lecture 4 a primer 2013

8/13/2019 Lecture 4 a Primer 2013

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Department of Business Administration - Chair for Entrepreneurship

r mer n n repreneurs p

Prof.Dr.UlrichKaiser

a r o ntrepreneurs p

Universitt

Zrich

Fall2013


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Content

Fall 2013 Seite 2A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser

2008PrenticeHall


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r mer n n repreneurs p

Lecture 4

WritingaBusiness

Plan

Prof.Dr.

Ulrich

Kaiser

Chair of Entrepreneurship

UniversittZrich

Fall2013


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Agenda

1. TheBusinessPlan

.

2.1 StructureoftheBusinessPlan

2.2 ContentoftheBusinessPlan

3. OutlineoftheBusinessPlan

2.3

Style/Format

of

the

Business

Plan

4. PresentingtheBusinessPlan



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Questions

Whatisabusiness lan?

Whataretheprimaryreasonstowriteabusinessplan?

ratherthan

be

highly

innovative

and

creative

?

a s ou e nc u e na us nessp anan

whatarethemostimportanttopicstodiscuss?

tobeansweredintodayslecture.



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1 TheBusinessPlanAbusinessplanisawrittennarrative(2535pages)thatdescribeswhatanew

businessplanstoaccomplishandhowitplanstoaccomplishit.

TheBusinessPlanisadualpurposedocument.

Itisimportant,sinceitisbothaninternaldocumentandasellingdocument.

Theplanhelpsthecompanytodeveloparoadmaptofollowinexecuting

Insidethe

firm

.

Outsidethe

firm

Theplanintroducespotentialinvestorsandotherstakeholderstothe

businessopportunitythefirmispursuingandhowitplanstopursueit.

Seite 6A Primer in Entrepreneurship, Prof. Dr. Ulrich KaiserFall 2013


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1 TheBusinessPlan

Therearetwoprimaryaudiencesforafirmsbusinessplan:afirmsemployees,

and

investors

as

well

as

other

external

stakeholders.

A firm must validate the feasibilit

employees

internal

ofits

business

idea,

develop

an

effectivebusinessmodel,and

haveagoodunderstandingofits

competitiveenvironmentpriorto

investors/otherstakeholders

external

audiences.



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1 TheBusinessPlan

Aclearlywrittenbusinessplanisimportantforboththemanagement

teamand

the

rank

and

file

employees

of

anew

venture.

c ear ywr tten us nessp an,w c art cu atest e

visionandfutureplansofthefirm,helpsthe

employeesofafirmtooperateinsyncandmoveemployeesinternal

forwardinaconsistentandpurposefulmanner.



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1 TheBusinessPlan

Externalstakeholders,suchasinvestors,potentialbusinesspartners,potential

customers,

and

key

employees

who

are

being

recruited

to

join

a

firm,

are

the

second audience for a business lan.

Afirmsbusinessplanmustmakethecasethatthe

firmis

agood

use

of

an

investors

funds

or

the

attentionofotherexternalstakeholders.investors/

Thekeyistoincludefactsgeneratedthrougha

properlyconductedfeasibilityanalysis.

ot ersta e o ers

external

Abusinessplanringshollowifitisbased

strictlyonwhatanentrepreneurorteam

!

Seite 9A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser

.

Fall 2013


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2 GuidelinesforWritingaBusinessPlan

structure

structure content style/format



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2.1 StructureoftheBusinessPlan

Softwarepackagesemployaninteractive,menudriven

approachtoassistinthewritingofabusinessplan.are

ges

!Sof

t

Pac

k

However,entrepreneurs

should

avoid

creating

aboilerplate

planthatlooksasthoughitcamefromacannedsource.

Alongwith

facts

and

figures,

abusiness

plan

needs

to

project

a

of ent

senseofanticipationandexcitementaboutthepossibilitiesthat

surroundanewventure.Sense

Excite



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TheBusiness

Plan

should

give

clear

and

concise

information

on

all

the

importantaspectsoftheproposedventure.

longenough to

provide

sufficient

information,

YET

shortenough tomaintainreaderinterest.


www.oeag.at

Fall 2013


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2008

Prentice

Hall

Fall 2013


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2.3 Style/FormatoftheBusinessPlan

Theappearance

of

the

Business

Plan

must

be

carefully

thought

of.

Itshouldlooksharp

BUT notgivetheimpressionthatalotofmoneywasspent

toproduceit.



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3 OutlineoftheBusinessPlan

a) CoverPage

shouldincludethenameofthecom an itsaddress its hone

b ExecutiveSummar

number,thedate,andcontactinformationfortheleadentrepreneur.

isashort

overview

of

the

entire

business

plan

and

should

be

created

aftertheplanisfinished;itprovidesbusyreaderswitheverythingthat

.

Inmanyinstances,aninvestorwillfirstaskforacopyoftheexecutive

summar

andwill

re uest

aco

of

the

full

business

lan

onl

if

the

executivesummaryissufficientlyconvincing.



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c) TheBusiness

opportunitytheentrepreneurhasidentified thatis,theproblemto

solveortheneedtobefilled andthendescribehowthebusiness

planstoaddresstheissue.

Thedescriptionoftheopportunityshouldbefollowedbyabriefhistory

ofthecompany,alongwiththecompanysmissionstatementand

objectives.

Anexplanationofthecompanyscompetitiveadvantageandabrief

descriptionofthebusinessmodelfollow.



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d) ManagementTeam

Oneofthemostimportantthingsinvestorswanttoseewhenreviewing

theviabilityofanewventureisthestrengthofitsmanagementteam.If

it does not ass muster most investors will not read further.

isoftencalledtheamountofmoneythe

managementteamhasinvested.

SkinInTheGame

Investorswaryifthereisnoskin.

professionalexperience

significantaccomplishments


e uca ona ac groun

Fall 2013


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e) CompanyStructure,Ownership,andIntellectualProperty

Thissectionshoulddescribeanddiscuss

,

relationshipsamong

the

top

management

team

members

.Howthefirmislegallystructured2.

Theintellectualpropertyownedbythefirm,includingpatents,

trademarks,andcopyrights3.



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f) IndustryAnalysis

Thissection

should

discuss

Majortrendsintheindustryinwhichthefirmintendsto

compete,alongwithimportantcharacteristicsoftheindustry,1.suc as tss ze,attract veness,an pro tpotent a

Howthefirmwilldiminishorsidesteptheforcesthatsuppress

itsindustr s rofitabilit 2.Thefirmstargetmarket,alongwithananalysisofhowitwill

competein

that

market

3.Aninvestorshouldhaveagoodgrasponthefutureprospectsoftherelevant

industry,alongwithanunderstandingofthetargetmarketthefirmwill


pursueandhowitwilldefenditsposition.

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g) MarketingPlan

TheMarketing

Plan

immediately

follows

the

industry

analysis

and

provides

Thissectionisver im ortanttoinvestors sinceitissu osedto

detailsaboutthenewfirmsproductsandservices.

assurethem

that

anew

venture

has

aproduct

that

people

will

buy

andhasarealisticplanforgettingthatproducttomarket.

Fullerdescription

of

the

product

that

the

firm

will

sell

than

has

Thissectionshouldcontain.

. beenprovidedinprevioussections.Resultsofthefeasibilityanalysis,includingtheresultsofthe.


.

Fall 2013


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g) MarketingPlan

,

overallapproachtoitstargetmarketand

productstrategy,

.

.

pricing

strategy,

channelsofdistribution,and

.

.promo ona s ra egy

areinsyncwithoneanotherandmakesense.

.



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h) OperationsPlan

Thissection

deals

with

the

day

to

day

operations

of

the

company

and

should

describeanddisclose

Anoverviewofthemanufacturingplan(orservicedeliveryplan),.Adescriptionofthenetworkofsuppliers,businesspartners,andservice

providersthatwillbenecessarytobuildtheproductorproducethe

servicethefirmwillsell,

.

Anyriskorregulationspertainingtotheoperationsofthefirm,suchas

nonroutineregulationsregardingwastedisposalandworkersafety.

.

Anincreasinglycommonfeatureofmanybusinessplansforstartupsisa

relianceonoutsourcingcertainfunctiontothirdpartiesasawayofallowing


.

Fall 2013


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i) FinancialPlan

Thissectionmustdemonstratethefinancialviabilityofthebusinessand

includesexplanationsanddescriptionsof

Fundingthat

will

be

needed

by

the

business

during

the

next

35years,

Howthefundswillbeused,..

Financialprojectionstofurtherdemonstratethefinancialviability,

including35yearsproformaincomestatements,balancesheets,and

.

,

whichwillbescrutinizedbycarefulreaders.



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j) CriticalRiskFactors

Althoughavarietyofpotentialrisksmayexist,abusinessshouldtailorthis

sectiontodepictitstrulycriticalrisk.

Oneofthemostimportantthingsthatabusinessplanshouldconveyto

andunderstandsthecriticalrisksfacingthebusiness.



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k) Appendix

An

materialthat

does

not

easil

fit

into

the

bod

of

abusiness

lan

should

appearinanappendix.

Rsumsofthetopmanagementteammembers,Examples

of

materials

that

might

appear

in

the

appendix

include:

.Photosordiagramsofproductsorproductprototypes,

Certainfinancialdata,

.

.Marketresearchprojections

.

.



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l) PuttingAllTogether

Inevaluatingandreviewingthecompletedbusiness

,

shoesto

determine

if

the

most

important

questions

on

theviabilityoftheirbusinessventurehavebeen

answered.



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The10mostimportantquestionsabusinessplanshouldanswer

Isthe

business

ust

an

idea

or

is

it

an

o ortunit

with

realpotential?

Istheproductorserviceviable?Doesitaddsignificantvaluetothecustomer?

Wasafeasibilityanalysiscompleted?

Doesthefirmhaveanexcitingandsensiblebusinessmodel?Willotherfirmsbe

abletoeasilycopyit?

Is

the

industry

in

which

the

product

or

service

will

be

competing

growing

stable,

ordeclining?

Doesthefirmhaveawelldefinedtargetmarket??



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The10mostimportantquestionsabusinessplanshouldanswer

Isthe

mana ement

team

ex erienced

skilled

and

u

tothetaskoflaunchingthenewfirm?

Arethefinancialprojectionsrealistic,anddotheyprojectabrightfutureforthe

firm?Whatrateofreturncaninvestorsexpect?

Isthefirmorganizedinanappropriatemanner?Areitsstrategyandbusiness

practiceslegalandethical?

Whatarethecriticalriskssurroundingthebusiness,anddoesthemanagement

team have contin enc lans in lace if risks become actual roblems??


Fall 2013


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4 PresentingtheBusinessPlantoInvestors

TheOralPresentationoftheBusinessPlan

.

! Followtheinstructions(timeslots,etc.).

Bewell

rehearsed

and

present

smoothly.

!Haveagoo eao w atquest onsan ee ac toexpect rom

investorsandbepreparedforthesequeries!

Intheinitialmeeting,investorstypicallyfocusonwhetherareal

opportunityexistsandwhetherthemanagementteamhasthe

experienceandskillstopullofftheventure.



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4 PresentingtheBusinessPlantoInvestors

Thereare10PowerPointslidestoincludeinanInvestorPresentation.

1. Title

2. Problem

. o u on

4. Businessmodel

5. Managementteam

6. Industryandtargetmarket

7. Competition

8. Intellectualproperty

9. Financialprojections


. , ,

Fall 2013


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Doyouknowtheanswer?

Whatis

abusiness

lan

?

Whataretheprimaryreasonstowriteabusinessplan?

ratherthan

be

highly

innovative

and

creative

?

a s ou e nc u e na us nessp anan

whatarethemostimportanttopicstodiscuss?

testyourself.



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References

Barringer,B.andD.,Ireland(2008):EntrepreneurshipSuccessfullyLaunching

NewVentures,

Pearsons Prentice

Hall.



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Outlook


2008

Prentice

Hall

lecture 4 a primer 2013

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