Business plan assignment
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spptchap008.pptxBusiness Plans: Seeing Audiences and Your Business Clearly
Chapter 8
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Learning Objectives
LO1 Understand why and when to develop a business plan
LO2 Know how to tell the business plan story
LO3 Learn the major sections of the classic business plan
LO4 Focus business plan sections to meet specific needs
LO5 Identify the major risks to business plan success
LO6 Master presenting your business plan to others
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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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Business Plan Background
Business plan
A document designed to detail the major characteristics of a firm— its product or service, its industry, its market, its manner of operating (production, marketing, management), and its financial outcomes with an emphasis on the firm’s present and future.
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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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Business Plan Background
Internal understanding
extent to which employees, investors, and family members in the business know the business’s purposes and operations
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Starting Small and Building Up
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Figure 8.1
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The Elevator Pitch
The Elevator Pitch
A 30-second action-oriented description of a business designed to sell the idea of the business to another
Leads with the hook, follows up with purpose of the service, ends with where business is now
What makes firm unique or superior?
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The Classic Business Plan
Company background
Overall description of the company, the firm’s current status, and the history of the business
Vision statement / mission statement
Specific goals, Business’ competitive advantage
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The Classic Business Plan
The Company: Product/service and industry
Describe firm’s product or service
Explain how the customer uses the product
Proprietary technology
Industry descriptions
8-8
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The Classic Business Plan
The Market: Competition and competitive advantage
Major competitors
Competing product or service: market share, price, competitive advantages and disadvantages
What makes product or service unique
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The Classic Business Plan
The Market: Marketing strategy
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
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Marketing Strategy
Preselling
Involves introducing your product to potential customers and taking orders for later delivery.
8-11
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The Classic Business Plan
The Organization: Location
Description of the facility
How it meets strategic and sales goal of the business
Own, lease, or rent the property
Plan to expand the facilities
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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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Focusing Your Business Plan
Informational plans
Give potential customers or suppliers information about the company and its product or service.
Proof-of-concept Web site
An Internet-based type of business plan providing information or demonstration of a product or service designed to solicit information on customer interest.
8-13
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Focusing Your Business Plan
Key employee/partner plan
Provides information on the company, product/service, market, and critical risks to prospective business or marketing partners or to prospective key employees.
8-14
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The Most Common Critical Risks in a Plan
Risks
The parts of a business or business plan that expose the firm to any kind of loss—profits, sales, reputation, assets, customers, and so on.
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