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					     Business Plans



“Good Business Plans are Practical”
Taken from http://www.bplans.com/hurdleonline
http://www.sba.gov/starting/indexbusplans.html
Planning is a Process
  Four Elements Supporting
Successful Plan Implementation

1. Is the plan simple, easy to understand and to act on? Does
it communicate its contents easily and practically?

2. Is the plan specific? Are its objectives concrete and
measurable? Does it include specific actions and dates of
completion, specific persons responsible and specific
budgets?
  Four Elements Supporting
Successful Plan Implementation
            (cont.)
3. Is the plan realistic? Are the sales goals, expense
budgets, and milestone dates realistic? Nothing stifles
implementation like unrealistic goals.

4. Is the plan complete? Requirements of a business plan
vary, depending on the context. There is no guarantee,
however, that the plan will work if it doesn't cover the
main bases.
         Use of a Business Plan
• Define and fix objectives, and programs to achieve those
  objectives
• Create regular business review and course correction.
• Support a loan application
• Define agreements between partners
• Set a value on a business for sale or legal purposes
• Evaluate a new product line, promotion, or expansion
• Define a new business (this will be our use)
             No Time to Plan?



“Not enough time for a plan. I can't plan. I'm too busy
getting things done.”

A business plan now can save time and stress later.

Too many businesses make business plans only when they
have to. The busier you are, the more you need to plan.
Business Plans Don’ts

    • Don't use a business plan to
      show how much you know
      about your business

    • Nobody reads a long-winded
      business plan: not bankers,
      bosses, nor venture
      capitalists (50 pages max)
Simplified Business Plan Outline
•   Executive Summary
•   Company Summary
•   Product Description
•   Market Analysis Summary
•   Strategy and Implementation Summary
•   Management Summary
•   Financial Plan
Initial Business Plan Assignment
• Mission/Objectives – what’s the true nature of
  your business (don’t be too narrow), how will you
  build customer satisfaction, what is your
  workplace philosophy, what value to the customer
  do you offer
• Keys to success – limit to three and focus on those
• Target Market – good educated guess
• Competitive Advantage – what distinguishes you
  and your product
• Basic Strategies – how will you develop the
  company and products
                   Use of Graphics
• Tables and charts present information in visual formats
  with greater impact that words alone
• Plan should include graphs, bar charts, and pie charts to
  illustrate
   –   cash flow (single most important numerical analysis in a plan)
   –   sales forecast with break-even info
   –   profit and loss statements
   –   projected balance sheet
   –   projected business ratios
   –   market analysis
                                                                     Examples
     Company - Global Sales
                                                                    Indust
                                                         Cons         12%
                                                         11%
                1999 Sales
                                                                                               Comm
                  1,190 M €                                                                     50%
                                                             Data
                                       +                     27%
                                           29
                                                %
                Indust                                                                             Global Top 15 Key Customers
         Cons     10%                                                                              (includes CEM derived demand)
         10%                                                        2000 YEF

                                Comm                                1,536 M €                                          300
                                                                                                                                                                                                                                         2000
                                                                                                                                                                                                                                         2001
         Data                    57%                                                                                                                         Std Margin%                              Top 15 = 64%
                                                         %




         23%
                                                        11




                                                                                                                                 34%
                                                    +




                                                                                                                       250
                                                                     Indust
                                                             Cons      9%
                 2001 Budget                                  11%


                                                                                                      Sales KK Euros
                                                                                                                       200             29%
CI                  1,709 M €
                                                         Data                                  Comm
                                                         21%                                    59%                                          38%
                                                                                                                       150
                                                                                                                                                       34%

                                                    4                               Electronics SBG - January 26, 2001
                                                                                                                       100

                                                                                                                                                             31%
                                                                                                                                                                       32%
                                                                                                                                                                             39%    45%              45%
                                                                                                                       50                                                                      29%                    15% 10%         25%
                                                                                                                                                                                                           34% 26%


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                                                                                                                                                                                                                          All values in M EUROS



                                                                                                                                                                                   M
                                                                                                                                                                                         8                                Electronics SBG - January 26, 2001
                                          More Examples
       Electronic Cabinet Packaging - Chassis

                                LEVEL 3
                                               LEVEL 4




                                                                   Segment Summary - Global Market

                                                         LEVEL 5
                                                                               10B


                                                                       Market                                                                      Mobile Comp
                                                                                                                                                            PC
                                                                        Size                   Instrumentation
                                                                                                                                         DATA           Servers
                                                                                               Process Control                                          Storage
                                                                                              Embedded Comp              I&I                        Peripherals
            LEVEL 1 & 2                                                                                Medical
                                                                                                  Office Equip
F CI
                                                                                                                                                  Telecom
                          INTERCONNECT LEVELS                                                                                              COMM   Datacom
                                                                                                                                                  Wireless Infrastructure


                                          11             Electronics SBG - January 26, 2001                       Mobile Phone
                                                                                                                  Mobile Equip
                                                                                                                  Set Top Boxes
                                                                                                                                  CONS
                                                                                                                  Modems
                                                                                                                  DSC
                                                                                1B



                                                 F CI                                                            5%                      10%           Growth
                                                                                                                                                        Rate

                                                                                     Source: Bishop, except Mobile Phone in Consumer, not Communications
                                                                                                                                    14                      Electronics SBG - January 26, 2001
                      Still More Examples
       End User Applications




                                           Electronic Packaging - Handheld


                                                                                              RF- Integrated Antenna

                                                    LEVEL 5
                                                                                                                          LEVEL 5



                                                                 I/O + Accessory
F CI                                                                                           Battery


                                                                                                                         LEVEL 3
                                                LEVEL 5       Microphone
                               17          Electronics SBG - January 26, 2001


                                                                                               LCD


                                                                   BtB             SIM
                                                    LEVEL 3                                                               LEVEL 3
                                    F CI

                                                                                              LEVEL 3

                                                                                         62                Electronics SBG - January 26, 2001
          Break-Even Analysis
• Need to know
  –   Average per-unit sales price
  –   Average per-unit cost
  –   Monthly fixed costs
  –   Projection of unit sales/month

				
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