Additional business plan formatsPrepared by Prof Jorge Entrep

Causative (logical) and effectual business plan formats Causative - the traditional strategic,

goal before hand driven business plan and choices made later;

Effectual - inspired by effectual entrepreneurship of by Saras Savastky of University of Virginia Dardane; begin with what you have; planning is iterative

Distinction Causative - Applicable to existing

businesses

Effectual business plans – applicable to start ups

Strategic Business PlanI  Strategic:  Causative (for existing business

l.  Description of the current business:        l.  Business Model       2.  Business concept, logic       3.  Analysis of the market, product, competition,

2.  Business objectives:

      l.  VMO     2.  What are the proposed objectives with the plan:            Sales, Financials,  C

3.  Executive Summary, Board of Directors, Financiers, Top Management, Middle Managers, Holders of Key Technologies

4.  Organization:   Stockholders Customer Impact, Job Generation

5.  Description of the product:

       l.  USP  (How is this being achieved at the moment)  Describe the PTM, Key Activities and Resources          Detailed analysis of the USP.  Is this a sound analysis?  How was this arrived at.

       2.  Competitive Analysis:   Product Features:   Price, Benefits

 6.  Market estimate:

      l.  How does the product meet the customer needs?     2.  Micro market analysis     3.  Competitive analysis:   market share, what are the competitive activities  vs. you     4.  Macro market ANALYSIS:   PESTEL  PESTE, STEER     5,  What is the sales estimate

7.  Strategy:   What is the choice of activities and resources to create competitive advantage/differentiation

  A.  On the Demand Side:

       l.  PTM wants and needs.       2.  Customer links:   ps of marketing       3.  Customer bond  -  customer service

B.  On the supply side:      l. Key resources:   raw mat, machineries, technology,  r&d      2.  Key processes, hr, controls, audit, etc.        3.  Partners

 C.  Financial:   What is the ROIC as stated in the beginnig           l.  Revenue Model:   per product/aggregate

     2.  Costs:          l.  COGS         2.  Opex        3. BE, desired ROE

How are your resources and activities, suppliers going to help you achieve the financial goals?

Review:   are you achieving competitive advantage, uniqueness;  try to use ERRC, to create new market space?  Are your HR, marketing, operations interlinked

8,  Financials:    (the three FS:   cash flow, pnl, balance sheet)  How does your FS support your strategy to create competitive advantage

9.  Compliance wtih regulations/regulators -  Discuss in detail various regulations:   local, national and international so that your company becomes a good citizen.  Are you green.

10.  Exit strategy:   How do you exit the business at the start, middle, end of things do not turn out right, if they turn out right ( as IPO gift, inheritance, donation to charity, govt

Effectual (for start –ups)l.  Current Situation:       l.  Who am I, my passion      2. What do I want to be, my dreams, interests      3, My resources:   financial, talents       4.  My network:  financial backers, technology providers, manufacturing links (die makers, suppliers, subcontractors),  buyers, contacts

2,   My range of options       l.  Product ideas      2.  How do they match # l      3.  What is the USP/ MVP  (define it well)

3,  Opportunity scanning;      l.  What are current range of offerings?  What pisses off the customers?  What is the hole?  Is there no similar product int he market compared to # 2.     2.  FGD and other customer surveys done, traffic count     3.  Micro market analysis  (you the competition, location)     4.  The larger context:   PESTEL'     5,  What is the sweet spot:   intersection of company, competitor, customer and the context

4.  What is the business model:  l.  MVP/USP   2.   Demand side:   PTM,  customer link, customer bond   3.  Supply side:   Key activities, key resources, partners and the configuration   4,  Revenue and cost model        l.  SRP       2.  COGS       3.  BE       4,  Desired ROIC

5,  Product:

       l.  Design:   Drawing BOM       2.  Production process:   how is it to be produced, engineering, quality control       3.  Distribution, logistics needed       4.  Product testing:   alpha and beta       5.  Competitive analysis:  why is your product differentiated

6.  Sales estimate:      l.  Restate customer wants and needs;  how are they pissed off by competitive products      2.  Historical industry data, past,  what is the trend (micro and macro market)     3.  Estimated market share;   what is the basis?     4. What will you do to influence the outcome?     5.  Who will achieve you help your sales goal     6.  Degree of confidence in the projection

7.  Other objectives:  (based on six)

l.  financial l.  Cash flow   2.  P n L   3.  balance sheet

       At least 3 years2.  Customer impact3.  Job generation and welfare4.  Going international? Global

How do you finance the business growth?

8.  Compliance with regulations:   local, national international.   What do you if you encounter difficulties

9.  Exit strategies:       What difficulties will cause you to give up;  What will be your range of options?      What will you do if you are successful?     

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