ComponentsOfABusinessPlan

Report
Components of a
Business Plan
Jill Kline
Wyoming SBDC
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Wyoming SBDC
Strengthen Wyoming businesses and create
economic growth by providing excellent
management assistance, educational
programs and helpful resources for
Wyoming small businesses and
entrepreneurs.
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WSBDC Contacts
Region I: Bill Ellis
(307) 352-6894
Toll Free in WY 800-348-5205
e-mail: [email protected]
Serving Sublette, Lincoln, Uinta, and
Sweetwater counties.
Region IV: Arlene Soto
(307) 632-6141
Toll Free in WY 800-348-5208
e-mail: [email protected]
Serving Goshen, Laramie, Albany, and
Carbon counties
Region II: Robbi Welch
(307) 754-2139
Toll Free in WY 800-383-0371
Fax: (307) 754-0368
e-mail: [email protected]
Serving Park, Big Horn, Washakie, Hot
Springs, Fremont, and Teton counties.
Region IV Satellite Office: Bill Schepeler
(307) 766-3515
e-mail: [email protected]
Region V: Jill Kline
(307) 682-5232
Toll Free in WY 888-956-6060
e-mail: [email protected]
Serving Sheridan, Johnson, Campbell,
Crook, and Weston counties.
Fremont County Office: Margie Rowell
(307) 857-1174
Toll Free in Wyoming 800-969-8639
e-mail: [email protected]
Region III: Leonard Holler
(307) 234-6683
Toll Free in WY 800-348-5207
e-mail: [email protected]
Serving Converse, Natrona,
Niobrara, and Platte counties.
http://www.uwyo.edu/SBDC/offices.html
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Why develop a
Business Plan?
“All the work you do in thinking up your
idea, testing it, studying it, and producing
it, has been for nothing if you can’t sell it.
Whether you start you own business to
produce and sell your invention,
subcontract out the manufacturing part, or
sell your rights in return for a percentage of
the proceeds, you need a business plan.”
- Pamela Riddle Bird, PhD, Inventing For Dummies
CEO, Innovative Product Technologies, Inc.
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Why develop a
Business Plan?
“You've just come up with an idea. What to
do next? There is no exact order of what
you should be doing. But we like to
suggest two broad areas for inventors to
embark on. First, learn all you can about
running a business, even if you hope to
license your idea. Second, write a
business plan. Even if you hope to license
your idea, (and that's actually a rarity
among the successful inventors we've met)
you'll still need to have a plan.”
- Mark Ellwood, Past UIA Board of Directors
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Why develop a
Business Plan?
“A business plan is vital for enterprises
needing investment, grant funding or
significant borrowing; more so for
innovation ventures, as the greater number
of ‘unknowns’ makes it even harder to
attract backing. But don’t make the
mistake of thinking that only other people
need your business plan. It’s primarily a
tool to reveal possibly awkward truths
about your business to you.”
- a Creative Investor
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Three Types of Plans
• Summary Plan
– 10 pages, 3 important points
• Comprehensive Plan
– 10-40 pages, seeking capital or alliances
• Operational Plan
– 40+ pages, for going concerns, part of an
annual process
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The Summary Plan
• The Business
– Legal Structure, Products or Services,
Management, Personnel, Record Keeping
• Marketing
– Target Market, Competition, Advertising
• Financials
– Summary of Needs, Use of Funds, 3 Year
Cash Flow Projections, Income Projections
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The Comprehensive Plan
1. Executive
Summary
2. Problem
3. Solution
4. Business Model
5. Secrets
6. Marketing and
Sales
7. Competition
8. Management
Team
9. Financials
10.Current Status
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Executive Summary
• Define problem, solution, business model,
and why your solution is better
• Write it last
• Grab readers attention
• No more than 2 pages!
• Most important part of your plan and
usually written last
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Problem
• What problem are you solving?
• Describe how the “state of the art” is
insufficient
• Get your reader to agree that the current
situation isn’t optimal
• If there isn’t a problem, take your idea back
to the drawing board
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Solution
• How do we solve the “Problem”?
• Explain what you sell
• State your value proposition
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Value Proposition
Worksheet
• First Sentence:
– For (target customer)
– who (statement of the need or opportunity),
– the (product/service name) is a (product/service
category)
– that (statement of benefit).
• Second Sentence:
– Unlike (primary competitive alternative),
– our product (statement of primary differentiation).
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Business Model
• Explain how you make money
– Who pays you?
– How do you collect?
– What are your channels of distribution?
– How do you integrate suppliers?
• Use examples if necessary
• Be complete
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Secrets
• Describe your technology, process
improvement, etc.
• Use charts, diagrams, schematics, as
much as possible
• Understand your Intellectual Property
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Marketing and Sales
• Define your primary, secondary, and other
audiences
• Show some numbers
• How will you find, sell, and retain
customers?
• Advertising and promotion budget
• Identify your leverage points
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Competition
• Everyone has competitors!
• Provide a complete view of the competitive
landscape
• Direct and indirect competitors
• Current and anticipated competitors
• Competitor strengths and weaknesses
• Your competitive advantages
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Management Team
• Describe your key players
– Management Team
– Board of Directors
– Board of Advisors
– Major Investors
• Who are you missing?
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Financial Projections
•
•
•
•
Cash Flow Projections
Income Projections
Balance Sheets
Assumptions
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Current Status
• Describe your major milestones and tasks
– Technology
– Fundraising
– Customer Development, etc.
• Where are you now?
• Brag about your accomplishments
• Talk about the next steps
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Investor Pitch Slides
10/20/30 Rule
1.
2.
3.
4.
5.
Title
Problem
Solution
Business Model
Secrets
6.
•
•
•
•
Marketing and Sales
Competition
Management Team
Financials
Current Status
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Good Reading
• Crossing the Chasm – Geoffrey Moore
• The Art of the Start – Guy Kawasaki
• Inventing For Dummies – Pamela Riddle Bird
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Internet Resources
WSSI Inventor Resources Page http://uwadmnweb.uwyo.edu/SBIR/inventorresources.html
Innovative Products Technologies, Inc. http://www14.inetba.com/inventonecom/
Business Plan Development Tools (online) –
http://www.uwyo.edu/sbdc
http://www.sba.gov/starting_business/index.html
Sample Plans –
http://www.bplans.com/samples/sba.cfm?DCMP=OTC-sba_course
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Thank you!
Questions?
Jill Kline, Region V Director
(307) 682-5232
1-888-956-6060
[email protected]
Serving Sheridan,
Johnson, Campbell,
Crook, and Weston
counties.
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