The Importance of a Well Written Business Plan

Matt Brown

For

WINN PARISH

Sept 2016

GO BULLDOGS!

About Me

• Consultant / Entrepreneur for 20+ years

• Dallas-Based

• Help companies grow• $50mm

• Start-Ups

• Small Businesses

• Why I like Start-ups?

• Provide mentorship in programs like the Dallas Entrepreneur Center (DEC)

No great man lives in vain. The history of the world is but the biography of great men. - Thomas Carlyle

Businesses Failure

Industry% Operating

After 4 years

Financial, Insurance,

Real Estate58%

Education and Health 56%

Agriculture 56%

Services 55%

Wholesale 54%

Mining 51%

Manufacturing 49%

Construction 47%

Retail 47%

Transportation,

Communication,

Utilities

45%

Information 37%

Source: Statistic Brain Research

Business Plan Purpose

• Validates idea

• Team gap discovery and alignment

• Details strategies and tactics

• Phases company lifecycle into manageable pieces

• Fundraising (Pitch Deck and PPM)

Business Plan Resources

• Software

• The Internet

• Outsource

Key – Make your Business Plan actionable (living, breathing document)

Business Plan Sections

• Executive Summary / Lean Canvas

• Market Analysis

• Product(s)

• Marketing & Sales Strategy

• Financials

• Company

Executive Summary

• Company Overview

• Problem

• Solution (business model and value proposition)

• Market (with competitive advantage) and Target

• Keys to Success

• Risks

• Financials (rolled-up)

• Milestones (past and future)

Lean Canvas

Market Analysis

• Industry overview• Competitive Forces

• Economic Forces

• Political Forces

• Legal and Regulatory Forces

• Technology Forces

• Sociocultural Forces

• Competitive Analysis (Strengths, Weaknesses, Opportunities, Threats)

SWOT Analysis

SWOT Analysis (Example) S W O T

New Company

Nimble/Flexible P6 Knowledge

Organization is unknown Small/Restitution

A better firm (measurable results) Leverage Independents that are available

Competitive Low barrier to entry

P6 Dealers Existing client base / relationships P6 Knowledge

Rigid Limited vertical knowledge

Partnership Exclusivity

Pricing

Independents P6 Knowledge

Finding gigs while working

Partnership

Product

• Product / Service

• Equipment and Facilities

• Supply Chain• Manufacturing

• Packaging

• Distribution

• Methodology (for service-related company)

Marketing & Sales Strategy

• Target Market (primary and secondary)

• Product Positioning

• Promotion

• Pricing

• Strategic Alliances

• Sales Channels

Financials

• Income Statement (with Break-Even) – how much your making/losing

• Cash-Flow – how much cash on hand

• Balance Sheet – how much your worth (Optional)

Income Statement

Cash Flow Statement

Balance Sheet

Company

• Background / History

• Organizational Structure

• Location

• Team and Advisors

• Culture

• Core Values

Entrepreneur Success Criteria

• Wear multiple hats• Know what you’re good at and what you need help with• Be resourceful and solve problems• Be strategic AND tactical• Hustle• Balance• Use mentors/examples• Network immediately• Always be learning• Fail small, cheap and fast… and then get back up!