BBM310 | INNOVATION AND ENTREPRENEURSHIP | MANAGEMENT

Management Assignment Help

The Business Plan

KEY POINT HERE

Subject Learning outcomes

1. 
   
   1. To define a sustainable business plan and demonstrate its value 2. To describe the benefits of a business plan
   
   
   2. To set forth the viewpoints of those who read a business plan 4. To understand the mind-set of your five-minute reader
   
   
   3. To see a complete outline of an effective business plan
   
   
   4. To present some helpful hints for writing an effective business plan
   
   
   5. To highlight points to remember in the presentation of a business plan
   
   

 

The Business Plan – Purpos

KEY POINT HERE

- Must convince the reader that the new business is exciting

- It also provides a “self Check” to some extent of the contents and the concept

- Gives both the potential funder and the entrepreneurial team a clear picture of:

What the venture is

Where is it projected to go

How will it get there

Reasons - Internal reason

KEY POINT HERE

- Forces the founding team to systematically think through every aspect of their new venture – the litmus test

- The major tool for determining the essential operation of a venture

 

- External reason

- Communicates the merits and advantages of a new venture to outsiders

- The primary document for managing the venture and raising funds for it

 

KEY POINT HERE

- The document required by any financial source – giving the entrepreneur entrance into the investment process

• Can also be called: – A venture plan – A loan proposal – A business case– An investment prospectus

 

KEY POINT HERE

• Get into the mind-set of the investor who generally only spends five minutes reading your business plan.

• Imagine an investor or a bank manager with a stack of plans on his or her desk.

• Keep the plan respectably short.

• Put effort into the two-page executive summary.

• Create an air of excitement in the plan.

 

KEY POINT HERE

• Set a ‘north star goal’ that:

– is optimistic and aspirational

– can be achieved in a reasonable timeframe – can be acted on by new employees

– connects to the core of the business – drives excitement and passion

– serves a higher purpose than business profitability – solves a great human challenge

– leverages your organisation’s strengths.

 

KEY POINT HERE

• Don’t exaggerate.

• Identify your target market.

• Highlight critical-risks and show problems and solutions.

• Show how an effective team already works well together.

• Don’t over-shoot.

 

KEY POINT Tips for Preparing the Plan

• Package your plan well with a logical arrangement and overall neatness

• Reasonably support your projected share of the market.

• Identify your competitive advantage.

• Be sure the plan has a favourable cost structure

• Keep the plan in the third person.

Business Plan Segments

I: Executive summary

II: Business description

III: Statement on Sustainability

• Write this after the rest of the business plan • A clever snapshot of the complete plan


• If this is not concise and competent, the reader may put aside the plan

• Business name and industry background (status and significant future trends)


• Thoroughly describe the venture

• Define sustainability relevant to the business

 

KEY POINT HERE

I: Executive summary

II: Business description

III: Statement on Sustainability

• Write this after the rest of the business plan •A clever snapshot of the complete plan


• If this is not concise and competent, the reader may put aside the pla

• Business name and industry background (status and significant future trends)


• Thoroughly describe the venture

• Define sustainability relevant to the business

 

KEY POINT HERE

VII: Management

VIII: Financial

IX: Critical risks

• Key personnel, advisers, consultants or members of the board


• Structure of payment and ownership

• Demonstrate the viability of the undertaking


• Pro forma balance sheet, income statement, cash–flow statement and break-even chart

• Effect of unfavourable trends, difficulties and unplanned-for new competition


• Cover the what-ifs (e.g. what if the competition cuts prices or what if the industry slumps?)

 

KEY POINT HERE

X: Harvest strategy

XI: Milestone schedule

XII: Appendix and/or bibliograph

• Orderly transition of the venture as it grows and develops • Management succession and investor exit strategies

• Provide a timetable for the various activities


• Demonstrate that realistic timeframes have been planned and that the interrelationship of events within these time boundaries

• Additional documentation

 

KEY POINT HERE

Update in the event:

of financial changes of additional financing

of changes in the market

of launch of a new product or service of new management team

to reflect the new reality.

The Pitch                             HERE

• Know the outline thoroughly

• Use keywords in the outline that help recall examples, visual aids or other detail

• Rehearse the presentation


• Be familiar with any equipment (use your own laptop)

• The day before, practise it in full

 

KEY POINT HERE

 

• Now it is written, how can you (verbally) present your plan to an audience?

• Presenting the plan to stakeholders – especially funding providers

– Either individually or in groups

 

• Also known as ‘the elevator pitch’

• Be organised, well-prepared, interesting and flexible

 

KEY POINT HERE

Presenting the pitch

• Focus on the consumer pain

• Demonstrate a reachable market

• Explain the business model

• Tout the management team

• Explain your metrics used to calculate revenue projections

• Motivate the audience

• Answer: ‘Why you?’ and ‘why now?’

 

KEY POINT HERE

• The potential funder may not listen, and may only glance at the plan.

• They are more likely to criticise and question than to praise the plan.


• Be prepared to handle questions.

Punjab Assignment Help

Buy Online Assignment Help services for MANAGEMENT ASSIGNMENT with Punjab Assignment Help at punjabassignmenthelp@gmail.com