The Business Plan Notes (1)

THE BUSINESS PLAN •

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Business Plan It explains the entrepreneur’s vision in writing Demonstrates implementation (strategy and operations) May function as a nancing proposal or investment prospectus esolves con!icting demands upon scarce resources "y setting priorities  #here is a positive relationship "etween planning $ performance performance in new and small rms%

Benefts o a Business Plan Comprehensiveness  #he "usiness plan has to fully and completely treat all the the ma&or issues facing the new venture% It should leave nothing of importance out Communication  #he plan is a document for communicating communicating to various audiences the "usiness’s "usiness’s concept and potential% 'n eective plan succeeds in communicating the excitement and vision of the founders and can help to attract resources to the new venture% Guiance  #he "usiness plan sets goals goals and milestones for the new venture% venture% It lays out the intentions of the entrepreneurial team and the values the founders wish to preserve in the organisation% ' readily availa"le written plan fosters f osters cohesiveness "ecause everyone can see what the rm’s desired o"&ectives are% The Plannin! Process  #he process of putting putting together a "usiness plan consulting consulting it fre*uently and reviewing and revising it periodically can improve the venture’s performance even though some aspects of the plan may "ecome o"solete "efore long  #he process of collecting information information sharing analysis developing developing norms for decision ma+ing pu"licly enunciating the values of the organisation’s leaders reviewing o"&ectives and lin+ing these with action , all ma+e for a more eective organisation% •

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' Business Model •

' sample mission

 #he -./ organisation’s mission mission is to provide provide youths from low0income neigh"orhoods with the academic s+ills and learning le arning opportunities they need to succeed and to provide college students with the opportunity to understand and help meet those needs in order to promote their own development as leaders%

" #ission $uestions • • • • •

1hat 1hat 1hat 1hat

will the enterprise do and what will it not do2 does 3value4 mean for this enterprise and how is it measured2 is this enterprise’s uni*ue innovation or adaptation2 constitutes 3success4 for this enterprise2

A %etter mission statement  #he -./ organisation provides low0income youths with the academic s+ills they need to succeed in life and gives college students the opportunity develop their leadership a"ilities% #he rst programme of its +ind in 5ew Delhi matches at0ris+ +ids with students from local universities who mentor them in "asic academics and provide real0life role models of academic success% 6ur goal while reaching as many young people as possi"le is to create a model for learning and teaching that others will emulate in 5ew Delhi and across India%

&utline • • • •

7reativity and ideas Business models Missions Business plans%

Business plans •

' social enterprise’s 3manual4 for +ey constituents 'ctual and potential funders 8overnment o9cials  #he community  #he social entrepreneur 'ctual and potential sta and volunteers Board mem"ers%  –  –  –  –  –  –

Business plan components :% ;% <% =% >% ?% @% A% %

Business plan summary Description of the enterprise #he team #he mar+et and industry Mar+eting and fundraising #he nancial plan 8oals and o"&ectives with a timeline is+ assessment Cupporting documents%

Summar' • • • • •

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1hat is the venture2 1hy is it new and important2 1ho will "enet from it and how2 ow (in general terms) will the idea "e executed2 1ho is the social entrepreneur and what uni*ue s+ill service or "ac+ground does he or she (or they) "ring to the venture2 1hat +ind of support for the enterprise is needed and how much of it2 1hat will constitute success2

Enterprise escription

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 #he idea and why it is an authentic opportunity  #he mission statement Denition of value and how it is to "e measured Eey innovations or adaptations 7ompetitive advantage  #he social enterprise’s legal structure 7urrent status of enterprise%

The enterprise team Management Board 'dvisors Farly donors% • • • •

Anal'sis o the mar(et an inustr' Industry description  #arget mar+et Fxpected position and share in target mar+et% • • •

Enterprise mar(etin! an unraisin! Gundraising targets and strategies 8rant0writing plans Pricing plan Gor0prot activities Mar+eting% • • • • •

The fnancial plan Ginancial needs for <0> years Ginancial pro&ections Pro&ected Income $ Fxpenditure statements Gunds0!ow and 7ash0!ow pro&ections Pro&ected Balance sheets% • • • • •

Enterprise !oals an o%)ectives Denition of success Intermediate goals and success measures Fvidence that goals can "e achieved  #imeline Ctart of the enterprise Incorporation date if any iring space and e*uipment ac*uisition Ctart of service delivery Beginning of cash !ow from fees grants and donations Fnterprise growth milestones 8oal attainment% • • • •

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#ost common B*plan pitalls • •

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Gailing to communicate realistic goals Gailing to anticipate pro"lems lac+ of evident commitment or dedication to the venture Hac+ of experience

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Gailure to demonstrate mar+et niche%