business plan Flashcards
purpose of the business plan
definition of business
idea clarification
identification of goals
economic viability
set of agreed milestones
funding needs
framework for management team activities
resource allocation
handling unforeseen complications
good business decision making
internal advantages of business plan
encourage realism
prevent self-deception
keep on track
enables everyone to see the plan of action
teaches team about the market, customers and each other
highlights gaps or mistakes to be fixed
external advantages of business plan
get funding
credibility with stakeholders
build trust
sahlman’s recommended elements of a business plan
people
opportunity
context
risk and reward
executive summary elements
business and USP
opportunity and strategy
target market
competitive advantages
team
economics
offer
pyramid of goals
vision
something you want to become. a seductive image of the future
and mission
captures the organisation’s soul
objectives
tasks
the industry, company and products/services section
industry attractiveness (use porter)
need it’s solving
USP and value proposition
IP
marketing and operations section
marketing
how to enter
current customers
reaching new customers
no money = no customers = no money (how to break this)
4 Ps
operations
location
partners
sources of supply
engineering and design
quality control
logistics
competition section
strategy (how to compete)
near OR marginal
independent OR subsidary
whether they’re entering/leaving/merging
strategy
withstanding retaliation from incumbents
renewing and extending initial competitive advantage
retaining customers and building loyalty
prevent others from capturing value
technological change
team section
roles and responsibility
organising of them
management compensation and ownership
the ways it is going to change
risk mitigation section
explicitly highlight risks and what you’re going to do about it
dos and don’ts of business plan
dos
communicate passion
no jargon/waffle
market driven not technology led
show problem innovation aims to solve
evidence of customer exceptance
key milestones
risks and rewards
highlight key finance statistics
don’ts
suggest uniqueness
assume today’s competition will be tomorrow’s
conceal relevant information
disguise gaps in skill portfolio
give people roles they aren’t equipped for
