A presentation I prepared for the " Entrepreneurship Summit - Starting Young" on 16 February 2013 at Hotel Taj West End, Bangalore

1. Business Plan Essentials
Sachidananda B S
N S Raghavan Center for Entrepreneurial Learning
(s) Sachidananda Benegal

2. DISCLAIMERS UPFRONT
Note:
•No Business Plan Template – it’s the elements of a B-Plan
•Plan for business, monetization shall follow execution
• Attempt to keep it as practical as possible
(s) Sachidananda Benegal

3. WHAT?
What is a business plan?
(s) Sachidananda Benegal

4. A business plan is a map.
It is meant to tell the entrepreneur what he/she has
to do to achieve what goals, and by when.
(s) Sachidananda Benegal

5. (s) Sachidananda Benegal

6. What is the treasure?
How do we get to
the treasure?
Who else is after this
treasure?
How much is there?
Is it worth the cost?
Who is on my crew?
What are the dangers
on the route?
Do we have the skills?
(s) Sachidananda Benegal

7. What is the qualitative goal
we are targeting?
Do we have a
detailed execution
plan?
Who is the competition?
How strong are they?
What are the quantitative
goals for the venture?
Who is on the
team?
What are the other
dangers that we
will face?
What are the skills
they have?
(s) Sachidananda Benegal

8. The Startup The Environment
Things/People/Resources
you have control over
Things/People/Resources
you can influence
Things/People/Resources
you don’t have any
influence
“A goal without a plan is just a
wish.”
― Antoine de Saint-Exupéry
“By failing to prepare, you are preparing
to fail.”
― Benjamin Franklin
Control Influence Acceptance
ZONE OF
(s) Sachidananda Benegal

9. A more formal definition
A written document that formalizes the vision,
goals, thoughts and plans for the business for
the near to medium term;
It details the kind of company, the businesses
the company wants to be in and where, the
strategy, structure, the operations and the
finances
(s) Sachidananda Benegal

10. WHOM & WHO?
For whom is the B-Plan written? Who writes it?
(s) Sachidananda Benegal

11. For Whom?
• Investors
• Advisors
• Hiring
• Key First Customers
• Partners
• Suppliers
(s) Sachidananda Benegal

12. Who Writes
the Plan?
• CONSULTANTS?
• TEAM?
• CEO?
(s) Sachidananda Benegal

13. Keep these
in mind
•A Pictures = thousand words
•Be clear about:
•HOPE?
•ASSERTIONS?
•LOGIC:
•FACTS
•INFERENCE
•IMPLICATION
•Don’t Appear:
•Ignorant (RoI)
•Consistently Inconsistent
•Defensive
•Arrogant
(s) Sachidananda Benegal

14. BUSINESS PLAN
Preparation, Elements and Components of a B-Plan
(s) Sachidananda Benegal

15. Business Plan: Preparation
15 slides, 20min
< 5 pages
25 pages
(s) Sachidananda Benegal

16. Business Plan: Elements
Who are we?
Who? What? Where?
Why? How Big & Fast?
How will we fix it? Knock socks off others?
Customers: reach, retain & support?
Costs & Pricing? Support/Service?
Partners: Co-opt eco-system players?
Money: How much, for what and what will
Be made?
(s) Sachidananda Benegal

17. BUSINESS MODEL
(s) Sachidananda Benegal

18. Components:
• Cover Slide – Business Positioning
• Market – The Need and What customers have it
• Solution – Product/Service, Core Benefits, IP
• Competition Position – Who’s the competition & Defense
• Marketing/Sales/Support – Channels and Skills
• Business Strategy – How will you grow beyond launch
• Financial Projections – Cash-flows, P&L, B/S
• Funding Sought – How much and for what
• Management Team – Complementary? Well rounded?
• Milestones – Launch, next funding, break-even
• Exit Strategy – IPO? Acquisition?
(s) Sachidananda Benegal

19. Business Plan: Milestones
• What are the planned outcomes, say monthly?
• What are the activities required to drive these outcomes?
• How much will these actions cost?
• How much time will these actions take to execute?
• What are the dependencies – people, infrastructure,..
• Work towards “Fundable Events”
(s) Sachidananda Benegal

20. MOST IMPORTANTLY
How does one decide in an entrepreneurial set up?
(s) Sachidananda Benegal

21. Effectuation.org
(s) Sachidananda Benegal

22. Effectuation.org
(s) Sachidananda Benegal

23. The Principles
Bird in Hand Principle - Start with your means. Don't wait for the perfect opportunity.
Start taking action, based on what you have readily available: who you are, what you
know, and who you know.
Affordable Loss Principle - Set affordable loss Evaluate opportunities based on
whether the downside is acceptable, rather than on the attractiveness of the predicted
upside.
Lemonade Principle - Leverage contingencies Embrace surprises that arise from uncertain
situations, remaining flexible rather than tethered to existing goals.
Crazy-Quilt Principle - Form partnerships Form partnerships with people and
organizations willing to make a real commitment to jointly creating the future--product,
firm, market--with you. Don't worry so much about competitive analysesand strategic
planning.
(s) Sachidananda Benegal

24. THANK YOU
(s) Sachidananda Benegal