how to write a business plan 10 sep12
DESCRIPTION
I gave this talk in Germany during an intensive week-long Summer School course at the Entrepreneurship Center in WolfenTRANSCRIPT
How to Write a Business Plan
Prof. Steven A. Gedeon BSc, PEng, MSc, MBA, PhD
Why Write a Plan?
• Writing is a Guide to Thinking• Analysis Tool to Research the Market and How
to Deliver• Marketing Tool to Excite Others to Join Your
Adventure (Investors, Clients, Employees…)
• Figure Out What to Do• Guide to Management Action!
“Try Not!DO or DO NOT,There Is NO TRY!”
The Entrepreneurial Process
Spot Opportunity
Design Business Model
Business PlanMarshall
Resources & Launch
Grow Adapt
Change
The Entrepreneurship Program
Spot Opportunity
Design Business Model
Business PlanMarshall
Resources & Launch
Grow Adapt
Change
Strategy Operations Management
Ent Theory Ethics Ent Basics Intellectual Property
Innovation Law Economics THEORY
SKILLS
LeadershipMarketing Sales Negotiating Finance AccountingCommunication Teamwork Project Management
Entrepreneurship
Spot Opportunity
Design Business Model
Business PlanMarshall
Resources & Launch
Grow Adapt
Change
DOMAIN KNOWLEDGE
BUSINESSINSIGHT
• Business Model Canvas as a Design Tool• Rapid Prototyping• Good for Brainstorming• Good for Explaining• “Figure Out” the Business before you Waste
Your Time Writing the Plan
Design Business Model
Business Plan
Spot Opportunity
YourSituation
MarketContext
Viable EntrepreneurialOpportunities
• Exciting to YOU!• A Well-Defined “Niche” (“Small Area”)• You Can Acquire the Resources to Pull it Off (i.e.
something YOU can actually do)
• This is Normally an Entire Course (or Lifetime of Hard Work and Experience!)
Spot Opportunity
• Most Elements in the Business Model Canvas will end up in your Business Plan
• The Canvas is a Design Tool to Visualize Key Business Elements on a Single Page– Good Tool for Brainstorming– Good Tool for Prototyping– Good Tool for Explaining
Design Business Model
The Business Model Canvas
Free First Chapter of Book at: http://www.businessmodelgeneration.com/downloads/businessmodelgeneration_preview.pdf
Customer Segments
• Focus Focus Focus• Big Useless Numbers vs a
Guide to Management Action• The Market Will Tell You
Everything You Need to Know if you Bother to Ask
• Get “Into the Mind” of Your Customers
Value Propositions
• Benefits vs. Features• 10X Improvement• Differentiation – How
are you Different from your Competition?
Channels
• How do you Find Your Customers?
• Is the Channel Part of Your Overall Value Proposition?
• Channel Conflict• Cost of Sales
Customer Relationships
• One-Off Purchase or On-going Relationship?
• Self-Serve, Full-Serve
Revenue Streams
• How do you Make Money?
• Many Revenue Models– Subscription– Advertising– Transaction Fees– Buy Low, Sell High…
• Don’t Need More than One!
Key Resources
• What Can You Do that Nobody Else Can Do?• How Different are Your Key Resources?• Core Competencies
Key Activities
• What Specific Activities will lead to Strategic Advantage?
• What Activities will Customers Love?
Key Partnerships
• Suppliers vs. Partners• Partners are Involved in Delivering Value• Differentiation through a Bundle of Partners
Cost Structure
• Cost Drivers– Cost of Customer Acquisition vs ARPU
• Break-Even
The Business Model Canvas
• Business Model Canvas as a Design Tool• Rapid Prototyping• Good for Brainstorming• Good for Explaining• “Figure Out” the Business before you Waste
Your Time Writing the Plan
Design Business Model
Business Plan
Entrepreneurship
Spot Opportunity
Design Business Model
Business PlanMarshall
Resources & Launch
Grow Adapt
Change
Thinking
Doing
Business Plan Overview
• Executive Summary1. Mission, Goals & Objectives2. The Business Overview 3. Market Analysis4. Key Success Factors (Strategy)5. Marketing Plan6. Operating Plan7. Management Team8. Financial Plan9. Targets and Milestones• Summary
Gaining “Traction”Business PlanMarshall
Resources & Launch
Gaining Traction
• Identify the Opportunity (Start with an Idea) • Design the Business Model (Use the Canvas)• Analysis (Gather Info, Meet with Customers)• Validate Key Success Factors• Validate Goals and Finances • Verify Customer Interest (Key Reference Accounts)• Marshal Scarce Resources (Signed Contracts)• Implement the Plan (Exchange Cash)• Monitor and Revise the Plan (Reporting and Governance)
Business PlanMarshall
Resources & Launch
Keys to Success
VALUES & BELIEFS
GOALS
REALITY
ACTIONS
Marshall Resources &
Launch
Grow Adapt
Change
Keepin’ It Real
• Be Really Good at Something!• Know Your Stuff!–Know your Customers, Competition…
• Meritocracy – You Must Deserve to Lead!
• Fantasies and B.S. Don’t Work
Make Deep Connections
• Be Really Important!– To Customers, Employees, Stakeholders
• Connect at a Deeper Level than $$• Inspirational Leadership vs. Transactional
Leadership
Set Great Goals
• What Gets Measured Gets Done• Higher Goals > Higher Performance–Near and Long-Term Goals– Forward and Backward Looking Goals
• Key Business Screamers
Actions Speak Louder than Words
• “Blah Blah” vs. Real Leadership• Character = “Brand Promise”• Lead by Example• Walk the Talk
Success and Happiness come from Harmony
VALUES & BELIEFS
GOALS
REALITY
ACTIONS
Marshall Resources &
Launch
Grow Adapt
Change
Entrepreneurship
• Fundamental to the Human Spirit• Not Just a Business Discipline• A Way of Seeing, Thinking and Acting
ENT is Experiential
• Like Playing the Guitar• Need to Build Your Ent Muscles!• Get Started on Something!• Failure is OK!
Vielen Dank für die Aufmerksamkeit!
Mehr Infos unter:www.entrepreneurship-center.de