How to Write a Winning Business Plan Workshop Materials | SCORE

 

how to write a winning business plan

Webinar: How to Write a Winning business Plan. Or, you can put your account into “archive” mode in which case we charge a small maintenance fee ($/mo) and we maintain a secure copy of your plan and account in case you choose to revisit the plan next quarter, year, cordreowebsa.tk: Bailey Koharchick. How to Write a Winning Business Plan. Whether you are starting up a new business, seeking additional capital for existing product lines, or proposing a new activity in a corporate division, you will never face a more challenging writing assignment than the preparation of a business plan. Sep 11,  · I share my "Simple Business Plan Template' on writing a winning business plan. This will assist small businesses/ entrepreneurs to think through key elements they have to consider before launching Author: Jubilee Ncube.


Write your business plan


The business plan admits the entrepreneur to the investment process, how to write a winning business plan. And the plan must be outstanding if it is to win investment funds.

Too many entrepreneurs, though, continue to believe that if they build a better mousetrap, the world will beat […]. A compelling plan accurately reflects the viewpoints of your three key constituencies: the marketpotential investorshow to write a winning business plan, and the producer the entrepreneur or inventor of the new offering.

But too many plans are written solely from the perspective of the producer. To make a convincing case that a substantial market exists, establish market interest and document your claims. Establish market interest. Provide evidence that customers are intrigued by your claims about the benefits of the new product or service:.

Document your claims. Now use data to support your assertions about potential growth rates of sales and profits. Cashing out. Show when and how investors may liquidate their holdings, how to write a winning business plan. Venture capital firms usually want to cash out in three to seven years; professional investors look for a large capital appreciation. Making sound projections. Give realistic, five-year forecasts of profitability.

The price. To make a convincing case for a how to write a winning business plan return, get a product in the hands of representative customers—and demonstrate substantial market interest. Too many entrepreneurs, though, continue to believe that if they build a better mousetrap, the world will beat a path to their door. Also important is satisfying the needs of marketers and investors.

Marketers want to see evidence of customer interest and a viable market. Investors want to know when they can cash out and how good the financial projections are. Drawing on their own experiences and those of the Massachusetts Institute of Technology Enterprise Forum, the authors show entrepreneurs how to write convincing and winning business plans.

A comprehensive, carefully thought-out business plan is essential to the success of entrepreneurs and corporate managers. Whether you are starting up a new business, seeking additional capital for existing product lines, or proposing a new activity in a corporate division, you will never face a more challenging writing assignment than the preparation of a business plan.

Only a well-conceived and well-packaged plan can win the necessary investment and support for your idea. It must describe the company or proposed project accurately and attractively. You must present and justify ongoing and changing resource requirements, marketing decisions, how to write a winning business plan, financial projections, production demands, and personnel needs in logical and convincing fashion.

Because they struggle so hard to assemble, organize, describe, and document so much, it is not surprising that managers sometimes overlook the fundamentals.

We have found that the most important one is the accurate reflection of the viewpoints of three constituencies. The market, including both existing and prospective clients, customers, and how to write a winning business plan of the planned product or service.

Too many business plans are written solely from the viewpoint of the third constituency—the producer. They describe the underlying technology or creativity of the proposed how to write a winning business plan or service in glowing terms and at great length. They neglect the constituencies that give the venture its financial viability—the market and the investor.

Take the case of five executives seeking financing to establish their own engineering consulting firm. But the executives did not determine which of the proposed dozen services their potential clients really needed and which would be most profitable.

By neglecting to examine these issues closely, they ignored the possibility that the marketplace might want some services not among the dozen listed. Moreover, they failed to indicate the price of new shares or the percentage available to investors. Because they had not convincingly demonstrated why potential customers would buy the services or how investors would make an adequate return or when and how to write a winning business plan they could cash outtheir business plan lacked the credibility necessary for raising the investment funds needed.

We have had experience in both evaluating business plans and organizing and observing presentations and investor responses at sessions of the MIT Enterprise Forum. We believe that business plans must deal convincingly with marketing and investor considerations, how to write a winning business plan.

This reading identifies and evaluates those considerations and explains how business plans can be written to satisfy them. Organized under the auspices of the Massachusetts Institute of Technology Alumni Association inthe MIT Enterprise Forum offers businesses at a critical stage of development an opportunity to obtain counsel from a panel of experts on steps to take to achieve their goals. In monthly evening sessions the forum evaluates the business plans of companies accepted for presentation during to minute segments in which no holds are barred.

The format allows each presenter 20 minutes to summarize a business plan orally. Each panelist reviews the written business plan in advance of the sessions. Then each of four panelists—who are venture capitalists, bankers, marketing specialists, successful entrepreneurs, MIT professors, or other experts—spends five to ten minutes assessing the strengths and weaknesses of the plan and the enterprise and suggesting improvements.

In some cases, the panelists suggest a completely new direction. In others, they advise more effective implementation of existing policies. Their comments range over the spectrum of business issues. Sessions are open to the public and usually draw about people, most of them financiers, business executives, accountants, lawyers, consultants, and others with special interest in emerging companies. Presenters have the opportunity to respond to the evaluations and suggestions offered.

They also receive written evaluations of the oral presentation from audience members. These monthly sessions are held primarily for companies that have advanced beyond the start-up stage. They tend to be from one to ten years old and in need of expansion capital, how to write a winning business plan.

Investors want how to write a winning business plan put their money into market-driven rather than technology-driven or service-driven companies. You can make a convincing case for the existence of a good market by demonstrating user benefit, identifying marketplace interest, and documenting market claims.

He concluded with some financial projections looking five years down the road. The venture capitalist quickly reversed his original opinion. He said he would back a company in almost any industry if it could prove such an important user benefit—and emphasize it in its sales approach.

The venture capitalist knew that instruments, machinery, and services that pay for themselves in less than one year are mandatory purchases for many potential customers. If this payback period is less than two years, it is a probable purchase; beyond three years, they do not back the product. The MIT panel advised the entrepreneur to recast his business plan so that it emphasized the short payback period and played down the self-serving discussion about product innovation.

The executive took the advice and rewrote the plan in easily understandable terms. His company is doing very well and has made the transition from a technology-driven to a market-driven company. How can start-up businesses—some of which may have only a prototype product or an idea for a service—appropriately gauge market reaction?

One executive of a smaller company had put together a prototype of a device that enables personal computers to handle telephone messages.

He needed to demonstrate that customers would buy the product, but the company had exhausted its cash resources and was thus unable to build and sell the item in quantity. The executives wondered how to get around the problem.

The MIT panel offered two possible responses. First, the founders might allow a few customers to use the prototype and obtain written evaluations of the product and the extent of their interest when it became available. Second, the founders might offer the product to a few potential customers at a substantial price discount if they paid part of the cost—say one-third—up front so that the company could build it. The company could not only find out whether potential buyers existed but also demonstrate the product to potential investors in real-life installations.

In the same way, an entrepreneur might offer a proposed new service at a discount to initial customers as a prototype if the customers agreed to serve as references in marketing the service to others.

You can obtain letters from users even if the product is only in prototype form. You can install it experimentally with a potential user to whom you will sell it at or below cost in return for information on its benefits and an agreement to talk to sales prospects or investors. In an appendix to the business plan or in a separate volume, you can include letters attesting to the value of the product from experimental customers.

Having established a market interest, you must use carefully analyzed data to support your assertions about the market and the growth rate of sales and profits. Even if the company makes such claims based on fact—as borne out, for example, by evidence of customer interest—they can quickly crumble if the company does not carefully gather and analyze supporting data.

An entrepreneur wanted to sell a service to small businesses. The panel pointed out that anywhere from 11 million to 14 million of such so-called small businesses were really sole proprietorships or part-time businesses. Similarly, in a business plan relating to the sale of certain equipment to apple growers, how to write a winning business plan, you must have U.

Department of Agriculture statistics to discover the number of growers who could use the equipment. If your equipment is useful only to growers with 50 acres or more, then you need to determine how many growers have farms of that size, that is, how many are minor producers with only an acre or two of apple trees. A realistic business plan needs to specify the number of potential customers, the size of their businesses, and which size is most appropriate to the offered products or services.

Sometimes bigger is not better. Such marketing research should also show the nature of the industry. Few industries are more conservative than banking and public utilities. The number of potential customers is relatively small, and industry acceptance of new products or services is painfully slow, no matter how good the products and services have proven to be.

Even so, most of the customers are well known and while they may act slowly, they have the buying power that makes the wait worthwhile. At the other end of the industrial spectrum are extremely fast-growing and fast-changing operations such as franchised weight-loss clinics and computer software companies.

Here the problem is reversed. While some companies have achieved multi-million-dollar sales in how to write a winning business plan a few years, they are vulnerable to declines of similar proportions from competitors.

These companies must innovate constantly so that potential competitors will be discouraged from entering the marketplace. You must convincingly project the rate of acceptance for the product or service—and the rate at which it is likely to be sold.

From this marketing research data, you can begin assembling a credible sales plan and projecting your plant and staff needs. The marketing issues are tied to the satisfaction of investors. Once executives make a convincing case for their market penetration, how to write a winning business plan, they can make the financial projections that help determine whether investors will be interested in evaluating the venture and how much they will commit and at what price.

Most of us know that for new and growing private companies, investors may be professional venture capitalists and wealthy individuals. For corporate ventures, they are the corporation itself, how to write a winning business plan.

 

How to Write a Winning Business Plan

 

how to write a winning business plan

 

Sep 11,  · I share my "Simple Business Plan Template' on writing a winning business plan. This will assist small businesses/ entrepreneurs to think through key elements they have to consider before launching Author: Jubilee Ncube. Learn how you can write a winning business plan A well thought-out business plan should be part of every entrepreneur’s to-dos when they start or buy a business. It’s especially important for those seeking funding and is a key component of the SBA loan application. Have you struggled to write a business plan, even knowing that it is your road map to success? Your business plan is a key to starting a business, getting a loan or raising money from investors. This workshop helps you prepare a professional business plan. All the elements of the business plan are taught by experienced small business instructors.