Workshop! Javad Jassbi Feb 2016

Transcription

1 Workshop! Javad Jassbi Feb

2 Workshop 2 Plan 4 Today The procedure (Evaluation Model) Workshop Conclusion & Wrap up 20 Min 60 Min 40 Min

3 3 Review Short Review from previous meeting!

4 4 Procedure It s important to remember: Evaluating Business plan as a document is different from evaluating Business plan as a plan4business.

5 5 Procedure View Object Reality Observer

6 6 Procedure For Evaluation you need: 1) Approach, 2) Criteria, 3) Scoring System, 4) Aggregating Method,

7 7 Procedure Content vs Context Assumptions Business Plan Results

8 8 Procedure Typologies: Based on Components Assumptions Business Plan Results Covering of Must Answer Questions? Output analysis (Business oriented) Quality Criteria Hybrid Process

9 9 Procedure Financial Planning Timeline Executive Summary Operations SWOT Business plan Mission Statement Company Background Competitor Analysis Marketing Plan Product/ Service Description Sample Form

10 Procedure Must Answer Questions How large is your addressable market? How fast is the market growing? Who s make up your management team? What s your secret sauce? What are the barriers to entry/competitive advantage? What do your X year financials look like? What s your path to profitability? Why is this a company versus a product/service? Who are your competitors and how do you beat them? Why can t Microsoft do this? (or any big, established company)

11 11 Procedure Viability Reasonability Scope Profitability Accuracy of Information Alignment Reliability Realistic Applicability Well written and presented Flexibility (Alternatives and exit plan).

12 The Advance IP Position Status Capability Validation Marketing Plan Management Team Investment Offering Market Size and Share Competition ROI Represent 12 a significant advance on the current offerings or practices in a particular market Offer a realistic chance of establishing defensible intellectual property Propose offerings which have undergone significant real world testing Are backed up with sufficient resources and business capacity to execute on the opportunity Have been tried and vetted by a representative group of customers Have a realistic and detailed marketing plan Are backed up with a management team with sufficient experience and education to execute the plan Have a favorable investment structure Target a large and attractive market and the chance to capture a significant portion of it Don't face competitive threats that are too entrenched or powerful Represent an attractive return on investment

13 Tips: 13 TIPS 1 Read the executive summary. This should be a concise "elevator pitch," not a summary of the business plan. In one or two pages, it should convey the market opportunity and the uniquely compelling features of the business that will help it meet that opportunity. The executive summary should excite you and make you want to turn to the next page. If it doesn't, the entrepreneur might lack marketing or writing skills.

14 14 TIPS 2 Evaluate the market opportunity. It should be growing at least 10 percent per year and have a substantial potential relative to the size of the business and investment. For example, a small company seeking an investment of $50,000 should see a potential market of $5 million. The larger the potential market and the faster it is growing, the better. Look to the exhibits and appendices to ensure that the business actually has done the necessary market research and can back up any claims.

15 15 TIPS 3 Examine the company strategy for capturing its market. The plan must clearly describe the problem the company is solving or need it is meeting for customers, and then propose a solution. Closely examine the alignment between problem and solution. Will the company actually address that need? This evaluation must take into account the product or service being offered, the operational capacity and efficiency with which the business actually can produce its product, and the quality of the proposed marketing efforts.

16 16 TIPS 4 Understand the business environment. The business plan should describe the competitive landscape in which the company operates, preferably by referencing Porter's 5 Forces or another well-established tool. Look for detailed breakdowns and analyses of each of it competitors, and of how the company is different and better than the competition in a particular niche. This section should include the regulatory environment and mention any costs or necessary delays associated with regulations.

17 17 TIPS 5 Look for experience, integrity and passion in the executive team. Bios and brief highlights of each executive's strengths and expertise should accompany standard business information such as headquarters and corporate structure. The company should have experienced advisers, either formally or informally. It is paramount that the principals involved in the business convey their passion and drive toward success with this project. If the founders haven't invested their own capital into the business, or plan on keeping their "day jobs" while running the business, they might lack faith in the project.

18 18 TIPS 6 Ensure that the financial projections are both promising and realistic. Most entrepreneurs vastly overstate their company's potential, starting with the market size and market share. Financial figures should be based on historical data if available, or very conservative projections if the company is not yet profitable. Entrepreneurs that project capturing 20 percent market share in the first two years probably have unrealistic expectations.

19 19 TIPS 7 Investigate the returns provided by the investment. Good business plans include exit strategies for pulling the initial investment back out of the company, and have a realistic valuation of their shares.

20 20 TIPS 8 Evaluate the business plan as a whole document, and as a reflection of a real-world company. Determine whether the market need is adequate, the company's offerings are compelling, the management team experienced and committed, and the financial statements realistic. Does this company as a whole have a chance of success?

21 21 TIPS

22 22 workshop Let s start! Each Group has to present: Summary of BP Evaluation Model Result including Final Score Detail Scores Advantages and disadvantages Advice to improve

23 Project 23 Projects Imagine you are going to submit for a SME Instrument Call and have to use your PhD proposal in a BP format, almost! Write a proposal using standard template. Send no later than 3 rd of March! Name and ID number just in first page please! Do not hesitate to contact me in case of any question: j.jassbi@uninova.pt