Business Plan Preparation Introduction

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Business Plan PreparationIntroduction

• Frank MoyesLeeds School of BusinessUniversity
  of ColoradoBoulder, Colorado

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Tonights Agenda

• Introductions
• Course organization syllabus
• Writing a business plan
• Discuss your ideas

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Communications
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• Frank Moyes
• frank.moyes_at_colorado.edu
• Office Hours Fleming 115(165)
• Wednesday 300 to 530pm
• Thursday 400 to 600pm
• And by appointment
• Website http//leeds-faculty.colorado.edu/Moyes

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Materials
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• Lawrence and Moyes, Writing a Successful
  Business Plan, 2006
• Moyes and Lawrence, Financial Spreadsheets for
  the Business Plan

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Objectives of the Course

• Understand what is a business plan when to
  write one
• Write a plan for viable business
• Experience the process

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Course Structure

• Weeks 1 2 Evaluate opportunities
• Week 3 Select concept team
• Weeks 4 5 Market Industry Analysis
• Week 6 to 13 Lecture on a Plan section
• Weeks 9 to 14 Hand-in and present sections of
  the business plan for feedback
• Week 15 Present business plan hand in

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Class Structure

• Instructor to describe a section of the business
  plan
• Slides posted on eCollege after lecture
• In the Fire sessions weeks 5 to 14
• Begin Week 4

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Grading

• Individual
• Resume
• Concept
• Participation
• Peer evaluation
• Team Assignments
• In the Fire sessions
• Written assignments
• Final Business Plan Presentation

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Business Plan Elements

• Executive Summary
• Company Overview
• Product/Service Description
• Market Industry Analysis
• Marketing Plan
• Operations Plan
• Development Plan
• Management
• Competitive Advantage
• Financial Plan
• Funding

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Why Write a Business Plan?

• Road Map
• Establish goals to make sure that are on track
  and heading in the right direction
• Action Plan
• Small steps lead to large results
• Sales Tool to attract investors, vendors,
  customers, partners, employees

If we dont have a plan for ourselves, we will
be part of someone elses. Joan Lunden
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A Good Business Plan

• Living document
• Creates excitement
• Tells a story
• Compelling description of the vision strategy
• Not a substitute for action

"You can't overestimate the need to plan and
prepare. In most of the mistakes I've made, there
has been this common theme of inadequate planning
beforehand. You really can't over-prepare in
business! Chris Corrigan
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Why Not Write a Business Plan?

• Lack experience
• Information
• Time cost to get causes too great a delay
• Cant get
• Situation changes too quickly
• Founder has great experience, successful track
  record has a gut feel for the business

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Writing a business plan is a life changing
event.
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Discuss Ideas
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From Student to Entrepreneur Approach to
Generate Ideas

• Doing what you love
• What bugs you
• Use your experience
• Recycle business concept
• Steps, pain points solutions
• Developed by Neal Lurie, MBA 2004

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Concept Team Selection Process

• Conduct Idea Exercise (download from website)
  (http//leeds-faculty.colorado.edu/moyes/html/reso
  urses/Idea20Exercise.pdf)
• Email resume to instructor before Sept 6 as Word
  attachment (must have your name Resume on file
  name)
• Discuss your concept in class Sept 6 (use Concept
  Summary as a framework for explaining your
  concept)

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Concept Team Selection Process (continued)

• Email Concept Summary as a Word attachment to
  instructor by 100pm on Sept 8 (Friday) (must
  have your name Concept name in file name)
• Instructor to email all students which concepts
  with the greatest potential that have been
  selected on Sept 11 (Monday)
• Students whose idea are selected will form a
  teams of 4 on Sept 13 in class

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Concept Description

• Brief description
• Why is there an opportunity/need?
• What is the product/service? How will it be
  produced or delivered?
• Who is the target market?
• What are the unique benefits?
• Who is the competition? What advantages do you
  have over the competition?
• Profitability
• Revenue model
• Contribution margins

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Assignments for Next Week

• Resume email to instructor
• Review ESBM 3700 materials on Opportunity
  Recognition
• Identify an opportunity to discuss in class