Please enable JavaScript.
Coggle requires JavaScript to display documents.
Writing a Business Plan How by Vaughan Evan (PREPARE YOUR PLAN (b/ Why a…
Writing a Business Plan How by Vaughan Evan
PREPARE YOUR PLAN
a/ What is the essential
RESULT
(output) of the plan?
competition
strategic position
market demand
resources + financials
business introduction
risk, and so on
xx1/ Tips for a good business plan
7-Cs tip
clear, crisp, concise, consistent, coherent and credible
b/ Why a business plan is
NEED
ed?
DEPEND ON MANY PURPOSES
Raising debt finance (vay ngân hàng)
Board approval (đồng ý từ những người điều hành)
Raising equity finance (nhà đầu tư lấy cổ phần)
Joint venture partner (cổ đông)
A start-up
The sale of the business (bán lại cty)
Differentiate from a project plan
Use as a managerial tool
c/ What is the
PREPARATION
RESEARCH
Competitors: size, location, number of employees, turnover and profitability,...
Customer survey
Market demand, size, drivers and growth trends
xx1/ Tips: mindset questions
How are your competitors responding to that?
What makes you think customers would pay for that?
How did you arrive at that market growth estimate?
ORGANIZATION
Planning team
Sales and marketing
Manage company’s assets, people, systems and processes
Take charge of the financial forecast
Timetable
Ideal plan takes a month to create
Tools
Business plan software
Hand writting plan
Contents
should be tailored to the needs of the
backer
Must have these parts
Competition
Your strategy
Market demand
Your resources
Your financials and forecasts
Your business
Risk and sensitivity
Appendices
Just give essential contents
product descriptions and images
data on market
size and growth by segment
competitors’ sales
operations, and so on
Length
Should be 25–30 pages of A4 or Powerpoint slides
market demand, competition and strategy
should be
three–four pages each
resources and financials forecasts
at four–six pages each
The appendices
must
be include in other section number of pages
business description and risk should be
two pages each
Drafting process
WRITTING YOUR PLAN
2a/ THE BUSINESS
a/ Background
a5/ Basic financials
<<Not necessary since it will described in later Financial section>>
a4/ Resources
<<Not necessary since it will described in later Resources section>>
a3/ Strategy
<<Not necessary since it will described in later Strategy section>>
a2/ Goals and objectives
Goal = business aims to be, as described in words
Objective = a target that helps to measure goal achievement,
typically set out in numbers
Goals are directional, objectives are specific
Eg:
Goal = be the UK market leader in the toy
segment
Tips for setting objectives
SMART
= Specific, Measurable,
Attainable, Relevant and Time-limited
Specific (a market share target in that segment)
Measurable (market research to which you subscribe will reveal whether the 40% is met)
Attainable (you are at 33% now and your new product range has been well received)
Relevant (market share is a good indicator of strategic progress)
Time-limited (2018)
Other things beside Goal and Objective
Values
a set of beliefs and principles that guide how
your business should respond
Goal synonyms
Mission, vision, aim, purpose
a1/ The opener
a1b/ what products or services it focuses on
a1c/ which main customer groups your business serves
a1d/ where it is based, where else it has operations and where it sells
a1e/ with what success, in terms of revenues and operating margin (operating profit divided by sales), and by which year.
a1a/ who you are – the name (or code name, if yours is a confidential plan) of your business
c/ Segmentation in a startup
b/ Business mix by segment
xx1/ Tip
Focus on the segments most relevant ( contribute most profit) to the backing decision
2b/ MARKET DEMAND
a/ Market size
Marketcrafting process
Repeat step 2 and 3 for remaining competitors
Create "Others" for the not mentioned competior
and Give it a sale level
Give 1st competitor sale level
(Our sale level 100 is standard)
Draw a pie chart of the market share
based on all the info
Analyze 1st competitor
How much more or less?
Do they sale more or less than us?
Select main competiors
(from inside and outside country)
Year-by-year market share chart shows us
Market share
Market growth
Market size
Market share change
b/ Market growth
Market growth research methods
Search for market growth articles from trustable sources
Apply HOOF (or HDDF) method
D
river past:
factors that drive growth in the past
Driver future:
factors that drive future growth
F
orecast growth:
forecast future growth, based on future drivers
H
istoric growth:
growth numbers in the past
Notes
Past growth number should be in many periods as possible
Some growth drivers
population, income, gov policies
awareness changing, social trend
weather, pandemic, etc.
c/ Market demand for a start-up
(For a new created product/service)
Conduct a customer survey
Estimate the market size
d/ Market demand risks and opportunities
d1. Identify ~ 6 facts that may change market demand
d2. Each fact is an opportunity or risk?
d3. Impact level of each fact
2c/ THE COMPETITORS
a/ Your competitors
Do research about competitors
Financial backing
Product segment, customer group
Sale growth over 3 years
Position on market
Sale numbers of the competed products
Main focus, recent investment, growth plan
b/ Competitor intensity
Michael Porter’s five forces model
Ease of substitution
The easier it is for customers to use a substitute product, the tougher the competition
Customer power
The more bargaining power your customers have over you, the tougher the competition
Threat of new entrants
The lower the barriers to entry to a market, the tougher the competition
Barriers to entry can be
technology, operations, people or cost related
Supplier power
The more bargaining power suppliers have over producers
providers, the tougher the competition
Internal rivalry
Market demand growth
The slower growing the market, the tougher typically the competition
Must
balance
the supply and demand
External pressures:
government and the trade unions
The number of players
The more numerous the players, the tougher the competition
c/ Competition in a start-up
c2/ Indirect competition
Product is a new concept
Competition = to be accepted by customers
c3/ Competitive response
Response of competitors to newly entry company
c1/ Direct competition
Product exists in market
Competitors are same segment companies
d/ Industry competition risks and opportunities
main risks and opportunities around industry competition over the next few years
USING YOUR PLAN