港中大MBA创业金融讲野DBusinesslan.pptVIP

BUSINESS PLAN Business Plan Entrepreneurship – 4 steps process: opportunity, strategy, implementation and harvesting Business plan – a bridge between strategy and implementation Differences between new/early stage ventures and established ventures Business Plan 1. Precision of Projection Numerous questions following for new venture: how long will it take to develop a marketable product? Production costs? Pricing? Market size? Market share that the venture can achieve? Business Plan Degree of external reliance on the plan For established business: strictly an internal document For new venture: scrutinize by outsiders who are not familiar with the business 3. Breath of coverage – for new venture, questions of financing, organizational design and product market strategy are all open. Make the plan fit the purpose Misconception: business plan is the must for new venture success A venture with an apparently valuable product can thrive and even attract funding without a formal plan BP as a “vehicle” for raising funding or attracting key employees Plan first, write second Before the plan is written and circulated, a number of real options for how to develop the venture exist Focus on one particular plan and thus give up the other less appropriate and favorable plan Strategic planning and business plan Strategic planning is important but comparison of strategic alternatives do not belong to a part of the business plan Again, business plan is developed to facilitate implementation of the single strategy that is selected What to include Refer to CUHK Business Plan Competition Evidence of Credible Commitment Very intense competitors of different projects looking for funds (note: no scarcity of good ideas) and thus success rate of securing funds is low What is scarce is capable and committed people Most convincing evidence of commitment: investment of effort and capital that are “sunk cost” Evidence of Credible Commitment Sunk cost: not recoverable and not generat