Learning Objectives
    ◦Define and apply commonly used new venture business 
     planning concept, skills and tools
    ◦Demonstrate a comprehensive understanding of the 
     principles and process of forming a strategic business plan
     What is a Business 
     Plan?
     ◦A tool for analysis
      ◦ Creating the plan becomes a guide to gathering the relevant 
       information that ensures the direction of the business is achievable 
       and financially lucrative
     ◦A tool for synthesis
      ◦ Converts vision into a strategy for the start-up, with respective 
       action
     ◦A tool for communication
      ◦ Communicates potential to stakeholders
     ◦A call for action
     The Business Plan: 
     A tangible product of the ongoing 
     planning process
     ◦Articulates the vision of the start-up team
      ◦ Tells others that the entrepreneur is serious
      ◦ Often a requirement for funding from investors and financial 
       institutions
     ◦Tells others that the entrepreneur is serious
      ◦ Often a requirement for funding from investors and financial 
       institutions
     ◦Is a constant work in process:
      ◦ Businesses evolve and change their strategies/ markets/ offerings
     The Nonconformist 
     Entrepreneur becomes the 
     Planner
        Entrepreneurs are often            A traditional business plan 
        driven by:                         includes:
        ◦A unique idea                     ◦Executive summary
        ◦Drive and determination           ◦Description of the business 
                                            opportunity
        ◦An intuitive approach             ◦Marketing and promotional 
        ◦Gut feelings                       strategy
        ◦Heuristics- “it gets the job      ◦Management strategy
         done”                             ◦Operational strategy
        ◦Bricolage- trying, testing,       ◦Financial forecasts
         playing around                    ◦Information on suppliers
    Why might an entrepreneur think he/she does not need a business plan?
    Who Cares about a 
    Business Plan?
     Owners (often the entrepreneurs)
     ◦A way to assess the feasibility of a business idea
     ◦Set objectives: what is the direction of this business? Targets?
     ◦Determine budgets and how much funding is needed
     Managers
     ◦Clarify ideas- bringing it all together
     ◦Establish what is known and what is not
     ◦Determine staffing needs/Build or reorganize a team
     ◦Practice analysis and presentation