biz plan dev workshop

7/31/2019 Biz Plan Dev Workshop

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Developing a Business Plan

Prajakt RautPresident Angel Investors Consortium

Executive Director The Hatch


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Agenda

What is a business plan

Key elements of a business plan

Establishing a business case


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Agenda





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A business plan is useless product.

But it is a priceless process.

Provides a structured and logical framework for planning

your business

Plans means nothing. Planning is everything.


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Should address the following questions

o What problem or opportunity are we addressing?

o How are we addressing it?

o How are we planning to do it?

o Why are we doing it?

The market/Target Audience

Product / service

Organization & Operations planning

Business case : measure against YOUR goal

Create wealth

Serve the poor/reduce unemployment/make people happy

Do what I enjoy

Etc., etc.


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Not all businesses are VC fundable.

And yours need not be.

VCs invest ONLY in businesses that can scale.

You can have a small, yet profitable business.


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VCs are not the only funding option.

Bootstrapping: Self-sustaining

Debt: Banks, SIDBI, etc.

Strategic investors : Perhaps a potential customer?

Friends & Family: Traditionally the most active Angels


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A business plan has internal as well as external uses

Internal uses

Understanding business case

Planning your business

Provides parameters to evaluate and

made adjustments

Monitoring progress

Ensures team alignment

Help recruit senior personnel

External uses

Funding

Alliances

Board members /

advisors

Partnerships

Mergers andacquisitions


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Whats the process of working on a business plan?

o Start with a story - See the film in your mind

o Work out rough milestones and goals

o

Think deeply of how you will implement it

o Work out the structure of an excel sheet with formulae

o Start working in the excel sheetassumptions are critical

o Work on multiple scenarios

o Finally, articulate it into the presentations

Its a little bit like planning a journey


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Having a goodidea is not the

same as having

a businessplan.


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Setting up achain of coffee

shops is more

than justmaking great

coffee


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Building a coffee chain requires the

following competencies

Real estate procurement

Facilities management

Brand identity

Marketing

Sales

Food handling

Supply chain / procurement

Processes

Standardization

HR hiring, training, retention

Service management

Legal, finance, audit

Vendor management

MIS

Etc. etc., etc.


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Dynamics of an e-commerce business

Brand

Strategy

Value proposition &

positioning

Target Audience

Pricing

Brand Personality

Product

Procurement

Production/Packaging

Supply chain

Vendor management

Capacity utilization

Portal

Technology Platform

Look & Feel user experience

Ordering mechanisms including

order on phone

Payment gateways & methods

Logistics

Delivery & fulfillment

mechanisms

Warehousing

Logistics partners

Order Management

Marketing

Marketing strategy as well as tactical

idea, sales strategy

Media Plan & Budgets

CRM Strategies & Ideas includingloyalty programs, referrals, etc.

TeamRoles & Responsibilities identification

HR policies

Team hiring & retention plan

E-

commerce


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How many vendors are involved?

Technology & portaldevelopment partners

1. E-commerce capable

Technology partners

2. Hosting partner

3. User Interface partner4. Payment Gateway

5. Testing & bug fixing

experts

Operations partners1. Packaging & printing partners

2. Logistics partners

3. Recruitment consultants

4. CRM partners/CRM platform

vendors

5. Database vendors

6. Process Training Consultants

7. Soft Skill Training Consultants

8. Outsourced Call Centre

Marketing & BrandCommunication partners

1. Brand identity specialists

2. Photographer

3. Direct Marketing agency

4. Social Media Agency5. Advertising Agency

6. Media Buying agency

19 Partners / Vendors involved in the implementation process


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Assumptions are critical.

Wrong assumptions can be fatal.


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How detailed should a biz plan be?

o Excel Sheet should be super detailed

o Different presentations for different uses/audiences

Elevator pitch for introductions

1-2 page summary for preliminary intros

10 slide deck for initial presentation

Detailed presentations for follow-up meetings


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Agenda





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Different stages of entrepreneurship carry

different kinds of risks

And hence plans too need to address these


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Stage

Scale

Different stages of the venture carry different risks


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Risks at early stage

Concept risk

Execution risk

Scale-up risk


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Concept risk

Execution risk

Scale-up risk

Risks at growth stage

Execution risk

Scale-up risk


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Concept risk

Execution risk

Scale-up risk


Execution risk

Scale-up risk

Risks at mature stage

Scale-up risk


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Concept risk

Execution risk

Scale-up risk


Execution risk

Scale-up risk

Risks at mature stage

Scale-up risk

Proving concept

Jugaad

Flexibility

Fine-tuning offering

Processes

Focus

Operational efficiencies

Increasing profitability

New markets/new

capabilities/new concepts


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Angel Investors/Seed StageFunds


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Venture Capitalists


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Private Equity Funds


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Company Name /logo

One line business description:

e.g. We are an online music release platform for artistes to sell or share

their music

City:

Stage: i.e. concept, post-pilot stage, growth stage

Contact Person:

E-mail id:

Mobile:


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Overview of your business

What is your service/product/concept? i.e. what do you do? i.e.

Concept

Whom is this service targeted at? i.e. your customers/consumers?

i.e. The Target audience

What is the business model? I.e. Who will pay how much and to

whom

What is the pain point you are addressing or what is theopportunity you are targeting? i.e. the need/value proposition

What is the scale of aspiration? i.e. how large do you see yourself

as in a 3-5 year time period?


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Team

Brief description of each team member with key points

on what he/she brings to the team [e.g. someone could

lead technology, someone could lead marketing, etc.]


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Product / Service Differentiator

Highlight the uniqueness of your offering i.e. why would

your users be excited about your offering?


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Business model

Types of business models

Free for users advertisers pay

SAAS pay only for service / rental

Pay per use

Pay up front

Annual / periodic payments

Pay in installments

B2B2C

Example of a business model

We have a B2B2C model. We will charge parents Rs.250 per child per month. This will be

collected by the school from parents who subscribe to our service and will be paid to us at the

beginning of every quarter.

Students will be pre-registered but subscription is not compulsory and parents can choose to

opt out.

School will keep 20% of total revenues, which we will give them at the end of the year on

achieving a pre-agreed minimum revenue commitment.


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What is the size of the opportunity

Potential

What markets are you addressing e.g. India,

global, etc. be specific for the 18 24 months

horizon


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Implementationplan

How do you intend to implement this concept?

Operations: procurement/supply chain/logistics/fulfillment, etc.

Marketing Strategy: how will you reach your customers

Sales strategy: How will you sell to those you reach

Org chart: What team do you envisage to deliver this

Mention your key assumptions, and highlight if different than

generally accepted numbers


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Your goals

In the next 3 6 months

In the next 12 18 months or 24 months

In the next 5 years

Indicate when you become profitable

Current achievements / status:


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Competitive landscape

Who will you compete with? [current or in future]

Why would someone choose you over them?

Why do you have a chance to be a dominant player?


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Funding objective

How much do youneed

What do you needthe money for i.e.what will youachieve with thismoney, when do yousee profitability

Also mention any fund

raising history, if any


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Matrices

being tracked

Sample.

Please use yourown parameters.


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Needs gaps/disclosures/risks

What areas do you need assistance on


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Agenda





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biz plan dev workshop

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