2 Entrepreneurship Basic Structure Entrepreneurs discover an entrepreneurial opportunity when they find a compelling solution to an unsolved problem or unsatisfied need.The first step in an entrepreneurial venture is to identify a real opportunity.Second step is to create a plan to address that opportunity.Third step is to execute that plan.
3 Business PlanningBusiness planning is the process of setting goals, explaining the objectives and then mapping out a document to achieve these goals and objectives.Effective business planning is critical to long-term success and the ability to raise capital and grow successfully.Effective business planning requires a considerable amount of time
4 Types of Business Planning Effective entrepreneurial planning consists of:Strategic planningSetting and enforcement of goalsRoad map of strategies on “what” the business intends to do to meet the goals and objectivesTactical planningContains the details of executing your strategiesDescribe “how” you plan to meet the objectives
5 Strategic Business Planning Strategy is the thinking process required to plan a change, course of action, or organization.Strategic planning defines, or outlines, the desired goals and why you should go about achieving them.The strategic planning phase involves business thinkers (namely– the small business owner) determining why, and in a global sense what, you will achieve in your stated goals.When doing strategic planning, you need to determine, specifically, what outcome you want to achieve (These are your Objectives) and how you will measure the results.
6 Tactical Business Planning Tactical planning requires the understanding and deciphering of the strategic goals; then identifying the courses of action needed to achieve those strategic objectives.Tactical planning is developed by those who deal with getting the work done, day by day.The main question for them is: “How can the strategic goals be accomplished within the designated limits of resources and authority?”Tactical planning is actions taken day-to-day, whose results will move the company forward to achieve the objectives in the strategic plan.
7 Business Plan A proposal that describes a new business. It is presented to potential investors and lenders.A well-written Business Plan lays out the best growth path & strategy, as well as the rationale for the selection of the strategy over other alternatives.A Business Plan is the explanation of:why the plan for building the company makes sense,what resources it will need to implement the vision,who the team will be that will have the skills and leadership to execute the vision, and what path they will follow to get there.
8 The components of a business plan Executive summaryProduct/service planManagement team planIndustry/market analysisOperational planOrganizational planMarketing planFinancial planGrowth plan
9 Executive SummaryBrief recounting (summarizing) of the key points contained in a business plan.Investors & lenders rely on this to decide if the concept interests themShould be no longer than two pages.Include the most important information from each section of the plan.Written last
10 Product/Service Plan Mission Statement Presentation of the product or service you’re offering.Nature of your businessUnique features of your product/serviceAny possible spin-offsAdditional products or services that might be offered once the business is established
11 Management Team PlanPresent entrepreneur’s qualifications & those of any partners involved in the business venture.Analyze expertise you’re missing & how you will solve that problemDescribe any advisory board members/Board of Directors that will assist in getting the business started
12 Industry/Market Analysis Convince the reader that an explosive market opportunity existsPresents research into the industry & marketAnalyze customers, competition, & industryInformation about the prospective geographic location, economic, & demographic data
13 Operational PlanIncludes all processes involved in producing and/or delivering the product or service to the customer.Status of product developmentEquipment, inventory, productionTime & money neededDistribution plans (Channels of Distribution)Direct channel – delivery directly to the customerIndirect channel – product sold to someone before it reaches the customer (wholesaler)
14 Organizational Plan People aspects of the business. Includes: Management philosophyLegal form of the companyKey management personnelKey employment policies
15 Marketing PlanHow your company makes its customers aware of its products or servicesMarket segmentPricing policyCompany imageMarketing strategiesPromotional planMarketing budget
16 Financial Plan Presents the forecasts for the future of the business Includes assumptions made when calculating your forecast figuresUsually in the form of financial statements
17 Growth Plan Looks at how the business will expand in the future. Investors & lenders look to see if the business has the potential & the plans to grow over its life