Title: BUSINESS PLAN: FIRST STEPS
1BUSINESS PLAN FIRST STEPS
- Julia Rastopchina Oksana Kikhtenko
- Eurasia Regional Advising Conference
- Moscow, 2004
2WHAT IS A BUSINESS PLAN?
- A document developed to justify a request for
funding - An action plan to develop business ideas
- As a strategic planning tool describes business
strategy, market position, identifies goals,
defines budget
3KEY QUESTIONS OF A BUSINESS PLAN
- What is our business and its mission?
- Who are our clients and how well do we know them?
- What are the customers needs, what do they want?
- What do we supply and how does our product create
value for our customers?
4KEY QUESTIONS OF A BUSINESS PLAN
- How is our business developing?
- How it can/ should develop?
- How can we prevent others from entering our
market? - How do we compete with other players on the
market?
5BUSINESS PLAN GOAL
- To guarantee that our efforts are aimed at
maintaining and enhancing our competitiveness
6BUSINESS PLANNING PROCESS
- Business planning includes
- Analysis of the current situation and trends
including competition - SWOT analysis (strengths, weaknesses,
opportunities and threats) - Defining/refining our business mission checking
for validity/ applicability - Key success factors and strategic decision-making
main directions - Goal-setting (SMART specific, measurable,
agreed upon, realistic, time-bound)
7SITUATION ANALYSIS
- Micro environment (immediate surrounding)
- Macro environment (global/national/regional level)
8Analysis of micro environment (immediate
surrounding)
- Customers/ clients
- Suppliers
- Labor force
- Competition
9Analysis of macro environment
- Economic environment
- Legal aspects
- Political environment
- Technological factors
- Social factors
- Global economic conditions
10MACRO ENVIRONMENTof your business
11MICRO ENVIRONMENT(IMMEDIATE SURROUNDINGS)of
your business
12Opportunities and threats for company development
13SWOT - analysis
STRENGTHS Key internal advantages a manager can
use
WEAKNESSES Internal obstacles a manager should
be aware of
OPPORTUNITIES Key external advantages a manager
should use
THREATS Key external events or future changes
that may negatively affect the companys business
14SWOT-ANALYSIS STRATEGIC MEANING
S STRENGTHS
W WEAKNESSES
Company
Loss of time
??!
NO WAY!
Solve problems first!
O OPPORTUNITIES
T THREATS
Market
15SWOT analysis purpose and applications
- Summarizes
- results of macro and micro environments
- opportunities and threats (based on macro
environment analysis) - strengths and weaknesses (based on micro
environment analysis) - Helps to develop
- strategic action plan based on SWOT-matrix
- company strategy
16STRENGTHS
- Competent leadership
- Available financial resources
- Qualified personnel
- Good reputation with the customers
- Market leadership
- Protection against competition
- Technological supremacy
- Cost advantages
- Competitive advantages
- Innovation capability and ability to implement
innovation - Seasoned management
- Better production facilities
- Potential for external investment
17WEAKNESSES
- No clear strategy
- declining competitive position
- obsolete equipment
- low profits
- lack of managerial experience and insight
- low competence
- weak or no follow-up on strategy implementation
- internal problems
- vulnerability under pressure from competition
- weak RD
- low capacity
- insufficient market knowledge/awareness
- bad marketing
- lack of finance to implement strategy
- undeveloped distribution/ sales
- high costs (higher than competition)
- narrow product range
18OPPORTUNITIES
- new markets/ market segments
- expanding production / services
- expanding product range
- supplementary products or services
- weakening of competitors
- market growth or expansion
- lower trade barriers on new geographic markets
- vertical integration (up or down)
- new technologies
- availability of external funding
19THREATS
- new competitors
- growing sales of substitute products or services
- slowing market growth
- unfavorable government policy
- growing pressure from competition
- growing negotiating power of suppliers and
customers - changes in customer needs and preferences
- unfavorable demographic situation
- unfavorable currency fluctuations
- high dependence on demand levels and life cycle
of business
20KEY QUESTIONS OF A BUSINESS PLAN
- What is our business and its mission?
- Who are our clients and how well do we know them?
- What are the customers needs, what do they want?
- What do we supply and how does our product create
value for our customers? - How is our business developing?
- How it can/ should develop?
- How can we prevent others from entering our
market? - How do we compete with other players on the
market?
21THANK YOU!