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Business Plan: Experiences
What happens when you write a business plan
Abhishek Jain
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Biz plan experiences2
Overview
Business Plan Basics
Background
Customer / market analysis
Competitor analysis
Our resources
Future outlook
Financial requirement
General
Raychand and Gyanchand
Biz plan experiences
Disclaimer
I am not founder, was involved very late in biz plan making
I cannot tell how to write a successful biz plan
There are N number of ways to screw up a biz, I can cover very few of them
Many of them have to be discovered
I have a habit of PJ but they convey the point
Use of he/his is because I am unfortunately a human male
No matter how many times it is told, entrepreneurs will usually make the same mistakes for the first time; don’t worry
This is strictly personal opinion and not my company’s so any brickbats are on me!
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Biz plan experiences
Purpose of the Business Plan
Is always unclear
For incubation
Be quite honest in projections
For a VC/Angel
Be generous; you will be caught anyways
For internal consumption
Whom are you lying to
In all above cases be honest in the DNA of the company being created; wrong DNA is like a child with bad habits
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Biz plan experiences5
Background
Talks about
How the company is forming/was formed
Members
Area of work
Growth for already established companies
Pitfalls
Not everything can be revealed
Prof Abhishek Jain / Dr Abhishek Jain (I am not a Prof)
What will I not do
Too much of projections; poker face doesn’t help
Biz plan experiences6
Customer/Market Analysis
Who is my customer
Location of the Customer
His social status
Selling proposition
Emerging trends
Pitfalls
Not considered generally in initial plan; very important
As techies we always forget how our target will behave
Will this be a spoilsport
Love for our technology may blind us
10% syndrome
Biz plan experiences7
Competitor Analysis
Who is my Competitor
Where is he
Potential competitor
Gap between us
Strength and weakness
How to fight them
Pitfalls
May not consider all of them
May overlook
Not easily found out
Overestimation
Biz plan experiences8
Our Resources
What do I have
Financial
Human resource
Assets
Intellectual Property (IP)
Pitfalls
These are usually limited and unaccounted
Are they really a resource; can we project them
Outdated mostly
Do we own some
Biz plan experiences9
Financials
Financials are different for not started and start-ups
Profit and loss
Burn rate and break-up
Future projections
Revenue streams
Pitfalls
P&L is hard data do not play with it
Burn rate is OK, but break-up usually creates tussle
Don’t talk in thousands of crore easily
Biz plan experiences10
Future Outlook and Fund Requirement
Both go hand in hand
Blossoming future outlook and small fund requirement ????
Can we diversify
What are the opportunities
ACTION PLAN – always missing
Biz plan experiences11
General
Make a plan because it is required by somebody!
Outsource a biz plan?
Data collection
Idea value
Different partners
Action orientation
Marketing focus
Time spent in making
Criticism of biz plan
Motivation
Biz plan experiences
Raychand and Gyanchand
People who have never opened a company
The Mr Know alls
They may motivate or be pessimistic
Both cases they misguide
They are all out there
Call themselves Gurus
How to identify them
Tall claims with not fact backup
Me my and myself
RUN RUN RUN
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Biz plan experiences
Read
Crossing the Chasm – Geoffrey Moore (For start-ups)
Mahanayak – Viswas Patil
Maverick – Ricardo Semler
Why men don’t listen women can’t read maps – Pease
Foods that fight pain – Dr Neal Barnard
I Dare – Kiran Bedi
Wings of fire – HE Dr APJ Abdul Kalam
Straight from the Gut – Jack Welch
In search of excellence – Thomas Peterson
Built to last – Jim Collins
Good to Great – Jim Collins
Scientific American Magazine
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Biz plan experiences
No Pain No Gain
If you cannot write a plan you cant do a business
A bad plan means many years lost
Bad plan strong competitor
Even politics affects us; know your surroundings
Plan B: Can we adapt
1965 war
Happy writing !!!!!!
For an exercise write a life plan or even life partner plan!!!!!
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Thank You