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Chapter 4 writing a business plan ppt

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Presentation on theme: ” 2012 Pearson Education Chapter 4 Writing an effective Proper Strategic Business Plan Bruce R. Barringer R. Duane Ireland 4-1.”— Presentation transcript:

1 2012 Pearson Education Chapter 4 Writing an effective Proper Strategic Business Plan Bruce R. Barringer R. Duane Ireland 4-1

2 2012 Pearson Education Chapter Objectives 1 of three 1.Explain the aim of an effective proper strategic business plan. 2.Describe the 2 primary causes of writing an effective proper strategic business plan. 3.Describe who reads an effective proper strategic business plan together with what they’re looking for. 4.Explain the main difference in the summary proper proper strategic business plan, a whole proper proper strategic business plan, along with an operational proper proper strategic business plan. 5.Explain why the manager summary could be the most important a part of an effective proper strategic business plan. 4-2

3 2012 Pearson Education Chapter Objectives 2 of three 6.Describe a milestone and exactly how milestones are utilized operating a company plans. 7.Explain why it’s imperative that you include separate sections round the firm’s industry that is audience within the proper proper strategic business plan. 8.Explain why the “Management Team and Company Structure” a part of an effective proper strategic business plan is especially important. 9.Describe the needs from the “sources and reason for funds” statement along with an “assumptions sheet.” 4-3

4 2012 Pearson Education Chapter Objectives 3 of three 10.Detail the different in the dental presentation in the proper proper strategic business plan. 4-4

5 2012 Pearson Education What exactly is a Proper Proper Strategic Business Plan?

Chapter 4 writing a business plan ppt to begin by articulating

Proper Proper Strategic Business Plan –A proper proper strategic business plan could be a written narrative, typically 25 to 35 pages extended, that describes precisely what an internet business offers to accomplish. Dual-Use Document –For most new ventures, the correct proper strategic business plan could be a dual-purpose document used both inside and outside of doorways the firm. 4-5

6 2012 Pearson Education Who Reads the business Plan—And Precisely What Are They Looking For? There’s two primary audiences for almost any firm’s proper proper strategic business plan AudienceWhat They are searching for Any Firm’s Employees Investors along with other exterior stakeholders A clearly written proper proper strategic business plan helps the workers in the firm operate in sync and proceed within the consistent and purposeful manner. A firm’s proper proper strategic business plan must make situation the firm is a good use of an investor’s funds or possibly the interest of others. 4-6

7 2012 Pearson Education Guidelines for Writing an effective Proper Strategic Business Plan 1 of 5 Structure within the Proper Proper Strategic Business Plan –To receive the best impression an effective proper strategic business plan must have a standard structure, like the outline for the proper proper strategic business plan proven within the chapter. –Although some entrepreneurs need to demonstrate creativeness, departing inside the fundamental structure within the conventional proper proper strategic business plan is a mistake. –Typically, investors are busy people and want a concept where they might learn more. 4-7

Chapter 4 writing a business plan ppt 2012 Pearson Education

8 2012 Pearson Education Guidelines for Writing an effective Proper Strategic Business Plan 2 of 5 Structure within the Proper Proper Strategic Business Plan (ongoing) –Software Packages There are many software programs available that employ an interactive, menu-driven method of assist with the writing in the proper proper strategic business plan. A few of individuals programs are extremely useful. However, entrepreneurs should avoid a boilerplate plan that appears as if it originated from a “canned” source. –Sense of delight Together with details and figures, an effective proper strategic business plan must project a feeling of anticipation and excitement regarding the options that surround a totally startup company. 4-8

9 2012 Pearson Education Guidelines for Writing an effective Proper Strategic Business Plan 3 of 5 Content within the Proper Proper Strategic Business Plan –The proper proper strategic business plan should give apparent and concise details about all of the primary reasons within the suggested venture. –It needs to be extended enough to supply sufficient information yet short enough to keep readers interest. –For most plans, 25 to 35 pages is enough. Kinds of Proper Proper Strategic Business Plans –There are three kinds of proper proper strategic business plans, that are proven across the next slide. 4-9

10 2012 Pearson Education Guidelines for Writing an effective Proper Strategic Business Plan 4 of 5 Kinds of Proper Proper Strategic Business Plans 4-10

11 2012 Pearson Education Guidelines for Writing an effective Proper Strategic Business Plan 5 of 5 Recognizing the weather within the Plan May Change –It’s imperative that you realize that the program will most likely change while written. –New insights generally emerge when a business owner or possibly a select couple of of entrepreneurs immerse by themselves paper the program and begin getting feedback from others. 4-11

12 2012 Pearson Education Outline of a good Proper Strategic Business Plan –A recommended outline in the proper proper strategic business plan is proven across the next several slides. –Most proper proper strategic business plans don’t include all of the elements introduced within the sample plan we include them here with regards to completeness. –Each entrepreneur have to research which elements associated with their plan. 4-12

13 2012 Pearson Education Section 1: Executive Summary a couple of Executive Summary –The executive summary could be a short overview of the whole proper proper strategic business plan –It provides a busy readers with other things that should be known the brand-new venture’s distinctive nature. –An executive summary shouldn’t exceed two single-spaced pages. 4-13

14 2012 Pearson Education Executive Summary Key Insights Generally a trader will request a replica in the firm’s executive summary and could request a replica within the entire plan only when the manager summary is sufficiently convincing. The manager summary, then, is probably the major factor of the proper proper strategic business plan. Section 1: Executive Summary 2 of two 4-14

15 2012 Pearson Education Section 2: Industry Analysis a couple of Industry Analysis –This section should start by describing the the business will enter in relation to its size, rate of growth, and purchases projections. –Items concerning this: Industry size, rate of growth, and purchases projections Industry structure Nature of participants Key success factors Industry trends Extended-term prospects 4-15

16 2012 Pearson Education Industry Analysis Key Insights Before a company selects a audience it ought to possess a excellent grasp from the industry—including where its promising areas are where its points of vulnerability are. The the organization participates in largely defines the planet the firm will take part in. Section 2: Industry Analysis 2 of two 4-16

17 2012 Pearson Education Section 3: Company Description a couple of Company Description –This section starts with an over-all description in the organization. –Items concerning this: Company description Company history Mission statement Services and products Current status Legal status and possession Key partnerships (or no) 4-17

18 2012 Pearson Education Company Description Key Insights While initially glance this may appear less important than these, it’s important. It informs readers you probably know how you’ll be able to translate a concept in a business. Section 3: Company Description 2 of two 4-18

19 2012 Pearson Education Section 4: Market Analysis a couple of Market Analysis –The market analysis breaks the into segments and zeros in across the specific segment (or audience) the firm attempt to appeal. –Items concerning this: Market segmentation and audience selection Buyer behavior Competitor analysis 4-19

20 2012 Pearson Education Market Analysis Key Insights Most start-ups don’t service all of their industry. Rather, they concentrate on servicing a particular (target) market inside the industry. It’s imperative that you give a section in the marketplace analysis that handle the conduct within the consumers in the marketplace. The greater a start-up understands best and quickest inside the audience, the greater it could tailor its services or products appropriately. Section 4: Market Analysis 2 of two 4-20

21 2012 Pearson Education Section 5: The General costs in the industry a couple of from the Immediate and ongoing expenses in the industry –This section addresses the fundamental logic of how wages are earned on the market and the quantity of units in the business’s profits needs to be offered for the business to “break even” then start earning an earnings. –Items concerning this: Revenue motorists and earnings Fixed and variable costs Operating leverage that is implications Start-up costs Break-even chart and calculations 4-21

22 2012 Pearson Education The General costs in the industry Key Insights Two companies within the same industry will make profits diversely. One might be a high-margin, low -volume business, since the other might be a low-margin, high-volume business. It’s imperative that you check to make certain the approach you select is appear. Computing a getaway-even analysis is unquestionably an very helpful exercise for virtually any suggested or existing business. Section 5: The General costs in the industry 2 of two 4-22

23 2012 Pearson Education Section 6: Web Marketing Strategy a couple of Web Marketing Strategy –The web marketing strategy concentrates along the way the organization will market and then sell on its services or products. –Items concerning this: Overall internet marketing strategy Product, cost, promotions, and distribution Sales process (or Cycle) Sales tactics 4-23

24 2012 Pearson Education Web Marketing Strategy Key Insights The easiest method to describe a start-up’s web marketing strategy should be to begin by articulating its internet marketing strategy, positioning, and points of differentiation, then discuss how these overall regions of the program will most likely be based on cost, marketing mix, and distribution strategy. It’s essential to speak about the company sales process. Section 6: Web Marketing Strategy 2 of two 4-24

25 2012 Pearson Education Section 7: Development and elegance Plan a couple of Development and elegance Plan –If you’re creating a brand-new services or products, you have to give a section in your proper proper strategic business plan that concentrates on the status in the development efforts. –Items concerning this: Development status and tasks Challenges and risks Forecasted development costs Proprietary issues (patents, trademarks, s, licenses, brands) 4-25

26 2012 Pearson Education Development and elegance Plan Key Insights Many apparently promising start-ups never get began their product efforts stall or possibly the particular advancement of the services or products is really harder than thought. Consequently, this really is frequently a essential section for companies creating a brand-new services or products. Section 7: Development and elegance Plan 2 of two 4-26

27 2012 Pearson Education Section 8: Operations Plan a couple of Operations Plan –Outlines the means by which your organization will most likely be run and exactly how your merchandise will most likely be created. –A helpful method of illustrate the means by which your organization will most likely be run should be to describe it in relation to “back stage” (unseen for that customer) and “front stage” (seen using the customer) activities. –Items concerning this: General method of operations Business location Facilities and equipment 4-27

28 2012 Pearson Education Section 8: Operations Plan 2 of two Operations Plan Key Insights You need to strike a careful balance between adequately describing this subject and offering lots of detail. Consequently, you need to save this short and crisp. 4-28

29 2012 Pearson Education Section 9: Management Team and Company Structure a couple of Management Team and Company Structure –The management quantity of a totally startup company typically includes the founder or founders and various key management personnel. –Items concerning this: Management team Board of company company company directors Board of advisors Company structure 4-29

30 2012 Pearson Education Section 9: Management Team and Company Structure 2 of two Management Team and Company Structure Key Insights This really is frequently a vital a part of an effective proper strategic business plan. Many investors while some who begin to see the proper proper strategic business plan look first inside the executive summary go to the management team section to evaluate the strength of individuals beginning the firm. 4-30

31 2012 Pearson Education Section 10: Overall Plan a couple of Overall Schedule –A schedule must be prepared that shows the main occasions needed to create the business. –The schedule must be within the format of milestones crucial that you the business’s success. –Examples of milestones: Incorporating the venture Finishing prototypes Rental of facilities Acquiring critical financing Beginning production Acquiring the first purchase 4-31

32 2012 Pearson Education Section 10: Overall Schedule 2 of two Overall Schedule Key Insight An effectively prepared and presented schedule is very useful in convincing potential investors the management team understands what must happen to help make the venture and possesses a concept in position to get there. 4-32

33 2012 Pearson Education Section 11: Financial Projections a couple of Financial Projections –The final a part of an effective proper strategic business plan presents a firm’s pro forma (or forecasted) financial projections. –Items concerning this: Sources and reason for funds statement Assumptions sheet Pro forma earnings statements Pro forma balance sheets Pro forma cash flows Ratio analysis 4-33

34 2012 Pearson Education Section 11: Financial Projections 2 of two Financial Projections Key Insights Getting completed the sooner regions of the program, its obvious to determine why the financial projections come last. They create plans you’ve developed and express them in financial terms. 4-34

35 2012 Pearson Education Presenting the correct Proper Strategic Business Plan to Investors a couple of from the Dental Presentation –The first rule to create an dental presentation should be to follow directions. If you’re mentioned have fifteen minutes, don’t talk greater than the allotted time. –The presentation must be smooth and well-rehearsed. –The slides must be sharp instead of cluttered. Questions and Feedback can be expected from Investors –The smart entrepreneur has advisable within the questions which is requested, and you will be ready for individuals queries. 4-35

36 2012 Pearson Education Presenting the correct Proper Strategic Business Plan to Investors 2 of two Twelve PowerPoint Slides associated with a trader Presentation 1.Title Slide 2.Problem 3.Solution 4.Chance and audience 5.Technology 6.Competition 7.Marketing and purchases 8.Management team 9.Financial projections 10.Current status 11.Financing searched for 12.Summary 4-36

37 2012 Pearson Education All legal legal legal rights reserved. No factor concerning this publication might be reproduced, stored in the retrieval system, or transmitted, regardless of the sort or whatsoever, electronic, mechanical, photocopying, recording, otherwise, with no prior written permission within the author. Printed within the Usa. 2012 Pearson Education 4-37


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