ch 8-Business Plans: seeing your audiences and your business clearly
operation plan
plan used internally for management purposes
Legal and organizational structures and IP and locations
(1 paragraph) - Patents, trademarks
key employee/partner plan
provides info on the company, product, market, and critical risks to prospective businesses or marketing partners or to prospective key employees
proof-of-concept website
providing info or demonstration of a product or service designed to solicit info on customer interest
test marketing
selling your product/service in a limited area for a limited time
storytelling arcs
several classic structures to stories, such as beginning, middle, and end, or a multiple-step journey, or a situation-complication-resolution
Private placement memorandum (PPM)
specialized legal form of business plan crafted by lawyers for the purpose of soliciting formal investments
executive summary
(250-1,250 words)- a one to two-page overview of the business, business model, market, expectation, and immediate goals- most popular to send to people who ask about your business. Cover 5 topics: problem, market, product, competitive advantage, business/team, financial summary
elevator pitch
(60-100 words)- an action-oriented description of your business that is somewhat longer than a vision statement or tagline
True
(T/F) The executive summary is the most popular and most frequently read portion of a business plan.
- passion for the business - expertise about the business and the plan - how professional you are in your work - how easy it would be to work with you
Key things an influential person looks for in you during your pitch
1. the beginning: you set up the story 2. the middle: you introduce the inciting incident and action rising to the solution 3. the end: you tell listeners the rest of the story and conclude
aristotle's 3 act structure (business style)
All of these
Which of the following are major risks to business plan success? -Overlooked competition -Overstated numbers -All of these -Experience deficits
Feasibility
Which of the following is NOT part of a classic business plan? -Financial projections -Feasibility study -Market section -Industry section
Mission
Which of the following is likely the briefest (i.e., fewest words)? -Elevator pitch -Mission -Vision -Business plan
Both of these
Why do you need to write a business plan? -Both of these -To build external legitimacy -To develop internal understanding
cover letter
a one-page document that introduces the business plan and owner and indicates why the recipient is being asked to read the plan
signature block
a snippet of text (and/or images), typically inserted at the bottom of an email, that contains contact information for the sender of the email
proprietary technology
an aspect that is kept as a trade secret or is protected legally using patent, copyright, trademark, or service mark
data room
an online repository for the documentation that backs up and details the specifics of your business and business plan
business plan
designed to detail the major characteristics of a firm- product/service, its industry, its market, manner of operating, and financial outcomes with an emphasis on present and future (about 18 pages long)
pitch
formal presentation of a slideshow summarizing your business plan given before judges or potential investors or partners
screening plan/ mini plan
gives a basic overview of the firm and a detailed look at the financials
informational plan
gives potential customers info about the company and its product or service
preselling
introducing future product to potential customers and taking orders for later delivery
due diligence
investigating a business to determine its value and potential for investment
Offering circular (OC)
legal document required by firms seeking funding through equity crowdfunding platforms created under the JOBS act
internal understanding
the extent to which employees, investors, and family members involved in the business know the business's purpose and operations
pitch deck
the name of a slideshow presentation that summarizes a business or more often a business plan.
company name, contact info, date the version of the plan was completed, and a proprietary statement to protect your ideas
the title page typically contains:
new entrant business
when the product already exists but your firm is the first of its kind
Marketing strategy
(1 page)- 3 ideas: 1. overall strategy of your firm in the market 2. sales plan that shows the ways you apply strategy to secure sales from customers 3. long term competitive plan that shows how you protect your firm from the competition
Competition and competitive advantage
(1 page)- lists the major competitors, summarizes your firm's competitive advantage
Related service providers
(1 paragraph) - banker, board of directors, attorney etc.
company description
(1 paragraph)- gives vision or tagline of the company and a brief description of the business
industry
(1 paragraph)- has industry's formal name, size, and whether the industry is growing, stable or declining
Product/service and value proposition
(1-2 pages)- description of problem and your solution-introduce product
market and target customer
(1-2 pages)- tells who will buy your product/service
Key personnel
(1-2 paragraphs) - Key employees, managers, media personality etc.
R&D/growth plan or next steps
(1-2 paragraphs)- focused on creating new products or services and preparing technologies, ideas, products, or services for the firm's market
vision statement
(10 words)- a tagline (memorable catchphrase) that expresses the fundamental idea or goal of a firm -related to a mission statement
vision statement, elevator pitch, executive summary, business plan
4 types of business planning presentations
invention plan
provides info to potential licensees. Focus on details of invention, including intellectual property rights
external legitimacy
when a small business of taken for granted, accepted, or treated as viable by organizations or people outside the small business or owner's family
pioneering business
when your product is truly new to everyone