writing a winning business plan. business plan format, start your business by planning it
DESCRIPTION
This is a lecture for entrepreneurship elective at the Ateneo Graduate School Of Business, a leading school in the Philippines for MBA education.. It is uploaded at slideshare for the convenience of present and former students for the said elective. This would update them further on progress in entrepreneurship education. The presentation compares the parts of a business plan to the parts of the lunar service module (lsm) that was very critical in the apollo mission to land men in the moon. The lunar landing would not be possible without the lsm: so with a business without a proper plan.. The analogy will make it easy for students to remember the business plan partsTRANSCRIPT
WINNING BUSINESS PLAN
FORMAT
Your key to business SUCCESS
1. THE BUSINESSBusiness Concept
What is unique about the business?What is the logic behind the business?What is the positioning?
Business ModelHow does it make money for stockholders/employees?How does it deliver value for customer?How does it finance its growth?
Business OfferingProjected ROI, how will lender get money back? Investors?
Mission, Vision, Objectives / KRA targets- measures (VMOKRAPI)
For better understanding
Business Plan and Lunar Service Module Analogy
Begin with the end in mind..
business concept model
VMOKRAPI
Organization
(EA Micromarket/PTM)
Product
EDS/ Strategy
Drawing of the lunar service module
Business concept
Business Model
VMOKRAPI
Organization:
Financial Providers
Technology Providers
Executives
Strategy Product Positioning
The LSM in flight
2. EXECUTIVE SUMMARY (last to be written) 1 – 2 pages
3. BUSINESS ORGANIZATION:
The Proponent and their Distributions to the Enterprise (Competencies and cash)
5. The Business Opportunity: Define Opportunity (Seeking, Screening, Seizing)MACROMARKET – PESTEL, PESTE, STEER,EPISTEMICROMARKET
• Competition• Location
Realistic Estimate of market & size growth and potential.Realistic estimate of sales of the enterprise.
4. Target Customers, and Main value proportion to CustomersPrimary target Market – Psychographic, Demographic Segmentation (MICROMARKET STUDY)
How do customer behave, act/use the product?
How is the product a perfect fit to customer (PTM) wants and needs?
6. Product Offering, Testing, Justification
a. Your product vs. competitor
b. FGD/UIA conducted if any – why would customer buy your product? (Motivation to buy)
c. Product Testing – alpha/beta
7. Enterprise Strategy & Delivery System
a. Strategy – how to use available resources to win hearts and minds of customer, to meet objectives/ KRA
b. Enterprise Delivery System
INPUT THROUGHPUT
OUTPUTS
MATCHING OUTCOME
Money
Machinery
Manpower
Materials
Operation (Method)(Management)
Products /Services 4 Ps of
Marketing
PRICEDELIVERYQUALITY
CUSTOMER EXPECTATION
SALES/NET INCOME
Nota bene!
• EDS must both be written in grid andlong form;
• The long form is both LONG and detailed.
• How to attain the outcomes must bespelled out!
8. Financial Forecast:
Expected returns / Risks 3 – 5 year projection
1. PNL2. Balance Sheet3. Funds Flow4. Cash Flow
1. Patong - GP2. Ikot - Turn over3. Laway – Leverage
9. Adding / Gaining /Multiplying / Dividing the Business
10. Exit StrategyHarvest Issues / IPO/Selling the BusinessRed Flags of Failure
business concept model
VMOKRAPI
Organization
(EA Micromarket/PTM)
Product
EDS/ Strategy
One small step… one giant leap…
CHAMP
