session 8 - bp
DESCRIPTION
Business Plan instructionsTRANSCRIPT
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Entrepreneurship
Giorgi Kekelidze
Session 8
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2Agenda Session 8
Presentation / Pitch
Business Plan Guidelines
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3Purpose of BP
1. Planning Guidance for future actions
2. Selling - attract attention , interest and financing of investors, partners
3. Communicating serves for getting stakeholders on board in understanding
what the opportunity is about and how organization is exploiting it
4. Analytical - your way of testing and validating analytical thinking behind the
opportunity
He who fails to plan is planning to fail."
Winston Churchill (during WW II)
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4Investors like Businesses that
Buy material low Cash
Sell products/services high Cash
Collect from customers early Timing
Pay suppliers late Timing
Have low fixed cost Risk
Keep In mind :
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5BP Outline
0. Cover Sheet
1. Executive Summary (~ page)
2. Opportunity Description - Need (Customers) and Product (Value), Value Proposition
3. Market & Industry Analysis
4. Business Model and Key Assumptions
5. Marketing Plan
6. Operational Plan / Financial Projections
7. Entrepreneurial Team Analysis
8. Risk factors / Uncertainties
9. Appendices
Report should be no more than 10 pages in length (excl cover sheet and appendices), and no more than 20 pages [max] long, all together
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6Executive Summary
Articulates :
What your opportunity is
Why is it attractive
Why your team is capable of executing the BP
Should be SHORT and Concise, Appealing, Compelling and Motivate the reader to learn more about your Business Plan
SELL vs DESCRIBE
DO NOT describe entire business plan. You need to convey its essence and its energy
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7Business Model and Key Assumptions
Question to answer:
What is our business model?
How will we make money? [Revenue sources]
What are the drivers of revenue?
What are the drivers of cost?
Be specific about KEY assumptions underpinning your:1. Revenues2. Costs3. Profit
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8Marketing Plan
Describes HOW sales projections will be attained.
Question to answer:
Overall Marketing Strategy: What is marketing philosophy and positioning
behind the venture? Will you be differentiator or a cost-challenger in the
Market? Niche player?
What will be your pricing strategy ? How does your pricing differs from
Competitors? Or substitute products?
What methods will be used to make sales and distribute the product/Service?
Margins?
What are expected sales to be made through each distribution channel?
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9Operational Plan / Financial Projections
How will you utilize people and recourses to exploit your opportunity. HOW will you implement your plan, How will you put it into actions?
List Key activates necessary for your Business to succeed.
Question to answer:
What facilities, equipment and logistics will be required?
What processes and systems will you put in place to manage operations?
What are key milestones? What will you do and when?
What components of Value chain will be part of your operations and what will
be outsourced?
How will you manage relations with suppliers, partners, customers
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Operational Plan / Financial Projections
Financial Details can be described in Appendixes.
Financial Statements , projected costs, Revenues, Cash flow during 3
years of Operations [or as relevant to Business Idea]
Include In Spreadsheet Form together with Assumptions
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Characteristics of a good BP
Clearly defines nature of the OPPORTUNITY
Strong EXECUTIVE SUMMARY
Clearly identifies essential RESOURCES and how TEAM will marshal them
Realistic, logical and convincing BUSINESS MODEL
Outline of intended STRATEGY and execution plan
Why TEAM is well suited; fills skill gaps
Simple overview of ECONOMICS of business model
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Tips to write BP
Statements need to be supported with data whenever possible. Include Source of all data (as a footnote or end note) and the methods and/or assumptions used.
Identify own critical assumptions and challenge them
Organize the information as in BP outline, but free to have more subtitles
Make the Presentation and report look like a team report rather than assembly of individual parts
Write Executive Summary last
Avoid Inconsistences: Language/Font, data repetition, financials etc.
and:1. Keep the criticism2. Learn from others mistakes3. Keep an open mind4. Keep sharing the idea
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Wed 8 Apr Session 12 Business Plan Presentations + Report
Presentation time : 25 min | Presenters: 3
Q&A 10 min
Written Report - Deadline 31-March
PPT/Pitch
Plan your time [time constraint]
Prioritize the information you present
Practice and Rehearse
Prepare Back up Slides
Decide Who answers what
Review the VIDEOs
Q&A tips
Be concise
Do not defensive
Avoid Add this, add that
Pitch tips
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Questions ?