Enterprise Project
aman_2910
LectureWritingupthebuinessplan22.pptEnterprise Project UMCD9Q-30-3
Presentation by
Dr Akin Ojolo
Module Leader
September 2019
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UMCD9Q-30-3
Enterprise Project
Writing the Business Plan
Bristol Business School
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Signposting
- Assessment
- Writing: process / style / credibility
- A generic business plan structure
- Investors’ interests and concerns
- Key questions to think about
- Typical mistakes
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Assessment task
- Element A1: Business plan (90% weighting, submission by 2.00pm Tuesday on 22/4/21
i) 8000 words
ii) + Appendices
iii) Online submission
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Generic Assessment
Requirements
- i) Economic viability or social sustainability
- ii) Income generation
- iii) Legality / reputational risk
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- Detailed plan to include start-up phase and up until break-even (first 12-months trading, minimum)
- Detailed market(ing) plan
- Detailed operations plan (incl. people)
- Financial information – Cash flow, simple PL statement to support (Balance sheet not reqd.)
Generic Assessment
Requirements
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The writing process
- How should I start? – you should have been more than half way through
- When should I start ?- in the beginning of second semester
- Help! - I’m not used to creating pieces of work of this size.
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Convincing narrative
- Belief in the product / service
- Enthusiasm but realistic
- Needs to logically hold together
- Elevator pitch
Writing: Style
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- Audit trail, i.e. referencing
- Data – primary and secondary- needs referencing
- The reader needs an audit trail
- Full referencing is essential (Harvard)
- Credibility => Social capital
Evidence, Evidence, Evidence!
Writing: Credibility
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- First Person(?)
- Layout
- Font: default = Times New Roman 12
- Consistent appearance
- Referencing
Writing: Style
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Generic
Business Plan Structure
- Cover Page – Choose you own
- Confidentiality Statement
- Table of Contents
- Executive Summary
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Enterprise Project 2020/21: Business Plan Submission Rubric
- You MUST include your name and your student ID number at top of every page (put it in a header).
- Page numbers MUST be included at the bottom of every page.
- You must use either single or 1½ line spacing, and an 11 or 12 point font size.
- The document you submit should be in word or PDF file format and must be uploaded as one file. NB: maximum allowable file size is 250 MB.
- Please leave a full line between each paragraph for easier reading.
- To minimize file size, please do NOT include any unnecessary pictures or photographs, or any unnecessary decoration.
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- The document must be designed to work in Black & White – so it can be printed on a B&W laser printer. Please check that any tables or graphs make sense in B&W.
- The word limit is 8000 words please include the word count on the front cover.
- Appendices and references are not included in the word count, tables and diagrams are included on a ‘one for one’ basis, i.e. if it includes ten words, it counts as ten words.
- Appendices should be continuously page numbered using a numbering system that is distinct from that used in the main text, for instance a1, a2, a3…etc
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The title page should contain:
- The name of the proposed business
- Your name and student ID number
- The assignment title: “Business Plan for UMCD9Q-30-3 Enterprise Project”
- The word count
- The month and year of submission
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Confidentiality statement:
- Three levels apply and we ask that you include one of the three following statements, as appropriate, on the page following the title page of your dissertation:
- The dissertation may be made freely available immediately for academic purposes (including display in the Library and online, for consultation purposes)
- Limited confidentiality - the dissertation may be made freely available after two years for academic purposes (including display in the Library and online, for consultation purposes)
- Strictly confidential - the dissertation is confidential and may be made available only for assessment purposes.
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Generic
Business Plan Structure
See the template provided and suggested content – marking grid.
The Business
- The opportunity, including description of the product or service, and the value that the proposed business creates for its customers.
- Description of the business, including explanation of the proposed business model.
- Competitive advantage
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Generic
Business Plan Structure
Industry analysis
- including competitor analysis and likely competitor action
Market analysis
- including discussion of the target market, estimate of market size and predicted sales, together with a discussion of key assumptions made
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Generic
Business Plan Structure
Marketing plan
- including consideration of the marketing mix: particularly plans for promotion and distribution and pricing strategy.
Operations plan
- including the nature and location of the production/service process; staffing; and operations and service management issues, e.g. capacity.
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Generic
Business Plan Structure
Finance- costings
- including discussion/calculation of fixed/variable costs and unit costings, together with a discussion of key assumptions made.
- Referencing / audit trail should be provided.
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Generic
Business Plan Structure
Financial plan; a narrative including a discussion of key assumptions made, to include:
- Capital requirements, and an explanation of sources of finance.
- Payback and exit strategy (if external finance is used)
- Cash flow forecast (with accompanying narrative) drawing on market analysis and operational costings sections.
- Break-even analysis
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Generic
Business Plan Structure
- Critical risk factors;
- including legal issues; intellectual property issues; and ethical issues - if any.
- References
- Appendices
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Investors’ Interests
& Concerns
- Rate of growth
- Return on investment
- Degree of risk
- Degree of protection
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- Exit strategies
- Timing
- Types of exit
- Financial
- Managerial
- Emotional
- Exit methods
- IP
- Trade sale
Investors’ Interests
& Concerns
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10 Questions a Business
Plan Should Answer
1. Is the firm competing in a growing market?
How well defined is the target market?
How are you going to deliver value?
Barringer and Duane Ireland (2008)
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10 Questions a Business
Plan Should Answer
4. Is the business more than just an idea?
5. Does the firm have an exciting and sensible business model?
Is the product or service viable?
Barringer and Duane Ireland (2008)
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10 Questions a Business
Plan Should Answer
7. Is the firm organized in an appropriate (ethical) manner?
8. Are the financial projections realistic?
9. What about the competition?
What are the critical risks surrounding the business?
Barringer and Duane Ireland (2008)
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- Key stakeholders
- Local community
- Government
- Suppliers
- The environment
Further thoughts
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- Sensitivity analysis, i.e. what if……?
- Sales volume
- Costs
- Exchange rates
- …….?
Further thoughts
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Typical mistakes
- Projecting rapid growth without appropriate evidence
- Reporting performance that exceeds industry averages
- Underestimating the venture’s need for capital
- Mistaking tactics for strategy
- Using price as a market strategy for a product/service
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- The plan is not the business
- The plan is most likely obsolete at the printer(!)
After Timmons and Spinelli (2009)
And finally…
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Presenting your idea
- Element A2 – Individual posters presentations on Saturday 15/5/21
(Under review because of restrictions) if not, A1 will constitute 100%)
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Further reading
- Chapter four of the textbook - Barringer, B. R., and Duane Ireland, R. 2016. Entrepreneurship: Successfully Launching New Ventures, 5th ed., Upper Saddle River, New Jersey: Pearson Education Inc.
- Marco Galvagno et, al (2014) Theory of Value co-creation: a systematic review. Managing Service Quality , Vol,24 No 6 pp643-683.
- Hannu Saarijarvi et, al (2013) Value co-creation: theoretical approaches and practical implications. European Business Review Vol. 25 No1, pp 6-19
- Gronroos (2011) Value co-creation in service logic: A critical analysis. Marketing Theory 11(3) 279-301.
- Paul Burns, 2018. New Venture Creation- A Framework for Entrepreneurial Start-Ups Second Ed.
