Business Plan Preparation

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Business Plan Preparation

• Frank MoyesLeeds School of BusinessUniversity
  of ColoradoBoulder, Colorado

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Tonights Agenda

• Present concepts select teams
• Review Writing a Successful Business Plan
• Research - importance of validation
• Team meetings

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Team Dynamics

• All team members must meet at least once per week
  to review progress and create plan
• Set time and place for weekly meeting
• Assign responsibility for assignments
• Set completion dates

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Process When One Team Member Not Pulling Weight

1. Team meets for frank discussion of what is the
   problem decides how to resolve it
2. Team brings problem to Instructor who will make
   suggestions on how to resolve
3. Instructor meets with entire team to try to
   resolve
4. Instructor meets with team member who is the
   cause of the problem and tries to resolve
5. Team fires team member

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Market Research

• Primary
• Interviews - talk to people
• Customer surveys talk to customers
• Secondary research market industry

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Interviews

• Each team member talk to 5 people
• Complete Call Reports (must be typed)
• Remember 2 questions must ask at the end
• What question havent I asked that I should?
• Who else should I talk to?

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Customer Surveys

• Do customers recognize that they need your
  product/service?
• Are features compelling?
• Criteria for buying decisions? Who influences the
  decision?
• How much will they pay?
• Why would they not buy?
• Do they understand the benefits?

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Secondary Research

• Market is
• Big enough growing
• Positive trends
• You can enter
• Understand competition
• Competitive environment favorable to new entries

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Market Research - Conclusion

• Validation of your venture
• There is good market
• You can compete
• Evidence that customer
• Needs the product/service
• Will buy it

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Business Plan Elements

• Executive Summary
• Product or Service Description
• Market Industry Analysis
• Marketing Plan
• Operations Plan
• Development Plan
• Management
• Competitive Advantage
• Financial Projections
• Offering, Funding, Valuation

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Business Plan Elements

• Executive Summary

• Last to be written

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Business Plan Elements

• Product/Service Description

• Features and Benefits

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Business Plan Elements

• Market Industry Analysis

• Segments
• Size and Trends
• Competition

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Business Plan Elements

• Marketing Plan

• Target Customer
• Positioning
• Pricing
• Advertising Promotion
• Distribution
• Sales

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Business Plan Elements

• Operations Plan

• Scope of Operations
• On-going Operations

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Business Plan Elements

• Development Plan

• Key Milestones

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Business Plan Elements

• Management

• Organization
• Team

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Business Plan Elements

• Competitive Advantage

• Sustainable

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Business Plan Elements

• Financial Projections

• Income Statement
• Balance Sheet
• Cash Flow
• Risks

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Business Plan Elements

• Offering, Funding Valuation

• Valuation of Business
• Request for Funding

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Next Week

• MARKET INDUSTRY ANALYSIS
• Opportunity/Need
• Segmentation
• Value Chain
• Financial COMPs
• COMPETITIVE ADVANTAGE
• Hand-in Interview list 20 names
• Gene Hayworth Leeds School librarian
• No review of business plan examples