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Business Planning for Success


Business Planning for Success
Rick Normington
Walter Harold Siebens Entrepreneurship Chair Sierra Nevada College Dean – Continuing Education and Summer Programs Former AT&T VP & Corp Strategist

Business Planning for Success
If you don’t know where you’re going, any road will get you there … and you might not like the scenery when you arrive.

ENTREPRENEURIAL PROCESS LIFE CYCLE
Idea Good Idea?
No Yes

Mini BP

Feasibility Study * Pro Forma financial analysis * Further Reflection

Opportunity?

Yes

Full Bus. Plan

No or maybe

A
Consider different strategic assumptions

Yes

Recycle?
No

Maturity Store for later Decline
No Go

A

Secure all strategic resources

Go/ No Go

Go

Growth Stage

Richard S. Normington

Organizational launch

The Mini-Plan
? Concept Description ? Organizational Mission ? Vision of the Future ? Strategic Goals ? Strategy ? Tactical Action Plan ? Elevator Pitch

The Mini-Plan (cont)
? Concept Description ? Organizational Mission

Briefly state the firm’s purpose in terms you would use to prospective customers / users / clients.

The Mini-Plan (cont)
? Vision of the Future

What’s your picture of success 3 – 5 years from now?
? Strategic Goals

B.S.M.A.R.T.

The Mini-Plan (cont)
? Strategy for Achieving Goals

Consider all 4 Ps of marketing
? Tactical Action Plan

Chronological “to do” list of actions needed to get to organizational launch and initial start-up stage

The Mini-Plan (cont)
? Elevator pitch

Craft a clear statement of <40 words you could use to describe your value proposition to a total stranger

Good Idea?
? Assess Financial Viability

Develop preliminary pro forma financial statements: P&L, Balance Sheet, Cash Flow. Iterate as needed to test alternate strategic approaches

Opportunity?

? No? Don’t waste more time or money. ? Yes? It’s time for a full business plan.

Sample Business Plan Structure
? Executive Summary ? Company Overview ? Products / Services ? Market and Competitive Analysis

Sample Business Plan Structure
? Management Team ? Operating Strategies ? Critical Risks

Sample Business Plan Structure
? Financial Analysis ? Income Statement ? Balance Sheet ? Cash Flow ? Break-even ? Offering ? Appendices

Business Planning for Success
“Good things may come to those who wait … but what they get is what’s left over by those who hustle.” Theodore Roosevelt


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