Crafting a business plan and building a solid strategic plan

Benefits of creating a business plan

Three tests of a business plan

Competitive test

Value test

Reality test

Elements of a business plan

Competitor analysis

Market entry strategy

Business and industry profile

Marketing strategy

Description of product or service

Entrepreneurs' and managers' resume

Mission and vision statement

Plan of operation

Executive summary

Pro forma (projected) financial statements

Title page and table of contents

What lenders look for in a business plan

Collateral

Character

Capacity

Conditions

Capital

The Pitch: Making the Business Plan Presentation

Building a strategic plan

Intellectual plan

Structural capital

Customer capital

Human capital

Building a competitive advantage

Pricing they offer

Way they sell

Service they provide

Value to which they are committed

Products they sell

Sustainable competitive advantage: Core competencies

Strategic management process

  1. Analyze the competition
  1. Create company goals and objectives
  1. Identify the key success factors in the business
  1. Formulate strategic options and select the appropriate strategies
  1. Scan the environment for significant opportunities and threats facing the business
  1. Translate strategic plans into action plans
  1. Assess the company's strengths and weaknesses
  1. Establish accurate controls
  1. Develop a clear vision, translate into meaningful mission statement

Benefit

Context

Target customers

Point of differentiation

Clincher

feature

benefit

strategies

image

strengths, weaknesses

success

key competitors

how distinguishing differences produce competitive edge

Showing customer interest

Documenting market claims

Target market

Advertising and promotion

Market size and trends

Location

Pricing

Distribution

Content

Delivery

Description (simple terms)

Business model

Problem to be solved

Competitive edge

Company, product, services

Hook investors quickly

Visual aids

Communicating dynamic opportunity, plan to capitalize

10/20/30

Enthusiasm without being overly emotional

Solve problem, unique

Practice

Proof

Prepare

Highlights

"Crisp"

Avoid technical terms

"What's in it for me", exit

Close by reinforcing potential

Be prepared, anticipate questions

Clear exit plan

Be sensitive to most important issues (pattern of questions)

Follow up

game plan to guide company as it strives to accomplish vision, mission, goals, objectives, keep from straying off course

battery of tools to help entrepreneurs subject ideas to last test of reality

attract lenders, investors

Benefits of a strong vision

Decisions

Inspires

Direction

Perseverance in adversity

Mission statement

Creating a vision

core values defining operations

problems business solve over next 10 years

3-10 years, great (even if others say unachievable), as if happened

target market

how it solves target problem

achievements: relative industry rank, financial success, quality, contribution to community, awards and recognitions

Most important product lines or services

Products or services refuse to offer

distinct customer shopping experience

Management style

People hired

Relationship with employees, what do they say about their jobs

community image

supplier views, industry expert views about buiness

Who to serve?

Principles and beliefs forming foundation of the way of doing business

What purpose, how to accomplish?

How to beat the big guys

  1. Hire the best - and train them
  1. Bring back what the big boys have eliminated
  1. Hit 'em where they ain't
  1. Use the cost advantages of the internet to gain an edge
  1. Emphasize the unique aspects of your company, how they benefit customers
  1. Be great at something customers value eg service, personal attention
  1. Don't play their game
  1. Get involved in the community

Writing a mission statement

Reflect values, beliefs

Inspire

Keep it current

Concern for the future

Get everyone involved

Positive, upbeat

Focus on value proposition

Ethical foundation

Revise when necessary

Simple

Use it

Short

Objectives: more specific targets of performance, commonly addressing areas like profitability, productivity, growth, other business key aspects

Goals: broad, long-range attributes business seeks to accomplish
(tend to be general, sometimes abstract)
eg. market share, cash balance, new market, increase sales in current market

Focus

Differentiation

Cost leadership

Strategy

Contribution

Resource requirements

Scope

Purpose

Timing

Internal business perspective

Innovation and learning perspective

Customer perspective

Financial perspective

Controlling the strategy

Corporate citizenship

Direct competitors

Significant competitors

Indirect competitors

Assignable

Realistic yet challenging

Action commitments

Timely

Measurable

Written down

Specific