91W Implementation

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Business Plans, Commercialization Plans, and
Detailed Executive SummariesMBA 533Prof.
GalbraithFall, 2008
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Business Plan Overview

• Purpose
• Get Funding Equity
• To Bankers - Debt
• Reality Check on Feasibility
• Partners and Employees
• Internal Roadmap
• Provide legitimacy for Grants, etc.
• For Trade Credit

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Business Plan - Outline

• Executive Summary
• History of Product/Company
• Management Team
• Market and Industry Section
• Business Model
• Strategy, Operations, Personnel, etc.
• Structure of Firm
• Risk Assessment
• Financial Pro-formas
• Appendices
• Tax returns of principals for last three years
  Personal financial                   
  statement (all banks have these forms)
• For franchised businesses, a copy of franchise
  contract and all                    supporting
  documents provided by the franchisor
• Copy of proposed lease or purchase agreement for
  building space
• Copy of licenses and other legal documents
• Copy of resumes of all principals
• Copies of letters of intent from suppliers, etc.

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Business Plan vs. a Technology/Product
Commercialization Plan v. Detailed Executive
Summaries

• Commercialization Plans tend to focus on a
  particular product or class or products business
  plans are enterprise based
• Commercialization plans cover the following
• Technology triage
• Market assessment
• Identifying appropriate verticals
• Determine position within the competitive market
  space
• Determine best path to market
• Initiate contact with marketplace (licenses,
  customers, etc)
• Commercialization Plans become a platform for the
  market/strategy component of a business plan
• Detailed Executive Summaries have become model
  for investor groups

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Sample Plan Links (linked to SBA)
http//www.bplans.com/sample_business_plans/index.
cfm
Score Business Plan Information
http//www.score.org/template_gallery.html?gclidC
Ies0MW_h48CFR7ugAodwUXpug
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Commercialization Plan - Stages of Technology
Development

• Dummy prototype
• Shop around to generate interest
• Lab prototype
• Build a prototype in lab to demonstrate how
  technology works
• Get some initial performance data

• Idea Generation
• Initial idea, preliminary sketches, etc.
• Proof of Concept
• Be able to show or demonstrate on paper or with
  scientific evidence that the idea should work
• Assess technology as to commercial viability
• Patent
• Protect the intellectual property

Decision Point - license technology if that is
the corporate strategy?
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Commercialization Plan - Stages of Technology
Development

• Field prototype
• Build a prototype that can withstand actual field
  applications,
• product should look and perform pretty much like
  final product
• Beta-test
• Place technology in field with selected customers
• Provides feedback for final improvement
• Use happy customers as points of reference

• Commercialize product
• Bring product to market

Decision Point make, distribute, subcontract,
outsource, etc.
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Business Plan Market Section

• Industry Description
• National and Local Description
• Demand Forecasts
• Entry Barriers
• Competition
• Discussion of Competitors
• Use Competition Comparison Table
• Show different characteristics, and how your
  business will stand relative to competitors

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TECHNOLOGY COMPARISON WITH CURRENT PORTABLE (PCR)
TECHNOLOGY
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Business Plan Market Section

• Summary of Market Research/Focus Groups
• Specific results, tabulated
• Interpretation of data either in this section,
  and built into other sections
• Target Market
• Description of Target Customers
• Characteristics, demographics, motivations for
  purchase, etc.
• Description of Excluded Market
• Recommended strategy in Business Model Section
• Summarize pricing, location, promotion, and
  packaging strategy

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Pro-Forma

• Templete on Dr. Galbraith Web-Page
• KEY ISSUES
• Every line item should have footnote, support
• 2) Cover ALL expenses
• 3) Use fair market wage and expense
• 4) Justify Revenues, look for hockey stick
  forecast
• 5) Make sure pro-forma ties to business plan