Chapter 10 a) Flashcards
Planning
Process of envisioning future for a business, what one plans to do and how one plans to do it
Planning helps you see your idea, crystallize thoughts, organize actions and think in a……
structured way/ framework to breakdown steps in to actionable processes
Planning vs Plan
Planning pushes you to move forward and take action, a plan keeps your actions organized
Planning Starts with a…….?
Vision
Vision
Goal for what a business will be in the future
Vivid Vision
ask entrepreneur to imagine what business could be three years into the future
Dr Emmet Thompson
- what did business did he start?
- what did he say about term planning?
- what pays off overtime x2 ?
- if you____to plan, you are ______ to ___
AFC Management – corporate fitness management, real estate, book production
Need to plan for long-term, not just short-term gains
Gratification and patience pay off overtime
If you fail to plan, you are planning to fail
5 Plan Objectives:
develop vision, gain clarity, answer important questions, estimate timelines, and set goals
Plan Process 6
Idea Generation, Business Model Canvas, Business Brief, Feasibility Study, Pitch Deck, Business Plan
Idea Generation
Chapter 4 – Design Thinking – Ideation
Business Model Canvas
with 4 parts
visualize plan and how various parts work together: value created for customers, processes to deliver value, resources required and how to make money.
Business Brief
what is it? Outline 4 components
How is it different that business canvas
How does it describe business
- Brief Document (2-3 pages) outlining the company overview, value proposition, customers and milestones.
- Less visual, outline most important information to deliver
- Describe business in concise way, something in writing for someone interest in business
Components of a business Brief: Company Overview
Description of Business idea and company summary
Components of a business Brief: Value Proposition
highlights problems being solved or need being met
Components of a business Brief: Market
market size, target market, projections
Components of a business Brief: Customers
profile and target customers, end user distributor, retailer
Components of a business Brief: Actions Taken
signals entrepreneur is taking action, future plans and decision
Components of a business Brief: Description of the team
connections, contact, personable, backgrounds
Components of a business Brief: Financial Projections
Business can see profitability, solvency and liquidity of company, are they financially stable, profitable?
Components of a business Brief: Future Milestones
Goals of the organization, initiative, future aspects
Components of a business Brief x8
Company Overview, Value Proposition, Market, Customers, Actions Taken, Team Description , Financial Projections, Future Milestones
Feasibility Study:
- what is it?
- what is the format and 2 main ideas
- Planning tool that test possibilities of an initial idea to see if it is worth pursuing or has marketing potential
- Written document (no more than 10 pages) testing the possibilities of an initial idea, whether it is workable and profitable
Feasibility Study: Resources for Workable x4
Skills, time, suppliers, and distributors
Feasibility Study: Resources for Profitable x2
Financial Capital and Size of Market
Feasibility Study: Go No Go
Decision must be made to continue business idea or stop and abandon idea
Key Questions in Feasibility Analysis (5)
-Does idea fulfill a need or solve a big problem
-Is there both short- and long-term market potential
- Who are the customers and what are they willing to pay
- Does the opportunity provide competitive uniqueness
- Is business model feasible (can it be done) and viable (is it sustainable)
Pitch Deck
highlight elements found in feasibility study and business plan. Describes product and obtain interest and audience engagement
Pitch Deck Format and what it is used for
replace formal business plan, no strict rules for the length or style of the pitch deck, visuals and graphs
used for: launch plan, potential investors, competitions
Business Plan: How formal, and required for?
Most formal of planning tools to get funding from investors and bankers
Business Plan: Format and discusses 6 items
20-40 pages with appendix and discusses business concept, product mix, marketing plan, operations plan, development plan and financial forecast
Business Plan 4 Parts
Business Concept, Market Section, Design, Financial Projections
Business Plan: Business Concept
discuss industry, business structure, products and services, and how plan to make business a success
Business Plan: Market Section
potential customers, competitors in market
Business Plan: Design/implement
design/implement the plan, operations and cash flow management
Business Plan: Financial Projections
income statement, cash flow, balance sheet, financial projections
