Business Plan Term Paper and Pitch Deck
S@ss5959
S-21TheBusinessPlanPresentationTemplate.pptxThe Business Plan
Overview
OVERVIEW
The Business Plan
Overview
1
Table of Contents
Cover Letter
Title Page
Table of Contents
Executive Summary
The Company
Company Description
Product/Service
The Industry
The Market
Market and Target Customer
Competition and Competitive Advantage
Marketing Strategy
R & D / Growth Plan
The Organization
Legal/Organization Structure
Key Personnel (Management)
Related Service Providers
The Financials
The Appendixes
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
8-2
The Business Plan
Table of Contents Pages 234-239
The business plan remains the standard for describing the business in detail.
The business plan takes all the elements introduced so far and includes them in a complete description of the major elements of the business.
The eight parts of the full business plan are detailed here and outlined in Table 8.2.
Cover Letter
Title Page
Table of Contents
Executive Summary
The Company
Company Description
Product/Service
The Industry
The Market
Market and Target Customer
Competition and Competitive Advantage
Marketing Strategy
R & D / Growth Plan
The Organization
Legal/Organization Structure
Key Personnel (Management)
Related Service Providers
The Financials
The Appendixes
2
Cover letter (P. 233)
A one-page document on business stationery
Introduces the business plan and the business owner to the recipient
Indicates why the recipient is being asked to read the plan.
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
8-3
Cover letter (P. 233)
When you send a business plan to someone, it is a good business practice to include a cover letter.
A cover letter is:
a one-page document on business stationery (also called letterhead ) that
introduces the business plan and owner and
indicates why the recipient is being asked to read the plan.
It is typically the first written material someone sees about your business, so it needs to look and sound just right.
Traditionally, they are written on letterhead, but electronic versions are acceptable using a signature block if available.
3
Title Page (P. 234)
Company name
Contact information
Date this version of the plan was completed
Proprietary statement and copyright information to protect your ideas“ This document contains confidential and proprietary information belonging exclusively to [your company’s name goes here]. Do not copy, fax, reproduce, or distribute without permission.
Securities Disclaimer: “This is a business plan and does not imply an offering of securities.”
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
8-4
Title Page (P. 234)
The title page typically contains the following information:
Company name (usually in large type, with a logo if you have one).
Contact information (owner names, company address, telephone and fax numbers, e-mail and website addresses).
Date this version of the plan was completed.
Proprietary statement to protect your ideas: For example, “ This document contains confidential and proprietary information belonging exclusively to [your company’s name goes here]. Do not copy, fax, reproduce, or distribute without permission. ” Often on the line following this statement is a copy number unique to each copy of the plan. This helps you keep tabs on Individual copies.
A Securities Disclaimer: “This is a business plan and does not imply an offering of securities.”
4
Table of Contents (P. 234)
Lists major section headings
Boldface type
Sections underneath major sections
Normal type
Put page numbers on every page of the business plan
12 Pt. type
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
8-5
Table of Contents (P. 234)
The table of contents typically puts the major section headings (e.g., executive summary, company, market, etc.) in boldface type and the sections underneath each in regular type.
Page numbers are given for every component, including financial statements and appendixes.
Page numbers are included on every page of the plan, including the financials.
5
Executive Summary (P. 229-230, 234)
A one- to two-page overview of the business, its business model, market, expectations, and immediate goals.
Typically put at the start of a business plan and is the most popular summary form for a business plan.
Topics covered include: Problem; Product; Market; Competitive advantages; Business (Current and growth Plan); and, Finances.
Typically the single most important written part of the plan.
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
8-6
Executive Summary (P. 229-230, 234)
An executive summary is the key component of the written business plan because it is the one element that nearly everyone will read first when they receive a plan.
An executive summary gives a one- to two-page overview of :
the business,
its business model,
market,
expectations, and
immediate goals.
Can be used as a stand-alone tool (for investors and employees interested in an overview)
It is written in a formal style, suitable for investors, lawyers and bankers.
Topics covered include:
Problem: Describes the need for the product or service
Product: Describes the product or service and how it is used.
Market: Describes the size and characteristics of the customer group and how they will buy the product or service (e.g. in person, online, catalog).
Competitive advantages: Explains what makes the product or service unique, often in terms of an entry wedge.
Business: Describes the current stage of the business and when major milestones of starting, sales, or profitability will be met.
Finances: Describes the deal being offered investors and the schedule for payouts.
It is the most widely distributed part of the plan.
Key numbers should be included but must be supportable.
6
The Company, Product/Service, and Industry (P. 234-235)
Describe the Company (Vision, Description, age, location
Describe the firm’s Product or Service and Value Proposition
Describe the Industry in which the company is participating
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
8-7
7
The Company, Product/Service, and Industry (P. 234-235)
One paragraph about the company –
Vision, description, age, location
Most recent milestone achieved (received initial investment, finalized product design, tested prototype, etc.)
For an existing business, a brief history is included here
Product/Service and Value Proposition
Pain/gain
How does it deliver value to the customer?
Is the product or service a protected proprietary technology? Patents should be mentioned here whether received or just applied for.
Industry- Overview (okay to include NAICS code and title), its size (in number of firms and sales), whether the industry is growing/stable or in decline (with some measure of this… sales, number of firms, etc.). See Chapter 7 on Industry Analysis.
Pictures with descriptions are helpful especially for unique products with which the reader may not be familiar.
The Market: Overview (P. 235-237)
Market and target customer
Competition and competitive advantage
Marketing Strategy
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
8-8
8
The Market: Overview (P. 235-237)
Who is your market?
Where are they?
How do they purchase?
How can you fill their needs?
The market section talks about your customers—who they are and what they are like, who else is pursuing them, and how you plan to get or keep your customers.
The market section builds on material you may have developed in the feasibility analysis , the industry analysis, and the marketing plan
The Market section talks about the customers and can be broken down into the following subsections:
Market and Target Customer
Competition and Competitive Advantage
Marketing Strategy
The Market: Market and Target Customer (P. 235)
Size and scope
The way the market is organized
Associations, clubs, national gatherings and media dedicated to the market are discussed.
Target customer description
If there are multiple markets, describe each one.
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
8-9
9
The Market: Market and target customer (P. 235)
Market and Target Customer
Size and scope
The way the market is organized (Channels)
Associations, clubs, national gatherings and media dedicated to the market are discussed.
Target customer description including demographics, how often and why they buy the product, their experience with the product and what they are looking for.
If there are multiple markets, describe each one.
The Market: Competition and Competitive Advantage (P. 236)
Major competitors
Competing product or service: market share, price, competitive advantages and disadvantages
What makes product or service unique
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
8-10
The Market: Competition and Competitive Advantage (P. 236)
Consider doing this section with one page of text and a one-page table. Remember from Chapter 7 , most businesses are imitative in nature, not new, and rarely disruptively new.
If you think you don’t have competition, think again! What do your customers use to achieve your goal now?
Competition and Competitive Advantage
Major competitors
Competing product or service: market share, price, competitive advantages and disadvantages
What makes product or service unique
10
The Market: Competition and Competitive Advantage (P. 236)
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
8-11
| Competitor | Strengths | Weaknesses | Competitive Position |
| Competitor A | 27 years in business | Customer Support | Too big to be flexible |
| Competitor B | |||
| Competitor C | |||
| Competitor D | |||
| Competitor E |
The Market: Competition and Competitive Advantage (P. 236)
Competition and Competitive Advantage
A table of the competition and their strengths and weaknesses is easily read.
Competitive position against each competitor
A description of what makes your product or service unique should be included.
11
The Market: Marketing Strategy (P. 236)
Overall strategy your firm pursues in the market
Sales plan that shows specific ways you apply strategy to secure sales from your customers
Longer-term competitive plan that shows how you protect your firm from efforts of the competition to unseat you
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
8-12
The Market: Marketing Strategy (P. 236)
A good marketing strategy section focuses on three ideas:
The overall strategy your firm pursues in the market. The overall strategy section includes your generic strategy, your supra-strategy and your fragmented industry strategy, if appropriate, and how these are used in your firm and sales efforts.
The sales plan that shows the specific ways you apply strategy to secure sales from your customers. The sales plan will discuss the specifics of how sales are achieved building on value benefits and turned into (4-P’s) Product, Promotion, Pricing, Place.
Samples of ads, etc., go in the appendix.
Actual proof – test markets, pilots, pre-selling (The proof that your approach is working comes from sales made using these approaches, so the strongest sales plans talk positively about the results of pilot tests, preselling efforts, or conventional sales already made. Being able to name customers (especially repeat customers) really builds up this section) and so on – strengthen this section.
(3) The longer-term competitive plan that shows how you protect your firm from efforts of the competition to unseat you. The long-term strategy focuses on reacting to competitive moves and ongoing Research and Development.
Much of the specifics are built from the ideas you develop in the marketing chapters of the book, Chapters 9 through 11
12
Research and Development Growth Plan (or Next Steps) (P. 236)
The part of a business (and a business plan) that is focused on creating new products or services and preparing new technologies, ideas, products, or services for the firm’s market.
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
8-13
Research and Development Growth Plan (or Next Steps) (P. 236)
Having these improvements ready requires some preparation on your part. In a business, this is often called research and development (R&D) or the growth plan .
Most business plans add a section on R&D or growth here to explain how they are working to maintain an in-depth competitive advantage, with one or more additional generations of products or services ready to be used, or quickly brought to market, in order to keep the competition one generation behind your firm in meeting customer needs.
13
The Organization: Legal and Organization Structures (P. 237, 238)
Legal form of the business
Where it is formally registered and located
Licenses or certifications along with the firm’s intellectual property protections, like patents, trademarks and trade secrets.
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
8-14
14
The Organization: Legal and Organization Structures (P. 237, 238)
This subsection describes the legal form of the business (LLC, C corp, sole proprietorship, etc.), where it is formally registered (topics discussed in Chapter 17) and located (both physically and on the Internet).
If the firm has acquired licenses or certifications they are mentioned here, along with the firm’s intellectual property protections, like patents, trademarks and trade secrets. The Organization section discusses the firm itself and consists of the following subsections:
Legal and Organizational Structure
Is the firm a LLC, a sole proprietorship or what?
Does it have intellectual property, patents, trademarks and/or trade secrets?
Location (Where the company is formally registered and located (both physically and on the Internet).
The Organization: Key Personnel (P. 237)
Sell the most important single element in the business plan – you!
Who are your key personnel?
Talk about accomplishments rather than just experience
Do not limit yourself to business
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
8-15
15
The Organization: Key personnel (P. 237)
By now you have sold people on your vision, mission, product, service, competitive advantage, and even your sales approach. It is now time to sell the most important single element in the business plan—you!
In any business and any business plan, everything hinges on the quality of the entrepreneur behind it. If we do not have confidence in the entrepreneur, there is no way to have confidence in the other parts of the plan. The goal for the key personnel subsection is to inspire that confidence in your reader.
Key Personnel
Here’s where you sell the people.
Owners, senior managers and personnel handling key aspects of the firm.
Key outsiders that impact the business.
While resumes may be included, generally a short paragraph or two is better.
Impress the reader.
Speak of accomplishments rather than just experience.
Accomplishments do NOT need to be limited to business
The Organization: Related Service Providers (P. 238)
Identify your bank and banker, attorney and legal firm, accountant or bookkeeper, other consultants
Major relationships established with well-known suppliers or customers
Board of directors / board of advisors
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
8-16
16
The Organization: Related Service Providers (P. 238)
These days, small businesses are rarely alone, and the quality of the professionals surrounding you tells people a lot about how good you might be.
Taking a paragraph or two to identify:
your bank and banker,
your attorney and legal firm,
accountant or bookkeeper, and
other consultants
can help show that you have high-quality supports.
The Financials (P. 238-239)
General Assumptions
The “ASK”
How much money is needed and how it will be used.
Any previous investments and current ownership situations.
The equity offered and other incentives to invest.
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
8-17
17
The Financials (P. 238-239)
The Financial section which consists of the following subsections:
Summary (or summary table) of the financials.
The ask:
How much money is needed and how it will be used.
Any previous investments and current ownership situations.
The equity offered and other incentives to invest.
The Appendixes (P. 238)
Financial Statements
Income Statement (Year 1 by month, years 2-3 by quarters)
Balance Sheet for years 1-3
Cash Flow tables (Year 1 by month, years 2-3 by quarters)
Other
Copies of signed contracts, letters of intent or commitment, or contingency contracts
Results of marketing studies or pilot sales efforts
Industry reports
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
8-18
18
The Appendixes (P. 238)
They can include:
Financial Statements
Income Statement (Year 1 by month, years 2-3 by quarters)
Balance Sheet for years 1-3
Cash Flow tables (Year 1 by month, years 2-3 by quarters)
Other
Copies of signed contracts, letters of intent or commitment, or contingency contracts
Results of marketing studies or pilot sales efforts
Industry reports
Price lists for products or services
Floor plans of the location, if it is central to the business
Advertising copy, such ads, logos, catalog pages, brochures, sales letters, or press releases.
Customer or spokesperson testimonials
Product or service pictures or specifications (important when you stress features or style, or when your product or service is not familiar to readers).
You Tube
“The 3 Most Important Things Investors Look For in a Winning Business Plan”
Evan Carmichael
https://www.youtube.com/watch?v=hludN2e33TY
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
8-19
19
You Tube:
“The 3 Most Important Things Investors Look For in a Winning Business Plan”
Evan Carmichael
