© G. Guerra
-Cl1,l2“ENTREPRENEURSHIP
& BUSINESS PLANNING”
“I2C”
Introduction to
Business Assessment and
Planning
Gianni Guerra
1
Incubatore I3P
Politecnico di Torino,
Tel. 011-5647255; 3487900554
gianni.guerra@polito.it
© G. Guerra
Business Plan Developing Outline
(Developing=Writing)
› What is it, what does it do ?
› Why is necessary (who benefit)?
› Who has to developed it
?
› When it has to be developed ?
› Where it has to be developed ?
› How (content and style)
?
2
(R. Kipling “six honest servants”)
© G. Guerra
What is a Business Plan?
Business
Plan
IT IS A WRITTEN DOCUMENT
WITH CONFIDENTIAL AND PROPRIETARY INFORMATIONS
WHICH MAP OUT BEFOREHAND
A COMPANY BASIC ELEMENTS
FROM BUSINESS IDEA
TO OPERATIONAL AND ORGATIONAL STRUCTURE
OF THE ACTIVITY
TO ECONOMIC/FINANCIAL OUTCOMES
OVER A SPECIFIC PERIOD OF TIME
3
© G. Guerra
What does it do?
(what the use of it, why write it)
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Test business assumptions
Assure operational coordination
Communicate corporate strategy
Set management objectives
To communicate with board of directors, advisors, consultants
Recruit & motivate employees
Secure financing
Identify weaknesses in a plan that requires further research
and analysis…find out where your plan is weak
© G. Guerra
“3 WHY?’” of a Business Plan
I. TO ENABLE THE ENTREPRENEUR TO
TAKE THE RISKS RELATED TO
CARRYING OUT A BUSINESS IDEA
5
During the plan development, the entrepreneur is
compelled to deeply examine every specific issue of the
future company: it is probable that doing so, he will
discover planty of bad elements and that he try to fix
them. If some problems cannot be solved or reveal
relevant implications, the fact that have been discovered
allow comunque the entrepreneur to adopt the relevant
initiatives (comprise not to go on) before take financial
engagements.
© G. Guerra
“3 WHY?’” of a Business Plan
II. TO CONVINCE OTHER PEOPLE EXTERNAL
TO THE COMPANY TO TAKE PART
IN THE RISK INVOLVED IN THE THE IDEA
(BP AS A MEAN OF INVESTMENT
EVALUATION)
 Lifestyle
 High
6
companies
growth companies
© G. Guerra
“3 WHY?’” of a Business Plan
III. TO PROVIDE THE ENTREPRENEUR WITH A
GUIDING TOOL FOR THE UNDERTAKED
MANAGEMENT PATH
(BP AS A “MANAGEMENT TOOL”)
MISSION
VISION
PLANS
PRESENT
POSITION
7
VALUES
AIMS/PURPOSES/
STRAT. OBJECTIVES
(GOALS)
(what else: nothing than to react)
TIME
© G. Guerra
“BUSINESS PLAN” NECESSARY BUT NON ENOUGH
1° Consideration:
THE WORLD BEST BUSINESS PLAN
WILL NEVER BE ABLE TO TURN A FLAWNED IDEA
IN A SUCCESS COMPANY
2° Consideration:
A GOOD BUSINESS PLAN DOESN’T MEAN
THE SUCCESS FORMULA BUT CAN BE DETERMINANT
IN REDUCING THE FAILURE PROBABILITIES
Idea
8
Plan
Execution
Results
© G. Guerra
Who has to prepared it ?
THE ENTREPRENEUR HIMSELF
It can be helpful, in the process of preparing it,
to have professional input and evaluations from
accountants, consultants, lawyers...
9
Pg.4 O’Donnell
© G. Guerra
Entrepreneurs are most often doers rather than
proposal writers. They would rather be on the
battelfield -the cutting edge of business- than behind
the lines planning their assault. In addition, many
entrepreneurs have difficulty articulating the
business concepts that have often become second
nature to them.
Whatever difficulty the preparation of a business plan may
present, a plan is an absolute necessity for any business.
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© G. Guerra
When?
PLANNING is the complete and continous
process directed to improve business operations
in the light of existing oportunities
CONTINOUS
IMPROVEMENT
GOALS/OBJ.
REDEFINITION
CONTROLS&
RECOVERY A.
EXECUTION
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GOALS/
OBJECTIVES
PLANS
© G. Guerra
When ?
PLANNING NEEDS TO BE DYNAMIC
(all the more reason for management control)
Rule n° 1: do it in a WORD PROCESSOR and using
SPREADSHEETS.
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© G. Guerra
Where ?
Planning a new business involve much of the work
“on the field”,
to speak with potential customers,
to gather informations on competitors,
to gather the most of possible data related
to investment and expenses that have to be supported.
The “writing work” means the least part
of this activity and mainly deal
with the figure translation of gathered informations
and the project economic/financial assessment.
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© G. Guerra
Who need/benefit?
All organizations need
plans
•High/low/no-tech ventures
•Profit/non profit organization
•Start up
•Expansion programs
• …….
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© G. Guerra
How?
(content and style)
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Is an art, not a science
Every plan is unique
There is no “ideal” standard format
It is a practiced skill, it can be learned
There are some “best practices”
“Developing” is different than “writing”
It is a never ending process
Everyone is an expert; has an opinion
© G. Guerra
General guidelines
 Lenght 20/30 pages +annexes
(theren’t a “perfect” lenght.
test: it can and will be easely read in a session? )
 Period covered: 3/5 years
 Data no more old than 3/5 years
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© G. Guerra
Business Plan Reference Content
PURPOSE
EXECUTIVE SUMMARY
(Synthesis)
1-VENTURE DESCRIPTION
10-ECONOMIC AND
FINANCIAL PLAN
2- ENTREPRENEURIAL/
MANAGERIAL TEAM
9-IMPLEMENTATION
PLAN
3-MARKET ANALYSIS
8-RISK/VULNERABILITY
MASTERING PLAN
4-INDUSTRY ANALYSIS
7-THE ORGANIZATIONAL/
5-MARKETING STRATEGY
LEGAL PLAN
6-OPERATION PLAN (VALUE CHAIN)
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5-PRODUCTS PLAN
© G. Guerra
PURPOSE
PURPOSE
EX. SUMMARY
VENTURE DESCRIPTION
ECONOMIC AND
ENTREPRENEURIAL/
MAN. TEAM
FINANCIAL PLAN
INDUSTRY
IMPLETATION PLAN
ANALYSYS
MARKET
SUSTAINABLE
ANALYSYS
ADVANTAGE
MARKETING
ORGANIZATIONAL
STRATEGY
PLAN
VALUE CHAIN
(COMPANY STRUCTURE)
Nothing irritates more than a Business Plan from what it isn’t clearly
understandable what is the proposal made to the receiver of it.
Therefore it is advisable to avoid gereric positions and to highlight
it’s own proposal in a direct way.
 WHAT IT IS OFFERED
 WHAT IS REQUESTED
Potential purposes:
- Definition of Business objectives and Strategies to achieve them.
- Management control guideline definition
- Baseline definition for agreement with potential partners
- Loans/risk capital investments request/proposal support
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- Business plans competitions
PURPOSE
© G. Guerra
EX. SUMMARY
Executive Summary
VENTURE DESCRIPTION
ECONOMIC AND
ENTREPRENEURIAL/
FINANCIAL PLAN
MAN. TEAM
INDUSTRY
IMPLETATION PLAN
ANALYSYS
MARKET
SUSTAINABLE
ANALYSYS
ADVANTAGE
MARKETING
ORGANIZATIONAL
STRATEGY
PLAN
VALUE CHAIN
(COMPANY STRUCTURE)
IT CHARACTERIZES AND HIGHLIGHTS
IN A CONCISE AND CONCRETE WAY
THE BUSINESS PLAN ESSENCE.
Indeed it is a syntetic version of the whole business plan
not a simple foreword not an introduction!!!
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PURPOSE
© G. Guerra
EX. SUMMARY
Executive Summary
VENTURE DESCRIPTION
ECONOMIC AND
ENTREPRENEURIAL/
FINANCIAL PLAN
MAN. TEAM
INDUSTRY
IMPLETATION PLAN
ANALYSYS
MARKET
SUSTAINABLE
ANALYSYS
ADVANTAGE
MARKETING
ORGANIZATIONAL
STRATEGY
PLAN
VALUE CHAIN
(COMPANY STRUCTURE)
It must allow the readers to gather
a first general idea of the paper :
after the reading, the potential interested persons
must have in mind a sufficient precise picture of what
it will be presented in more details in the plan.
Fast proposal understanding,
Attention attraction capability,
Immediate interest stiring up capability
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PURPOSE
© G. Guerra
EX. SUMMARY
Executive Summary
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VENTURE DESCRIPTION
ECONOMIC AND
ENTREPRENEURIAL/
FINANCIAL PLAN
MAN. TEAM
INDUSTRY
IMPLETATION PLAN
ANALYSYS
MARKET
SUSTAINABLE
ANALYSYS
ADVANTAGE
MARKETING
ORGANIZATIONAL
STRATEGY
PLAN
VALUE CHAIN
(COMPANY STRUCTURE)
Always gets read first
It’s the “acid test” of your writing skills
Often sent to investors by itself
If it doesn’t create enough reader interest, the full plan is
never read
2 to 3 pages maximum
If can’t arouse interest in 2-3 pgs, how can you market &
sell your product?
Most VC won’t open attachements
Garage Technology Ventures (www.garage.com) uses a one page summary approach.
Tech Coast Angels (www.techcoastangels.org) uses a one page format
(Bob Foster UCLA/ASM)
PURPOSE
© G. Guerra
EX. SUMMARY
Executive Summary
VENTURE DESCRIPTION
ECONOMIC AND
ENTREPRENEURIAL/
FINANCIAL PLAN
MAN. TEAM
INDUSTRY
IMPLETATION PLAN
ANALYSYS
MARKET
SUSTAINABLE
ANALYSYS
ADVANTAGE
MARKETING
ORGANIZATIONAL
STRATEGY
PLAN
VALUE CHAIN
(COMPANY STRUCTURE)
 Although
it come before, executive summary should be
prepared after having completed the preparation of BP
other parts.
(indeed, only after having meditate and defined the whole document
we are in a position to make an effective and concise syntesis)

Otherwise it could be a reiterative process:
-You first write a “best effort” version
-Then you’ll update it as you more fully develop
other parts of the plan
- Final version will look very different
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PURPOSE
© G. Guerra
EX. SUMMARY
VENTURE DESCRIPTION
ECONOMIC AND
FINANCIAL PLAN
IMPLETATION PLAN
ENTREPRENEURIAL/
MAN. TEAM
INDUSTRY
ANALYSYS
MARKET
SUSTAINABLE
ANALYSYS
ADVANTAGE
MARKETING
ORGANIZATIONAL
STRATEGY
PLAN
VALUE CHAIN
(COMPANY STRUCTURE)
1-Venture/Company Description
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Also known as “Company/Venture Introduction”
Second most important part of the plan
Amplifies and expands on what’s in the Executive
Summary, but not as detailed as rest of the plan
1-3 pages
These few pages together must present an
exciting, compelling investment opportunity
Condense several pages of each plan section
(marketing, operations, financials, etc.) into a single
paragraph or two
(Bob Foster UCLA/ASM)
PURPOSE
© G. Guerra
EX. SUMMARY
VENTURE DESCRIPTION
1-The Value Proposition
ECONOMIC AND
FINANCIAL PLAN
IMPLETATION PLAN
ENTREPRENEURIAL
TEAM
INDUSTRY
ANALYSYS
MARKET
SUSTAINABLE
ANALYSYS
ADVANTAGE
MARKETING
ORGANIZATIONAL
STRATEGY
PLAN
VALUE CHAIN
(COMPANY STRUCTURE)
Most business plans are focused on the entrepreneur, their idea, and
why the idea is wonderful. They are me-focused or my-idea-focused
rather than customer focused. People do matter -true- but investors
don’t really care very much about you and your idea, at least not at
the beginning. What investors care about is solving significant
customers problems or needs that offer significant profit and growth
potential.
Technology
Product
Benefits
Value
Proposition
Focus here
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Problems
Market
Needs
(pains/wants)
PURPOSE
© G. Guerra
EX. SUMMARY
VENTURE DESCRIPTION
2-Entrepreneurial Managerial Team
ECONOMIC AND
FINANCIAL PLAN
IMPLETATION PLAN
E.M. TEAM
INDUSTRY
ANALYSYS
MARKET
SUSTAINABLE
ANALYSYS
ADVANTAGE
MARKETING
ORGANIZATIONAL
STRATEGY
PLAN
VALUE CHAIN
(COMPANY STRUCTURE)
Shown that you (team) can deliver results.
Many investors pay more attentions to people than in ideas/plan
 Mission, aspirations,
propensity for risk
Ability to execute
on CSFs
TEAM
DOMAIN
Connectedness
up, down, across value chain
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PURPOSE
© G. Guerra
EX. SUMMARY
3/4-MARKET&INDUSTRY ANALYSIS
VENTURE DESCRIPTION
E.M. TEAM
ECONOMIC AND
FINANCIAL PLAN
IMPLETATION PLAN
MARKET A.
SUSTAINABLE
ADVANTAGE
ORGANIZATIONAL
MARKETING STRATEGY
PLAN
VALUE CHAIN
(COMPANY STRUCTURE)
INDUSTRY A.
 A MARKET consists of a group of current and/or
potential customers having the willingness and
ability to buy products –goods or services- to satisfy
a particular class of wants or needs.
Thus, markets consist of buyers -people or organizations
and their needs- not products
 An INDUSTRY consist of sellers –typically organizationsthat offer product or classes of products that are similar
and close substitutes for one another.
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PURPOSE
© G. Guerra
EX. SUMMARY
THE STRATEGIC BUSINESS UNIT
TECHNOLOGIES/
FUNCTIONALITIES
CUSTOMERS
BENEFITS
PROBLEMS
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PAINS/
NEEDS/
WANTS
MARKET A.
SUSTAINABLE
ADVANTAGE
ORGANIZATIONAL
MARKETING STRATEGY
PLAN
VALUE CHAIN
(COMPANY STRUCTURE)
INDUSTRY A.
BUSINESS
(SBU)
PRODUCTS
Value
Proposition
VENTURE DESCRIPTION
E.M. TEAM
ECONOMIC AND
FINANCIAL PLAN
IMPLETATION PLAN
MARKETS
PURPOSE
© G. Guerra
EX. SUMMARY
VENTURE DESCRIPTION
5-MARKETING STRATEGY
ECONOMIC AND
FINANCIAL PLAN
IMPLETATION PLAN
E.M. TEAM
INDUSTRY
ANALYSYS
MARKET
SUSTAINABLE
ANALYSYS
ADVANTAGE
ORGANIZATIONAL
PLAN
VALUE CHAIN
(COMPANY STRUCTURE)
MARKETING
STRATEGY
-IMARKET
- II COMPETITION
- III MARKET OBJECTIVES
AND STRATEGY
- IV MARKETING MIX
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PRODUCT
PRICING
PROMOTION
PLACING
PURPOSE
© G. Guerra
EX. SUMMARY
VENTURE DESCRIPTION
Product section of plan must include:
ECONOMIC AND
FINANCIAL PLAN
IMPLETATION PLAN
E.M. TEAM
INDUSTRY
ANALYSYS
MARKET
SUSTAINABLE
ANALYSYS
ADVANTAGE
ORGANIZATIONAL
PLAN
VALUE CHAIN
(COMPANY STRUCTURE)
MARKETING
STRATEGY
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Clear description of the product
What it does and how it’s made
Is it patented or patent pending? Licensed?
What stage of development? Alpha? Beta?
Why will customers buy your product as opposed
to others?
Future product plans? When
PURPOSE
© G. Guerra
EX. SUMMARY
VENTURE DESCRIPTION
ECONOMIC AND
FINANCIAL PLAN
IMPLETATION PLAN
E.M. TEAM
INDUSTRY
ANALYSYS
MARKET
SUSTAINABLE
ANALYSYS
ADVANTAGE
ORGANIZATIONAL
PLAN
VALUE CHAIN
(COMPANY STRUCTURE)
MARKETING
STRATEGY
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Describe what you’re selling
If it’s new, have to give it a frame of
reference….”name it and frame it”
–
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Saleslogix example
Present advantages over current products
Explain why customers will buy it; what’s the
value to them?
© G. Guerra
PURPOSE
EX. SUMMARY
VENTURE DESCRIPTION
6- Operation Plan (Value Chain)
ECONOMIC AND
FINANCIAL PLAN
IMPLETATION PLAN
SUSTAINABLE
ADVANTAGE
ORGANIZATIONAL
PLAN
E.M. TEAM
INDUSTRY
ANALYSYS
MARKET
ANALYSYS
MARKETING STRATEGY
VALUE CHAIN
- M. Porter Model INFRASTRUCTURAL ACTIVITIES
HUMAN RESOURCES MANAGEMENT
INDIRECT
ACTIVITIES
TECHNOLOGY DEVELOPMENT
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SERVICES
MARKETING &
SELING
OUTGOING
LOGISTICS
PRODUCTION
DIRECT
ACTIVITIES
INCOMING
LOGISTICS
PROCUREMENT
© G. Guerra
PURPOSE
EX. SUMMARY
VENTURE DESCRIPTION
7- ORGANIZATION/LEGAL PLAN
ECONOMIC AND
FINANCIAL PLAN
IMPLETATION PLAN
SUSTAINABLE
ADVANTAGE
E.M. TEAM
INDUSTRY
ANALYSYS
MARKET
ANALYSYS
MARKETING STRATEGY
ORGANIZATION
VALUE PLAN
PLAN
orizontal: activities/processes
 vertical: organizational structure
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© G. Guerra
PURPOSE
EX. SUMMARY
VENTURE DESCRIPTION
8-RISK/VULNERAB. MASTERING PLAN
IMPACT
low
PROBABILITY
high
low
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ECONOMIC AND
FINANCIAL PLAN
IMPLETATION PLAN
INDUSTRY
ANALYSYS
MARKET
ANALYSYS
MARKETING
ORGANIZATION
STRATEGY
PLAN
VALUE PLAN
RISKS PLAN
high
RFG
RFC
RFB
RFD
E.M. TEAM
RFH
RFA
RFE
RFF
(risk matrix)
© G. Guerra
PURPOSE
EX. SUMMARY
VENTURE DESCRIPTION
6 BASIC METHODS FOR
RISK CONTROLLING AND REDUCING
EVENT
1 Elusion
2 Prevenction
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ECONOMIC AND
FINANCIAL PLAN
IMPLETATION PLAN
E.M. TEAM
INDUSTRY
ANALYSYS
MARKET
ANALYSYS
MARKETING
ORGANIZATION
STRATEGY
PLAN
VALUE PLAN
RISKS PLAN
DAMAGE
FINANCIAL
CONSEQUEN.
3 Protection
4 Assurance
5 Transfer
6 Retention
© G. Guerra
PURPOSE
EX. SUMMARY
VENTURE DESCRIPTION
9-IMPLEMENTATION PLAN
ECONOMIC AND
FINANCIAL PLAN
- Funding agreements
- Prototype development
- First market test
- Production&selling start up
- Activity enlargement
- …………………..
35
INDUSTRY
ANALYSYS
MARKET
ANALYSYS
MARKETING
ORGANIZATION
STRATEGY
VALUE
PLAN
PLAN
IMPLEMENTATION
RISKS PLAN
PLAN
Milestones
E.M. TEAM
© G. Guerra
PURPOSE
EX. SUMMARY
VENTURE DESCRIPTION
9-IMPLEMENTATION PLAN
36
ECONOMIC AND
FINANCIAL PLAN
E.M. TEAM
INDUSTRY
ANALYSYS
MARKET
ANALYSYS
MARKETING
ORGANIZATION
STRATEGY
VALUE
PLAN
PLAN
IMPLEMENTATION
RISKS PLAN
PLAN
© G. Guerra
PURPOSE
EX. SUMMARY
10-FINANCIAL PLAN
ECO.FIN VENTURE DESCRIPTION
E.M. TEAM
PLAN
IMPLEMENTATION
PLAN
INDUSTRY
ANALYSYS
MARKET
ANALYSYS
RISKS PLAN
MARKETING
ORGANIZATION
STRATEGY
VALUE
PLAN
PLAN
WHILE THE OTHER SECTIONS OF BUSINESS PLAN GIVE THE VENTURE
GLOBAL PICTURE, THE ECONOMIC/FINANCIAL SECTION ENABLE:
 THE RISK CAPITAL INVESTOR TO UNDERSTAND
THE RETURN HE CAN OBTAIN.
 THE DEBT INVESTOR TO EVALUATE THE COMPANY
ABILITY TO PAY BACK THE LOANS.
In several ways the economic/financial section of the Business Plan is the least flexible.
Even if the figures are different, the schemes or templates put in the plan are always the
same and are given in a way that is to a great extent a standard.
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© G. Guerra
10
Cash flow
Risk&Rewards
Probability
inflow
Time
outflow
38
Profitability
© G. Guerra
THE BUSINESS OPPORTUNITY ASSESSMENT
(what to do before you write a Business Plan)
Business
opportunity
assessment
MARKET DOMAIN
INDUSTRY DOMAIN
Market
attractiveness
MACRO
LEVEL
Mission,
aspirations,
propensity
for risk
Industry
attractiveness
Ability to
execute on
TEAM CSFs
DOMAIN
Connectedness
MICRO
LEVEL
39
up, down, across value
chain
Target segment
benefits
and attractiveness
Sustainable
advantage
John W. Mullins, “The New Business Road Test”, FT Prentice Hall
Business
Plan
© G. Guerra
STYLE
A well written plan:
–
–
–
–
–
40
Quickly and effectively communicate your
vision for a new venture
Excite and motivate people to action
Be selected & read first...before other plans
that are poorly written
Increase your chances of funding
Not overcome a “non viable” business venture
with a losing business model
© G. Guerra
STYLE
A poorly written plan :
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Won’t get read…..period
Can ruin an otherwise good, solid business
concept
Normally results in venture not being funded
Reflects negatively on:
–
–
–
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the entrepreneurs
their advisors, directors
those who recommend the venture
© G. Guerra
Pyramid concept of Business Plan
Business plan
document
3 ring
binder
42
Main text
Appendixes
Business plans
Have 3 sections
Details plan for:
-Market analysis
-Sales plans
-Financials
-Mfg plans
-Facilities plans
© G. Guerra
The business plan document
Typically called the “Business Plan”
Summary of the “Total Business Plan”
Apendix for the important backup detail
-financial spreadsheet
-management resumes
 Don’t bore the reader with every details
of all your research results and analysis
- no amortization schedules, please
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© G. Guerra
Detail plans (“The 3 ring notebook”)
Where you put the research results
Binder with sections for:
- markrt, markrt strategies, sales plan
- manufacturing, facilities
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 Examples sales plan:
- sales rep job description
- sales rep compensation plan
- lead generation plan
- sales cycle assumptions
- sales rep headcount plan
© G. Guerra
(3/10)
STYLE
(pyramid concept of Business Plan)
Company Name
One sentence Description
Elevator Statement
Executive Summary
Rest of Business Plan
document
Appendices
45
© G. Guerra
STYLE

One sentence description:
–

Elevator statement:
–
–
46
“Thomas Bros. Maps produces high quality street maps
for metropolitan areas of the western U.S.”
“TBM produces high quality street maps for
metropolitan areas of the western U.S. Unlike Rand
McNally and other similar competitors, TBM’s maps are
completely updated every year and have the highest
positional map accuracy of +/- 10 feet.”
AKA business or positioning statement
© G. Guerra
APPENDIX
–
–
–
Detailed analysis & worksheets
Backup data to support plan sections
Example: Sales Section
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Job description of sales
Sales rep compensation plan
Sales cycle assumptions
Sales rep headcount plan
© G. Guerra
APPENDIX
The appendices may be bound as a separate volume.
They will include the following:
 marketing support and collateral
 CVs of key staff
 IPR, patents, etc.
 letters of support or contract intent
 plans in full
 financial projections
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© G. Guerra
STYLE
XXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXX
………………...
TEXT
FLOW-DIAGRAMS
SPREADSHEETS/
TEMPLATES
DIAGRAMS
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© G. Guerra
STYLE
Always:
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Date plans and Executive Summaries
Present on front page:
–
–
–
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Name of Company and contact name
Address, telephone numbers
email and web site addresses
Label each page as “confidential information”
© G. Guerra
Common Problems
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Market research generalization
–
–
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Too much general, high level overview
Not enough specific target segment data
Unclear product/service description
Minimal or non-existent compelling value
proposition…what makes you different? Why are
you going to succeed??????
© G. Guerra
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Exclude data older than 5 years
Vary use of company name
–
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All plans were wordy
All 12 plans were way too long
–
–
–
–
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Also use “we” and “the company”
need to go on a diet…20-25% cut
average 18 pages
range 14 to 26 pages
With rest of plan added…will be too long
Don’t use “No-No” words or phrases
© G. Guerra
What get angry Investors ?
• Having to read a 50 pages paper in which is never clearly
said what is the new venture mission.
• Not explicity rendering the capital amount required
• The evident infatuation with the product or service that it is willing
to offer instead of familiarity and knowledge of market needs.
• The stating of growing potential uot of reality.
• The presence of unjustified economic/financisal forecast.
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C. Parolini “Diventare imprenditori”
© G. Guerra
What impress Investors favourably?
• Evidence of offered product good acceptance by the customers
• Understanding of investors needs and knowledge of specific
objectives in terms of financial return.
• Evidence of new venture focousing on a narrow number
of products.
• Having intellectual property rights
(patents, trate marks, industrial secrets,…)
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C. Parolini “Diventare imprenditori”
© G. Guerra
To sum up……
GOOD
BUSINESS
IDEA
What a pity!
but whe can
remedy it
That’s not bad! Many words/data
few ideas/substance
(fried air)
POOR
POOR
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O.K!
GOOD
DEEPENESS OF
DEVELOPMENT
© G. Guerra
remember……
-Business planning deals with risults
and the means to reach them.
- Plan contents must be coherent with the purpose
- Don’t accept a standard, acritically, only because there is it.
- Beyond the pointed out specificities, remember that your plan...
is yours !!!
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© G. Guerra
Suggested readings:
-W.A. Salman “How to write a great business plan”
HBR
-Gate2Growt “Guide to business plan writing”
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