Business Plan Writing For Business Plan Series 20110624

Writing a Business Plan
If you fail to plan, then you plan to fail Harvey Mackay the plan is useless, but planning is essential - Dwight D. Eisenhower
LiveWIRE Brunei (c) 2011
About the speaker

Mohd
Fadhilullah Tudun Bin Haji Hassan @Mohd Hasbolah Bobby Entrepreneur, Computer Trainer and Business Counsellor Interests: IT, Biz and Education Contact:
Phone: +673 8651632 E-mel: bobbyofbrunei@yahoo.com

2
Introduction
Getting Name From
to know each other
Where Hobby and Interests Occupation/Employment/Business Reason for Attending Workshop
Business Plan Series Dates

Session 1 (24 June 2011)

Introduction to Business Plan Business Plan Structure Company Profile and Startup Table Products and Services Market Research, Analysis and Strategy Human Resource Management Financial Analysis Making a Business Plan Using IT Presentation
4
Session 2 (1 July 2011)

Session 3 (8 July 2011)

What is a Business Plan?

It
is a medium to communicate your business idea It is a document that shows the inner workings of the business. Business Blueprints and Roadmap
Business Plan Crash Course

Business
Plan Structure Business Profile Products and Services Market Research and Market Strategy Organization Operation Strategy Financial Strategy Winning Strategy
6
Whats the Purpose of a Business Plan?

Business Profile To convince investors/bankers of the business feasibility. The Business Roadmap To clarify the structure of the business and how it will be managed. Operations Manual To communicate to employees on their responsibilities in relation to the company objectives. The Style of the Business Plan will differ with different purposes.
7
What Biz Ideas Can You Plan?

Conventional but Feasible e.g. restaurant, stall, bakery, workshop, retail shop, School Simple evaluated by the business plan writing, and how you can make it different.

Innovative but Unproven e.g. new franchise, technology company, new inventions Challenging evaluated by the Business idea and its feasibility
8
The Perfect Business Idea

Expertise
Passion
Business Model
Where to learn to create a Biz Plan?

Books

Bookstores, Libraries Internet

www.bplans.com, www.sba.gov, www.shelllivewire.com, www.livewire-brunei.com, www.howstuffworks.com, www.soyouwanna.com, www.entrepreneur.com, www.google.com.
Courses
Sinaut Entrepreneurial Development Centre LiveWIRE Business Plan Series iCentre - Think Big Biz Plan Workshops

10
Formal Business Plan Structure

Cover Table of Contents Executive Summary Business Profile Products and Service Operations Strategy Marketing Analysis Market Strategy

Organization Strategy Operation Strategy Financial Analysis and Forecasts Milestones, Future Plans and Exit Strategy Appendices
11
Executive Summary
12
Executive Summary
Often
Written Last, Shown First. Make it interesting for the reader. Make the reader want to read more. Make it simple point form for every section, or a simple abstract summary. 1 or 2 pages Maximum. E.g. 30 second Movie Preview
13
Business Profile

Introduce the business Legal Structure of Business

Sole Proprietor, Partnership, Sendirian Berhad, Koperasi Food, Service, Manufacturing, IT,

Nature of business

Mission and Objectives Startup Cost Milestones/Achievements

14
Products and Service

What
is it? Who are you going to sell it to? What problem is it solving? How much will it cost them? What makes it unique? Intellectual Property Involved? Sales Forecast
15
Market Analysis

Who are you going to sell to? Who are your competition? What do they do? SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats) What are the Market Forces that affects you? Political, Economic, Social, Technological (PEST) Factors for Success
16
Market Strategy
How
are you going to tell your customers that you are there? 4 Ps
Product Price Place and Distribution Promotion

17
Human Resource Management

Who are involved? Organization Chart Personnel Roles and Responsibilities Personnel Qualifications Key Roles/Management Payroll Cost
Manager Admin Worker 1 Worker 2 Assistant Worker 3
18
Operations Strategy

How is the business going to run? How is the business making money? Location and Working hours Product Life Cycle - e.g. Agricultural vs Retail Production Process

Input Process
Output
Technology/equipment Involved Sales Forecast in relation to Operations or Season (can also be in product section)
19
Financial Analysis and Forecast

Start up costs Sales Forecast Personnel/Payroll Cost Profit and Loss Cash flow Forecast Balance Sheet Break-even analysis
90 80 70 60 50 40 30 20 10 0 1st Qtr 2nd 3rd Qtr 4th Qtr Qtr
nett income Expenses nett
20
Future Plans and Exit Strategy

What are you going to do with the business in the long-term:

Expand Sell Handover to family member Go Public Get Merged or Acquired If Bankrupt or unsuccessful what will you do?
or if anything goes wrong.

21
Appendices
Marketing

Materials
Research Materials and Results Sample of Advertisements Survey Results

Full

Financial Tables
2-5 years
22
Business Profile
23
Business Profile

Introduce the business and its history Biodata of the Business

Name, Location, Contact no., Year Started, etc. Sole Proprietor, Partnership, Sdn Bhd, Cooperative Food, Service, Manufacturing, IT, etc
Legal Structure of Business

Nature of business

Startup Cost or Milestones/Achievements

24
Vision and Mission

Vision

vs Mission
Mission What is the desired Goal Vision How you see the future
Why
does the Business Exist? The Purpose of the Business. Usually Intangible, Broad, and Abstract
25
Examples of Mission
- to organize the world's information and make it universally accessible and useful. Rich Dad Companys - to elevate the financial well-being of humanity Microsofts - To help people and businesses throughout the world realize their full potential
Google's
26
Objectives

What you need to do to achieve the mission Objectives are SMART:

Specific Measurable Attainable/Achievable Relevant Timely
This might be clearer after the biz plan is done
27
Examples
To
earn $1 million dollars in revenue in the 2nd Year to sell 1000 units in the first year to achieve 50% market share in the 2nd year.
28
Exercise
Create

you Business Profile
Business Name Legal Structure Nature of Business Products and Services Mission and Objectives
29
Startup Costs Accounting Terms

Capital money that was put in by the owner. Liability money put in by banker/investor to be paid back. Assets property that can be turned to cash Expenses purchases or payments that cannot be redeemed for cash Income Money coming in from business operations or sales.
30
Startup Costs Assets and Expenses

Assets

Expenses

Assets Purchase

Legal Expenses

Equipment Furniture Building Cash in hand Raw materials Work In Progress
Registration Business License
Current Assets

Initial Operation Expenses

Rental Deposit Utilities Marketing Employees
Intangible Assets (IP)
Decorations and Design

31
Exercise
Create

your Startup Table
Assets
Fixed Assets Current Assets Intangible Assets
Expenses
Legal Initial Operation Renovations

32
Products or Services
33
Know your product or service

What
do you provide? What are the Features and Benefits. What makes it unique? To who do you provide?
Business to Business (B2B) Business to Customer (B2C)

34
Features vs Benefits

What you offer E.g.

What customers get E.g.

Food Phone House Hotel Room Furniture Gym
Satisfaction/Full Communications Home Rest/Sleep Comfort Health/Look Good
35
Intellectual Property Rights

Copyright Books, Software, Audio, Video Trademark Logo, Signage Patent Inventions, Mechanisms Design Physical Appearances
E.g. Android OS, iOS

Android Logo, Apple Logo The combination of the chips and circuits The look and feel of the phone.
36
What to Who? Product to Consumer Matrix

PC Consumer Student Professionals Office Geeks/Gamers High End Medium Low End
37
Market Research
38
Resources on Marketing

Books

Ziglar on Selling zig ziglar Salesdogs Blair Singer Smallbusiness.yahoo.com, bnet.com, salesdogs.com, howstuffworks.com, en.wikipedia.org LiveWIRE BSOM EDC Pemasaran yang berkesan, Jurujual Profesional
39
Websites

Courses

Why is Market Research Necessary?

To know your customers

To know your competitors

See what type of people or how many would be interested? Where can you get your customers? How much people will want to pay?
Who they are What they do/provide? What are their Pros and Cons
To see how feasible your biz idea is.

40
What you need to know first

Understand

your products or service
Its benefits, quality
Your

basic operations and product life cycle e.g. farming, manufacturing, etc
Seasonality (weeks, months, years)
Your

Products History
Price, Promotions, Distribution
41
Where can you get Market Research?

Primary
Research research you get and analyze yourself Secondary research research that has already been done
42
Primary Research

Phone Call SMS Interview Survey Letters
Design, Print, Photocopy, Gather, Data entry and Analyze Use Internet e.g. Facebook and Survey Poll.
43
Secondary research

www.depd.gov.bn Department of Economic Development and Planning

Perancangan Kemajuan Jangka Panjang NBD Brunei Statistical Yearbook 2004

Other Government Newsletters Internet

Internet statistics www.internetworldstats.com Cia world factbook www.cia.gov
44
What you need to Ask?

How Big is the market? Market Segmentation. Who

are your Customers? (Dont say everyone)

Age group, Geographic Location, Employment, Income Level, etc.
Who

are your Competitors/Allies
What they do well or badly.
What

your targets wants in your product/service?

Price, quality, feature, benefits.
45
PEST factors
Factors how does the government affect your market. Economic Factors how does the economic status affect your market. Social Factors cultural and social trends. Technological Factors technology that affects the market.
Political
46
SWOT

Internal

External

Strength Weakness
Opportunities Threats
47
Porters 5 Forces
48
Exercise
Product

and Market Research
What are your Product(s) or Service(s) Who do you Sell to? Market Size? Segmentation e.g. Age, Income, Occupation Who else is trying to get your customers? How does the market affect your business?

PEST, or porter 5 forces
What are your SWOTs
49
Market Strategy
Getting someone, who has a need, to know, like and trust you John Jantsch (Duct Tape Marketing)
50
Why do you need a Marketing Strategy?

Focuses
your Marketing efforts more effectively So you can decide how and when are you going to Market yourself. So you can allocate the Budget for Marketing Strategies
51
How do you choose a strategy?

Choose

those
That focuses on your target market Affordable Effective

Not energy consuming Not time consuming

52
What is your Marketing Mix?

The

4 Ps
Product Unique Selling Advantage, Packaging and Value added services Price Pricing of the products compared to competitors. Place Location of your business or/and Distribution of your products Promotion Advertising, Public Relations, Word of Mouth, Point of Sale.
53
What Promotion Strategies can you do?

Fliers Posters Newspaper Brochures Business Cards Exhibition TV Radio Letters/faxes Stationery and gifts
Referrals Word of Mouth Direct Selling New Technologies

E-mail Website Web advertising Social networking Blogs
And Many More!!!
54
Market Strategy Implementation

Marketing

Calendar when are you going to implement the strategies?

Look at your production capacity Look at the market seasonality
Marketing
Budget how much will it cost during those times.
55
Marketing Costs
Month Fliers Business Card Online Exhibition Total 1 2 3 4 5 6 7 8 9 10 11 12 Total
56
Marketing Costs Pie Chart
$500.00 , 5%
Fli P O li ibi i
$200.00 , 10% $1,000.00 , 50% $300.00 , 5%
57
Exercise Marketing Strategy

Keep

in mind
What is are your products? Who do you sell to? Who is also trying to sell to them?
How

are you going to reach your customers?

What are your 4Ps What does your marketing cost you?
58
Organization Strategy/ HR Management
59
Why do you need an organization strategy?

Judges
see this as how strong your team can build the business Investors see this as how good the people are that can make their money. To calculate costs for Personnel / Payroll To see any management gaps
60
Management Team and Gaps

Briefly
describe who are in your team (who you already have) A summary of each team members CV Also mention what gaps you may have (Team member you may lack) Mention advisors you may have Include CV in appendices
61
Organization Chart
CEO
Admin
Products/ Service
Sales And Marketing
Finance
HRD
Front Desk
Back Desk
62
Roles and Responsibilities

Roles or positions Responsibilities Qualifications Salary

Responsibilities Manages Company Manages Finances Manages IT Manages Department Qualifications Degree, MBA Degree, MBA ND or Degree ND or MBA Salary $2,000 $1,500 $1,500 $1,200
Roles CEO CFO CIO MD
63
Payroll/Personnel Cost
Month 1 CEO CFO CIO MD TAP SCP Total 2 3 4 5 6 7 8 9 10 11 12
64
Operations Strategy
65
Operation Strategy

What is your business model?

How does your business make money? Cash or Credit/Accrual What do you do? Services or products? When do you produce your products/service What are the monthly running costs?
66
How do you receive your payment?

What are your business activities?

What is the business/product cycle?

What are the overhead costs?

Sales Forecast Table

Month Units Sold Sales Price Cost Price Total Sales Total Cost Gross Profit
67
10
11
12
Total
How to base the Sales

By Supply/Capacity How much you can handle and when Services like restaurants or internet cafe look at capacity (number of chairs) Products look at how much or when it can be produced, stored, or how fast it can be reordered. By Demand How much people often want to use your service or buy your product, this can be derived from market research. Services like restaurants or tailoring look at seasonal behavior of customers Products look at customers use of products. E.g. addiction to cigarettes
68
Overhead Costs
Fixed Costs that are related to running the operations. May be Unrelated to costs such as:

Examples: Stationery Rental Utility Bills

Cost of goods (COGs) Variable Marketing costs Payroll costs
Electricity, Water, Phone, Internet Access

Maintenance Loan Repayments License Fees Insurance Taxes

69
Financial Analysis
70
Resources
Financial

Books
Accounting for non accountants, accounting for dummies,
Internet Courses
LiveWIRE BSOM EDC Accounting Courses BICPA-FTMS certified accounting courses

71
Why do you need Financial Analysis?

To
see that the business is feasible in terms of cash To see that you are making money So you can plan your expenditures more carefully
72
Financial Analysis
Break-even
analysis Profit and Loss Cash Flow Forecast Balance Sheet
73
Break-even analysis

Units S ld Fixed C sts Unit Sales Unit C st Fixed C sts + Variable C st
What is the purpose? To see how many units need to be sold to make money. What you need to know? Units Sold Sales per unit Cost per unit Fixed Costs Note: this is for a single product, for multiple products you may use average.
$7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 0

0 $2,400 0 0 $2,400
100
100 $2,400 2000 500 $2,900
200
200 $2,400 4000 1000 $3,400
300
300 $2,400 6000 1500 $3,900
74
Profit and Loss Forecast

Calculates the amount of money going in (from sales) and out (from operations cost) Factors

Income from Sales of Goods or other items Expenses from

Direct Cost of Goods Expenses , Controllable and Fixed Costs Gross Profit and Gross Margin Net Profit
Calculate

75
Profit and Loss Forecast Sample

1 Gross Sales Direct Cost of Goods Gross Profit Expenses Nett Profit
76
10 11 12 Total
Cash Flow forecast

Similar to Profit and Loss, But it looks at:

Other factors of money going in or out other than monthly business operations.

In-flow additional loans, owners capital, Out-flow business taxes, assets purchase, renovations, expansion, owners draw/dividends Nett-flow (profit or loss) and accumulated cash (money in bank) Especially useful if you are buying/selling by using credit.
Actual Money going in or out

Ensuring there is money in the bank.

77
Cash Flow forecast sample

Month In-Flow Out-flow
Overhead Payroll marketing
10 11
12 Total
Nett Flow Accumulated Cash
78
Sample Cash-flow Chart

15000 10000 5000 0 1 -5000 -10000 Nett Flow Accumulated ash 2 3 4 5 6 7 8 10 11 12
79
Balance Sheet

Assets

Liabilities

Current Assets

Current Liabilities

Stocks, Cash, Accounts Receivable Equipment, Furniture, Land, Building, Vehicles Patents, Copyrights, Goodwill
Accounts Payable, Taxes,
Fixed Assets

Long-Term Liabilities

Mortgages, Contract Payments
Intangible Assets

Net Worth = Assets Liabilities

80
Balance Sheet Sample

Assets Current Assets
Stocks and WIP Cash Accounts Receivable
$ 500 5,000
Liabilities Current Liabilities

Accounts Payable Taxes
$ 500 200 10,000 1,000 11,700
500 Long-Term Liabilities

Bank Loan, Mortgages
Fixed Assets
Furniture Equipment
2,000
Contract payment
5,000 Total Liabilities 500 13,500 Net worth

Other Assets
Trademark
Total Assets
1,800
81
Using IT
82
Using the IT to create a biz plan

Using Word

Templates, styles and TOCs, Header and Footer, Page number Inserting Graphics, Organization Chart, Tables Using Formulas and relative addresses, importing into word Creating Cash flow and Graphs Slide Design, Animation Schemes, Footers and Printing
Using Excel

Using PowerPoint

83
Writing and Presentation Tips
84
Plan to Make Your Business Plan

Allocate

the time you need to do certain parts of the Business Plan

Use Calendar/Planner/Diary/Journal Create a deadline for specific tasks
If
you are doing in a group (highly recommended) allocate specific tasks for a specified person
85
Writing Tips

Clear Concise Organized Well Laid Out Natural Positive

Well interpreted facts Do not jump to conclusions Show Sources Proofread Make it Perfect Well written executive summary
86
Presentation Tips

10-15 slides 10-15 minutes Keep it Simple Make it to the point Tell a Story Dress Professionally Practice

In front of mirror In front of someone
87
Tell a Story
Introduction
(breaking the ice) Existing Problem/Pain/Situation Solution (Product/Service) your are providing Market Research and Strategy Who are involved How you can succeed
88
10 tips from David S. Rose

Do not look at the screen Do not read your speech Do not do a Live Demo Always use a Remote control Remember handouts are not your presentation Do not tell Jokes.. Ever Do not stroll or fidget Pace the presentation smoothly and evenly Check equipment, own laptop and projector Only the CEO give the money pitch
89
Quick Tips

Your idea doesnt just make money, but helps people:

Creates jobs, or provides a service, or provide a solution, alleviates a pain/discomfort

Its not just an idea, but a work in progress. You have the numbers to back you up. You have qualified people (employees or partners) involved. Be passionate in your presentation
90
Your Mission
1. 2. 3. 4. 5. 6. 7.
Start and Complete Your Business Plan! Choose a business Idea Plan to create biz plan Create a draft Biz plan or exec summary Design and implement market research Analyze Market Research Adapt Biz Plan Strategy to meet Market Analysis
91
Thank You, Good bye, and Good luck!
92

Business Plan Writing For Business Plan Series 20110624

Загружено:

Сведения о документе

Исходное описание:

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Business Plan Writing For Business Plan Series 20110624

Загружено:

Авторское право:

Доступные форматы

Writing a Business Plan

LiveWIRE Brunei (c) 2011

About the speaker

to know each other

Where  Hobby and Interests  Occupation/Employment/Business  Reason for Attending Workshop

LiveWIRE Brunei (c) 2011

Business Plan Series Dates

Session 1 (24 June 2011)

Session 2 (1 July 2011)

Session 3 (8 July 2011)

What is a Business Plan?

LiveWIRE Brunei (c) 2011

Business Plan Crash Course

Whats the Purpose of a Business Plan?

What Biz Ideas Can You Plan?

LiveWIRE Brunei (c) 2011

The Perfect Business Idea

LiveWIRE Brunei (c) 2011

Where to learn to create a Biz Plan?

Bookstores, Libraries  Internet

Formal Business Plan Structure

LiveWIRE Brunei (c) 2011

LiveWIRE Brunei (c) 2011

Introduce the business Legal Structure of Business

Mission and Objectives Startup Cost Milestones/Achievements

Products and Service

LiveWIRE Brunei (c) 2011

LiveWIRE Brunei (c) 2011

Human Resource Management

Manager Admin Worker 1 Worker 2 Assistant Worker 3

LiveWIRE Brunei (c) 2011

Financial Analysis and Forecast

90 80 70 60 50 40 30 20 10 0 1st Qtr 2nd 3rd Qtr 4th Qtr Qtr

nett income Expenses nett

LiveWIRE Brunei (c) 2011

Future Plans and Exit Strategy

What are you going to do with the business in the long-term:

or if anything goes wrong.

LiveWIRE Brunei (c) 2011

Research Materials and Results  Sample of Advertisements  Survey  Results

LiveWIRE Brunei (c) 2011

LiveWIRE Brunei (c) 2011

Introduce the business and its history Biodata of the Business

Legal Structure of Business

Startup Cost or Milestones/Achievements

Vision and Mission

LiveWIRE Brunei (c) 2011

What you need to do to achieve the mission Objectives are SMART:

Specific Measurable Attainable/Achievable Relevant Timely

This might be clearer after the biz plan is done

LiveWIRE Brunei (c) 2011

LiveWIRE Brunei (c) 2011

you Business Profile

LiveWIRE Brunei (c) 2011

Startup Costs Accounting Terms

LiveWIRE Brunei (c) 2011

Startup Costs Assets and Expenses

Equipment Furniture Building Cash in hand Raw materials Work In Progress

Registration Business License

Initial Operation Expenses

Rental Deposit Utilities Marketing Employees

Intangible Assets (IP)

Where Hobby and Interests Occupation/Employment/Business Reason for Attending Workshop

Bookstores, Libraries Internet

Research Materials and Results Sample of Advertisements Survey Results

That focuses on your target market Affordable Effective

Referrals Word of Mouth Direct Selling New Technologies