Chapter 8 - The business planning process. The goal of this chapter is to give you an introduction to entrepreneurial financial planning. Unlike in existing businesses, which have an operating history, entrepreneurs must develop their financials from scratch. There are no previous trends in revenue and costs that you can use as a basis to project future revenues and costs. | THE BUSINESS PLANNING PROCESS Chapter 8 1 You Need a Business Plan It is a small investment in time and cost when compared to the time and cost of starting a business. It forces the entrepreneur to think critically about all aspects of the business venture. It can later be used as a benchmark to monitor the progress of the business. Describes the details of how you will exploit your opportunity Creates opportunities to raise critical questions and to research and find answers Relatively small investment in time and cost “Plans are useless, but planning is indispensable” - GEN Dwight D. Eisenhower Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© ***new slide*** 2 Business Planning is a Continuous Process Begins when you start thinking about a new venture Accumulate a critical mass of learning Organize summary information to share your idea and to identify gaps Focus on critical aspects of the business model Keep in mind—the business plan is a “living document.” It will continue to evolve as you progress. Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© Your Business Plan as a “Story” Key takeaways for your business are found in the process of developing a well-written story How will stakeholders interpret your plan? A tagline creates a unifying plot line that organizes your thinking Stick to the “general format” of business plans Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© “A business plan is the persuasive, yet concise, story about where the company came from, where it’s going and how it will get there.” Shane Eten, Founder & CEO BluCarbon Business Plan Format – Keep it Simple! Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© A Business Plan is Judged by Its Cover - Create a Good One! The Cover An “Eye-catcher” Control Distribution Disclaimer Simple but Important Details Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© Imagine the frustration of | THE BUSINESS PLANNING PROCESS Chapter 8 1 You Need a Business Plan It is a small investment in time and cost when compared to the time and cost of starting a business. It forces the entrepreneur to think critically about all aspects of the business venture. It can later be used as a benchmark to monitor the progress of the business. Describes the details of how you will exploit your opportunity Creates opportunities to raise critical questions and to research and find answers Relatively small investment in time and cost “Plans are useless, but planning is indispensable” - GEN Dwight D. Eisenhower Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley, 2017© ***new slide*** 2 Business Planning is a Continuous Process Begins when you start thinking about a new venture Accumulate a critical mass of learning Organize summary information to share your idea and to identify gaps Focus on critical aspects of the business model Keep in mind—the business plan is a “living document.”
