1. Business Plan Preparation Aerospace Engineering
Frank Moyes Leeds College of Business
University of Colorado Boulder, Colorado
Introduce
Liz Snowden
Ed Kahn
Myself
Describe concepts
Frank Moyes

2. 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
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

3. Ask Yourself 3 Questions
Will any one buy it?
Can it make money?
What is my competitive advantage?
Technology company – will it work?
Frank Moyes

4. Will Anyone Buy It? Need - what problem are you solving?
Size, growth & trends of YOUR market
Target customer – Who will buy it? Why?
Size, growth & trends
Size has to be big enough to be worth your while
Demographics & psychographics
Who cares?
People are already having their need satisfied
Needs
Solves a problem
Unfulfilled niche
Dissatisfaction with current products/services
Poor quality or service
Physical Physiological
Emotional Social
Financial Intellectual
Best proof: sales, order, agreement. LOI
Needs:
Manage information: Google
Physical: food, warmth, shelter, sleep, etc.
Physiological: health, cleanliness, comfort, fitness, safety, etc.
Emotional: euphoria, love, prestige, stress, etc
Social: ethical, honesty, power, competitiveness, integrity, friendship, etc.
Intellectual: achievement, better decisions, artistry, etc.
Economic: revenues, productivity, cost savings, maintenance, etc.
Financial: ROI, DCF, payback, burn rate, etc.
Frank Moyes

5. Can I Make Money? Positive cash flow High Margins Clear Revenue Model
Low prices are not the answer
Clear Revenue Model
Positive cash flow
Introduce concept of burn rate
Really understand
What are the normal margins in your market?
How will I get volume. What customer? When? Agreement
What sales do I need to break-even?
What is your burn rate?
Best Case
Worst Case
Financial dynamics
COMP’s
How do you make money?
Hi volume, low margins and v.v.
Channel discounts
Pricing policy: keystone,
Credit terms
Inventory policy
Frank Moyes

6. What Is My Competitive Advantage?
Who is the competition?
How can I differentiate?
How can I sustain the advantage?
Questionable competitive advantages
Taste
Organic
Sustain
Reaction of competition
Entry of new competition because of your success
Best competitive advantage
Really understand the market
Really understand the competition
Frank Moyes

7. Questionable Competitive Advantages
“We will be first to market.”
“We have filed a patent.”
“We have the best quality.”
“We have lower costs than the competition.”
“We will do it better.”, than people with 10 years experience.
“We don’t need much money to live on.”, if our parents continue to pay the bills.
Frank Moyes

8. Business Plan Elements
Executive Summary
Product or Service Description
Industry and Marketplace Analysis
Marketing Plan
Operations Plan
Development Plan
Management
Competitive Advantage
Financial Projections
Offering, Funding, Valuation
Length 20 pages
Frank Moyes

9. Course Overview Course reference Class structure Research
EMEN 4825 Business Plan Preparation
ESBM 4830 Business Plan Preparation
Class structure
First – lecture
Second – in-class assignment
Team meetings with instructor
Research
Interviews with experts about the concept
Customer surveys about the product/service
In the Fire sessions
Difference between Feas and BP
Before writing the business plan
Necessary steps
Critical questions
Frank Moyes

10. Resources & Tools http://leeds-faculty.colorado.edu/moyes
Lawrence & Moyes, Writing a Successful Business Plan, 2009
Financial Projections Model v6.8.9
John Mullins, The New Business Road Test, FT Prentice Hall
Frank Moyes