lecture 6 buss plan
Post on 06-Apr-2018
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TRANSCRIPT
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Presented by:
Tasawar Javed
Islamia University Bahawalpur
Entrepreneurship
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The Business Plan
What to put in and where!
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Executive Summary
One to Two Pages
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The Company
What business are you in?
What are your company's goals? What are the company's critical success
factors?
What Corporate Governance issues will youneed to consider?
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2 Profile
2.1. Business Definition
2.2. Products / Services 2.3. Operating Profile
2.4. SWOT analysis
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The Products/Services
Does your product have any patents or other proprietaryfeatures? (trademarks, copyrights)
How is your product different from the competition's?-- comparecapabilities, strengths/weaknesses, and characteristics of yourproduct to those of your competitors.'
How up-to-date are your products? -- address potentialobsolescence or losses of market share.
What is the output and sales mix for each of the company'sproducts/services?
What are the sales price, cost, and profit margin for eachproduct line?
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Future Products
Any planned innovations to the existing productlines? Any new products/services?
If the answer is affirmative, provide developmenttime projections.
What are the expected sales price, cost and profitmargin on future products and how is the overall
sales mix and profitability expected to change?
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3. Environment, Industry andMarket Analysis
3.1. Macro Environment Analysis
3.2. Industry Analysis 3.3 Market Analysis
3.4 Competitive Position
3.5. Scope of the Opportunity
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Industry
What is the size, maturity, and competitive nature ofthe industry?
What are the barriers to entry and growth? How do economic developments affect the industry?
What is the industry's financial position andperformance?
What is the role of innovation and technologicalchange?
How is the industry affected by governmentregulation?
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Market Analysis
What is your target market and to whom are
you trying to sell? (may be different) What is the size of your target market?
Historical
Current
Projected (5 years)
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Market Analysis
How can you segment your target market? (byregion, age, income, profession, etc.)
What are the trends in your target market
Where is the market going and why?
What are the economic trends?
Maturity of the market--growth stage or stable?
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Competitors
Who are your competitors? What do youknow about them? Address the followingaspects:
Relative size
Competitive strengths/weaknesses
Markets addressed/market share Reputation
Prospects
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Customers
Who is buying? End users?
Why are they buying? What are they looking for?
What are the factors that drive their buyingdecisions?
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4. Project Summary
4.1. Aims
4.2. Project Summary 4.3. Investment Strategy
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5. Marketing
5.1. Current Marketing Effort 5.2. Marketing Strategy
5.3. Channels to Market
5.4. Pricing Strategy
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Marketing Strategy
What is your target market (by segment)?
Geographic Industry
Type of buyer
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Marketing Strategy
How will you establish credibility (company and product)? Whyshould customers buy a new product from an unprovencompany?
Will your pricing strategy be high, moderate, or low relative tothe market and why?
Will credit be extended and under what conditions?
Will warranty policies be standard or non-standard with yourproduct? Will their cost be included in the cost of the product or
be additional? To generate sales, what product or service attributes will your
company emphasize?
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Marketing Strategy
What will be the image you strive for? Your level of quality,reliability, service, response time should fit neatly with other
strategies (i.e., quality and low price may not appear to makesense--if they do in your case, explain why).
How much will be spent on advertising and public relations? Inwhich channels will these dollars be spent? (These strategiesshould match with others; i.e., are ads in Modern Mechanics
compatible with the objective to develop an image of quality?)
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Marketing Strategy
What distribution channels will you utilise?
Describe the physical means by which theproduct will be delivered to buyers:
Factory distribution
Company-owned regional distribution
Independent remote distribution Order lead times
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6. Organisation and Management
6.1. Corporate Structure 6.2. Management Team
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Management
Functional responsibilities
Management holes& weaknesses Management philosophy
Board of Directors
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7. Operations
7.1. Operational Scalability 7.2 Organisational Structure
7.3 Organisational Style and Culture
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Implementation Plan
Facility requirements: Leased Purchased
Labour requirements: Local labor pool Skilled/unskilled
Subcontracted production: Sole or multi-sourced Quality controlSupply problems
Capital needs: Equipment list Financial requirements
Quality control: Raw materials Manufacturing Finished goods
Critical processes: Capacity Critical paths Cost characteristics
(fixed, variable, semi-variable) Seasonality Inventory control: Inventory turnover Production
size Lead time Storage requirements Waste/shrinkage factors
Obsolescence
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Technology
Process Description & Technology used
Intellectual Copyrights Patents Protection etc Scalability to meet demand increases and
projections
Future Research & Development
Obsolescence
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Investment and Resource
Requirements
Primary Actions Investment Requirements and Sources of
Funds
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Financing
What is the total amount of funds needed by your business? Is itneeded immediately or over the next two to five years?
What part of this financing is being sought from the investors orlending institution who will receive this business plan? (includingthe amount, terms, and any related security agreement)
For equity financing--What percentage of the company are youwilling to give up and what is the proposed return on investmentand anticipated method of taking out the investor (e.g., buy-
back, public offering, sale)? For debt financing--What is your company's proposed interest
rate and repayment schedule?
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Financial Information
3-5 Years Projected P&L Balance Sheets
Cash Flows (broken down into each month)
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Action Plan
Primary Initiatives to be undertaken
Timed Gantt Chart Critical Milestones Identified
Resources Allocated
Key Performance Indicators determined Responsibilities Allocated
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THANK YOU!!!!
Q&A