Bài giảng Designing Business Plan - Unit 01 Introduction to Business Plan

NGO QUY NHAM DESIGNING BUSINESS PLAN Ngô Quý Nhâm Foreign Trade University NGO QUY NHAM Course content F  Introduction to business plan F  Market Analysis F  Business Positioning F  Marketing plan F  Organization plan F  Financial plan 4 - 2 NGO QUY NHAM Introduction to Business Plan 4 - 3 Unit 01 NGO QUY NHAM What is Business Plan? 4 - 4 NGO QUY NHAM The Business Plan F  A written summary of: §  An entrepreneur’s proposed business venture §  The business opportunities and strategy §  Business strategy §  The operational and financial details §  The managers’ skills and abilities. F  A business plan is the best insurance against launching a business destined to fail or mismanaging a potentially successful company. NGO QUY NHAM The Business Plan: Two Essential Functions 1.  Guiding the company by charting its future course and defining its strategy for following it. 2.   Attracting lenders and investors who will provide needed capital. NGO QUY NHAM A Plan Must Pass Three Tests 1. The Reality Test – proving that : §  A market really does exist for your product or service. §  You can actually build or provide it for the cost estimates in the plan. 2. The Competitive Test – evaluates: §  A company’s position relative to its competitors. §  Management’s ability to create a company that will gain an edge over its rivals. 3. The Value Test – proving that: §  A venture offers investors or lenders an attractive rate of return or a high probability of repayment. NGO QUY NHAM Why Take the Time to Build a Business Plan? F  Although building a plan does not guarantee success, it does increase your chances of succeeding in business. F  A plan is like a road map that serves as a guide on a journey through unfamiliar, harsh, and dangerous territory. Don’t attempt the trip without a map! NGO QUY NHAM NGO QUY NHAM Key Elements of a Business Plan F  Executive Summary F  Company Description F  Industry Analysis F  Market Analysis F  Business Strategy F  Description of Products/Services NGO QUY NHAM Key Elements of a Business Plan F  Marketing Plan F  Management Team and Company Structure F  Operation Plan F  Projected Financial Statements F  Loan or Investment Proposal F  Appendices §  Summary of Feasibility Analysis, including customer reaction to the products or services NGO QUY NHAM Business Planning Process Identify a business Idea. Step 1 Screen/test the idea to determine its preliminary feasibility Step 2 Conduct full feasibility analysis Step 3 Prepare a written business plan Step 4 Present the business plan Step 2 Favorable result / proceed Unfavorabl e result / stop or revaluate idea Favorable result / proceed Unfavorabl e result / stop or revaluate idea NGO QUY NHAM 4 - 13 Guidelines for Preparing a Business Plan F  Remember: No one can create your plan for you. F  Potential lenders want to see financial projections, but they are more interested in the strategies for reaching those projections. F  Show how you plan to set your business apart from competitors; don’t fall into the “me too” trap. F  Identify your target market and offer evidence that customers for your product or service exist. NGO QUY NHAM Tips on Preparing a Business Plan F  Make sure your plan has an attractive cover. (First impressions are crucial.)! F  Rid your plan of all spelling and grammatical errors. F  Make your plan visually appealing. F  Include a table of contents to allow readers to navigate your plan easily. F  Make it interesting. NGO QUY NHAM Tips on Preparing a Business Plan F  Your plan must prove that the business will make money (not necessarily immediately, but eventually). F  Use spreadsheets to generate financial forecasts. F  Always include cash flow projections. F  Keep your plan “crisp” – between 25 and 40 pages long. F  Tell the truth – always. NGO QUY NHAM Presenting the Plan F  Demonstrate enthusiasm, but don’t be overemotional. F  Know your audience thoroughly. F  “Hook” investors quickly with an up- front explanation of the venture, its opportunities, and its benefits to them. F  Hit the highlights; focus on the details later. F  Keep your presentation simple – 2 or 3 major points. NGO QUY NHAM Presenting the Plan F  Avoid overloading your audience with technological jargon. F  Use visual aids. F  Close by reinforcing the nature of the opportunity. F  Be prepared (with details) for potential investors’ questions. F  Follow up with every investor to whom you make your presentation. (continued) NGO QUY NHAM 4 - 18 Conclusion F  There are no guarantees for success. F  Creating a business plan will be valuable primarily because of the process itself. F  The business planning process may provide insight to increase the chances for success. F  The business plan: Entrepreneurs benefit; lenders and investors demand it!