Entrepreneurship I Class #8 VOSG I Business Plan and Finances

10/17/012 VOSG I

10/17/013 VOSG I Name and tagline Mission statement Opportunity SWOT Product/service description Industry analysis Target market analysis (segment, target, position)

10/17/014 VOSG I continued Competition Competitive analysis Customers Marketing and sales strategy

10/17/015 Sample outline Executive summary Description of business Market Competition Sales and marketing Management

10/17/016 Executive summary Short Opportunity Compelling Synopsis of high points of plan Tells a story

10/17/017 Description of business Details Informs Demystifies technology Graphics “Unfair” advantages

10/17/018 Market Analysis What need do you fill or problem do you solve? Industry overview/trends Market size Primary market(s) Customer profile

10/17/019 Competition Analysis I have no competitors = NO! Who is your competition? What are their strengths and weaknesses? Competitive advantages SWOT

10/17/0110 Competition

10/17/0111 SWOT Strengths ThreatsOpportunities Weaknesses

10/17/0112 Sales and marketing STP (segment, target, position) Pricing Strategies Tactics Marketing plan

10/17/0113 Management Founders/owners Operations Board of directors Board of advisors = Proven team with past success and drive to succeed again.

10/17/0114 VOSG I appendix  Summary of market research done to date  Contact names and numbers of people talked to (suppliers, partners, experts)  Customer contact summary (survey results, etc.)  Sample of survey or questions asked  Summary of future market research

10/17/0115 Business plans

10/17/0116 Purpose of the business plan External –credibility –raising money –selling the business –strategic partners –basis for grants Internal –goals –control –new product idea

10/17/0117 Essence of the plan What is your business? Why will you succeed? Who will buy? Why should I believe you? What is the opportunity ? = The Story

10/17/0118 Key elements Economically viable product or service with attractive markets. Established attack plan that can be replicated. Seasoned management team that has demonstrated that it can carry out the attack plan.

10/17/0119 Key drivers What are the key drivers to the venture’s success? –Manufacturing - yield on a production process –Magazine publishing - anticipated renewal rate –Software - distribution At what level of sales does business begin to make a profit? When does cash flow turn positive?

10/17/ key questions 1. Who is the new venture’s customer? 2. How does the customer make decisions about buying the product or service? 3. To what degree is the product or service a compelling purchase? 4. How will the product be priced? 5. How will the venture reach all the identified customer segments?

10/17/ questions continued 6. How much does it cost (time, resources) to acquire a customer. 7. How much does it cost to produce and deliver the product or service? 8. How much does it cost to support a customer? 9. How easy is it to retain a customer?

10/17/0122 Critical success factors People -founders, management and support Opportunity -profile of business Context -big picture (opportunities and threats) Risk and reward -what can go wrong and right - response

10/17/0123 Time Money time to positive cash flow potential reward

10/17/0124 Forming a business

10/17/0125 Structure Legal entity: –sole proprietor –partnership (LP) –limited liability company (LLC) –subchapter S Corp. (S) –C corp. Intellectual property position (IP)

10/17/0126 More structure Issuing stock Founders Board members Advisors Staffing Funding (credit card, friends and family, angels, vc)

10/17/0127 Still more structure Options Space Development Launch

10/17/0128 Entrepreneurial options Start a business –idea –resources Buy an existing business –expertise –resources Franchise –expertise –resources

10/17/0129 I’m already an entrepreneur State of the business Challenges ahead Growth potential Strategies