The Wind-Up

 

Create a Pitch-worthy Business Plan

 

No Business Plan Survives First Contact With Customers

What Business are You In?

  • This is a TRICK QUESTION
  • You will ALL get it WRONG
  • There is only ONE BUSINESS

Business Plans -

  • ...are the execution document that existing companies write when planning product-line extensions
  • ...are used where customer, market and product features are known
  • ...are operations documents that describe an execution strategy for addressing known factors

Most entrepreneurs face a series of unknowns:

  • unknown customer segments,
  • unknown customer needs,
  • unknown market conditions,
  • unknown cash flow issues,
  • unknown supply chain issues,
  • unknown product features,
  • etc....

Entrepreneurs are Startup Wranglers

  • a startup is a temporary organization designed to search for a repeatable and scalable business model 
  • the primary objective of a startup is to validate its business model hypotheses​
  • only after this point does the startup need an operating plan, financial forecasts and other well-understood management tools 

Model Your Future...

Business MODEL

  • identifies the services that your customers value
  • shows the funds received for the services your small business
    renders
  • explains the flow of money within
    your small business

Business PLAN

  • provides the details of your business
  • explains the equipment, supplies, staff etc. you'll need to meet the details of the business model
  • explains the structure needed to obtain that flow of money

Typical Business Plan Outline

  • Executive Summary
  • Business History, Background and Objectives
  • Business Environment
  • Products and/or Services
  • Present Market
  • Competition
  • Marketing Plan
  • Management and Organization
  • Business Resources
  • Financial Plan

- source: www.sba.gov

The Business Model Canvas

Strategic Plan

  • A business plan covers the “who” and “what” of your business; a strategic plan examines the “how” and “when”
  • A strategic plan is an internal document, designed for you to turn your business model into a course of action
  • A strategic plan is usually written before a business plan and, though typically shorter and less detailed, contains the seed of your final, full business plan
 

The Strategic Plan asks:

  • How will you measure success?
  • What metrics and milestones will you use, and how will you track them?
  • What actions and activities will contribute to success?
  • What is the time frame for these activities?

Typical Strategic Plan Outline

 
  • Executive Summary
  • Mission Statement
  • SWOT Analysis
  • Company Goals
  • Financial Projection
  • Customer Analysis
  • Industry Analysis
  • Marketing Plan
 

SWOT Analysis

 
  • Takes you from Business Model to Strategic Plan
  • Should be a sober examination of the possibilities of your (proposed) business
  • Can be considered a "check up" for the health of your overall business concept
  • Don't gloss over this: a well-done SWOT analysis should be a "reality check" for you and any business partners
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Know Thyself (& thy business)

  • Strengths
    • What do you do better than anyone else?
    • What is your Unique Value Proposition?
  • Weaknesses
    • What could you improve?
    • What factors lose you sales?
  • Opportunities
    • What emerging trends can benefit your business?
  • Threats
    • What obstacles do you face?

From Strategy to Tactics

 
  • Modelling your business and creating a strategic plan first allows you to identify what's missing or unclear in your business plan
  • Your business plan should be the "operational manual" for your business: it's difficult to get this right before you've actually been in business for a year or so
  • DON'T RUSH! There's no expiration date for seeking financing, but you can hurt your chances by approaching a bank or investor before you're ready
  • Business modelling and strategic planning help you see your business the way a bank or investor will, in terms of its viability and your preparedness
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PLAN Your Business

 
  • DON'T just write a business plan. Most business plans are, at best, works of creative fiction
  • While a business plan is an essential tool in seeking financing or investing, a business plan is NOT a loan application
  • A thorough business plan which is the result of business modelling, strategic planning and SWOT analysis helps you to be sure you know how much financing you need, when you'll need it and, most importantly, how to apply it so that you grow your business and not your debt.
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Resources

 

About Cornell Green

Cornell Green is an IT Services professional with over 24 years of experience with such firms as Lehman Brothers and Paine Webber.

 

Since 2010, Mr. Green has been an independent consultant, working with NYC-based Small Businesses, helping them leverage the power of technology.

 

About BTI

Blue Tech Initiative - BTI - is a consortium of NYC-based IT Services companies united in the spirit of "co-opetition".


These three business: CommunIT Solutions, Openchoice IT and Gotcha Techs Harlem join together to provide effective solutions for New York's Small Business community