Business Plan Preparation Introduction

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Business Plan PreparationIntroduction

• Frank MoyesLeeds School of BusinessUniversity
  of ColoradoBoulder, Colorado

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Tonights Agenda

• Introductions
• Course organization syllabus
• Writing a business plan
• Discuss your ideas

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Communications
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• Frank Moyes
• frank.moyes_at_colorado.edu
• Office Hours Koelbel 210 B
• Wednesday 300 to 530pm
• Thursday 300 to 600pm
• And by appointment
• Website http//leeds-faculty.colorado.edu/Moyes

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Materials
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• Lawrence and Moyes, Writing a Successful
  Business Plan, 2007
• Moyes and Lawrence, Financial Spreadsheets for
  the Business Plan

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Objectives of the Course

• Understand what is a business plan when to
  write one
• Learn to write a viable business plan
• Experience the process

Everything is vague to a degree you do not
realize till you have tried to make it precise.

Bertrand Russell
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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

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Grading

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

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

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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

If we dont have a plan for ourselves, we will
be part of someone elses. Joan Lunden
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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

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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

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Why Not Write a Business Plan?

• Lack experience
• Information
• Time cost to get causes too great a delay
• Cant get
• Situation changes too quickly
• Founder has great experience, successful track
  record has a gut feel for the business

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Writing a business plan is a life changing
event.
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Discuss Ideas
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From Student to Entrepreneur Approach to
Generate Ideas

• Doing what you love
• What bugs you
• Use your experience
• Recycle business concept
• Steps, pain points solutions
• Developed by Neal Lurie, MBA 2004

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Concept Team Selection Process

• Identify Concept
• Conduct Idea Exercise (download from website)
• Sept 5 email resume to instructor as Word
  attachment
• Must have your name Resume on file name
• Sept 5 discuss your concept in class
• Use Business Concept Description as a framework
  for explaining your concept

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Concept Team Selection Process (continued)

• Sept 7 (Friday) 100pm email Business Concept
  Description as a Word attachment to instructor
• Must have your name concept name in file name
  and on the attachment
• Sept 10 (Monday) Instructor to email all students
  which concepts with the greatest potential that
  have been selected
• Sept 12 Students whose idea are selected will
  form a teams of four on in class

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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

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Assignments for Next Week

• Resume email to instructor
• Review ESBM 3700 materials on Opportunity
  Recognition
• Identify an opportunity to discuss in class