Definition D fi iti
Document that can convince the reader that the business can produce enough revenue to make a business can produce enough revenue to make a satisfactory profit and therefore attractive as an investment opportunity i i
Introduction I t d ti
Focus your thinking Establish realistic strategy E t bli h li ti t t Financing and other support g pp Reaction by others
Many reasons to build one M t b ild
BP should sell the writer/reader on the business:
Writer: so that you can go out and do it, W it th t t d d it Reader: to invest in it
Confidence of knowing the issues Improve chances of success Improve chances of success
Many Purposes in real life M P i l lif
Bank Financing Strategic alliances St t i lli Large contracts g Key employees Mergers and acquisitions M d iii Mgt team motivation g Ours here : Investment by VC or Angels
Principles of BP Pi i l f BP
No right way: plans can differ Be creative but set a limit B ti b t t li it Concise and focused Captures energy and personality of business leader Include negatives and issues I l d i di Spend some time on it p
S ti Sections of Business Plan fB i Pl
Cover Page: contact name and info Table of contents T bl f t t Executive summary y The company The market Th k The Product/service / Financial projections
A section on technology based A section on technology based A ti t h l b d
Management team: people who fund other people value management skills above ideas value management skills above “ideas” Risk factors: shows that you know what could go wrong and plan to avert it Marketing plan: if this is innovative how are you Marketing plan: if this is “innovative” how are you going to get people to use it
P k i th Pl Packaging the Plan
It is a ”living” document …till presentation No right/wrong way: the need of reader is essential N i ht/ th d f d i ti l What are the challenges/questions that can be raised by reader: answer these. Include supporting materials Include supporting materials Don’t make unsupported statements Designate an outside reviewer/ reader that can D i t t id i / d th t critique plan
Sit Sites with sample plans ith l l
www.inovacao.usp.br/empreendedorismo/venture.php www.businessplans.org/businessplans.html p g/ p www.businessplanarchive.org/