HOC 14 Business Plans

why is a business plan important

• investor and raising money

• time

• assess the feasability of your project

• strategic decisions

• thinking ahead : planning is looking into the future

• legal requirement

wat is een business model

how the firm plans to make money and specifies the position of the firm in the value chain

describes the rationale of how an organization creates, delivers, and captures value

what can have different business plans

the same product

example music

wat mist er in een businessplan

competition

what do investors expect form a business plan

a busines plan that present a lot of information in as few words as posible

TAM

total available market : is the total market demand for a product or a service

SAM

serviceable available market (SAM) is the segment of the TAM targeted by your products within your geographical reach

SOM

servuceale obtainable market (SOM) is the portion of SAM you can capture

what is your short term target

SOM

what do your SOM needs to factor in to be realistic

• your product: people will want to buy your goods

• your marketingplan and the identified distribution channels

• your SAM and the strengt of you competition. Your SOM needs to be a reasonable fraction of you SAM

what are the 3 main approavjes to set your prices

cost

competitive based

value based

who writes the business plan

• the CEO needs to own the plan

• get help and participation from all the key partners in you rcompany

• seek external feedbacj from different perspectives

• seek ecternal help for areas outside your collective skills

• accountant, lawyer, retired industry pro, customer, consultant, professor

elevator pitch

very short description of key message

an executive summary

is like a resume

if it gets the readers attention, the rest gets read

the elevator speech is to the executuve summary as the executuve summary is to the full plan

why do plans fail at first cut

• insufficient market

• non credible technology

• failure to understand the market

• investment too large for the promise

• action plan not credibl

• team not credible

• investment not profitable