Lect 7 Flashcards
Internal stake holders
- employees
- managers
- owners
Stakeholders are..
individuals or groups who have an interest or ‘stake’ in a particular organization or project - people who are affected by or can affect the decisions and actions of a business or initiative.
External stakeholders
- suppliers
- society
- government
- creditors
- shareholders
- customers
The job of a buisness plan
- vision
- roadmap
- comunication
Vision
A well-crafted business
plan communicates the
vision and mission of the
venture, describes the
target market and
competition, and details
how the business will
generate revenue and
achieve profitability.
Roadmap
A business plan allows
entrepreneurs to develop
strategic plans and set
priorities for their
businesses. It outlines the
strategies and tactics for
achieving business
objectives, such as
marketing strategies, sales
forecasts, and operational
plans.
Communication
A communication tool for
entrepreneurs to convey
their business concept and
strategy to stakeholders,
including investors, lenders,
partners, and employees.
It demonstrates the
viability and potential of
the business, instilling
confidence and attracting
support from stakeholders
Key content of business plan
- company description
- Market Analysis
- The offer (product/service)
- Marketing and sales strategy
- Operational plan
- Financial projection
- Company description
An overview of the business, including its
mission, vision, values, and history; may
also include key personnel and
shareholding structure.
- Market analysis
The industry landscape, target market, and
competitive environment. It includes research on
market size, growth trends, customer
demographics, and purchasing behavior.
- The offer
The features, benefits, and value proposition
of the business’s products or services. It
outlines the specific offerings, including their
functionality, pricing, and unique selling
points.
- Marketing & sales strategy
The methods and tactics the business will use to
attract, acquire, and retain customers. It includes target market segments, marketing channels, and promotional activities planned to reach and engage customers effectively
- Operational plan
The day-to-day operations and processes
required to deliver the products or services
effectively. It covers aspects such as
production or service delivery, supply chain
management, quality control, inventory
management, and customer service.
6.Financial projections
Forecasts of the business’s financial performance over a specified period, typically three to five years. It includes projected income statements, cash flow statements, and balance sheets, detailingrevenues, expenses, profits, and cash flow.
What is an Elevator Pitch?
An elevator pitch is a concise and persuasive
speech that succinctly summarizes a business idea, in a compelling manner.
A quick elevator pitch formula for a startup:
We are …(name of company), and we help … (state the target customer segment) do … (explain what your product/service does for the customer). We are better than the competition because … (state your differentiation and/or competitive advantage).
The KEY 3 FIGURES in a startup’s finances
- Revenue- total income generated by a business from its normal activities
- Net income- profit
- Burn rate- Burn rate is how quickly a company spends its available funds
SMART goal setting
- Specific- Goals should be clear, well-defined, and focused
- Measurable- include criteria for measuring progress and success
- Achievable- feasible and within the realm of possibility given the available resources, skills, and time frame.
- Realistic- the goal aligns with the broader objectives, values, and priorities of the individual or organization.
- Time-bound- have a defined timeframe or deadline for completion
Which are the most
important financial
statements?
- Income statement
- Balance sheet
- Cash-flow statement
Steps for Financial planning for a startup
- Define goals and plan launch
- Determine costs/investment
- Determine monthly expenses
- Estimate revenue
- Create CF projection
- Calculate financial needs
Estimating approaches
- bottom up
- top down
Bottom up- revenue
breaking down the revenue potential of each product or service the startup offers. It involves estimating the revenue potential of each customer segment or sales channel.
If the average meal price is 15€, the capacity of
the room is 30 people, and you expect 2 full shifts
per day -> total revenue for the day will be 900€
or 27,000€ per month and 324,000€ per year
Top down- revenue
Start with the total market size and then
estimate the market share that the startup can
capture. This method assumes that the
startup’s revenue will be a proportion of the
total market size.
Monthly revenues for all restaurants in your city
is 100 million €, there are 10,000 restaurants
overall, you estimate that a single restaurant can
book 10,000€ per month.
You then compare your size to the average
restaurant size and estimate your revenues by
applying that proportion.
Bottom up- operating costs
starting with individual expenses and then adding them up to arrive at a total operating cost estimate.
Shop around, research or use your own historical data to determine how much you would spend on ingredients, rent, utilities, payroll, and other
expenses. Use this information to estimate your operating costs for the upcoming year.
