Module 15 - Buiness Plans Flashcards
What are primary stakeholders?
Those affected directly
Examples of primary stakeholders:
Owners of business
Employees / management
Customers
Suppliers
Local communities
What are secondary stakeholders
Those affected indirectly
Examples of secondary stakeholders
Government and regulators
Pressure groups
Competitors
General public
What does Mendelows matrix look like?
Mendelows matrix
Those with high interest and high power should be:
Managed closely
Mendelows matrix
Those with high power but low interest should be:
Kept satisfied
Mendelows matrix
Those with lower power but high interest should be:
Kept informed
Mendelows matrix
Those with low power and low interest should be:
Monitored
What is an executive summary?
A short section that summarises the business plan
It is essential that an executive summary is well written, persuasive, concise and that is stated the key conclusions and figures
A potential finance provider may dismiss an entire business based off of reading this
What should be included in the business details section
Business name
Address
Legal form e.g. sole trader…
Ownership structure
Description of product/service
Mission and vision statement
Aims and objectives
What should the industry and market analysis section include?
Analysis of internal (e.g. SWOT) and external factors (e.g. SWOT, PESTEC or Porters Five Forces)
Details on specific market segments targeted (not really sure but was in quiz)
Marketing strategy section should discuss what?
Details about how meeting sales targets
Launch strategy
Marketing mix
Distribution channels
Sales tactics
Brand development
Competitive reaction
Product and market development
Growth potential and scale-up plans
Operations plan should discuss what?
Manufacturing processes
Business model
Business controls
IP issues
Scalability of the business
Management, workforce and CV should include:
Information on day-to-day operations
People charged with governance of the business
Employees of the business
Job roles
(Some other things like CV of management)
Equipment and start-up costs section should include:
Details of business resources (e.g. existing premises, equipment and other assets (IP))
Start-up coasts to get the business set up
Financing section should include:
Sources of finance include?
Details on how the business has been financed (e.g. founders contributions)
Whether business will be funded by loan or equity financing
Sources of finance may include:
Bank loan
Equity investors including venture capitalists and business angels
Government grants
Incubators
Forecasts and sensitivity analysis should include:
One of the most important parts - potential providers of finance will base their decision largely on this section
Profit/loss projections Cash flow surplus/deficit projections Forecast balances (assets, liabilities and capital) Key ratios Assumptions and commentary
Sensitivity analysis (what if?)
Financial projections for small start ups are generally expected for how long?
How long for larger businesses?
A three year period for smaller
A five year period for larger
What is an executive summary?
What is essential for an executive summary?
A short section that summarises the business plan
Well written, persuasive, concise, states key conclusions and figures
Could a potential provide of finance or investor dismiss and entire business plan based solely on reading the executive summary?
Yes
Business details section should include (common exam q I have found)
Business name
Address
Legal form (eg sole trader)
Ownership structure (eg shareholder)
Description of product / service
Mission and vision statement
Aims and objectives
External maker analysis would include
SWOT (OT)
PESTEC
Porter’s Five Forces
Internal analyses would include
SWOT (SW)
What would industry and market analysis section include?
Internal and external factors
Details on marketing mix & how product will be promoted
Details on size of industry, growth potential and structure of the industry, as well as market trends, buyer behaviour and market share
Customers and value proposition section should:
Outline the target market segment
As well as the value proposition for the product or service
Marketing strategy should include:
How business will meet sales targets Launch strategy Marketing mix Distribution channels Sales tactics Brand development Competitive reaction Product and market development Growth potential and scale-up plans
Operations plan should include:
Manufacturing processes
Business model
Business controls
IP issues
Scalability of the business
Management, workforce and CV
Information on day-to-day operations, people charged with governance of the business, employees of the business and job roles
Include CV of management and other key personnel
Components of a business plan
Equipment and start-up costs must include:
Details of business’ resources (eg equipment) as well as a
List of start-up costs to get the business set up
Financing - what should it include?
Details on how the business has been financed (eg founders contributions, loan or equity)
Details on longevity including any exit routes
Sources of finance for a business may include:
Bank loan
Equity investors including venture capitalists and business angels
Government grants
Incubators
What are incubator firms
What do they give?
Invite start-up businesses to become part of a cohort to participate in a programme
The chance to work with mentors and advisors which offer them business expertise
What does the incubator scheme do?
What happens at the end of the scheme?
Help develop start ups
Start-ups are expected to prepare a business plan which is presented to potential investors to try and secure investment (think of the apprentice)
Forecasts and sensitivity analysis - what should be included?
Financial projections
Profit/loss projections
Cash flow surplus/deficit projections
Forecast balances
Key ratios (eg debtor days)
Assumptions and commentary
Financial projections for start-ups are generally expected for how long?
A three year period
Financial projections for larger businesses are generally expected for how long?
A five year period
What is sensitivity analysis in the context of financial projections?
The process of re-calculating amounts using alternative assumptions to assess the impact on the profits/losses, cash flow surpluses/deficits, balances, and key ratios
Risks and strategic options should include
Risks that have been identified by the business
Critical success factors
How risks are monitored and mitigated
Strategic options available to the business
Key milestones should include:
Commentary around the key milestones on the business’s journey so far
Details around when they launched their first products, received funding or expanded their service offering
