Technopreneurship
- business plan describes current status, expected needs & projected results of the new business - allows the entrepreneur entrance into the investment process - describes to investors & financial sources all of the events that may affect the proposed venture - used internally as a roadmap for the operations
Four purpose of a business plan
Business Plan
formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals
target market
group of people toward whom a firm market its goods, services, or ideas with a strategy designed to satisfy their specific needs and preferences
Business Plan
integration of functional plans such as marketing, finance, manufacturing, sales and human resources
geographic demographic behavioural psychographic
main bases of segmentation
- always be ready -ease into it - focus on the future - keep it short - be approachable -ask questions - exchange contact info
mastering the elevator pitch
market
people or institutions with sufficient purchasing power, authority, and willingness to buy
Psychographic
personality, lifestyles, attitudes, class
Behavioural
rate of usage, benefits sought, loyalty status, readiness to purchase
targeting
select most attractive segments to focus your marketing on
Marketing Plan
- Research, design & development - market niche & market share (bigger is better) - competitive analysis - market strategy - pricing policy - advertising plan
Executive Summary
- Should appear first in you business plan - Should summarize what you expect your business to accomplish - a good executive summary is compelling - it reveals the company's mission statement, along with a short description of its products and services - it might also be a good idea to briefly explain why you're starting your company - it is the most important part of the business plan
Introduction
- business description - name of the venture - industry background presented in terms of current status & future trends - venture to be thoroughly described, along with its proposed potential - potential competitive advantages eg patents, special technological or market advantages - describes why your solution makes customers very happy
marketing mix
- product - price - place - promotion
Introduction
- serves as a company description with key information about your business - type of business, goals, major products and/or services you will provide and the target customers that you want to serve - give rationale for choosing this business - this is where you explain why your company stands out from other competitors in the industry and break down its strengths, including how it offers solutions for customers, and the competitive advantages that will give your business an edge to succeed
Executive Summary
- written after the entire business plan has been completed - a clever snapshot of the complete plan let's the reader know if - your basic business concept makes sense & has been thoroughly planned - the management is capable - a clear-cut market exists - your business has significant competitive advantages - your financial projections are realistic - investors or lenders have an excellent chance to get their money back
1. make them care 2. make it easy to join 3. leave them wanting more 4. have a call to action 5. be natural 6. test yourself
5 tips on developing a pitch
awareness interest desire action
AIDA MODEL
I. Executive Summary II. Introduction III. Marketing Plan IV. Technical or Operations Plan V. Organizational Plan VI. Financial Plan VII. Appendices
Main Components of Business Plan
segmentation targeting positioning
STP MARKETING MODEL
1. The Idea - you've had the idea, now explore its potential 2. Feasibility - Time to research the market 3. Planning - Put together a detailed plan 4. Formalities - Get the legals in place 5. Launch - Take the plunge and get going 6. Support - Here to offer a helping hand
Startup Business Plan
1) to assess the entrepreneur's planning & managerial ability 2) provides a comprehensive overview of the entire operation (i.e through business and financial evaluation) 3) illustrates the venture's ability to service debt or provide an adequate return on equity 4) provides details of the market potential & plans for securing a share of that market 5) identifies critical risks and crucial events
The benefits of a business plan for the investor
a) venture capitalists b) bankers c) angel investors d) potential corporate customers e) lawyers f) consultants g) suppliers
The people who reads the business plan
- the entrepreneur (you) - your customers (what benefits do they get) - your potential investors (financial projections)
The three main viewpoints of a business plan
demographic
age, gender, occupation, socio-economic group
1) Analyses all aspects of the venture 2) Prepares strategy for uncertainties 3) Forces critical and objective view 4) Closely scrutinises entrepreneur's assumptions (i.e. competitive, economic) 5) Develops & examines operating strategies & expected results 6) Quantities objectives & provides measurable benchmarks (i.e. forecasts vs actual results) 7) Provides a communication tool for outside financial sources 8) Provides an operational tool for guiding the venture toward success
benefits of a business plan for the entrepreneur
1. identify your goal 2. explain what you do 3. communicate your UNIQUE SELLING PROPOSITION 4. engage with a question 5. practice
creating an elevator pitch
geographic
customer location, region, urban/rural, ACORN classification
positioning
determine how to position your product for each target segment
segmentation
divide market into distinct groups of customers
desire
the customer "needs" the product; desires it
action
the customer finally approaches to the product
interest
the customer get's interested in the product
attention
the customer sees the product for the first time
Business Plan
written document prepared by the entrepreneur that describes all the relevant internal and external elements and strategies for starting a new venture