Mesut Yavas | Bedrijfsplanning en het concept

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Company Planning and the Concept
Bedrijfsplanning en het concept
Mesut Yavas
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Contents of Business Plan

• Executive summary
• Industry and Company and ts products /Services
• Market Research and Analysis
• Economics of the Business
• Marketing Plan
• Design and Development Plans
• Manufacturing and operations plan
• Management Team
• Overall Schedule
• Critical risk problems and assumptions
• Financial Plan
• Proposed Company offering
• Appendices

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Executive Summary

• Description of the Business Concept and the
  Business
• Opportunity and strategy
• Target market and projections
• Competitive advantage
• Costs
• Sustainability
• The Team
• The Offering - Finance needed (Debt equity and
  your contribution)

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Industry ,Company and Product/Service

• The industry current state,
• size,
• growth
• competitors,
• new product/devp,
• environmental profile energy intensity, supply
  chain, waste, green technology carbon credits
  CER)

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Company and the Concept

• Company and the Concept
• present biz, products service offered /will
  offer,
• background of growth and promoters involvement,
• prior sales and profit performance or discuss
  losses and why
• and improvements done or envisaged

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Product or Service

• Product and or service describe of new product
  service ,
• application of its use ,
• delivery system
• unique features how they add value,
  differentiation from those current available,
• possible drawbacks,
• present state of development,
• first mover of head start advantage
• any features which give you unfair advantage over
  others like patents trade secrets or proprietary
  features,
• opportunities of expansion of product lines or
  related products.

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Entry and Growth Strategy

• Entry and growth strategy Key success variables
  in mktg plan
• innovative product,
• timing advantage,
• marketing approach,
• pricing ,
• channels of distribution
• advertising and promotion

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Market Research and Analysis

• Customers
• Market size and trends
• Competition and competitive edges
• Estimated market share and sales
• Ongoing market evaluation

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Customers

• Who are they? Classified by groups
  segments-common identifiable characteristics
• Where are they? Segment and region
• How they buy (retail /wholesale), reached and
  receptiveness?
• Where buying decisions are made and length of
  decision cycle, customers purchase process, basis
  of decisions (price, quality timing, delivery
  training, service personnel, contacts, political
  pressures) and can they change current buying
  decisions?

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Customers(2)

• What orders contracts or letters of commitment or
  potential customers you have in hand?
• What you are doing to overcome negative customer
  reaction?
• If in existing business , current customers and
  sales trends

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Market Size

• Five year projections of size and your share, by
  segment, region or country for product or service
• Potential annual growth for at least 3 years
• Major factors for market growth ( industry
  trends, socio economic trends, govt. policy,
  envrt. impact, population shifts)
• review previous trends

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Competition and Competitive Edge

• Realistic SWOT of Competitors, assess substitute
  and alternatives ,list of suppliers of these
• Compare competing and substitute products or
  services on market share, price ,quality,
  performance , delivery, timing service,
  warranties, other features
• Current advantages and disadvantages of these
  products

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Competition and Competitors Edge

• Knowledge of competitors actions that could lead
  to improved products (RD)
• Are they awake or asleep?
• SWOT of competing companies their market share
  sales and distribution
• Financial position ,costs and profitability of
  competitors
• Who are service providers
• pricing, performance ,cost and quality
  leaders-why co exiting or entered the business
• Discuss 3-4 key competitors and why customers buy
  from them
• What you know of competitors operations

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Economics of the business

• Gross and operating margins
• Profit potential and durability
• Fixed variable and semi variable costs
• Months to breakeven
• Months to reach positive cash flow

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Marketing plan

• Overall marketing Strategy
• Pricing
• Sales and tactics
• Service and warranty policies
• Advertising and promotion
• Distribution

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Design and development plan

• Development status and tasks
• Difficulties and risks
• Product improvement and new product
• Costs
• Proprietary Issues

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Manufacturing and Operation plan

• Operating cycle
• Geographical allocation
• Facilities and improvements
• Strategy and Plans
• Regulatory and Legal teams

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Management team

• Organisation
• Key management personnel
• Management Compensation and Ownership
• Other investors
• Employment and other agreements and stock options
  and Bonus Plan
• Board of Directors
• Other shareholders rights and restrictions
• Supporting professional advisers and services

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Overall Schedule

• A schedule that shows the timing and
  interrelationship of the major necessary to
  launch the venture and realise its objectives.
• Cash conversion cycle will underline key inputs
• Deadlines indicated
• Indicates to investors your depth of planning and
  resource use
• Indicate methods of calculations

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Critical Risks Problems and Assumptions

• Demonstrate that you have thought out and can
  handle them
• Description of risks implicit in plan
• Assumptons- use objectivity to deal with it
  sales projections, orders
• Consequences of adverse outcomes industry,
  company, personnel, product, market appeal
• Unstated negative factors of investors

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Contingencies Indicate critical ones

• Running out of cash before orders come in
• Price cutting by competitors
• Potentially unfavorable industry trends
• Costs excess of estimates
• Sales projections not achieved
• Unmet product development schedule
• Difficulty in procuring long lead items
• Difficulties in obtaining bank credit
• Increase in RD costs
• Running out of cash after orders come in

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Financial Plan -Best Estimate of Reqt.

• Indicate ventures potential and timetable for
  financial viability
• Operating plan for fin mgt using fin benchmarks
• Prepare exhibits
• Use three year income statements and balance
  sheets and break even analysis. For cash flow
  statement use cash system instead of accrual
  system
• Give assumptions behind -sales levels, growth,
  inventory requirements, cash balances, operating
  and cash conversion cycles

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Fin Plan (2)

• Proforma income statement plan for profit
  indicates potential fin. feasibility of the
  venture.
• Initially, level of profits cannot finance
  operating assets and cannot match the actual cash
  flow on a short term basis, hence a forecast of
  cash needs should take care of such conditions is
  recommended.

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Fin Plan (3)

• Proforma balance sheets are used to detail the
  assets required for the projected level of
  operations and how they will be financed
  (liablilities)
• Indicate projected debt equity ratios, working
  capital, current ratios, inventory turnover
  within the limits required to justify future
  financing

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Financial Plan (2)

• acceptable limits to justify future financing
• Break even chart showing level of sales that will
  cover all costs including those that vary with
  production and those that do not
• Income statements -In Proforma statements fully
  discuss bad debts, discounts, assumptions for
  sales expenses, general and administrative costs

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Fin Plan(2)

• ,show effect of sales reduction say 20, learning
  curve and level of productivity snesitivity of
  profits to risks
• Prepare Balance sheets, cash flow analysis, Break
  even charts ,cost control measures and budget
  overrun
• Highlight important conclusions, including
  maximunm amount and timing of cash required ,
  amount of debt and equity needed, how fast debts
  will be repaid

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Financial Plan

• Actual Income Statements and balance Sheet
• Proforma Income statements
• Proforma Balance Sheets
• Proforma Cash Flow Analysis
• Breakeven Chart and Calculations
• Cost control
• Highlights

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Proposed Company offering

• Amount of money being sought
• Nature of security offered to investors
• Summary of how the investor can expect to achieve
  his targeted rate of return
• Terms for financing your company spelt out here
• Description of Uses of Capital
• Desired Financing how much

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Proposed Company Offering

• Offering common stock, convertible,debentures,
  debts with warrants, debt plus stock,unit price,
  total amount of securities (if not common ,
  interest rate,type,maturity and conversions
  conditions, percentage others can hold before and
  after conversion, private placement restrictred
  securities for a period of time
• Capitalisation current and proposed (post
  offfering number of outstanding shares and how
  the holding will change after on completion of
  fnancing), authorised and issued capital, stock
  options

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Offering (3)

• Use of funds how capital raised will be used-
  RD,capital eqpt, marketing , working capital
• Investors Return- Indicate how your valuation and
  proposed ownership pattern will result in in
  desired rate of return for investors whom you
  have targeted

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Appendices

• Information too extensive in the body but
  necessary
• Product specification
• Photos
• List of references
• Suppliers of critical components
• Special location factors
• Facilities
• Technical analysis
• Consultant reports
• Critical regulatory approval or licences

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Thank You