DEVELOPING THE NEXT GENERATION OF ENTREPRENEURS
1.Why do you need a business plan?
2.Write your own business plan
3.What are the common mistakes?
Why write a business plan
1.Objective and critical evaluation of the idea
3.Will help manage the business
5.Foundation for investments
How does it help?
•Explains what, and why, you want to do
•Defines the customer and market
•Understands the key drivers for success
•Clarifies the business model
•Inspires confidence in your ability to execute
What should it say?
•This is the market opportunity
•This is my product/service
•These are the key benefits (with evidence)
•These are the people who will make it happen
•What exactly is the problem that people will
pay you to fix?
The Business plan
•Executive summary (1/2 – 1 page)
•Product and service
•Market and Customer
•Industry and competition
•People and organisation
•Money and feasibility
Style of writing
Clear Objective Simple
• Well structured • Accurate • Plain English
• Standalone • Positive and critical • Non-technical terms
Remember, This is the document the reader will remember you by
Product and service 2-3 pages
Executive • Customer Pain
Summary What problem does your idea solve?
Product and • What is new about your idea?
• How far have you come?
customer • What can you offer of value to the customers?
competition Can the idea be protected? Patents, trademarks
Market and Customer 2-3 pages
• What does the market look like?
Product and • What is the size of the marked (expected growth)
• Can you take international markets
customer • Forecast based on facts
competition • Who are the target customers?
• Is your user your buyer?
Organisation • Who will influence the purchase?
• What is the plan to maintain the loyalty of customers?
Implementation • How will you promote it?
• How do you get your first customer (and the next ten)
Industry and competition 1-2 pages
Primary/ secondary competitors
service • Who are the likely competitors?
• What are the strengths and weaknesses of
Market and competitors?
• What is your competitive positioning (i.e, a table of
Industry and competitors and ex time to launch, technological
competition capability, IP, technology, privileged relationship with
suppliers and customers)
• Key vendors, partners…
Money and • Could any competitors be strategic partners?
People and Organisation 1-2 pages
service The key people
• Who are the key people in your time and what are
Market and their key competencies
• How are the management responsibilities shared
Industry and among the team?
• What is the plan to reinforce management team in
Organisation • What is the organisational structure of the company?
• Strengths and weaknesses of key team
feasibility • Motivation of first employees/founders
Money and feasibility 1-2 pages
Summary • How will your company make money?
(i.e. advertising revenue, transaction revenue,
Product and subscription revenue, flat-fee vs. percentage-based)
• Has this business model been proven elsewhere?
Market and • How many sales do you need to make to break even
competition Start up budget
People and Cash flow analysis
Organisation Create a best case and worst case
Money and Start Up Capital
feasibility • Do you need start-up capital, where will you get it
• Return and exit strategy for potential investor
Implementation 1-2 pages
customer • What is the detailed short term implementation plan?
(by month) such as milestones, project plan,
Industry and –Who is responsible for each of the tasks?
–What are major milestones?
• What is the 5-year implementation plan and the long
Organisation term opportunities.
feasibility • Identify risks (such as lack of skilled staff, capital,
• Identify likelihood of risks happening
• How can you minimise these risks?
Executive Summary 1-2 pages
Now, lastly, create an executive summary
This goes at the front of the business plan
Consider your reader
Your reader is
•Hears great ideas daily
•Experienced and sceptical
Write in business style – clear, concise, to the
If you want to be really good…
You also include:
• How competitors will respond to your marked entry
• Test your arguments
- What if fewer people buy?
- What if costs double?
- What if schedules are missed?
• Supporting evidence
• Questionnaires and survey
The big mistakes
• Underestimating the strength of competitors
• No clear business model
• Miscalculation of market share / market size
• Equating a large, growing market with ease of
• Being too close to the product
Other common mistakes
• Market (web) data unsupported by evidence
• Providing excessive detail (too many spreadsheets,
• Disproportionate time devoted to financials
• Ignoring risk
• Inappropriate internal organisation
• Disorganised, or contradictory, plan
• Assuming that customer benefits are self-
Køber vs. bruger
Overvej hvem der er den reelle
beslutningstager, I forhold til hvem der
• Gatekeeper (B2B)
VENTURE CUP exists for people with lofty ideas,
for the ambitious, for the dreamers and the
… and for those who want to make a difference!
Business concept Draft business plan Final business plan
•What is your business idea? In •What do you estimate your •What are the results of your
what way does it fulfil the criterion financing needs to be? detailed business planning?
of uniqueness? •What are the sales, cost and •What are your exact financing
•Who are your target customers? profit situations? needs?
•What is the value for those •What are the most important •How will you delegate
customers? milestones along the way to management tasks?
•What market volume your goal? •How much production capacity
and growth rates do •What test customers have is necessary?
you forecast? you approached/could you •How will the implementation of
•What competitive approach? your business idea be
environment do you face? •What distribution channels organised?
•What additional stages of will you use? •What are your next concrete
development are needed? •What partnerships would you steps?
•How much investment is like to enter into?
necessary •What opportunities and risks
•What long term goals have you do you face?
set? •What is the picture on