business plans built by stambaugh/2009 jeff stambaugh dillard college of business/rm 257a...
TRANSCRIPT
Business Plans
Built by Stambaugh/2009
Jeff StambaughDillard College of Business/Rm 257A
[email protected]://faculty.mwsu.edu/business/jeff.stambaugh
Motivation
Built by Stambaugh/2009
■ Are business plans a waste of time?
Business plans are outdated shortly after they are printed!
Internal Audiences
Built by Stambaugh/2009
■ What’s the plan■ Roadmaps / milestones■ What’s my role■ How we doin’?
External Audiences
Built by Stambaugh/2009
■ Banks: can they repay, what collateral do they have■ Investors: who are they, what’s the return■ Suppliers / Partners: what do they add, can they
make it■ Prospective employees: growth, stability
Building the Plan
Built by Stambaugh/2009
■ Vision / Mantra (10 words or less)■ Mission: include strategy■ Elevator Pitch: 60 second (+/-) speech that:
■ Hooks fast (new product / competitive angle)■ Specific request / status
BP Faux Pas
Built by Stambaugh/2009
“Creative” Format
Sloppiness
Too ornate
Unrealistic / undefined market
Lack of external support (when available)
Overly / “underly” aggressive financials
No skin in game (if seeking money)
“Standard Format”
Built by Stambaugh/2009
Cover Letter Title Page TOC Exec Summary The Company The Market The Organization The Financials Appendices
Cover Page
Built by Stambaugh/2009
Good stationary with logo
Personalized
Follow the template: p. 213
Exec Summary
Built by Stambaugh/2009
Product (don’t forget hook) Market Competitive Advantage Management (experience) Business (status/stage) Finances (details of offer)
The Company
Built by Stambaugh/2009
■ Description of status■ Product / Service and Industry Analysis
Market
Built by Stambaugh/2009
■ Market and target customer■ Competition / competitive advantage■ Marketing strategy
The Organization
Built by Stambaugh/2009
■ Legal / org structures■ Key personnel■ Location
Financials
Built by Stambaugh/2009
■ Critical assumptions■ The deal for investors■ Income statements■ Cash flow statements■ Balance sheet statements■ Milestones
Tailor the plan
Built by Stambaugh/2009
■ For audience■ For your business
Recognize the risks
Built by Stambaugh/2009
■ Numbers too optimistic■ Sales don’t materialize■ Competitors■ Lack of experience■ Inadequate cushion■ Inadequate payback
Why Presentations? Link
Built by Stambaugh/2009
■ Passion?■ Expertise?■ Professionalism / Personality http://ecorner.stanford.edu/authorMaterialInfo.html?mid=85
■ Recruiting a team link
■ Finding Soul mates link
Class Takeaways
Built by Stambaugh/2009
■ Solid business plan is a key pathway to success■ This is a legit opportunity
■ Product adds significant value to customer■ Exciting business model with ability to defend its
position■ Well-defined target market in an attractive industry
■ They can handle competitors’ reactions■ Management team is “ready”■ Firm organized in appropriate, legal, ethical manner■ Financials realistic with appropriate ROI■ Risks are addressed