Introduction

2 types of entrepreneurship

IDE. Innovation Driven Entrepreneurship SME. Small

Business plan

Plans are worthless, but planning is everything.

Does a startup actually need a business plan?

Academic exercise? vs actually get things going.

Money tends to flow to where opportunity is.

  • Create value
  • Figure out way to capture the value.

10-20-30 rule.

10 slides, 20 minutes, 30pt font.

Start

Retail, service, manufacturing, distribution or internet business?

What industry does it belong to?

What products or services do you sell?

Who do you see as your potential customers?

Describe your basic overall marketing and sales strategy?

Which companies and types of comapnies do you condier to be your competition?

Competitive Advantages

New products/services. Improved features/services and added value. New or underserverd markets reached. New/Improved delivery or distribution method. Methods of increased integration.

Research questions

Examine each area of your business.

  • Industry /sector.
  • Products/Services.
  • Target Market.
  • Competition.
  • Marketing & sales strategy.
  • Operations/Technology.
  • Long-term considerations.

Evaluation of business concept

Be honest and be tough.

Your business industry

How economically healthy is your business industry? Explain how your industry/sector is sensitive to economic fluctuations. Are the forecasts for your industry or sector positive? Is the industry or market chaning rapidly?

Your product Service

  • Is your product or service unique?
  • Can it be developed in a resonable period of time?
  • Are the costs of development prohivitibe?
  • Are necessary supply and support systems established?

Your market

  • Is your market clearly identifiable?
  • Is your market large enough to support your business?
  • Is your market too large, and the costs to reach prohivitibe?
  • Is your market growing?
  • Are there indicators that your market is ready for your product or service?
  • Is your product/service too new for customers?
  • Do customers have strong localty to exsiting companies?
  • Is it costly for customers to convert to your product or service?
  • Are there demographic or sociological factors likely to affect the market?

Your competition

How formidable is your competition? Do one or two competitors dominate the market? Is market share widely distributed, making it easier to get a foothold? Is there a competitor with “deep pockets” who can drive you out? What barriers to market entry will your future competitors face?

Your suppliers/distributors

How close are you to sources of supplies? How reliable are your suppliers and distributors? Are you dependent on one or two suppliers or distributors? Are your suppliers/distributors well-established and dependable?

Your operations concerns

Does your business entail unusually difficult operation problems? If so, describe them. Will personel be hard to find, retain or train? Is manufacturing particularly complex? Must you make substantial initial capital expenditures? Will you need to maintain large, expensive inventories? Does new technology exist that will help you reduce costs? Do the principals have the expertise necessary? Will ongoing training be required? Will it be costly to retain additional experts? Are there rapid technological changes that will affect costs and competitiveness?

Your insurance concerns

  • Are you able to secure the necessary insurance?
  • Is there a significant liability issue?
  • Will you habe to carry havey insurance premiums?

Your financial concerns

Describe any financial problems you anticipate Is overhead usually high, thus putting extra pressure on cash flow? Will credit be hard to establish? Are profit margins narrow, making the business vulnerable? Will you have to carry a large amount of debt?

Business plan components

  • The executive summary
  • Company description
  • Industry analysis and trends
  • Target market
  • Competition
  • Strategic Position & Risk assessment
  • Marketing Plan & Sales Strategy
  • Operations
  • Technology Plan
  • Management & Organization
  • Community Involvement & social responsibility
  • Development, milestones, & exit plan
  • The financials
  • The Plans appendix