MNE 3701 – Entrepreneurship and Small Business Management

MNE 3701 – Entrepreneurship and Small Business Management ①The Business Plan: Visualising the dream Will writing a plan make a difference? Form of the business plan Short plan: an abbreviated form of an traditional business plan that addresses only important issues  The problem needing to be solved  The strategy  Measures used to gauge success  Milestones to be met  Tasks and responsibilities of the team  The business model 15-30min PowerPoint presentation – thereafter investors will ask for more info Comprehensive plan: in-depth analysis of critical factors that determine a firm’s success or failure Preparing a business plan: Content and Format 3 things must be evident from the feasibility analysis before a business plan is done 1. Strong market potential 2. An attractive industry 3. The right team to execute the plan The business plan should give thorough consideration to the following basic factors:  The opportunity should reflect potential and attractiveness of the market and industry  Critical resources include money, human assets, hard assets  The entrepreneurial team must possess integrity, depth and breadth of experience  The financing structure will impact incentives  The context of an opportunity includes regulations, interest rates, demographic rates, inflation, etc. Cover page Company name, address, number, fax, website, tagline and logo, name of contact person, date, number of the copy Table of contents Lists all sections with a page number so the reader can spot-read the plan Executive summary This must convey a clear and brief picture of the business & create excitement (it provides an overview of the entire plan) It should include description of the opportunity, explanation of the business concept, industry overview, the target market, competitive advantage, economics of the opportunity, management team, amount and purpose of money requested Company description Offers info on type of business, objectives, location, serve local or international market, history (in existence) & legal issues Industry, target customer & competitor analysis Present the opportunity and demonstrate why there is a need (industry size, growth rate, major players) Describe the niche in which participation will take place in the different market segments & the customers (demographically & psychologically (values, attitudes, fears)) - knowing the customers will help understand competitors Product/Service plan Describe the merits of the P/S, explain how it will fill the gap in the market (try provide a working model or prototype) Also include a growth strategy Marketing plan How will the business reach customers- methods of identifying & attracting customers, pricing, selling approach, type of sale force, distribution channels, sales promotions, advertising, credit & pricing policies Operations and development plan This is how the product is produced or service provided & how it creates a competitive advantage Location, facilities, equipment needed is all included here Management team Even great management in the wrong market can be problematic (good team + growing market = success) Well balanced team of financial, marketing, production experience and innovation is needed Critical risks Identifies potential pitfalls that might be encountered (lack of market acceptance, longer time needed, higher expenses, inadequate financing, government regulations) Offering Indicates how much money is needed and when and how it’ll be used Exit strategy Investors will want to know the possible options for cashing out of their investment Financial plan