
of developing or providing non-
consumable parts for the product or
system
n New server à CAPEX https://www.youtube.com/watch?v=na4jbAh_vkQ

n Electricity for the server à OPEX

Expenses
o Fixed Costs/Overhead
n Rent
n Utility bills
n Phone bills/communication costs
n Accounting/bookkeeping
n Legal/insurance/licensing fees
n Postage
n Technology
n Advertising & marketing
n Salaries
Expenses
o Variable Costs
n Cost of Goods Sold
o Materials and supplies
o Consumed HW & SW & NET resources
o Packaging
o Direct Labor Costs
n Customer service
o Direct sales
o Direct marketing

Asheesh Advani, CEO of Covestor &

Tim Berry is the president of Palo Alto Software Inc
Expenses
o Develop a unit sales projection
n Start by forecasting unit sales per month
o Use past data if you have it
n Best forecasting aid is the most recent
past
n Take past data and project it forward
into the future
o E.g. visually in a graph
o Use common sense
Expenses
o Use factors for a new product
n Simply make educated guesses
n Break down by finding important
decision factors or components of sales
n Find an existing product to use as a
guide
Expenses
o Break the purchase down into
factors
n Example1: you can forecast sales in a
restaurant by looking at a reasonable
number of tables occupied at different
hours of the day and then multiplying
the percent of tables occupied by the
average estimated revenue per table
n Example2: average sales per square foot
in similar businesses
Expenses
o Project prices: you must also
project your prices
n adds the units of different sales items in
one section, then sets the estimated
prices in a second section
n A third section then multiplies units
times price to calculate sales
Expenses
o Rules of thumb when forecasting expenses:
n Double your estimates for advertising and marketing
costs
n Triple your estimates for legal, insurance and
licensing fees since they're very hard to predict
without experience
n Keep track of direct sales and customer service time
as a direct labor expense even if you're doing these
activities yourself during the startup stage
o You'll want to forecast this expense when you have
more clients
Revenues
o Forecast revenues using both a
conservative case and an aggressive
case
o Force yourself to make conservative
assumptions and then relax some of
these assumptions for your
aggressive case
Revenues
o Conservative revenue projection
n Low price point
n One marketing channels
n No sales staff
n One new product or service or
functionality introduced each year for the
first three years
Revenues
o Aggressive revenue projection
n Low price point for base product, higher
price for premium product
n Three to four marketing channels managed
by you and a marketing manager
n Two salespeople paid on commission
n One new product or service or functionality
introduced in the first year, five more
products or services introduced for each
segment of the market in years two and
three
Revenues
Gross Margin

o COGS: variable costs and fixed costs directly

linked to the sale, such as material costs,
labor, supplier profit, shipping-in costs, etc. It
does not include indirect fixed costs like office
expenses, rent, administrative costs, etc.
o Beware of assumptions that make your gross
margin increase from 10 to 50%
o If customer service and direct sales expenses
are high now, they'll likely be high in the future
Revenues
Operating Profit Margin

o Operating income (=profit in our case) =

Revenue - Total costs
o You should expect positive movement with this
ratio
o As revenues grow, overhead costs should
represent a small proportion of total costs and
your operating profit margin should improve
Revenues
o Total headcount per client
n Number of employees divided by the
total number of clients
n Ask yourself if you'll want to be
managing that many accounts in five
years when the business has grown
o If not, revisit assumptions about revenue or
payroll expenses or both
Breakeven Point
o Sales amount required to cover total costs
(both fixed and variable)
o Profit at break-even is zero
ROI
o ROI = Profit / Investment
n For a single-period review

o Profit = revenues – expenses

NPV (Net Present Value)
o NPV: evaluates ability to produce future revenues as
projected, factored by the risk in your plan
o Concepts of the time value of money
o All future cash inflows are estimated and discounted to
give them a present value
o The discount rate:
n appropriate cost of capital, incorporates judgments of the
uncertainty (riskiness) of the future cash flows
n for startups from 30% to 60%, depending on maturity and the
level of credibility
n money in the present is worth more than the same amount in the
future: potential earnings and inflation
NPV
o NPV is the difference between the present value of cash
inflows and the present value of cash outflows over a
period of time

o Where
n !" is the cash inflow during the period #
n !$ is the total initial investment cost
n % is the discount rate
n T is the number of time periods
NPV
o A positive net present value indicates that the projected
earnings generated by a project or investment (in
present dollars) exceeds the anticipated costs (also in
present dollars). Generally, an investment with a
positive NPV will be profitable, and an investment with a
negative NPV will result in a net loss.

https://www.youtube.com/watch?v=N-lN5xORIwc

o NPV > 0 è do investment

NPV
o Example
n Investment for a new product: 100,000
(outgoing flow)
n The product will provide a benefit of 10,000
each year, for 12 years
n The annual discount rate is 10%
n Shall we invest?
NPV
o NPV = 68,136.91 – 100,000
= -31,863.09 < 0

o Notice that the inflow decreases

each year, since the present value
decreases each yer
IRR
o Internal rate of return is a discount rate that makes the net
present value (NPV) of all cash flows from a particular
project equal to zero (same formula as NPV)
o One would set NPV equal to zero and solve for the discount
rate
n Through trial-and-error or software
o Generally speaking, the higher a project's internal rate of
return, the more desirable it is to undertake
n Used to rank multiple perspectives: assuming the costs of investment
are equal among the various projects, the project with the highest IRR
would probably be considered the best

https://www.youtube.com/watch?v=Fw5-wccViOM
Payback Period
o Period of time (years) required to recoup the
funds expended in an investment
o Net Cash Flow Year n = Cash Inflow Year n -
Cash Outflow Year n
o Cumulative Cash Flow = (Net Cash Flow Year 1
+ Net Cash Flow Year 2 + Net Cash Flow Year
3, etc.)
o Accumulate by year until Cumulative Cash Flow
is a positive number: that year is the payback
year
https://www.youtube.com/watch?v=FJjGi7gsK3A
Who needs a business plan?
o The course is focused on the
structure and content of a Business
Plan
o We need a business plan because you
want to found and rule a STARTUP!

2
What is a startup?
o A startup is the name friendly given
to a company in the first period of its
life
o However, the term «startup» typically
refers to a newborn technologic
company looking for a funding aid in
order to pursue growth

3
Startup life cycle

4
Where the BP fits?
o We need to «convince» somebody to
grant us trust (and money!)
o The Business Plan is intended to be
used as the formal statement of the
sustainability of our idea
Who can help us?
o Seed funding
n Business angels
n Incubators / Accelerators
n Crowdfunding
o Venture capitalists
Startup financing cycle

Source: Wikipedia
Investing rounds
o Seed
n Product is a prototype
n Needed to prove a new idea
n à angel investors
n From few K$ to few M$ funding
o Start-up
n For marketing and product development
Investing rounds
o Series A
n Company already operating (sales?)
n à venture capital / super angel investors
n From $2M to $10M funding
n Purchases 10% - 30% of the company
o Second round
n Company sells product
n No profits
n à venture capital / private equity
Investing rounds
o Mezzanine financing
n For company expansion
n Goal: profitable company
o Exit of venture capitalist
n Money for supporting the "going public"
process
n IPO (Initial public offering)
Business angels
o People (or organized groups of people)
n Provide capital
n In exchange for a share of the company
o An alternative to friends and family
money
o From few K$ to few M$ funding
o High risk investment
o Expected return: 10x
Incubators
o Incubators
n Focused on jumpstarting economic development in a
region and getting small companies to work in their
office space
o Accelerators
n Focused on mentoring and guiding companies to
refine their product's customer/market fit
o culminate in a public pitch event or demo day
o Backed by Venture Capital firms and angel
investors
Incubators
Pitch
o Planned presentation of a product or
service
o Goal: persuade investors about your
product/service idea
n Formal or informal
n Delivered in any number of ways
o Several events for presenting your
idea
n Angels and VCs sponsor the events
Crowdfunding
o Collection of money from the “crowd”
n People believing in your initiative
o Usually organized and regulated
through dedicated Internet platforms
o Two main types:
n Reward-based: pre-sell of a product or
service
n Equity-based: the backer receives shares
of the company
Kickstarter
o Kickstarter is a funding platform for
creative projects
o Films, games, music, art, design, and
technology
o Launched on April 28, 2009
n 60,000 creative projects
n $1 billion funds
n 5 million investor
Kickstarter
Kickstarter
o A project is a finite work with a clear goal
o The funding goal is the amount of money that a
creator needs to complete their project
o Rewards are pieces of the project:
n Special experiences, limited editions, or copies
of what is being produced
n Project creators keep 100% ownership of their
work
n Cannot be used to offer equity, financial
returns, or to solicit loans
Kickstarter
o It's the project creator's responsibility
to complete their project
o Kickstarter does not guarantee
projects or investigate a creator's
ability to complete their project
o Backers decide the validity and
worthiness of a project
Kickstarter
o Creators must fulfill all rewards of
their project or refund any backer
Venture capital
o Dedicated to companies with limited
operating history
n Too small to raise capital
o In the public markets
o From banks
o In exchange for a large share of the
company
n à control of company decisions
Venture capital

Source: Wikipedia
Venture capital
o The venture capitalist's return depends on the
success of the company
n No other contractual revenues
n Before investing, they perform accurate due diligence
o Venture capitalist will sell the company (after
3-7 years)
n Returns up to 10,000x
o IRR (internal rate of return) of a VC fund up to
500% (many VC funds around 70%)
Venture capital
o Required
n Innovative technology
n Potential for rapid growth
n Well-developed scalable business model
n High-quality team
Money in exchange for what?
o What do investors expect from you?
n Hard work
n Shares of the company
o As the financing cycle goes on, the
idea is:
n Owning a progressively smaller slice of a
progressively (much) larger cake
o 90% of 10 k$ à 10% of 100 M$
Stock dilution
o Increase in the number of shares
o Caused by
n Additional investing rounds by investors
n Public offering
n Stock options to employee and managers
o Effects
n Decrease of ownership percentage
n Reduction of voting control
o à Anti-dilution rules in favor of the VCs to
protect their investment
Conclusion
o You got a breakthrough idea
n You wrote a business plan
n You got (a lot of?) money
o Are you rich?
n No, that money is to be used to make
your startup growing!
Startup mistakes*
o No clear vision or purpose
n Not considering the change you want to see in the
world
n “Chase the vision not the money. The money will end
up following you.” Tony Hsieh
o A lack of focus
n Trying to do too much, too soon
n Having a clear focus means it’s easier to
communicate what your product is and who it’s for

* Source: Laurence McCahill, The Happy Startup School & Spook Studio
Startup mistakes
o Design as an afterthought
n “Design is not just what is looks like and
feels like, design is how it works.” Steve
Jobs
o Building something nobody wants
n Based on a set of assumptions made by
the founders
n The right product is simple, compelling,
and aligned with the business model
Startup mistakes
o Chasing investors, not customers
n Safest ways to ensure survival is to have a
business model that lets the product pay for
itself
n Too focused on building a pitch rather than
building a business
n Rather get some customers
o Too much talking, not enough listening
n The aim of this is to better understand
potential customers and their world
Startup mistakes
o Launching too late (or too early)
n Make sure there’s a base level of design
and usability across all features
n Balance between launching early and
creating the perfect product
o Failing to ask for help
n Accept that you don’t know everything
and ask for help when necessary
Startup mistakes
o No growth plan
n 90% of entrepreneurship is about sales
and marketing
n Find customers, gain significant traction
and reach the tipping point
o Hiring badly
n Too soon, before you know the sort of
person you need
Startup ideas?
o Ideas are worth sh*t. Execution is
key.
o When telling others about your idea:
n You are helping develop and refine your
idea and your “pitch”
n Networking
n Fail early
n Early market testing
https://www.youtube.com/watch?v=RSaIOCHbuYw

Source: Jeremy Noonan, Founder of DropEvent.com

WHAT IS A BUSINESS PLAN

¡ A BUSINESS PLAN IS…. a document setting out a business future objectives and
strategies for achieving them.
¡ At its heart, a business plan is just a plan for how your business is going to
work, and how you’re going to make it succeed.
¡ It is a 30/35 pages document.

2
WHY SHOULD YOU WRITE A BUSINESS PLAN?

WHERE YOU WHERE YOU HOW TO

ARE ARE GOING GET THERE

3
WHY SHOULD YOU WRITE A BUSINESS PLAN?

¡ Where you are? ¡ How to get there?

¡ Do you have the money to start this business?
¡ Do you need to borrow from banks?
¡ Do you want to attract venture or angel
capitalists to your project?
¡ How will your business be organized?
¡ What are your metrics to measure your
performance?
¡ Which are your risks?

¡ What is your current business status?

¡ Where are you going?

¡ Which are your targets?

4
“A completed business plan is a guide that illustrates where you
are, where you re going and how to get there” (Charles J.
Bodenstab).

WHY SHOULD
A business plan may tell you by the time you are done that
this is not a profitable business. “If you go into the business YOU WRITE A
world without a path to walk down, without some sort of
guidelines, you are in trouble” (Geoff Walsh). BUSINESS
PLAN?

A properly developed and written business plan serves as an

effective communication tool to convey ideas, research findings
and proposed plan to potential investors. The business plan is
the basis for managing the new venture. It also serves as a
measure to gauge progress and evaluate needed changes.
5
 It is a “sanity
check” for you.
To motivate and
focus your To obtain Bank
Management Financing
Team
WHY SHOULD
YOU WRITE A
To complete To obtain
BUSINESS
Mergers and
Acquisitions
Investment
Funds
PLAN?
(GUMPERT)

To arrange
To attract key
Strategic
Employees Alliances

To obtain large
Contracts 6
BUSINESS PLAN STRUCTURE

Introduction
Problem
Solution
Customers
Competitors
Business Model
Timeline
7
BUSINESS PLAN

Introduction
Problem
Solution
Customers
Competitors
Business Model
Timeline
8
INTRODUCTION

PRODUCT/SERVICE
STRATEGIC PLANNING
OUTILNE

9
INTRODUCTION – PRODUCT/SERVICE OUTLINE

In the product/service outline these three information must be present:

¡ What is the product/service you are producing/delivering/offering

¡ Which are its distinctive features
¡ Why it is better than something already existing

10
INTRODUCTION – STRATEGIC PLANNING

VISION MISSION VALUES STRATEGY

11
INTRODUCTION – STRATEGIC PLANNING
Vision
¡ How we see the world if we would be
successful
¡ The desired future position of the
company
Microsoft
• A computer on every desk
Google
• to provide access to the
world’s information in one click

IKEA
• to create a better every-day life
for many people
12
INTRODUCTION – STRATEGIC PLANNING

Mission
¡ What we do in order to make the vision
happen
¡ The company’s objectives and its approach
to reach them
¡ E.g.: “Google’s mission is to organize the
world’s information and make it universally
accessible and useful” (Google Mission
statement, 2013)

Facebook’s mission 13
INTRODUCTION – STRATEGIC PLANNING

Values
¡ What is essential in order to fulfill our
mission?
¡ “Humanity is plural, not singular.
The best way the world works
is everybody in. Nobody out.” (Apple) Microsoft’s values

Whirlpool Corporation’s values 14

INTRODUCTION – STRATEGIC PLANNING

Strategy
¡ “War plans” to achieve success E.g.: First step is to achieve X% of market share in market
A, then move on and land in market B, in three years
achieve Y% share in market B...

15
BUSINESS PLAN

Introduction
Problem
Solution
Customers
Competitors
Business Model
Timeline
16
PROBLEM

Market Pain

Solution Need

17
PROBLEM – MARKET

¡ Provides a contextualization for the product/service in a future

perspective
¡ Should give quantitative assessment of market size, value, and
evolutionary trends Market Pain
¡ E.g.: “In the next 5 years the market size is expected to grow
by four times”
¡ Should put stress on specific issues that are addressed by the Solution Need
product/service

18
PROBLEM – PAIN/NEED

¡ Pain
¡ The problem that we have noticed in the context of the market
previously described
¡ E.g.: “Personal computers are not yet widespread because of their
limited interaction capabilities (only command line interaction)”
Market Pain

¡ Need
¡ Which is the open gap in the market?
¡ Open gap refers to unanswered demand Solution Need
¡ E.g.: “A new operating system which enables visual interaction with the
computer”

19
PROBLEM – SOLUTION

¡ How the product/service described in the business plan

addresses the market pain/need? Market Pain
¡ Which are the strengths of the proposed product/service in
solving the problem?

Solution Need

20
BUSINESS PLAN

Introduction
Problem
Solution
Customers
Competitors
Business Model
Timeline
21
SOLUTION

¡ Description of the proposed

product/service
¡ May contain screenshots, mock-ups,
demos...
¡ Should express with details how the
proposed solution is going to solve
the problem, presenting the final
product/service structure and
functionalities

22
BUSINESS PLAN

Introduction
Problem
Solution
Customers
Competitors
Business Model
Timeline
23
CUSTOMERS

¡ List of the customer(s) that have already bought/used the product/service

proposed and their relevance

¡ Optional in case of a startup

24
BUSINESS PLAN

Introduction
Problem
Solution
Customers
Competitors
Business Model
Timeline
25
COMPETITORS

Market Identification

Market Competitive
Challenges Matrix

26
COMPETITORS – MARKET

¡ A description of the current state of the market

¡ Similar to the one already provided in the Problem section, but focused on the current situation
E.g.: “In the last quarter the market value has been 57 million $”
¡ Should focus primarily on dimension and value

Market Identification

Market Competitive
Challenges Matrix

27
COMPETITORS – IDENTIFICATION

¡ Should provide an exhaustive list of all the

competitors, either:
¡ Actual: someone who is operating in the same
market segment offering your same product/service
or something very similar Market Identification

¡ Potential: someone who is doing something

different – either in terms of market and/or
product/service – but could be a competitor with a Market Competitive
Challenges Matrix
limited effort
28
COMPETITORS – COMPETITIVE MATRIX

Market Identification

Market Competitive
Challenges Matrix
29
COMPETITORS – MARKET CHALLENGES (EXAMPLE)

Market Identification

Market Competitive
Challenges Matrix
30
BUSINESS PLAN

Introduction
Problem
Solution
Customers
Competitors
Business Model
Timeline
31
BUSINESS MODEL CANVAS

The Business Model Canvas is a toolkit from 2009 that drew on

Michael Porter’s value chain maps and Peter Drucker’s theories of the firm
(among other sources). The Business Model Canvas is a chart that maps
the key things that a business needs to get right to be successful.

32
BUSINESS MODEL CANVAS – VALUE PROPOSITION

¡ What value do we deliver to the customer?

¡ Which one of our customer’s problems are we helping to solve?
¡ What bundles of products and services are we offering to each customer segment?
¡ Which customer needs are we satisfying?

A value proposition is where your company’s product offer intersects with your customer’s desires. It’s the magic fit
between what you make and why people buy it. Your value proposition is the crunch point between business
strategy and brand strategy.

35
BUSINESS MODEL CANVAS – VALUE PROPOSITION

PRODUCT
¡ Features: factual description of how your product works
¡ Benefits: what your product does for the customer, it is the core of your value proposition

EXPERIENCE
¡ The way that owning your product makes the customer feel
¡ Emotional reasons why people buy your product
¡ Will help identify the market positioning and brand essence
¡ A brand is a collection of your thoughts + feelings about your experiences with it
36
BUSINESS MODEL CANVAS – VALUE PROPOSITION
CUSTOMER
¡ Wants
• The emotional drivers of decision making are things that
we want to be, do, or have
• Usually conscious (but aspirational)
• How we’d like to improve our lives
¡ Needs
¡ Substitutes
• rational things that the customer needs to get done
• Not always conscious
• They may not know about yet (“latent needs”)
¡ Fears
• Of making a mistake, of missing out, of loss, etc.
• Strong driver of purchasing behaviour
• Hidden source of wants and needs
• Secret reason that no one is buying your widget
• For any product there is a secret pain of switching
• Even if your product is better than the competition, it
might not be a big enough improvement to overcome the
inertia of the status quo
• Not the obvious competitors
• Existing coping behaviours
• No matter how much better your product is than the
competition, if it isn’t better than the existing solutions
37
BUSINESS MODEL CANVAS – CUSTOMER SEGMENTS

Customer segments are the community of customers or businesses that you are aiming to sell your
product or services to.

¡ For whom are we creating value?

¡ Who are our most important customers?

Customers can be segmented into distinct groups based on needs, behaviors and other traits that they
share. A customer segment may also be defined through demographics such as age, ethnicity, profession,
gender, etc or on their psychographic factors such as spending behavior, interests, and motivations. An
organization can choose to target a single group or multiple groups through its products and services.
39
BUSINESS MODEL CANVAS – CUSTOMER SEGMENTS
What to target?
¡ Mass Market: to fulfill the needs of a wide cross section of the population and does not discriminate
between different customer segments.
¡ Niche Market: refers to a customer segment with extremely defined characteristics and very
particular needs.
¡ Segmented: some businesses choose to provide products and services to customer segments which
may have very minute variations in their needs and requirements.
¡ Diversified: basically picking customer segments with very different needs and wants.
¡ Multi-Sided Platforms/markets: when customer segments are related through dependency, it
makes business sense to serve both ends of the equation. Hence, for a credit card company, it is not
just imperative that customers opt to use their credit cards but equally important for stores to accept
their credit card. 40
BUSINESS MODEL CANVAS – CHANNELS

Channels are the points of contact between the company and its customers.

¡ Through which channels do our customer segments want to be reached ?

¡ How are we reaching them now?
¡ How are our channels integrated?
¡ Which ones are most cost-efficient?
¡ How are we integrating them with customer routines?

A channel can be:

¡ DIRECT: therefore owned by the company, as in the case of stores and e-commerce websites.
¡ INDIRECT: that is owned by partners of the company. E.g. stores, wholesalers and web channels owned by the partners.42
BUSINESS MODEL CANVAS – CUSTOMER RELATIONSHIP

Customer Relationship describe the types of relationships your company establishes with specific Customer
Segments.

¡ What type of relationship does each of our customer segments expect us to establish and maintain with them?
¡ Which ones have we established?
¡ How are they integrated with the rest of our business model?
¡ How costly are they?

Your company should clarify the type of relationship it wants to establish with each Customer Segment. Relationships
are established through different Channels. Relationships can range from personal to automated, from transactional
to long-term, and can aim to acquire customers, retain customers, or boost sales (upselling). The type of Customer
Relationships you put in place deeply influence the overall customer experience. 44
BUSINESS MODEL CANVAS – REVENUE STREAMS

Revenue Streams represent the ways the company generates cash from each Customer Segment.

¡ For what value are our customers really willing to pay?

¡ For what do they currently pay?
¡ How are they currently paying?
¡ How would they prefer to pay?
¡ How much does each revenue stream contribute to overall revenues?

46
BUSINESS MODEL CANVAS – REVENUE STREAMS
There are different ways to generate revenue streams:

¡ Asset sale
¡ Usage fee
¡ Subscription fees
¡ Lending/renting/leasing
¡ Licencing
¡ Brokerage fees
¡ Advertising
47
BUSINESS MODEL CANVAS – KEY PARTNERS

¡ Who are our key partners?

¡ Who are our key suppliers?
¡ Which key resources are we acquiring from partners?
¡ Which key activities do partners perform?
MOTIVATIONS FOR PARTNERSHIP
¡ Optimization and economy
A business partnership is when two
commercial entities form an alliance, which may
either be a really loose relationship where
both entities retain their independence and are
at liberty to form more partnerships or an
exclusive contract which limits the two
companies to only that one relationship.

¡ Reduction of risk and uncertainty

¡ Acquisition of particular resources and activities
49
BUSINESS MODEL CANVAS – KEY ACTIVITIES
These are the most important tasks a company must carry out in order to fulfill its business purpose.

¡ What key activities do our value propositions require?

¡ Our distribution channels?
¡ Customer relationships?
¡ Revenue streams?

CATEGORIES
¡ Production
¡ Problem solving
¡ Platform/network 51
BUSINESS MODEL CANVAS – KEY RESOURCES

¡ What key RESOURCES do Physical

our value propositions
require?
¡ Our distribution channels?
¡ Customer relationships?
Financial Intellectual
¡ Revenue streams?

Human 53
BUSINESS MODEL CANVAS – KEY RESOURCES

THE TEAM
Description of the team components, both:
Ø Existing
§ Highlighting already acquired competencies
§ State lack of professional figures/competencies
Ø Prospect
§ Needed if there are lacks of professional figures/competencies

54
BUSINESS MODEL CANVAS – COST STRUCTURE

This building block represents all the costs that a business can or will incur if it opts for a particular business model.

¡ What are the most important costs inherent in our business model?
¡ Which key resources are most expensive?
¡ Which key activities are most expensive?

56
BUSINESS MODEL CANVAS

https://www.youtube.com/watch?v=IP0cUBWTgpY
BUSINESS PLAN

Introduction
Problem
Solution
Customers
Competitors
Business Model
Timeline
58
TIMELINE

GANTT Diagram

HR breakdown
59
TIMELINE – GANTT DIAGRAM

Task 1

¡ Provides a synoptic view of all the

Task 2
activities of the project along with
Task 3
their time duration and relationships
(dependencies, parallel execution, ...).
¡ A Gantt chart helps you to visualize
Task 4

Task 5 your project schedule containing

20/05/2019 27/05/2019 03/06/2019 10/06/2019 17/06/2019 24/06/2019 01/07/2019 08/07/2019
different tasks and their deadlines.
Start Gap

60
TIMELINE – GANTT DIAGRAM

¡ Highlights the critical path of activities that must not delayed, or the whole project
will experience a delay.
¡ Provides milestones to define critical objectives that must be achieved in order to
proceed with the project execution.

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TIMELINE – HR BREAKDOWN
¡ Provides a synoptic view of the
“agendas” of each team member,
with respect to the project
Activity Breakdown Structure
¡ Answers to the question: “who
is working on what and
when?”
¡ Should plan a correct time usage
for each team member (there
should be no unemployed
resources).
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ONLY CASH MATTERS

The fundamental finance principle requires that the initial investment needed to
undertake a proposal, as well as the stream of net future benefits it expects to generate,
be measured in cash.
Only cash matters to the investors, because all they have invested is cash in your
business and are expecting cash returns in the future.

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BUSINESS PLAN
https://www.youtube.com/watch?v=Fqch5OrUPvA

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 ¡ Partly based on the material from
Gabriele Scalia
¡ https://www.entrepreneur.com/

CREDITS ¡ ENT 470/570 – 2009 – PRESUMMER – 04 The

Business Plan for Executing Innovations:
Concepts, Theories, Models and Strategies,
Ozzie Mascarenhas SJ, PhD.

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