Chapter 10

Question 1

What is planning vs a plan

Answer 1

Planning
o : process of envisioning the future for a business including what one plans to do and how one plans to do it

Plan:
plan helps your organize those activities

Question 2

What does planning start with?

Answer 2

• A vision
• should think of where it could be in 3 years
• when you make a goal should write down 3 page description

Question 3

What are 5 other planning tools then visions?

Answer 3

1. Business Model Canvas
   * Helps to identify any gaps in the business idea and integrating various components
   * Allows you to visualize how will work together
   * 9 blocks
   o Key partners
   o Key activities
   o Value proposition
   o Customer relationship
   o Customer segments
   o Key resources
   o Channels
   o Cost structure
   o Revenue streams
2. Business Brief
   * 2-3 page document outlining the company overview, value proposition, customers, and milestones
   * Something can send to stakeholders to know potential
   * Not too time intentive
   * Show you are thinking critically about business
3. Feasibility Study
   * Planning tool that enables entrepreneurs to test the possibilities of an initial idea to see if it is worth pursuing
   * Focuses on size of market, the suppliers, distributors, and the skill of the entrepreneur
   * Helps identify issues for the entreprenur
   * No more then 10 pages
   * Needs to be quick!
   * Need to know if idea is a go or no go
4. The pitch deck
   * Presentation of varying lengths highlighting many of the essential elements found in a feasibility study and a business plan
   * Some call the launch plan
   * Describe your product and get interest
   * No specific length
5. Business plan
   * Most formal of planning toold
   * Is a lengthy written document discussing the business concepts, product mix, marketing plan, operations plan, development plan, and financial forecast
   * Need to remember things do not go acourding to plan do not need to follow the plan

Question 4

Questions to ask during planning (8)

Answer 4

o what is your business plan and how does it add value?
Called a concept statement
* : written representation of your vision for your product or service
o Who is your customer?
 Write down your target customers their defining characteristics and why they will buy your product or service
o How big is the market?
o How will you enter the market
 Needs for product fulfilment and so on
o What do you know about the industry
o Who is your competition and why are you better
o Who is on your team and what do they bring to the table
o What are your financial projections

Question 5

What are both sides of business plan debate

Answer 5

• Business plan is very complex
• Some say it helps you gain clarity, keep your organized, establish a core message, and create alignment among team members
• Bad because
  o Old as soon as it comes off the printer, based on untested assumption, financial projections are too far out to have validity

Question 6

9 Tips for quirking any type of plan

Answer 6

o Remove the fluff
 Too much jargon can distract from main message
o Define target audience
o Be realistic
o Focus on your competition
o Understand your distribution channels
o Avoid the hockey stick projection
 One that shows very few sales in year 1 and skyrockets in year 3 and 4
 Graph looks like a hockey stick
o Avoid typos
o Be honest about weaknesses
o Use visuals