,Business Plan Tool Kit,Contents, What is a Business Plan Writing a Business Plan Business Plan sample (to be complemented later),1,Definition of a business plan The role of a business plan in new business development process The significance of a business idea Developing a business idea Elements of a promising business idea Prioritizing a business idea Protecting your business idea, What is a Business Plan,2,Definition of a business plan,A business plan must have a detailed plan for the following eight factors ; 1) Product/ Service 2) Market and Competition 3) Marketing 4) Business System 5) Organization and HR 6) Opportunities and Risks 7) Implementation Schedule 8) Financial Planning, What is a business plan,Developing a business idea (idea which can make money) into a detailed plan that can be implemented,3,Role of a business plan in new business development process,New business promotion stage,Methodology,Internal support organization,Online Idea DB,Intangible Workshop,Benchmarking/ Megatrend Analysis,Business Plan Competition,Stage 1,Stage 2,Stage 3,Idea Generation,Business plan write-up,Implementation and growth,Idea Generation Management Team,Business Plan Development Team,Investment Committee Venture Team (TFT), What is a business plan,A business plan can be defined as the intermediary stage before a business idea can actually be implemented as a new business,4,Significance of a business idea,There are many different ways to generate a business idea. The following are recommendations to come up with well-organized business ideas-best if implemented at the same time Intangible Workshop : Hold workshops to generate ideas to facilitate company intangibles, as the significance of intangibles continue to grow under the new economy Benchmarking/Megatrend Analysis : Study megatrends of other industries to generate ideas or conduct benchmarking analysis Online Idea DB : Make an idea DB online to enable review/posting of ideas as a way to help develop business ideas Business Plan Competition: Hold business plan competitions to generate business ideas, What is a business plan,No business idea, no business plan No business plan, no business,A business idea is the start of a business establishment. You must have many creative ideas which can be transformed into a business in order to create value,Developing a business idea,5,Elements of a promising business idea,The key to success in the marketplace is satisfied customers, not great products. (ex) “Our new device can perform 200 operations per minute.” (X) “Our new device has 25% fewer parts.” (X) “Our new device will save the customer a quarter of the time.” (O) Make value propositions to the customer Present customers with unique values.,Clear customer value,Market of adequate size,Feasibility and profitability,Sufficient degree of innovation,1,2,4,3, What is a business plan, Clear Customer Value,Who will buy your product/service ? Why should the customer buy the product ? (What needs does your product fulfill that the competitor products cannot ?) What is most unique about your business idea ?,Key Questions,6,Does the market you plan to target with your products/services have adequate size (no precise analysis needed, statistics or estimates can be used) Know who your competitors are.,Clear customer value,Market of adequate size,Sufficient degree of innovation,1,2,4,3, What is a business plan, Market of adequate size,Feasibility and profitability,What is the market size ? Is the market growing ? What is your target market and market share ? Who are your competitors ? What are your strengths/weaknesses compare to your competitors ?,Key Questions,7,A business idea should have the following four elements according to product/service type and business system -Must specify where innovation is taking place,New product (Microsoft),New industry (Netscape),Existing industry,New business system (Dell),Business System,Convention,Innovation,Product/service,Convention,Innovation,Clear customer value,Market of adequate size,Sufficient degree of innovation,1,2,4,3,Feasibility and profitability, Sufficient degree of innovation, What is a business plan,How is your product/service innovative ? How is your business system innovative ?,Key Questions,8,Consider feasibility (legal constraints, time/resource limits, etc) Calculate overall profitability (simple cash flow, etc),Clear customer value,Market of adequate size,Sufficient degree of innovation,1,2,4,3,Feasibility and profitability, Feasibility and Profitability, What is a business plan,What are the constraints in implementing your business idea ? Why are other people not implementing this kind of business idea ? What is the gross margin rate of your planned business ? How much investment is necessary ? How much is the variable cost ? Does the profit increase ? What is the overall cash flow ?,Key Questions,9,Prioritization of a business idea - In searc