strengthening your business plan jan 19

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Frank Moyes Leeds School of Business

University of Colorado Boulder, Colorado

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Strengthening Your Business Plan

Frank Moyes Leeds School of Business

University of Colorado Boulder, Colorado

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Business Plan Must Address

What is the product/service?

What is the market?

What is the value proposition?

How will you market?

How will you differentiate your product/service?

Who is the management team?

What is your sustainable competitive advantage?

How will you make a profit?

How much money do you need and how will you spend it?

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What Is the Product/Service?

Describe features

Unique

Technology basis

Key benchmarks

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What is the market?

Compelling need

Sufficient size & growth

Favorable trends

Target market Segmentation

Describe customer persona

How make buying decisions

Evidence Customer understands there is a problem

Customer will take action

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What is the value proposition?

Benefits to the target customer

Don’t confuse features with benefits

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How will you market?

Roll-out strategy

Pricing

Sales & distribution

Internet strategy

Communication (advertising & promotion)

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How will you differentiate your product/service?

Positioning

Position statement

Attribute map

In the mind of the customer

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Who is the management team?

Key managers

Holes & how will fill

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What is your sustainable competitive advantage?

Describe current & future competition

Basis for competition

Sustainable advantage

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Competitive Advantage Challenges

Intellectual property

Agreements with

customers or suppliers

Long term contracts

Differentiation

Lowest Prices

Lowest Costs

Channel Relationships

Location

First to Market

Development Lead Time

Better Quality/Service

Patents

World Class Management

Establish a Brand

Execution

Relationships

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Competitive Advantage

Differentiation

Resources, capabilities & barriers

Really understand the market &

competition

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Sustainable

How will you make a profit?

Revenue

Margins

Financial projections

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How much funding do you need and how will you spend it?

Cash Flow

Assets (capital expenditures & working

capital

Funding

Sources & Uses

Valuation

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Business Plan Must Address

What is the Product/Service?

What is the Market?

What is the Value Proposition?

How will you Marketing?

How will you Differentiation your product/service?

Who is the Management team?

What is your sustainable Competitive Advantage?

How will you make a profit (Financial Projections)?

How much Funding do you need and how will you spend it?

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Executive Summary (One Page)

Opportunity

Product/Service

Marketing Strategy

Competitive Advantage

Management

Financial

Funding

Communicating the Plan

Executive Summary

Elevator speech

Presentations

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A Good Business Plan

Explains how you are going to do it

Provides evidence that customers want to

buy

Tells a story - creates excitement

Addresses the critical elements

Should be painful to write

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Business Plan Sections

Executive Summary

Product or Service Description

Industry and Marketplace Analysis

Marketing Plan

Operations Plan

Development Plan

Management

Competitive Advantage

Financial Projections

Offering, Funding, Valuation

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