Business Planning

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UCC Entrepreneur Society 18
January 2001
Business Planning
e
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Business Planning for Entrepreneurs

• John Higgins
• Ernst Young
• Corporate Advisory Services

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Topics I will deal with today ...

• Business Planning - The Strategy behind it
• Preparing a Business Plan
• Outline Contents and Structure
• How Ernst Young can help
• Questions

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Topics I will deal with today ...

• Business Planning - The Strategy behind it
• Preparing a Business Plan
• Outline Contents and Structure
• How Ernst Young can help
• Questions

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The Strategy behind the plan

• Why are you writing the plan ?
• Who are the likely recipients of the plan ?
• What reaction are you looking for ?
• What do you want to achieve ?

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Topics I will deal with today ...

• Business Planning - The Strategy behind it
• Preparing a Business Plan
• Outline Contents and Structure
• How Ernst Young can help
• Questions

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Preparing a Business Plan

• Getting Started
• Drafting the Plan
• Preparing Financial Projections
• Writing the Plan

Some 85 of plans are not seriously considered by
investors so if the plan is to raise finance, it
is vital to identify the likely sources of
finance at an early stage in order to WRITE FOR
YOUR READER
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Topics I will deal with today ...

• Business Planning - The Strategy behind it
• Preparing a Business Plan
• Outline Contents and Structure
• How Ernst Young can help
• Questions

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Outline Contents of a Business Plan

• 1. Executive Summary
• 2. Market Offerings
• 3. Technology Platform
• 4. Market Analysis
• 5. Marketing and Selling
• 6. The Management Team and Organisation
• 7. Funding Requirements
• 8. Financial Projections

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Outline Contents and Structure
1. Executive Summary If the purpose of
the plan is to raise finance, the Executive
Summary must attract the investors interest by
highlighting the potential idea and the ability
of management to realise that potential.
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Outline Contents and Structure
2. Market Offerings Be market led.
Distinguish your product and/or service via a
tabular comparison with competitors, by key
market factors such as price, delivery time,
quality, payback period etc.
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Outline Contents and Structure
3. Technology Platform Be market led.
Distinguish your technology platform via a
tabular comparison with competitors, by key
factors such as quality of development team,
uniqueness of the solution, alliances with
strategic partners, reliability, ease of use,
unique features, speed, connectivity, etc.
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Outline Contents and Structure
4. Market Analysis A common mistake is
merely to state what profits will result if only
a small market share is achieved. Your plan must
explain what market share you expect to achieve
and how you will achieve it.
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Outline Contents and Structure
5. Marketing and Selling Include
evidence of customer reaction, interest or
references e.g. market research has identified a
real need in Ireland where there is currently no
all round service of the quality and reliability
offered by us. Several large customers have
already provided letters of intent to use the
service.
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Outline Contents and Structure
6. The Management Team and
Organisation Select managements background
and skills that demonstrate that THEY WILL make a
success of this business. Recognise any
important skill gaps or experience limitations in
your management team. These can then be
addressed up front with investors, often via
suitable non-executive directors.
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Outline Contents and Structure
7. Funding Requirements
The extent of immediate and future funding
must be identified, along with the uses to which
they will be put. Any other anticipated sources
of funds should be identified.
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Outline Contents and Structure
8. Financial Projections Test the
data using several different assumptions to
determine whether the final information is
reasonable.
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Outline Contents and Structure
You might also include the following in you plan

• Action Plan and Milestones
• Sensitivity Analysis
• Appendices or Exhibits

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Topics I will deal with today ...

• Business Planning - The Strategy behind it
• Preparing a Business Plan
• Outline Contents and Structure
• How Ernst Young can help
• Questions

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How Ernst Young can help

• Leading advisers on business planning
• and raising finance
• Strong contacts with regular readers of
• business plans e.g. venture capitalists,
• banks and other investors
• Experience and knowledge of VC and
• capital markets

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Topics I will deal with today ...

• Business Planning - The Strategy behind it
• Preparing a Business Plan
• Outline Contents and Structure
• How Ernst Young can help
• Questions

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Business Planning

• Questions