DEVELOPMENT OF A BUSINESS PLAN

Entrepreneurship

refers to the concept of developing and

managing a business venture in order to gain
profit by taking several risks in the corporate
world. Simply put, entrepreneurship is the
willingness to start a new business.
 Entrepreneur

an individual who, rather than working as an

employee, founds and runs a small business, assuming all
the risks and rewards of the venture. The entrepreneur is
commonly seen as an innovator, a source of new ideas,
goods, services and business/or procedures.
 Innovation

which includes generating the idea,

innovation, identifying a market opportunity,
information search, conception, screening ideas for
feasibility, identifying where to extract value and
the development of the product or service.
 Triggering event

which includes gestation, the motivation to

start a business, the decision to proceed, the
business planning, identifying the different
resources required, risk assessment, resource
acquisition and assembling.
 Implementation

which includes infancy, incorporation,

setting up and launching the new venture, business
strategy, implementing the business plan, running
the business, deploying of resources, building
success and managing the venture.
 Growth

which includes adolescence, maximizing

profits, harvesting the rewards and continually
growing the venture to include other opportunities.
 BUSINESS PLAN

• A written document that outlines the future

activity for an existing or proposed business venture.
• Is the formal written expression of the
entrepreneurial vision, describing the strategy and
operations of the proposed venture.
• A business plan is a document that brings together
the key elements of a business that include details
about the products and services, the cost, sales and
expected profits.
• Blue Print
 BUSINESS PLAN DRIVERS
Clear Vision of Purpose
 The direction the business venture wants to achieve.
 A long term view
Satisfy Real Customers Needs & Serve Real Customers
 Exceptional customer service that results in the loyalty of
customers, repeat purchases by them and greater customer
retention.
Differentiate from Competitors
 Positioning unique differentiating factors.
 Continuously making improvements to sustain a leadership
position.
Resource Focus, Organization& Commitment to satisfy
Customer needs
 Resources should be optimally utilized to ensure that
maximum possible value gets added to satisfy customer
needs.
 WHAT INVESTORS LOOK FOR

• How does the team think?

• How detail oriented is the team?
• How big is this market?
• Is there sustainable competitive advantage?
• What’s the growth plan?
• What does the technology roadmap look like,
short term or long term play
CREATING YOUR COMPANY’S STRATEGY

• Building a strategy is harder work than building

your product
• Think about
– What do you want your business to be when it
grows up
– Looking back from 5 years in future
– Perspectives of all stakeholders
– Anything that could go wrong
• Hope is not a strategy
 COMPETITIVE ANALYSIS

• You always have competitors

• Dig deep, be detailed, be honest
• Compare features and benefits
• Technology comparison
• Whole product offering (pricing, support, etc.)
• Channels, funding, customers…