(c) Business Plan Services Ltd Jane Khedair Managing Director Business Plan Services This and all supplementary course material may not be reproduced, copied, modified or adapted in any way without the prior express written consent of Business Plan Services Ltd and London Business School. All rights reserved. The “Perfect” Business Plan

(c) Business Plan Services Ltd Business Plan Services – est A service that is totally dedicated to all aspects of effective business planning 80+ consultants In association with London Business School

(c) Business Plan Services Ltd The Next 30 Minutes What is a business plan? What needs to be in a business plan? Big mistakes in a business plan 7 tests of an entrepreneurial opportunity

(c) Business Plan Services Ltd What is a business plan? Focus on the audience Paperweight for the bank manager Focus for the team Sales tool for equity funding

(c) Business Plan Services Ltd What’s in a business plan? Executive Summary Management and Organisation Products / Services The Market and Competition Route to Market Operational Details Exit Plan Financial Plan Appendices

(c) Business Plan Services Ltd Background VISION Where is your company now? What is your product or service? Value proposition

(c) Business Plan Services Ltd Typical mistakes at this stage include Excessive product detail You are too close to the product Customer benefits are self-evident

(c) Business Plan Services Ltd What is your market? And how people make money in this market Demonstrate a real understanding of what makes the market tick, why it is attractive, and why it will remain so

(c) Business Plan Services Ltd In addressing these issues, beware of Market data unsupported by factual evidence Lack of basic, first-hand market research Equating a large, growing market with ease of gaining share

(c) Business Plan Services Ltd How will you reach the market? Marketing and promotion Selling Distribution

(c) Business Plan Services Ltd Who will you be competing against? But this is only a photograph of what you (and everyone else) can see Basic competitor analysis tells us about competitors’ identity, size, financial results, etc. product range and performance market reputation - quality, service, image market positioning - price, support, selling methods

(c) Business Plan Services Ltd Operations In describing production and operations be sure that you don’t overburden the reader with excessive detail assume technological knowledge on the reader’s part use technical terms without explanation imagine that the reader finds the production process as fascinating as you do ignore the risks associated with production, particularly as volumes build up

(c) Business Plan Services Ltd The Team

(c) Business Plan Services Ltd The People… The first question for investors directly relevant industry, market experience and skills accomplishments and track record; viz. P&L responsibility range, depth and quality of relevant contacts: customers, suppliers, key personnel, etc. experience that the team has had in working together status and nature of commitment of both yourself and the team key recruits still to be found

(c) Business Plan Services Ltd Financial Projections This part of the plan should focus on... core assumptions the link between these assumptions and your market data key financial indicators base case and the rationale for it the potential downside and upside

(c) Business Plan Services Ltd How much money do you need? For an investor the key issues are: how much money is needed what it’s needed for when and in what stages it’s required key milestones the form in which the finance is required

(c) Business Plan Services Ltd Exit the projected timetable break even, positive cash and profit exit route valuations Do not feel obliged to propose a deal in the plan. Outline...

(c) Business Plan Services Ltd Risks Risk is inherent in starting a business. Identify and minimise all potential risks...

(c) Business Plan Services Ltd Executive Summary Last of all – the First Page captures the reader’s interest a clear picture highlights the salient features establishes team’s credentials encapsulates the financial opportunity VISION And persuades the reader to keep reading!

(c) Business Plan Services Ltd Big Mistakes in a Business Plan Who is the audience? What about the team? Value proposition? Route to market? Poor presentation (and excessive length) Lack of vision PASSION

(c) Business Plan Services Ltd The 7 Tests of an entrepreneurial opportunity 1. Does the opportunity match my experience, skills and interests? 2. Can I recruit and lead the team needed to exploit the opportunity? 3. Do the resource needs of the opportunity shorten the odds on success? 4. Is the timing of the opportunity right? 5. Does the opportunity constitute a scalable (and saleable) business? 6. Does the opportunity offer good margin potential? 7. Am I developing an opportunity or simply an idea?

(c) Business Plan Services Ltd How can BPS help you now? Business Plan Workshop – 18 th May minute Ideatorium with Action Plan A range of business plan preparation services

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