ebda2, business plan - omar shawky
Post on 17-Oct-2014
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How to Build A Successful Business Plan for a Small Business
Speaker:
Omar Shawky
Why write a Business Plan
1. Because I have to…– Needed for financing
– Strategic partnering
– Attract key people/investors
– Organize my thoughts
Why write a Business Plan
2. Because I Need to Understand My Business– The Plan is the result of a planning process– People Don’t Plan to Fail; They Fail to Plan
• Who are my customers?• Why will they buy my product or service?• What will they pay?• How will I make and deliver/sell the service/product?• What resources (people, money, technology) do I need?• Can I make money / create value?• Do I have the right team on board?
The Right Ingredients
• A TEAM with Relevant Experience
• Market Size
• Idea
• Technology
• Competitive Advantage
• Reasonable Projections• Exit Strategy
Company Structure
Financials
Operations&
Production
Team
Idea
Market
Competitive Edge
MarketingStrategy
Business Plan
Business Planning Steps
1. Idea generation, Vision, Mission, Objectives, Strategies
2. Market research and Analysis3. Marketing strategy4. Production planning5. Management and Organization6. Financial plan7. Company formulation
Business Planning Steps
1. Idea generation, Vision, Mission, Objectives, Strategies
2. Market research and Analysis3. Marketing strategy4. Production planning5. Management and Organization6. Financial plan7. Company formulation
1. The Idea
• Innovative product or service
• Visualize a market gap – you can add value
• Imported idea
Vision
1st Objective
2nd Objective
3rd Objective
4th ObjectiveStrategy
Where do you want to go at the end ?
What is the road map and major mile
stones ?How will you reach
your objectives ?
Vision
Objectives
SMART
Specific MeasurableAchievableRelevant
Time-Bound
Mission:Stakeholders
Family
Work
Friends
Religion
Country
Community
Who are your stakeholders and what is your mission to each one of them ?
Mission:Stakeholders
Shareholders
Employees
Customers
Suppliers
Country
Community
Who are your stakeholders and what is your mission to each one of them ?
Business Planning Steps
1. Idea generation, Vision, Mission, Objectives, Strategies
2. Market research and Analysis3. Marketing strategy4. Production planning5. Management and Organization6. Financial plan7. Company formulation
2 .Market Analysis• Market size
– How big is it NOW?
– Trends – how fast is it or will it grow?
• Market Players – Competitors– Competitive Advantage
– Estimated market shares
– Existing/planned products in the marketplace
• Is this the RIGHT TIME for my product? • Is there a GAP that I can fill?
How you capitalize on them
How you avoid them
How maximize them
How minimize their effects
Strengths
Weaknesses
Opportunities
Threats
Internal
External
SWOT AnalysisSWOT Analysis
Business Planning Steps
1. Idea generation, Vision, Mission, Objectives, Strategies
2. Market research and Analysis3. Marketing strategy4. Production planning5. Management and Organization6. Financial plan7. Company formulation
• Who are my TARGET customers?
• Why would they buy my product?
• How much would they pay?
• What are the special features in my product?
• What is my competitive advantage
It is all about your EDGE
3 .Marketing Strategy
Marketing Plan Process
Marketing Research
Segmenting Positioning Targeting
Defining Target Market Needs, Wants, Demand
Product
VarietyQualityDesignFeaturesBrandPackagingSizeServicesWarrantyReturn
Price
Price ListDiscountsAllowancesPaymentsCredit
Promotion PromotionsAdvertising
Sales Force
Public relation
Direct marketing
Place
ChannelsCoverage
Location
InventoryTransport
Push / Pull
Marketing Mix 4 Ps
Business Planning Steps
1. Idea generation , Vision, Mission, Objectives, Strategies
2. Market research and Analysis3. Marketing strategy4. Production planning5. Management and Organization6. Financial plan7. Company formulation
4. Production plan
• Technology
• Equipment
• Raw Material Sourcing
• Operation Plan and Capacity
Business Planning Steps
1. Idea generation , Vision, Mission, Objectives, Strategies
2. Market research and Analysis3. Marketing strategy4. Production planning5. Management and Organization6. Financial plan7. Company formulation
5. Management Plans
• Getting the RIGHT Team on board
• Training
• Delegation
• Empowerment
Business Planning Steps
1. Idea generation , Vision, Mission, Objectives, Strategies
2. Market research and Analysis3. Marketing strategy4. Production planning5. Management and Organization6. Financial plan7. Company formulation
What Investors is looking for in Financial Section:
1. Total Investments 2. Breakdown of Investments (Land, Building, Equipment, People, Working
Capital, …etc.) 3. Income Statement Projections 4. Cash Flow Statement Projections 5. Initial Balance Sheet 6. Net Present Value (NPV) 7. Internal Rate of Return (IRR)8. Breakeven Analysis 9. Payback Period
Financial Section
Financial Plans
• Income Statement Projections – Revenues Assumptions – Costs/Expenses Assumptions – Depreciation Assumptions – Interest Expenses Assumptions – Taxes
• Cash Flow Projections– Initial investment – Working Capital (Payables vs Receivables) – Capital Expenditure (Capex) – Debt Assumptions
Income StatementObjective: provides information about the firm’s operating activities over a
specific period of time.
Revenue: 100 100%
- Cost of Goods Sold (COGS): 60 60%
Gross Profit (Profit Margin) 4040%
Operating Expenses:
General & Administration 8 8%
Sales & Marketing 12 12%
- Total Operating Expenses 2020%
Earning Before Interest, Tax, Depreciation & Amortization (EBITDA)20 20%
- Depreciation & Amortization 5 5%
Earning Before Interest and Tax (EBIT) 15 15%
- Interest Expenses 55%
Net Income Before Tax 10 10%
-Taxes 22%
Net Income 8 8%
Income Statement
Objective: provides information about the firm’s cash position and sources of cash in and cash-out
1- Cash Provided from Operations:
+ Net Income 8
+Depreciation & Amortization 5
-Increase in Receivables (1)
+Increase in Payables 4
Total Cash from Operations 16
2- Cash Provided from Investing:
-Capital Expenditure (3)
+Sale of equipment, land..etc 1
+Sale of stocks in portfolio 1
Total Cash from Investing (1)
3- Cash from Financing:-Repayment of debt (1)
+Sale of common stock 1
-Cash Dividends (5)
Total Cash from Financing (5)
Total Cash Flow Total Cash Flow 1010
Cash Flow StatementCash Flow Statement
Assets Current Assets:
Cash and securities 15
Account Receivables10
Inventories 25
Total Current Assets 50Plant 30
Land 15
Furniture 5
Total Assets 100
LiabilitiesCurrent Liabilities:Accounts Payables 10Short-term borrowing 15Total Current Liabilities 25Long Term Debt 25
Total Liabilities Total Liabilities 50 50
Shareholders’ Equity Common Stocks 20Retained earnings 30
Total S.E. Total S.E. 50 50Total Liab. + S.E. 100
Objective: provides summary of what the business owns and what it owes
to both lenders and investors. (Assets = Liability + Shareholder's Equity)
Balance SheetBalance Sheet
1. Net Present Value (NPV)
2. Internal Rate of Return (IRR)
3. Breakeven Analysis
4. Payback Period
*See the excel file for calculations
Measuring PerformanceMeasuring Performance
Business Planning Steps
1. Idea generation
2. Market research and Analysis
3. Marketing strategy
4. Production planning
5. Management and Organization
6. Financial plan
7. Company formulation
7. The Company
• Name – logo - slogan
• Legal structure
• Location
Mission – Values - Objectives
Elements of the Business Plan
1. Executive Summary2. The opportunity, company, product/service, vision, mission &
objectives 3. Market research/analysis / SWOT Analysis4. Marketing plan5. Design and development plan6. Manufacturing and operations plan7. Management team8. Financial plan (Capital Required, Projections, Returns) 9. Action Plan
Finally: No Risk … No Gain
الجبال ” صعود يتعلم ال الحفر ومن بين الدهر أبد “يعش
“If we all did the things we are really capable of doing, we would literally astound ourselves”
Thomas Edison
Thank You &
May God Bless
Omar Shawky