The 20th Annual The Nuts and Bolts of Business Plans MIT Course

1、The 20th AnnualThe Nuts and Bolts of Business PlansMIT Course 15.975January 2009Joe Hadzima(MIT S.B., M.S. in Management; Harvard Law)Senior Lecturer, MIT Sloan SchoolManaging Director, Main Street Partners LLC Joost Bonsen Yonald CheryFormer Lead Organizer, MIT $100K Competition $50K Finalist, Foun

2、der Virtual Ink TA: Sombit Mishra (15975-)January 20091Tonights Plan Who are You? Introduce our Teaching Team Introduce our Case Study Business Plan Basics - Overview Break Team Building Bob Jones: Market Identification and SalesJanuary 20092Who Are You? Registered Students: 60% Sloan 40% S

3、cience, Engineering and Architecture/PlanningJanuary 20093Who Are We? Joe Hadzima Joost Bonsen Yonald Chery Sombit MishraJanuary 20094Who Are We? Joe Hadzima Senior Lecturer MIT Sloan School Former Partner, Sullivan & Worcester LLP Founding Judge, MIT $100K Competition Former Global Chairman, MIT En

4、terprise Forum, Inc. Managing Director, Main Street Partners, LLC Founder and President, IPVision, Inc. January 20095Who Are We? Joost Bonsen Former Lead Organizer, MIT $100K Competition MIT Founders Study MIT Enterprise Forum Cambridge Chapter Global Board Co-Founder, Howtoons January 20096Who Are

5、We? Sombit Mishra Sloan MBA Student Former marketing and web development, Managing Director, MIT $100K Competition January 20097Tonights Plan Introduce our Teaching Team Introduce our Case Study Business Plan Basics - Overview Break Team Building Bob Jones: Market Identification and SalesJanuary 200

6、98Yonald CheryThe Virtual Ink StoryJanuary 20099Who Are We? Yonald Chery Calenova, CEO and Founder Mok3 Incorporated, President and CEO Newbury Networks Inc., Founding Executive Virtual Ink Corporation, Founder January 200910Tonights Plan Introduce our Teaching Team Introduce our Case Study Business

7、 Plan Basics - Overview Break Team Building Bob Jones: Market Identification and SalesJanuary 200911SESSION 1: BUSINESS PLAN BASICS The Business Plan - A SUPPORTED VISIONTechnologyIntellectualPropertyMarketAnalysisCompetitiveAnalysisSales andDistributionTeamFinancialProjectionsDetailedSupport/Founda

8、tionFull Business PlanPowerPoint PresentationExecutive SummaryElevator SpeechMission/Vision Statement1 paragraph30 seconds2-5 pages10-15 minutes20-30 pagesJanuary 200912SESSION 1: BUSINESS PLAN BASICSWhy Write A Business Plan?What Should Be In A Business Plan?The Business Plan As A Financing Documen

9、tWhat We Will Discuss Today:January 200913SESSION 1: BUSINESS PLAN BASICSWhy Write a Business Plan?January 200914SESSION 1: BUSINESS PLAN BASICSBecause I have to.Needed for financingStrategic partneringTo explain business to customers/suppliersTo attract key peopleWhy Write a Business Plan?January 2

10、00915SESSION 1: BUSINESS PLAN BASICSThe Business Plan is a result of a PLANNING PROCESSPeople dont Plan to Fail; they Fail to PlanWho are your customers?Why will the buy your service or product?What will they pay?How will you make and deliver the service/productWhat resources (people, money, technol

11、ogy) will you need?Can you create value and make money?Why Write a Business Plan?Because I Need to Understand My BusinessJanuary 200916SESSION 1: BUSINESS PLAN BASICSWho should write the Plan?CEO alone?The team?A hired writer/consultant?You need to OWN the PlanJanuary 200917SESSION 1: BUSINESS PLAN

12、BASICSWhat Should Be In A Business Plan?Size/Packaging Of The PlanAvoid the 3 thick binderSeparate binding of Executive Summary?How to bind?staplespiralVelabindAccubinderAppearance should be professional but not overly slickJanuary 200918SESSION 1: BUSINESS PLAN BASICS What Should Be In A Business P

13、lan?The Plan is a SELLING DOCUMENTDont lose sight of the visionThe excitement must come throughThe Plan should project your imageBUT: The Plan Must Be DefensibleJanuary 200919SESSION 1: BUSINESS PLAN BASICS What Should Be In A Business Plan?Elements of a PlanExecutive SummaryThe Opportunity and the

14、Company and its Services/ProductsMarket Research/AnalysisEconomics of the BusinessMarketing PlanDesign and Development PlanManufacturing and Operations PlanManagement TeamScheduleCritical Risks, Problems and AssumptionsThe Financial PlanAppendicesNotice That “Technology” Is NOT A SectionJanuary 2009

15、20SESSION 1: BUSINESS PLAN BASICS What Should Be In A Business Plan?Elements of a PlanExecutive Summary - TonightThe Opportunity and the Company and its Services/Products TonightMarket Research/Analysis TonightEconomics of the Business Session 2Marketing Plan TonightDesign and Development Plan Sessi

16、on 2Manufacturing and Operations Plan Session 3Management Team Sessions 5 and 6Schedule Session 3Critical Risks, Problems and Assumptions Session 3The Financial Plan Sessions 2, 4 and 6AppendicesJanuary 200921SESSION 1: BUSINESS PLAN BASICS What Should Be In A Business Plan?Cover PageName of Company

17、AddressTelephone/fax/emailConfidentiality legendSecurities law legendControl numbering of copiesJanuary 200922SESSION 1: BUSINESS PLAN BASICSJanuary 200923SESSION 1: BUSINESS PLAN BASICSCONFIDENTIALThis confidential Business Plan is the property of Virtual Ink Corporation and contains proprietary in

18、formation belonging to Virtual Ink. It is submitted for the sole and confidential use of the person named below. No part hereof may be reproduced, distributed or used for any other purpose. This copy must be returned to Virtual Ink upon request. This confidential Business Plan does not constitute an

19、 offer of securities for any purpose.Copy No. _ For: _January 200924SESSION 1: BUSINESS PLAN BASICSCONFIDENTIALThis Business Plan has been prepared by Virtual Ink, a Delaware Corporation. It is being delivered, subject to prior execution of a Confidential Disclosure Agreement, to a limited number of

20、 parties who may be interested in investing in Virtual Ink Corporation. The sole purpose of this Business Plan is to assist the recipient in deciding whether to proceed with a further investigation of Virtual Ink, Corporation.While Virtual Ink Corporation believes that the financial and other inform

21、ation contained herein is accurate, Virtual Ink Corporation expressly disclaims any and all liability for express or implied representations or warranties contained in, or for omission from, this Business Plan, or any other written or oral representations and warranties which may be made to the inve

22、stor in a Stock Purchase Agreement when, as and if one is executed, and subject to such limitations and restrictions as may be specified in such Stock Purchase Agreement, shall have any legal effect.January 200925SESSION 1: BUSINESS PLAN BASICSWhat Should Be In A Business Plan?Table of ContentsPut o

23、ne inInclude page numbersJanuary 200926SESSION 1: BUSINESS PLAN BASICS What Should Be In A Business Plan?Executive SummaryAn Executive Summary isNOT an introductionNOT a prefaceNOT a random collection of highlightsAn Executive Summary IS the Business Plan in miniatureWhy This?Why Now?Why This Team?J

24、anuary 200927SESSION 1: BUSINESS PLAN BASICS What Should Be In A Business Plan? -Executive Summary (continued)SizeTwo pages (preferable) to five pages (max)The Executive Summary must beLogicalClearInteresting/ExcitingThe Executive Summary is like a RESUMEIf it gets the readers attention, the rest ge

25、ts readThe Elevator Speech is to the Exec Summary as the Exec Summary is to the Full PlanJanuary 200928SESSION 1: BUSINESS PLAN BASICS What Should Be In A Business Plan? -Executive Summary (continued)The Executive Summary tellsWho you areWhat your strategy/vision isWhat you are doing and/or propose

26、to doWhat is the marketHow many $ do you need and what will you do with themWhat your SUSTAINABLE COMPETITIVE ADVANTAGE isWhen the reader is finished he or she should be able to tell someone what you are up to.January 200929SESSION 1: BUSINESS PLAN BASICS What Should Be In A Business Plan? -Executiv

27、e Summary (continued)The Executive Summary Should Contain:Description of the Business Concept and the BusinessThe Opportunity and StrategyThe Target Market and ProjectionsThe Competitive AdvantagesThe Economics, Profitability and Harvest PotentialThe TeamJanuary 200930January 200931January 200932Jan

28、uary 200933January 200934The Virtual InkExecutive SummaryJanuary 200935The Virtual InkExecutive SummaryJanuary 200936SESSION 1: BUSINESS PLAN BASICS What Should Be In A Business Plan?The Body of the Plan-The OpportunityWhat is the Market / Opportunity?How big is it now?What are the trends- how fast

29、is it growing or grow?Why Is This Time The Right Time For Your Product/Service?Convergence of Opportunity and SolutionJanuary 200937SESSION 1: BUSINESS PLAN BASICS What Should Be In A Business Plan? -The Body of the PlanMarket AnalysisExisting and planned products in marketplaceMarket segmentsMarket

30、 players/competitionCompetitive AdvantagesEstimated Market SharesCurrent PlayersYou“Who Loses If You Win and What Will Be Their Response?”January 200938SESSION 1: BUSINESS PLAN BASICS What Should Be In A Business Plan? -The Body of the Plan Marketing PlanWhat is your Marketing Strategy?Pricing and D

31、istributionPricing and margin erosionDistribution must match strategy/pricingSales TacticsWho will be the first customer, second customer etc.?How will you reach the customer?“Will the Dogs Eat the Dog Food?”Advertising and PromotionJanuary 200939SESSION 1: BUSINESS PLAN BASICS What Should Be In A B

32、usiness Plan? -The Body of the Plan Development PlanWhere is development today- product statusWhat development is needed?Time and resources needed for developmentDo you have to produce a complete product to get going? Avoid “Nuclear Fusion”Difficulty and RisksProduct Pipeline PlansJanuary 200940SESS

33、ION 1: BUSINESS PLAN BASICS What Should Be In A Business Plan? -The Body of the PlanAction PlanWhat Will You Do and When?Identification of “Credibility Testers”Sequencing to build VALUEEliminate or Reduce DependenciesCoordination of Schedule, Value Recognition Events and Financing RequirementsJanuar

34、y 200941SESSION 1: BUSINESS PLAN BASICS What Should Be In A Business Plan?AppendicesSeparately Bound VolumeResumes of PrincipalsProduct LiteratureTrade Press/Business PressPatents (front page)Testimonials LettersTechnical InformationConfidentialityTechnical person to technical person discussionJanua

35、ry 200942SESSION 1: BUSINESS PLAN BASICSFine Tuning/Targeting the PlanHave an Independent Reader Review the PlanOne or more independent readers for feedback:Retired industry pro?Customer(?)Consultant?Professor?Accountant- yes definitelyLawyer- yes definitelyJanuary 200943SESSION 1: BUSINESS PLAN BAS

36、ICSThe Business Plan As A Financing Document (Excerpts From Materials Prepared By Lita Nelsen, Director of MIT Technology Licensing Office)A. First Reading: Like a ResumeMake The Cut, So That You Get An Opportunity To Tell Your StoryB. Second Reading: Justify The InvestmentC. Third Reading: Commit T

37、o A Plan That You And The Investors Can Live With.REMEMBER: If you dont make the FIRST CUT, B and C never happen.January 200944SESSION 1: BUSINESS PLAN BASICSThe Business Plan As A Financing DocumentMAKING THE FIRST CUTAn Idea Too Good To IgnoreA Financial Promise Too Good To Turn DownA Team Good En

38、ough To Believe InAn Action Plan Thats CredibleFocusedDetails That Give Assurance of Insight, Commitment and Follow ThroughFormat and Style That ShowPassion SanityJanuary 200945SESSION 1: BUSINESS PLAN BASICSThe Business Plan As A Financing DocumentWHY PLANS FAIL THE FIRST CUTInsufficient MarketNon-

39、Credible TechnologyToo WildToo Blue-Sky (Unproven)Not ProtectibleToo MundaneInvestment Too Large For The PromiseFailure to Understand The MarketJanuary 200946SESSION 1: BUSINESS PLAN BASICSThe Business Plan As A Financing DocumentWHY PLANS FAIL THE FIRST CUT (cont.)Action Plan Not CredibleToo Optimi

40、sticNave About The HurdlesRuns Off In All DirectionsNot Ambitious EnoughRegulatory Barriers Insufficiently AddressedGaps Filled By HandwavingNo Promises At AllTeam Not CredibleJanuary 200947SESSION 1: BUSINESS PLAN BASICSThe Business Plan As A Financing DocumentCOSMETIC” REASONS FOR FAILING THE FIRS

41、T CUTI Cant Understand It.Filled With Market Or Technology-Specific Jargoni.e., WHAT IS THE BUSINESS?Nave ProjectionsSloppy: Misspellings, Poor Grammar, Poor Quality PrintingToo Damn LongIgnores The Basics“Forget Marketing, My Technology Is Best”Nave (or Terrible) WritingJanuary 200948SESSION 1: BUS

42、INESS PLAN BASICSSUMMARYWe Have CoveredWhy Write A Business Plan?What Should Be In A Business Plan?The Business Plan As A Financing DocumentJanuary 200949SESSION 1: BUSINESS PLAN BASICS The Business Plan - A SUPPORTED VISIONTechnologyIntellectualPropertyMarketAnalysisCompetitiveAnalysisSales andDist

43、ributionTeamFinancialProjectionsDetailedSupport/FoundationFull Business PlanPowerPoint PresentationExecutive SummaryElevator SpeechMission Statement1 paragraph30 seconds2-5 pages10-15 minutes20-30 pagesJanuary 200950Tonights Plan Introduce our Teaching Team Introduce our Case Study Business Plan Basics - Overview Break Team Building Bob Jones: Market Identification and Sales