Presentation on theme: " Instructor at Bilkent since 2002... Major : Computer Science... Spent 10 years at CTP and CTE departments... Programming courses combined with."— Presentation transcript:
Instructor at Bilkent since 2002... Major : Computer Science... Spent 10 years at CTP and CTE departments... Programming courses combined with business activities... Member of FBA (Faculty of Business Administration) since 2011... Business Plan by Tolga Baycan2 Who am I?
What is a Business Plan? Who is / are responsible for (generating) this plan? Why do we need a Business Plan? When do we need a Business Plan? How do we write a Business Plan? (Necessary steps of a BP) Executive Summary Organizational Plan Marketing Plan Financial Plan Which business type is dealing with what ? Business Plan by Tolga Baycan3 Layout
A formal statement of : A set of business goals & objectives... Reasons they are believed attainable... Plan for reaching those goals... Background information about the organization or team attempting to reach those goals... A decision making tool so, No fixed content! The content is determined by the goals and audience... What is a Business Plan? Business Plan by Tolga Baycan4
Company owners... People who make inventions, entrepreneurs, founders... New partners (IPO) Offering a partnership to a company... Merger (2 companies get together) Professionals, consultants may need for the development phase. Why? – Not an easy process! Especially some further marketing and financial skills may be necessary... Who is responsible for this Plan? Business Plan by Tolga Baycan5
As soon as there is no finished product in hand, this is simply a written brainstorming issue... The value lies in the process of researching and thinking about the business in a systematic way... This process helps to avoid potential future unplanned costs and unsolvable problems... Why do we need this Plan? Business Plan by Tolga Baycan6
Starting up a new business... From innovators perpective of view, in order to explain the necessity of an invention... A major change process in the existing business... Selling/Buying a division or a product line Adding a new item to the product range Outsourcing (Transfer of manufacturing or other tasks to countries where labor and supplies are less expensive) Money is needed! / Raising capital Bankers Investors ( a 3 to 5 year business plan is required, since investors will look for their annual return in that timeframe...) When do we need this Plan? Business Plan by Tolga Baycan7
Should be written at last! Not exceed two pages! Mention fundamentals of the Business : What is your product/service? Who are your customers? Who are the owners? What are your expectations from your business? (A very brief future plan) Make it Enthusiastic, Professional, Complete and Concise. expressing or covering much in few words; brief in form but comprehensive in scope… If you need a loan; state the certain amount, why you need it and pay back strategy in a precise and clear way. Be honest! Business Plan by Tolga Baycan8 1. Executive Summary
What will you do in which business? ways of telling... Corporate Identity - ex: KOC Corporate IdentityKOC Corporate Identity Looking for the answers of : " who are we? " and " where are we going? " A corporate title, logo and supporting devices commonly assembled within a set of guidelines. These guidelines govern how the identity is applied...corporate titlelogo Mission Statement & Vision Statement Microsoft’s Vision : (A mental image of the future state that the organization wishes to achieve ) "Empower people through great software any time, any place, and on any device. " Nissan’s Mission : (Reason for Existence) "Nissan provides unique and innovative automotive products and services that deliver superior, measurable values to all stakeholders in alliance with Renault." Business Plan by Tolga Baycan9 2. Organizational Plan (Description of company)
Company Goals & Objectives Goal : "Successful company that is a leader in customer service... " Objective : Annual sales targets, measurement of customer satisfaction etc. Difference? A common business goal : - Run a profitable operation, which typically means increasing revenue while limiting expenses... Revenue objectives could consist of : - Increasing annual sales by 10 percent... Expense objectives could involve : - Finding a new operating facility that “decreases your rent” by $200 a month or cutting monthly utility bills by 15 percent... Business Plan by Tolga Baycan10 2. Organizational Plan (Description of company) GOAL!
Legal form of ownership Sole proprietor, Partnership, Corporation etc. Location Where will be the production and headquarter? Advantages/Disadvantages of the location Who is responsible for what? (Roles by an organizational chart) Supply chain management – Inventory & Suppliers Coordination of the production by organizing the supply process of the raw materials and the transportation of the finished products by building a competitive infrastructure, worldwide logistics, synchronized supply/demand and measure of performance globally by : Inventory control (IC Software, Upper&Lower limits of products etc.) Classification of inventory (Raw materials, supplies, finished goods) Key suppliers (Reliability, Credit and delivery process, Supplier database) Business Plan by Tolga Baycan11 2. Organizational Plan (Organization & Operations)
Brief description of the product(s). To whom will you sell your product(s)? Very Briefly! Details are at Marketing Plan! Industry description & analysis Changes in short & long term Adaptation? Company strengths & core competencies How will you suceed? (Success story) Major competitive strengths? How will you differ from your competitors? How will you contribute by your skills, experience, innovations etc. Business Plan by Tolga Baycan12 2. Organizational Plan (Product & Business Philosophy)
Market Research Why? Are you at the right market? Competitors providing the same product at a low price... Supply chain / Procurement process How? Primary and secondary market research PMS : Questionnaires, surveys or interviews with individuals or small groups. SMS : Using published information such as research reports, previous survey results and Internet. Business Plan by Tolga Baycan13 3. Marketing Plan
Market Research (continue) Total size, demand, trends and growth potential of the market and your share here. Entry Barriers Costs (Capital, Production, Marketing, Shipping etc.) Consumer acceptance & brand recognition (*) Technology adaptation. Government policies and regulations * * * How will you adapt your business to CHANGES? If all the criterias above are covered then, * * * How will you adapt your business to CHANGES? Business Plan by Tolga Baycan14 3. Marketing Plan (*) If existing firms and products have strong brand recognition that will deter new entrants. If customers perceive existing products as unique or high quality then a new entrant will need to spend money to educate customers about the unique qualities and benefits of its new products. This will increase the cost of gaining market share and deter entry into the market.
Product Detailed description of the product(s). Technical Features, benefits Why should a customer buy this product(s)? Be honest! Mention possible problems & solutions, future improvements etc. How do you handle after-sale operations? Delivery Warranty Support Refund policy Business Plan by Tolga Baycan15 3. Marketing Plan
Customers (Analysis of end – users) Identify your target customers by Age Gender Location Income Level Social class Education Industry (for business customers) Size (for business customers) Technology (for business customers) Business Plan by Tolga Baycan16 3. Marketing Plan
Competitors SWOT Analysis is necessary Based on Products and/or Companies Direct or Indirect competition? Indirect Used cars vs Used SUV... Direct Toyota vs Honda Business Plan by Tolga Baycan17 3. Marketing Plan Good Financial Situation! Lack of Equipments necessary for production! A niche market! Lots of competitors!
Marketing Strategy Marketing 4P’s... Business Plan by Tolga Baycan18 3. Marketing Plan Flexibility Classification
Digital Marketing Business Plan by Tolga Baycan19 3. Marketing Plan It is marketing that makes use of electronic devices (computers) such as personal computers, smartphones, cellphones, tablets to engage with stakeholders. Digital marketing applies technologies or platforms such as websites, e-mail, apps (classic and mobile) and social networks... * Follow what people are browsing and remind the browsed items at different sites periodically...
12-month profit and loss projection How can we make a profit and be successful? Sales projections are from sales forecast, cost of goods sold, expenses and profit/loss month-by- month for a year. A four year profit and loss projection In order to carry forecasts beyond one year Reflects potential changes after the first year Business Plan by Tolga Baycan20 4. Financial Plan
A cash flow projection How much do you need before start-up? When to receive cash (Sales), When to pay (Expenses) Preliminary & operating expenses Shows the shortages in time to make necessary updates & changes i.e : cut expenses, negotiate for a loan etc. Business Plan by Tolga Baycan21 4. Financial Plan
A projected balance sheet Correctness of transactions… A must for reporting and financial management Includes Assets of the company, Debts (liabilities) of the company and the Owner’s Equity is the difference of liabilities and assets. So, Owner’s Equity = Assets – Liabilities or in it’s well known format : Assets = Liabilities + Owner’s Equity A break-even calculation Sales volume, at a given price, required to recover total costs. The thin line between Profit and Loss. Break-Even Point Revenue = Expenses Business Plan by Tolga Baycan22 4. Financial Plan
Manufacturing (Factories) Planning production levels Cost analysis, comparison of outputs with industry Production/capacity limits of physical plant & equipment Purchasing and inventory management issues etc. Business Plan by Tolga Baycan23 Which Business? type is dealing with what...
Service Business Intangible products. Labor costs Pricing and methods used for determining prices Quality Control procedures. Comparison with accepted industry quality standards. Measurement of Labor productivity Subcontracting? Is it profitable? Payments Business Plan by Tolga Baycan24 Which Business? type is dealing with what... Being service provider of a well known firm... Such as dealing with the problems of LG devices during the warranty period
High Technology Companies Economic outlook of industry Managing with rapid change of costs, prices and markets R&D factors Bringing product to market & keep the company competitive Avoiding technological obsolescense (out of fashion) Supplying necessary capital Business Plan by Tolga Baycan25 Which Business? type is dealing with what... Ebay.com, Sahibinden.com, Amazon.com etc.
Business Plan by Tolga Baycan26 IKEA / TEPE HOME
Retail Business Sale of goods and services from a business to the end-user Company Image Pricing Inventory level Customer Service Location Promotion Business Plan by Tolga Baycan27 Which Business? type is dealing with what...