Business Plan Preparation Introduction Frank Moyes Leeds School of Business University of Colorado Boulder, Colorado FLM background How many in a business? How many starting a business in next 6 months? What kind of businesses? Retail, manufacturing, high-tech, service, non-profit Ask questions Introduction

Tonight’s Agenda Introductions Course organization & syllabus Writing a business plan Discuss your ideas Students introduce selves Major What have done that is entrepreneurial? What want from course? What is your wicked idea? Frank Moyes David Drake Introduction

Communications George Deriso geode@usa.net Frank Moyes Communications Frank Moyes frank.moyes@colorado.edu Office Hours: Koelbel 210 B Wednesday 3:00 to 5:30pm Thursday 3:00 to 6:00pm And by appointment George Deriso geode@usa.net Office Hours by appointment Website http://leeds-faculty.colorado.edu/Moyes Introduction

Materials Required (download) Materials Required (download) Lawrence and Moyes, “Writing a Successful Business Plan”, 2007 Moyes and Lawrence, “Financial Spreadsheets for the Business Plan” The New Business Road Test, John Mullins, 2006, FT Prentice Hall Introduction

Materials Lawrence and Moyes, “Writing a Successful Business Plan”, 2007 Moyes and Lawrence, “Financial Spreadsheets for the Business Plan” Introduction

Objectives of the Course Understand what is a business plan & when to write one Write a plan for viable business Experience the process Drink the cool aid, as it were. Painful Health Warning Amount of work – if stay on top of assignments, same as other courses Problem you get caught up Introduction

Course Structure Weeks 1 & 2: Evaluate opportunities Week 3: Select concept & team Weeks 4 & 5: Market & Industry Analysis Week 6 to 13: Instructor to describe a section of the business plan (slides posted on course website) Weeks 5 to 12: In the Fire sessions Week 14: Present business plan & hand in Week 15: Competition New material is really old stuff: marketing, finance Who has a concept? Who has done feasibility plan? Who has a team to write the plan? See me after class Concept and team selection: Trade fair Presentations: friendly fire STOP: Introduce Roving Planet Introduction

Grading Individual Team Assignments Resume Concept Participation Peer evaluation Team Assignments In the Fire sessions Written assignments & Presentations Final Business Plan & Presentation Introduction

Why Write a Business Plan? Road Map Establish goals to make sure that are on track and heading in the right direction Action Plan Small steps lead to large results Sales Tool to attract investors, vendors, customers, partners, employees So You Can Throw It Away! Process is the key Cauldron - test ideas & strategies Think through problems to solutions Lowers the risk “If we don’t have a plan for ourselves, we will be part of someone else’s.” Joan Lunden Introduction

A Good Business Plan Explains how you are going to do it Provides evidence that customers want to buy Tells a story - creates excitement Addresses the critical elements Should be painful to write Not a substitute for action Living document Introduction

Critical Elements of a Business Plan (& You Must Address) Strong market Attractive industry Compelling Need Clear value proposition Sustainable competitive advantage Understanding of profitability & cash flow Management Introduction

Why Not Write a Business Plan? Lack experience Information Time & cost to get causes too great a delay Can’t get Situation changes too quickly Founder has great experience, successful track record & has a “gut feel” for the business Introduction

Business Plan Sections Executive Summary Company Overview Product/Service Description Market & Industry Analysis Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Plan Funding Introduction

“Writing a business plan is a life changing event.” Comfortable with Uncertainty Lack of information Working in groups Frustrating Puzzle pieces keep changing shape May not be a lot of information Synthesis vs. Analysis - creative Conflict - normal, desirable All consuming Most common criticism on FCQ; should be 4 credits Ultimately, very rewarding Put your education together Excellent resume item Accomplishment Who said that? STOP: Exercise teams of 4, 10 minutes Is this a good opportunity? Introduction

Discuss Ideas Introduction

Concept Description Brief description Why is there an opportunity/need? What is the product/service? What are the unique benefits? How will it be produced or delivered? Who is the target market? What are the benefits to the target market? Who is the competition? What advantages do you have over the competition? Profitability Revenue model Contribution margins Introduction

Assignments for Next Week Sept 17 (before 1:00pm) email Business Concept and team members (if decided) to Instructor Sept 19 Instructor to email list of selected concepts Sept 20 Organize teams. Students whose concepts are selected to make short presentation to the class. Review Mullins 1, read Mullins 10 Read Writing a Successful Business Plan Introduction