2 Flashcards
Definition Planning
Mental anticipation of action steps in order to effectively achieve a goal
considering the necessary resources and their use & control
- short term = operational daily planning
- long term = strategic business plan
- overview and handling security
- important communication, coordination and controlling instrument
Entrepreneurial Characteristics
1-8
- discovering and perceiving opportunities
- enforcing innovation
- discovering and using resources
- bearing risks
- implementing visions
- thinking outside the box
- entrepreneurial activity shows willingness to change
- idealism vs. pragmatism
Causation
- future is predictable (information, analysis)
- risk orientation on expected earnings
- competitive dealing with third parties
- avoid unexpected situations
Effectuation
- future is unpredictable but can be influenced
- risk orientation on affordable loss
- cooperation attitude with third parties
- leverage contingencies
- step-by-step development of a process and becoming incrementally predictable
Target Groups of Business plans
1-5
increasing concern
1 Business Angel / VC: Equity, Smart Money
2 Creditors, Stakeholders: Debt capital, credits
3 Management: Corporate finance, strategy
4 Strategic partners: Attracting partners
5 Founders: Personal planning, Overview
Areas of Adjustment in Business plans
1-4
1 Conceptual requirements / Weighting
- different focus on certain aspects
- different weighting on the respective sections
2 Conceptual distinction
- different terminus in different sections
- different terms in questions catalogs
3 Structural requirements
- arrangement of sections
- length of BP
4 Dependence on
- industry sector
- foundation or advanced stage
- investment sum
- site-dependancy
Target groups and different focuses
1 Bankers
+ cash flow, assets, growth prospects
- growth speed, market
2 Investors
+ growth prospects, market, management-team
- assets
3 Strategic Partners
+ synergies, patents
- sales, assets
4 Customers
+ stability, service
- growth speed, market
5 Employee
+ security, opportunities
- technology
6 M&A specialist
+transaction
- future prospects
Business Plan general
Format: 1-4
Content: 1-4
Format:
- concise & only essential information
- speak for itself
- correct form: free of errors
- be complete/standardized
Content:
- assumptions/projections realistic
- should be persuasive but not exaggerated
- if studies exists, they should be mentioned
- concept must be conclusive (numbers and word must match)
Definition Businessplan
A written document that describes the current state and presupposed future of an organization.
Contents of Business Plan
1-11
1 Cover sheet
2 Agenda
3 Executive Summary
4 Description of Idea, Product / Service
5 Market and Competetion
6 Marketing Strategy
7 Organization
8 Team
9 Milestone Plan
10 Finance Plan
11 Risk Analysis
Process of VCs Screening
1 Screening / receive executive summary (100%)
2 initial 1min assessment
3 business plan assessment
4 evaluation and further meetings
5 investing / processing
6 managing reporting (1%)
Business Plan
1 Executive Summary
1 Description of the venture
2 idea
3 markets
4 growth potential of the markets
5 management team
6 finance
Business Plan
2 Product
- clear description product
- product needs to differentiate from competitors
- selection of powerful criteria to underline advantages
Business Plan
3 Market
1-2
1 market
- market size
- global vs local
- data quality / sources
- adjacent markets
- scenarios if necessary
2 Porters-5-Forces
- New competitors
- Suppliers
- Existing competitors
- Customers
- Substitutes
Business Plan
4 Marketing
1 start with why
2 4-P’s (Product, price, promotion, place)
3 customer acquisition plan
