1、Business plan report1Table of Contents1. The Route from Concept to Company .21.1. Success factors .21.2. Stages of development .32. The Business Idea.62.1. Developing a business idea .62.2. Elements of a promising business idea.72.3. Protecting your business idea .102.4. Presenting your idea to inve
2、stors.113. The Business Plan.133.1. Advantages of a business plan.133.2. Characteristics of a successful business plan.133.3. The investors point of view.153.4. Tips on preparing a professional business plan.174. Structure and Key Elements of a Business Plan.194.1. Executive summary .194.2. Product
3、or service .214.3. Management team .224.4. Market and competition .244.5. Marketing and sales.274.6. Business system and organization .324.7. Implementation schedule .364.8. Opportunities and risks .384.9. Financial planning and financing.38Exhibit 2KEY FACTORS FOR SUCCESS OF INNOVATIVE START-UPSIde
4、as Degree ofinnovation Scope PatentCapital Availability/amount Needs/responsibilities Exits for investorsPeople Inventors Entrepreneurs TeammembersTraditional serviceproviders Attorneys Patent lawyers Tax consultants/accountants MarketresearchersNetwork and exchange Coaching Networking Team building
5、 Innovative service providerVenture capitalistsHeadhuntersAngel investorsHigh-tech start-upconsultants1. THE ROUTE FROM CONCEPT TOCOMPANYNew, innovative companies generally try to grow from start-ups into established companieswithin 5 years. But they can seldom finance their activities alone along t
6、he way. Rather, theyare dependent on professional investors with considerable financial clout. For entrepreneurs,financing is a critical question the business plan must thus be considered from the point ofview of potential investors right from the outset.1.1. Success factorsSuccessful companies aris
7、e from a combination of five elements (Exhibit 2).1.Haviinfforcan e2. MoneyWithbusincoBusiness plan report2 No business concept, no businessng an idea is just the beginning of the creative process. Many entrepreneurs are initiallyatuated with their inspiration, losing sight of the fact that their id
8、ea is the point of departure a long process of development which must face and withstand tough challenges before itnjoy financing and market success as a mature business concept. mattersout somebody who invests money into the idea to grow it into a viable business, thisess will never become a realit
9、y. From early on, therefore, much attention must be paid tonvincing investors to provide the necessary funding.3. No entrepreneurs, no enterpriseGrowing new firms is not a one-person job. It can only succeed with a team of, usually, three tofive entrepreneurs whose talents are complementary. Putting
10、 together well-functioning teamsis a difficult process one that takes time, energy, and an understanding of human nature. Donot lose any time in putting your team together and work on perfecting it throughout the entirestart-up process. The characteristics of a high-performance management team are d
11、iscussed inmore detail in section 6.3 of this Guide.4. Traditional service providers will help you clear the first hurdlesYou will often need the advice of professional service providers, such as patent lawyers, taxadvisors, and market researchers - especially at the beginning. Getting the right inf
12、ormationearly (e.g., for registering a patent) can have consequences for later success or failure.5. Strong networks are a shot in the arm for every new companyProfessional guidance for potential entrepreneurs through a network of sponsors, entrepreneurs,venture capitalists, and service providers is
13、 decisive in transforming viable ideas into realcompanies. Prime examples for such regional networks can be found in Silicon Valley and theBoston area.1.2. Stages of developmentThfirms venstage annote, thcompetitioIf inexstages of tBusiness plan report3Exhibit 3STAGES OF START-UP DEVELOPMENTBusiness
14、 ideagenerationBusiness planpreparationStart-upand growthEstablishedcompanyInterest ofinvestorsFinancingdecisionsExit ofinitialinvestorse typical progression of the start-up and development of growing companies into establishedcan be subdivided into three stages. The end of each stage serves as a mi
15、lestone forture capitalists by which to gauge the status of their investment. Being familiar with eachd the challenges it poses may spare you wasted energy and disappointment. Pleasehowever, that the three stages in the development of a functioning start-up do not matche three phases in the developm
16、ent of a business plan within the framework of thisn (see Exhibit 3).you intend to be successful, this start-up process should influence both your activities as theitiator of a business concept and your path toward forming your own company. To a largetent, it is the demands of investors that will de
17、termine how you must approach the individualhe start-up.Business plan report4Stage 1: Business idea generationThe beginning is the inspiration your solution to a problem. It must be evaluated todetermine if it delivers an actual customer value, whether the market is big enough, and justhow big it wi
18、ll be. The idea itself has no intrinsic economic value. It acquires economic valueonly after it has been successfully transformed into a concept with a plan and implemented.You will need to start putting together your team as soon as possible, finding partners who candevelop your product or service
19、until it is ready for market (or at least until shortly before). Inthe case of products, this stage usually involves a functioning prototype. You will most likelyhave to do without venture capital during this stage. You will still be financing your plan withyour own money, help from friends, perhaps
20、 state research subsidies, contributions fromfoundations, or other grants. Investors refer to this as seed money, as your idea is still aseedling, not yet exposed to the harsh climate of competition.Your objective at this stage is to present your business concept and market which forms thefoundation
21、 of your new company so clearly and concisely as to pique the interest of potentialinvestors in helping you cultivate your idea further.Stage 2: Business plan preparationAt this stage, it is most important to focus on the big picture: Dont lose sight of the forest for thetrees! The business plan its
22、elf will help you to focus as you must consider and weigh the risksinvolved, prepare for any contingency, and learn to anticipate a variety of possible situations orscenarios. You will need to lay down plans and create a budget for the key activities of thebusiness for development, production, marke
23、ting, distribution, and finance. Naturally, youwill need to make many decisions, such as which customers or segments will you target? Whatprice will you ask for your product or service? What is the best location for your business? Willyou handle production yourself or outsource it to third parties?
24、And so on.In preparing the business plan, you will come in contact with many people outside your start-up team. In addition to investors, you will talk to many specialists, including attorneys, taxadvisors, experienced entrepreneurs, and experts. The business plan competition organizerswill help you
25、 get in touch with just the right people. You will also have to begin reaching out toyour potential customers (i.e., by means of consumer surveys) to make initial assessments ofyour market. Always keep in mind that customer acceptance is an essential prerequisite to thesuccess of your company! Scout
26、 about for possible suppliers and perhaps close your firstagreements. You will also want to become aware of who your competitors are.This whole process will not come cheap. The team must continue to earn a living while runninga rudimentary operation and perfecting a prototype. Yet at this stage, you
27、 should also be ableto estimate your expenses. Financing will generally still be provided from the same sources yourelied on during stage one, although some investors may be willing to make the occasionaladvance. This stage concludes successfully for you as a new entrepreneur when an investorexpress
28、es a willingness to finance your undertaking.Stage 3: Start-up and growthNow that the conceptual work is largely complete, it is time to start implementing yourbusiness plan. Your role now changes from that of architect to that of builder. Business successmust now be sought and achieved in the marke
29、t. The day of reckoning has come when you willlearn whether your business concept was a good and, ultimately, profitable one.Investor exit en route to becoming an established companyThe pullout of your initial investors is a completely normal step in the development of a start-up. For if everything
30、has gone well, your risky venture will have gradually become a stableenterprise (see Exhibit 4). In the course of its short life, you have created a number of jobs andwooed many customers with your innovative solution to their problem. Your commitment ispaying off as the value of your business incre
31、ases.A profitable exit has been the objective for the venture capitalist from the outset. Capitalrecovery can happen in very different ways. Normally, the business is sold to a competitor,supplier, or customer. Or it is listed on the stock exchange (the initial public offering or IPO).It is also pos
32、sible for investors who want out to be paid off by the other partners.Business plan report5Business plan report62. THE BUSINESS IDEAThere is nothing in the world aspowerful as an idea whose time has come.Victor HugoThe above statement undoubtedly applies to ideas for starting a new business. But how
33、 do youcome up with such an idea? And how can you know if the idea for the business will have apromising future?Studies show that the lions share of original and successful business ideas were generated bypeople who had already had several years of relevant experience. Gordon Moore and RobertNoyce,
34、for example, had a number of years at Fairchild Semiconductors behind them beforeteaming up with Andy Grove to form Intel. But there are also examples of revolutionary ideasbrought to life by mere novices as Steve Jobs and Steve Wozniak demonstrated when theydropped out of college to start Apple Com
35、puter.2.1. Developing a business ideaIn economic terms, a spark of genius is worthless, no matter how brilliant it may be. For an ideato grow into a mature business concept, it must be developed and refined, usually by manydifferent people.The initial idea must first pass a quick plausibility checkB
36、efore you follow up on an idea, you should evaluate it in light of its (1) customer value,(2) market chances, and (3) degree of innovation, as well as considering whether it will beboth (4) feasible and profitable. Talk your idea over with friends, professors, experts, and potential customers.The br
37、oader the support you find for your idea, the better you will be able todescribe its benefits and market opportunities. You will then be wellprepared when the time comes to discuss your project with professionalinvestors. Is your idea really novel? Has someone else already developed it or evenapplie
38、d to patent it? Will it be possible to develop your idea in a reasonable period of time andwith a justifiable level of resources?It takes at least four weeks to develop a business ideaConsidering the multiple stages of development, it is improbable and fairly unrealistic thatyou will spend fewer tha
39、n four weeks developing your concept. Generally, a business idea isnot worthy of being financed until it is so concrete that it can be launched in the market in theforeseeable future at reasonable risk. Investors talk of the seed phase of a business concept,5ELEMENTS OF A PROMISING BUSINESS IDEAExhi
40、bit 5ClearcustomervalueMarket ofadequate sizeFeasibilityandprofitabilitySufficientdegree ofinnovation1 24 3which usually has to be financed with soft money (i.e., from sources that as yet place no hardand fast demands on the success of the idea).The seed phase can take longer, in particular if the i
41、dea is ahead of its time. Although theperfect product has been found, it cannot yet be marketed because the development ofcomplementary technologies or systems is still in the works. One example is the Internet. Theideas for marketing products and services came early, but a lack of security in the a
42、vailablepayment systems hampered and delayed its commercial exploitation for some time.2.2. Elements of a promising business ideaA business idea can be considered promising if it has the following four elements (Exhibit 5):1. Clear customer valueThe key to success in the marketplace is satisfied cus
43、tomers, not great products. Customersspend their hard-earned money to meet a need or solve a problem. The first principle fordeveloping a successful business idea is that it clearly shows which need it will fulfill and howit will do so. Initially, many entrepreneurs have the product and the technica
44、l details of designand manufacture in mind when they speak of their solution. Not so for the investor theinvestor first looks at the idea from the perspective of the market. For investors, customer valuetakes top priority, and everything else is secondary. Whats the difference? If innovators say,our
45、 new device can perform 200 operations per minute, or our new device has 25% fewerparts, they are focusing on the product. By contrast, saying, our new device will save thecustomer a qprodumeanThwheBusiness plan report7uarter of the time and, therefore, 20% of the costs, or our new solution can boos
46、tctivity by up to 25%, adopts the customers point of view. The product is merely as of delivering value to customers.e customer value of a product or service expresses what is novel or better about the itemn compared to competitive offers or alternative solutions. As such, it plays a key role inBusi
47、ness plan report8setting your product apart from others a core issue in marketing, as we will learn and isessential to the market success of your business concept. Try, whenever possible, to alsoexpress the customer value in figures.Marketing theory states that the customer value must be formulated
48、into a unique sellingproposition, or USP. This means two things: First of all, your business concept must bepresented in a way that makes sense (selling proposition) to the customer. Many start-ups failbecause the customer does not understand the advantage of using the product or service and, asa re
49、sult, does not buy it. Secondly, your product must be unique. Customers shouldnt choosejust any solution that hits the market they should choose yours. You must, therefore,persuade them that your product offers a greater benefit or added value.Only then will your customers give you an edge. In descr
50、ibing your business concept, you neednot present a fully formulated USP, but it should be more or less obvious to potential investors.2. Market of adequate sizeA business idea will have economic value only when it succeeds in the market. This secondprinciple of a successful idea demonstrates how big
