Teri Epperly on Business Planning
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1 Top 10 tips for a Buzz Worthy Business Plan Teri A. Epperly teri@paloalto.com October 13, 2011 Bend Venture Conference 2011 Logistics This presentation is downloadable: paloalto.com/bvc2011 me at: teri@paloalto.com Business planning website: Software website: Introduction Teri Epperly How many are already in business? How many are ready to start a business? 1
2 #10: Know your market Market: what, who, how many? Example: online market research 2
3 Example: online statistics Focus on the total addressable market, not the total potential market Understand market segmentation Early Adopters Opinion Leaders Laggards 3
4 Profile your ideal customer #9: Forecast. Don t do accounting. Forecast: Restaurant Seating 4
5 6 tables x 4 people per table = 24 people 6 tables x 4 people per table = 24 people 24 people x 1 = 24 lunches at capacity 6 tables x 4 people per table = 24 people 24 people x 1 = 24 lunches at capacity 24 x 21 work days = 504 lunches monthly 5
6 6 tables x 4 people per table = 24 people 24 people x 1 = 24 lunches at capacity 24 x 21 work days = 504 lunches monthly 24 people x 2 = 48 dinners at capacity 6 tables x 4 people per table = 24 people 24 people x 1 = 24 lunches at capacity 24 x 21 work days = 504 lunches monthly 24 people x 2 = 48 dinners at capacity 48 x 26 days = 1,248 dinners monthly 6 tables x 4 people per table = 24 people 24 people x 1 = 24 lunches at capacity 24 x 21 work days = 504 lunches monthly 24 people x 2 = 48 dinners at capacity 48 x 26 days = 1,248 dinners monthly 6
7 6 tables x 4 people per table = 24 people 24 people x 1 = 24 lunches at capacity 24 x 21 work days = 504 lunches monthly 24 people x 2 = 48 dinners at capacity 48 x 26 days = 1,248 dinners monthly Total Monthly Estimate: 1,752 Sales logic becomes sales forecast Sales monthly chart 7
8 Expense budget #8: Make realistic projections. #7: Know your competition. 8
9 Restaurant competition Competitive advantage #6: Don t rely on patents. 9
10 Keys to success #5: Assemble a great team. #4: Pitch first. Plan Second. 10
11 #3: Keep it short. #2: Write for the right audience Keep it simple 11
12 #1: Write a bullet-proof executive summary The Formal Plan The Standard Outline Mission History Executive Summary Vision Ownership Objectives Company Description Start-up What Plan you sell Keys Start-up Description to Success Costs Product/Service Description Location Benefits Target Facilities Features Market Market Sourcing Growth Market Analysis Segmentation Technology Marketing Strategy Market Trends Sales Forecast Strategy/Implementation Market Summary Organization Forecast Milestones Management Team Key Team Members Activities Funding Strategy Management Gaps Profit & Loss Financial Plan Personnel Plan Cash Flow Balance Sheet Copyright 2010 Palo Alto Software, presented by Teri A. Epperly, All Rights Reserved 12
13 Dress It As Needed End of Presentation Good luck with your business! A Different Approach to Business Planning What is Plan-as-you-go business planning? 13
14 Not the Old Standby Executive Summary Company Product or Service Market Analysis Strategy and Implementation Management Team Financial Projections Tailor the Outline for Your Needs Executive Summary Company Description Product/Service Description Market Analysis Strategy/Implementation Summary Management Team Financial Plan Copyright 2010 Palo Alto Software, presented by Teri A. Epperly, All Rights Reserved Planning is like a map You want to go here You are here now 14
15 Blocks. Modules. Do Only What You Need: Basic Do Only What You Need: Strategy 15
16 Action Plan: What? When? Planning is Management Planning Manages Change 16
17 Make it Concrete and Specific Objectives Must be Measurable It s About Results 17
18 Measure a Plan by its Implementation Your bank account --- Your bank account, if there had been no plan Value of the business plan Profits Cash A Good Business Plan is Never Done 18
19 Thank You! This presentation is downloadable at : paloalto.com/bvc2011 me at: teri@paloalto.com Business plan website: bplans.com Software website: paloalto.com 19
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