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• Entrepreneurs discover an entrepreneurial
opportunity when they find a compelling solution
to an unsolved problem or unsatisfied need.
The first step in an entrepreneurial
venture is to identify a real opportunity.
Second step is to create a plan to
address that opportunity.
Third step is to execute that plan.
• Business planning is the process of setting goals,
explaining the objectives and then mapping out
a document to achieve these goals and
objectives.
• Effective business planning is
critical to long-term success
and the ability to raise capital
and grow successfully.
Business Planning, cont.,
• Effective business planning requires a
considerable amount of time
• Effective entrepreneurial planning consists of:
• Strategic planning
• Setting and enforcement of goals
• Road map of strategies on “what”
the business intends to do to meet the
goals and objectives
• Tactical planning
• Contains the details of executing
your strategies
• Describe “how” you plan to meet the
objectives
• Strategy is the thinking process required to plan a
change, course of action, or organization.
• Strategic planning defines, or outlines, the desired
goals and why you should go about achieving them.
• The strategic planning phase involves business thinkers
(namely– the small business owner) determining why,
and in a global sense what, you will achieve in your
stated goals.
Strategic planning
• When doing strategic planning, you need to determine,
specifically, what outcome you want to achieve (These are your
Objectives) and how you will measure the results.
• Tactical planning requires the understanding and
deciphering of the strategic goals; then identifying the
courses of action needed to achieve those strategic
objectives.
• Tactical planning is developed by those who deal with
getting the work done, day by day.
• The main question for them is: “How can the strategic
goals be accomplished within the designated limits of
resources and authority?”
• Tactical planning is actions taken
day-to-day, whose results will
move the company forward to
achieve the objectives in the
strategic plan.
Business Plan
A proposal that describes
a new business.
It is presented to potential
investors and lenders.
• A well-written Business Plan lays out the best growth path & strategy,
as well as the rationale for the selection of the strategy over other
alternatives.
Business Plan cont.,
• A Business Plan is the explanation of:
• why the plan for building the company makes
sense,
•what resources it will need to implement the
vision,
• who the team will be that will have the skills
and leadership to execute the vision, and
what path they will follow to get there.
The components of a business plan
•Executive summary
•Product/service plan
•Management team
plan
•Industry/market
analysis
•Operational plan
•Organizational
plan
•Marketing plan
•Financial plan
•Growth plan
• Brief recounting (summarizing) of the key points
contained in a business plan.
• Investors & lenders rely on this to decide if the concept
interests them
• Should be no longer than
two pages.
• Include the most important
information from each
section of the plan.
• Written last
• Mission Statement
• Presentation of the product
or service you’re offering.
• Nature of your business
• Unique features of your
product/service
• Any possible spin-offs
• Additional products or
services that might be offered
once the business is
established
• Present entrepreneur’s qualifications & those of
any partners involved in the business venture.
• Analyze expertise you’re missing & how you will
solve that problem
• Describe any advisory
board members/Board of
Directors that will assist in
getting the business started
• Convince the reader that an
explosive market opportunity
exists
• Presents research into the
industry & market
• Analyze customers, competition, &
industry
• Information about the
prospective geographic
location, economic, &
demographic data
• Includes all processes involved in
producing and/or delivering the product
or service to the customer.
• Status of product development
• Equipment, inventory, production
• Time & money needed
• Distribution plans (Channels of
Distribution)
• Direct channel – delivery directly to the
customer
• Indirect channel – product sold to someone
before it reaches the customer (wholesaler)
• People aspects of the business. Includes:
•Management philosophy
•Legal form of the company
•Key management personnel
•Key employment policies
• How your company makes its customers
aware of its products or services
• Market segment
• Pricing policy
• Company image
• Marketing strategies
• Promotional plan
• Marketing budget
• Presents the forecasts for
the future of the business
• Includes assumptions made when
calculating your forecast figures
• Usually in the form of
financial statements
• Looks at how the
business will
expand in the
future.
•Investors & lenders
look to see if the
business has the
potential & the plans
to grow over its life
• http://www.entrepreneurship.org/en/resource-center/businessplanning-building-an-effective-business-model.aspx
• http://www.dukeven.com/Home/Planning
• http://www.scribd.com/doc/3911336/EntrepreneurialPlanning-and-Goal-Setting
• http://smallbizlink.monster.com/training/articles/855-strategicand-tactical-planning-understanding-the-difference