introduction to business plans business basics. business plans who is it for? investors you the...
TRANSCRIPT
INTRODUCTION TO BUSINESS PLANS
Business Basics
Business Plans
Who is it for?
Investors
You
The three questions
Where are we now?
Where do we want to be?
How are we going to get there?
Business Plans
What goes in a business plan?
Executive Summary
Description of the Company
Products/Services
Management Team
The Market & Competition
Financials
Exit Strategy (if appropriate)
The Executive Summary
The ‘Trailer’
A summary of what you do and how you’re doing it
Short, punchy, attractive
Make the investor think:
Feel the pain!
Wow – what a solution!
Isn’t this market HUGE?!
Would you look at the size of that profit!
Business Plan Bottom Line
You’re presenting this to an audience: Can they understand it
easily? What questions will they ask? Will they want to know more? Will they want to invest in it?
There is no formal structure for business plans – lead with whatever is the most important factor
Critical elements
In the order of the most important to your
venture
The Market
Market analysis – size/competitors/scale of
opportunity
The Return on Investment (ROI) – and Exit
Strategy
Financial forecast – when will they make their money
back and with what multiplier?
Critical Elements
The Team
Skills
Previous experience
Commitment
The Product/Service
Unique Selling Point (USP)
Business & Sales development strategy
Typical Mistakes
Lack of firm orders & endorsements from real customers
IP not protectedLack of credible market researchFailure to identify USPFailure to identify exit routesLack of history – poor evidence of trading historyLack of detailed finances – costs, margins, break-
evenLack of evidence about the team’s experience
“Learn by Walking”
Good books
‘The Definitive Business Plan’ – Richard Stutely
‘The New Business Road Test’ – John Mullins‘The Beermat Entrepreneur’ – Mike Southon
Useful websites
www.businesslink.gov.uk
www.businessbasecamp.co.uk
www.nesta.org.uk
www.swain.org.uk