12. How to set up a Business Plan Flashcards
What is a business plan?
A business plan provides the data and argument in support of a particular strategy proposal or business idea. It should focus on strategic needs be supported with key data provide a clear rationale demonstrate solutions and actions and provide clear progress measures.
Why is a business plan necessary?
To convince investors/board to convince business partners to show economic feasibility and as a controlling instrument for plan and actual development.
What are the 3 main questions to be answered in a business plan?
- What is the content of the business? 2. How is the business positioned? 3. How is the implementation done?
What is the structure of a business plan?
- Executive summary 2. Product/service offer 3. Market and competition 4. Marketing and sales 5. Business model and organization 6. Team 7. Implementation plan 8. Opportunities and risks 9. Financial planning and funding
What guiding questions should be addressed in the Executive Summary?
Does the executive summary motivate the reader to keep on reading the detailed description? What are the basic statements of all following chapters? Is the elevator summary no longer than three sentences?
What guiding questions should be addressed in the Product/Service Offer?
What problems are solved by the product/service idea? What type of product/service is to be sold? What is the innovation of the product or service? To what extent is the product or service unique? Can the business or product idea be protected; e.g. by a patent?
What guiding questions should be addressed in the Market and Competition?
How is the market defined? How big is the market as a whole? How large is the market volume that can be reached for the business idea today/in the following 5 years? Who are the competitors and what are their strengths/weaknesses? How fast can potential competitors imitate the business idea?
What guiding questions should be addressed in Marketing and Sales?
What is the Unique Selling Proposition? What price is demanded for the offer? What customers are targeted? How is the market share of the company developing? What sales channel is to be used?
What guiding questions should be addressed in the Business Model and Organization?
What is the business system of the company? What company functions does the organization consist of? What values and standards are the hallmark of the organization? What does the company do itself (make) and what is bought (buy)? With which partners will the company work?
What guiding questions should be addressed in the Team?
Who are the members of the entrepreneur team and how are they distinguished? What experiences/abilities that are beneficial for the implementation of the business idea/buildup of the company does the team have? How and by whom is the team expanded?
What guiding questions should be addressed in the Implementation Plan?
What tasks are associated with the growth of the company; and how are they structured into work packages in a meaningful manner? What are the most important milestones in the development of the company? What tasks and milestones are dependent on one another? What is the critical path?
What guiding questions should be addressed in Opportunities and Risks?
What are the risks that could endanger the success of the company? How are those risks dealt with; and how can their negative influence be minimized? What is the quantitative impact of the individual risks (scenarios)? How does the company survive the worst case?
What guiding questions should be addressed in Financial Planning and Funding?
What assumptions affect the financial plan? What is the need for capital of the company until break-even? How much cash will be needed in the worst case? Through which financial sources is the necessary capital acquired?
What are the key takeaways for a business plan?
A business plan provides the data and argument in support of a particular strategy proposal or new business idea. It should convince investors/business partners and show economic feasibility of the idea. It should cover the content; positioning and implementation of the business.
