...My future is Bright...My future is Bright

Financing Entrepreneurial Dev.-

Business Plan & Investor PitchPresented By: ‘Bunmi Lawson

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Who is an Entrepreneur?

• An Entrepreneur is one who organizes, manages and assumes risks of a business or enterprise.

– A Webster Dictionary Definition

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Qualities of An Entrepreneur• Visionary

• Passionate

• Focused

• Self Motivated

• Good Business & Industry Knowledge

• Good Organizational & Managerial Capabilities

• Excellent Marketing / Interpersonal Skills

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Starting A Business

Starting

Want Need

Take the businessto them

Develop a business to

meet their need

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Starting A Business Continued

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Identifying an income generating biz

• How much should the business generate?

– Equivalent salary if employed within 3 -5 years

• Demand/need should outstrip supply

• Preferably a business that is self sustaining e.g. phone calls are made 24/7

• The survival of a business is not dependent on the speed strength or intelligence of the entrepreneur rather on the ability to adapt to change

• Opportunity meets preparedness

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Identifying an income generating biz…2• Networking with like minds: intelligence and

network of great friends and mentors

• Smart people, people who will encourage you support you recommend you etc

• Initiative taking action to tap into the opportunity identified, ingenuity drive and hard work

• Some are surrounded by opportunity yet either do not see it or cannot tap into it. If you have been cultivated or have the habit of taking advantage of opportunities you will.

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What is a Business Plan?

• A Business Plan is an action plan for the purpose of starting and running a business.

• The Business Plan describes the business, its target market, strategies and financial forecasts

• If you fail to plan you plan to fail

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Importance of a Business Plan• Helps think through the entire business

process to examine viability and avoid pitfalls

• Provides answers to questions that increase chances of success; e.g. Target market, Competition, Business Model

• A tool for communicating your business potential; attracting investors & good talents.

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Before Getting Started Writing;

• Clarify Goals:

– To raise capital– Serve as a guide to run the business– Or both

• Read sample Business Plans

• Set up a table of contents that suits your business to guide your writing

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Business Opportunities• Accounting Firm

• Auditing Firm

• Tutoring

• Tax Consultant

• Financial Advisory Services & Consulting

• Investment Advisory Services

• IT Services

• CEO

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Getting Started; Writing The Business Plan

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Writing Style

• Be as clear and simple as possible

• Ensure the Plan is an Interesting Read

• Go straight to the point

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Business Plan Outline ( A Sample)

• Title Page• Table of Contents• Executive Summary• General Company Description• Management/Legal Structure• Products & Services• Capital Requirement & Start-Up Expenses• Industry & Market Analysis• Marketing Plan• Operational Plan• Key Risks & Mitigants• Financial Plan• Appendixes

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Executive Summary

• Should be complete, concise & convincing (1-Page Elevator Pitch- Written Last)

• Contain Business Fundamentals– Product/Service– Target Market/ size/ potential growth– Existing & Long Term Demand– 3 Critical success factors ie lifeline– Uniqueness and innovation– Capital requirement– Short and Long Term Profit, ROI

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Common Pitfalls in Business Plans

• Boring executive summary with insufficient information

• Not defining target market

• Being too technical/complex

• Too much irrelevant information

• Unrealistic assumptions & projections

• Poor market and competitive analysis

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Business Plans DONTS!!!

• Underestimation of difficulty of growing a business

• Underestimation of Competition

• Inclusion of highly confidential and proprietary information

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Useful Resources

• http://nigeria.smetoolkit.org

• Quickbooks Simple Start 2008

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Key Take Away!!!

• Writing a business plan is difficult, but a lot less painful than watching your business fail.

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‘If you are failing to plan, you are planning to fail.’

Tariq Siddique

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Thank you!!!