I gave this talk in Germany during an intensive week-long Summer School course at the Entrepreneurship Center in Wolfen

1. How to Write a Business Plan
Prof. Steven A. Gedeon BSc, PEng, MSc, MBA, PhD

2. Why Write a Plan?
• Writing is a Guide to Thinking
• Analysis Tool to Research the Market and How
to Deliver
• Marketing Tool to Excite Others to Join Your
Adventure (Investors, Clients, Employees…)
• Figure Out What to Do
• Guide to Management Action!

3. “Try Not!
DO or DO NOT,
There Is NO TRY!”

4. The Entrepreneurial Process
Design Marshall Grow
Spot
Business Business Plan Resources & Adapt
Opportunity
Model Launch Change

5. The Entrepreneurship Program
Ent Basics Intellectual Property
THEORY Ent Theory Ethics
Innovation Law Economics
Strategy Operations Management
Design Marshall Grow
Spot
Business Business Plan Resources & Adapt
Opportunity
Model Launch Change
Leadership
Marketing Sales Negotiating
Finance Accounting
SKILLS Communication Teamwork
Project Management

6. Entrepreneurship
DOMAIN
KNOWLEDGE
Design Marshall Grow
Spot
Business Business Plan Resources & Adapt
Opportunity
Model Launch Change
BUSINESS
INSIGHT

7. Design
Business Business Plan
Model
• Business Model Canvas as a Design Tool
• Rapid Prototyping
• Good for Brainstorming
• Good for Explaining
• “Figure Out” the Business before you Waste
Your Time Writing the Plan

8. Viable
Spot
Opportunity Entrepreneurial
Opportunities
Your Market
Situation Context

9. Spot
Opportunity
• Exciting to YOU!
• A Well-Defined “Niche” (“Small Area”)
• You Can Acquire the Resources to Pull it Off
(i.e. something YOU can actually do)
• This is Normally an Entire Course (or Lifetime of
Hard Work and Experience!)

10. Design
Business
Model
• Most Elements in the Business Model Canvas
will end up in your Business Plan
• The Canvas is a Design Tool to Visualize Key
Business Elements on a Single Page
– Good Tool for Brainstorming
– Good Tool for Prototyping
– Good Tool for Explaining

11. The Business Model Canvas
Free First Chapter of Book at:
http://www.businessmodelgeneration.com/downloads/businessmodelgeneration_preview.pdf

12. Customer Segments
• Focus Focus Focus
• Big Useless Numbers vs a
Guide to Management Action
• The Market Will Tell You
Everything You Need to Know if
you Bother to Ask
• Get “Into the Mind” of Your
Customers

13. Value Propositions
• Benefits vs. Features
• 10X Improvement
• Differentiation – How
are you Different from
your Competition?

14. Channels
• How do you Find Your
Customers?
• Is the Channel Part of
Your Overall Value
Proposition?
• Channel Conflict
• Cost of Sales

15. Customer Relationships
• One-Off Purchase or On-
going Relationship?
• Self-Serve, Full-Serve

16. Revenue Streams
• How do you Make
Money?
• Many Revenue Models
– Subscription
– Advertising
– Transaction Fees
– Buy Low, Sell High…
• Don’t Need More than
One!

17. Key Resources
• What Can You Do that Nobody Else Can Do?
• How Different are Your Key Resources?
• Core Competencies

18. Key Activities
• What Specific Activities will lead to Strategic
Advantage?
• What Activities will Customers Love?

19. Key Partnerships
• Suppliers vs. Partners
• Partners are Involved in Delivering Value
• Differentiation through a Bundle of Partners

20. Cost Structure
• Cost Drivers
– Cost of Customer Acquisition vs ARPU
• Break-Even

21. The Business Model Canvas

27. Design
Business Business Plan
Model
• Business Model Canvas as a Design Tool
• Rapid Prototyping
• Good for Brainstorming
• Good for Explaining
• “Figure Out” the Business before you Waste
Your Time Writing the Plan

28. Entrepreneurship
Thinking
Design Marshall Grow
Spot
Business Business Plan Resources & Adapt
Opportunity
Model Launch Change
Doing

29. Business Plan Overview
• Executive Summary
1. Mission, Goals & Objectives
2. The Business Overview
3. Market Analysis
4. Key Success Factors (Strategy)
5. Marketing Plan
6. Operating Plan
7. Management Team
8. Financial Plan
9. Targets and Milestones
• Summary

30. Marshall
Gaining “Traction” Business Plan Resources &
Launch

31. Marshall
Gaining Traction Business Plan Resources &
Launch
• Identify the Opportunity (Start with an Idea)
• Design the Business Model (Use the Canvas)
• Analysis (Gather Info, Meet with Customers)
• Validate Key Success Factors
• Validate Goals and Finances
• Verify Customer Interest (Key Reference Accounts)
• Marshal Scarce Resources (Signed Contracts)
• Implement the Plan (Exchange Cash)
• Monitor and Revise the Plan (Reporting and Governance)

32. Marshall Grow
Keys to Success Resources & Adapt
Launch Change
ACTIONS
GOALS
VALUES & BELIEFS
REALITY

33. Keepin’ It Real
• Be Really Good at Something!
• Know Your Stuff!
– Know your Customers, Competition…
• Meritocracy
– You Must Deserve to Lead!
• Fantasies and B.S. Don’t Work

34. Make Deep Connections
• Be Really Important!
– To Customers, Employees, Stakeholders
• Connect at a Deeper Level than $$
• Inspirational Leadership vs. Transactional
Leadership

35. Set Great Goals
• What Gets Measured Gets Done
• Higher Goals > Higher Performance
– Near and Long-Term Goals
– Forward and Backward Looking Goals
• Key Business Screamers

36. Actions Speak Louder than Words
• “Blah Blah” vs. Real Leadership
• Character = “Brand Promise”
• Lead by Example
• Walk the Talk

37. Marshall Grow
Success and Happiness Resources & Adapt
Launch Change
come from Harmony
ACTIONS
GOALS
VALUES & BELIEFS
REALITY

38. Entrepreneurship
• Fundamental to the Human Spirit
• Not Just a Business Discipline
• A Way of Seeing, Thinking and Acting

39. ENT is Experiential
• Like Playing the Guitar
• Need to Build Your Ent Muscles!
• Get Started on Something!
• Failure is OK!

40. Vielen Dank für
die Aufmerksamkeit!
Mehr Infos unter:
www.entrepreneurship-center.de