英文课件 Business plan preparationPPT

1、McKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5Business plan preparationTraining program for EntrepreneursMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5AGENDAShort introduction to the use of business plansPreparation guidelines for business plansWrap-upMcKinsey&Company Copyrig

2、ht 2002020607MVA1_ZXK_265_V5AGENDAShort introduction to the use of business plansPreparation guidelines for business plansWrap-upMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5ExistingNewBusiness systemExistingNewProduct/serviceTYPES OF NEW BUSINESSESSource: Planen, grnden, wachsen (McKinse

3、y)New high-growthventuresEXAMPLESNew productPalmSmartSony PlaystationRollerbladesNew industryDirect satellite TVNetscapeMobile telephonyExisting indus-tries and busi-nessesNew business systemDellFotolaboCharles SchwabFedExMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5USE OF BUSINESS PLANSS

4、ource: McKinseyStart-up companies:Application for venture capitalSearch for management team membersCommunication with partners, suppliers, Established, developed businesses for investment decisionsIn-house budget allocationsExternal financingHigh insecurity concerning technology, timing, and cash ne

5、edDifficult data situation due to newness of innovative productsNecessity of external know-how transferLack of skills/motivation/timeStandard useComplications forNew Venture projectsStart-up business plans to be tailored to new venture needsMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5GEN

6、ERIC REQUIREMENTSSource: McKinseyConstantly adaptingImpressing by clarityConvincing by factsUnderstandable even for non-expertsConsistent and conciseOptically compellingExplanationBusiness planning is an iterative and adaptive process that requires constant update and adjustment workNot the quantity

7、 of analyses, but the clarity and preciseness of the pack are importantNo hype, but factual statements. Enthusiasm will be generated by the investor realizing the opportunity on his ownThose who allocate investment resources rarely are technical experts for the technology used in the proposalThe sto

8、ryline and all the facts presented must fit together and generate a well rounded impressionA clear, precise structure is a courtesy to those investing their time in reading the proposalMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5Source: McKinseyMilestonesCompletion of financingStep 3:VC-

9、tailored business planStep 2:Rough business planStep 1:Idea descriptionExternal evaluation (due diligence)Deal structuringManagement teamImplementation planFinancingMarketing and salesBusiness systemOpportunities and risksNew decision on further proceeding when next milestone is reachedLevel of matu

10、rity of business ideaTimeProduct/serviceMarket and competitionDEVELOPMENT STEPS FOR BUSINESS PLANSMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5AGENDAShort introduction to the use of business plansPreparation guidelines for business plansWrap-upMcKinsey&Company Copyright 2002020607MVA1

11、_ZXK_265_V5CHAPTERS OF COMPLETE BUSINESS PLANSource: McKinsey Executive summaryProduct/serviceManage-ment teamMarket and com-petitionMarketing and salesBusiness systemImple-mentationplanFinanc-ingOpportunities andrisksMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5CONTENT OF EXECUTIVE SUMMA

12、RYSource: McKinsey Executive summaryProduct/serviceManage-ment teamMarket and com-petitionMarketing and salesBusiness systemImplemen-tationplanOpportuni-ties andrisksFinanc-ingGives a brief overview of the concepts most important aspectsDescribes idea as clearly, compellingly, and concisely as possi

13、bleRaises interest of decision makersIs not more than 5 - 10 minutes to readQuality of summary decides if rest of business plan is readMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5EXECUTIVE SUMMARY KEY QUESTIONSSource: McKinseyIdea descriptionWhat is your business idea? In what way does i

14、t fulfill the criterion of uniqueness?Who are your target customers?What is the value for those customers?What market volume and growth rates do you forecast?What competitive environment do you face?What additional stages of development are needed?How much investment is necessary (estimated)?What lo

15、ng-term goals have you set?Most important questions an investor asks!STEP 1McKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5EXECUTIVE SUMMARY ADDITIONAL QUESTIONS* In addition to key questions answered by idea description (step 1) Source: McKinseyRough business planHow high do you estimate yo

16、ur financing needs?What are the sales, cost, and profit situations?What are the most important milestones along the way to your goal?What test customers have you approached/ could you approach?What distribution channels will you use?What partnerships would you like to enter into?What opportunities a

17、nd risks do you face?What is the picture on patents?Most important questions an investor asks!*STEP 2McKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5RUSMAR EXECUTIVE SUMMARY* See following blank form sheetsSource: Inc. MagazineProduct/servicePotential foam plus applicator to replace expensiv

18、e and space consuming earth that must be spread over garbage dumps every daySpace savings of 30% for dump operatorsCosts of coverage reduced by 50% for dump operatorsMarket and competitionCustomers: household garbage dump operatorMarket: 300 to 500 dumps in Eastern USA with capacity of 500 to 10,000

19、 tons/dayMajor competitor: 3M/Sanifoam (application takes longer and is more complicated)Marketing and sales1997: Investments of USD 850,000 required1998: Sales of USD 2 million (break-even)2002: Sales of USD 15 million, profit of USD 1.5 millionBusiness systemSale of foam and applicators (product b

20、usiness)Opportunities and risksNecessary approval from authoritiesProof of systems operational efficiencyExercise 1: Training participants check quality of executive summary with key questions* CASE EXAMPLEMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5EXERCISE 1 EXECUTIVE SUMMARY (1/2)Sour

21、ce: McKinseyKey questions for idea descriptionWhat is your business idea? In what way does it fulfill the criterion of uniqueness?Who are your target customers?What is the value for those customers?What market volume and growth rates do you forecast?What competitive environment do you face?What addi

22、tional stages of development are needed?How much investment is necessary (estimated)?What long-term goals have you set?Evaluation of Rusmar summary Answered questionsMissing elementSee appendix for proposed solutions EXERCISEMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5EXERCISE 1 EXECUTIV

23、E SUMMARY (2/2)* In addition to key questions answered by idea description (step 1) Source: McKinseyAdditional questions* for rough business planHow high do you estimate your financing needs?What are the sales, cost, and profit situations?What are the most important milestones along the way to your

24、goal?What test customers have you approached/ could you approach?What distribution channels will you use?What partnerships would you like to enter into?What opportunities and risks do you face?What is the picture on patents?Evaluation of Rusmar summary Answered questionsMissing elementSee appendix f

25、or proposed solutions EXERCISEMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5CONTENT OF PRODUCT/SERVICE SECTIONSource: McKinsey Executive summaryProduct/serviceManage-ment teamMarket and com-petitionMarketing and salesBusiness systemImplemen-tationplanOpportuni-ties andrisksFinanc-ingDescri

26、bes the function the product/service fulfills and the benefits the customer will gain from itProduct/service descriptionCustomer valueExplains status and next steps of product/service developmentAddresses patents/IP protection issuesProduct/service section has to prove that entrepreneur can integrat

27、e the customers perspectiveMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5PRODUCT/SERVICE KEY QUESTIONSSource: McKinseyIdea descriptionWhat end customers will you address?What are the customers needs?What customer value does your product/service provide?What is the nature of your innovation

28、? Why is it unique?What partnerships are necessary to achieve full customer value?What competitor products already exist or are under development?What stage of development has your product or service reached?Do you have patents or licenses?What further development steps do you plan to take? What mil

29、estones must be reached?STEP 1McKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5PRODUCT/SERVICE ADDITIONAL QUESTIONS* In addition to key questions answered by idea description (step 1) Source: McKinseyRough business planWhich versions of your products/services are designed for which customer g

30、roups and applications?What patents/licenses do the competitors have?What kind of service/maintenance will you offer?What product or service guarantees will you grant?Compare the strengths and weaknesses of comparable products/services with yours in an overview!STEP 2McKinsey&Company Copyright 2

31、002020607MVA1_ZXK_265_V5DESCRIPTION OF THE PRODUCT/SERVICESource: The American Heritage Dictionary,DudenA device that converts incident electromagnetic radiation of mixed frequencies to one or more discrete frequencies of highly amplified and coherent ultraviolet, visible, or infrared radiationHigh-

32、performance device for the creationof a narrowly bundled beam of lightBetter:Technical description of lasers:EXEMPLARYMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5SUCCESSFUL PRODUCT POSITIONINGSource: McKinseyIdentify relevant customer needs and problemsAddress subjective perception of cu

33、stomersDefine uniqueness and position offering vis-vis competitionDefine clear, sufficiently large customer segmentsMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5EXERCISE 2 CUSTOMER VALUE IN RUSMAR CASE* See Appendix for proposed solutionSource: McKinseyCustomer needs of dump operatorsDegr

34、ee of fulfillment by Rusmar foamFulfilledNot fulfilledExercise 2:Training participants describe needs of Rusmars customers*CASE EXAMPLEMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5CONTENT OF MANAGEMENT TEAM SECTIONSource: McKinsey Outlines educational background and professional experienc

35、e of foundersDescribes how existing skill gaps can be closed in the futureConvinces potential investors that both managerial and technological expertise is present to run the ventureVenture capitalist will invest only if the venture is managed by an excellent teamExecutive summaryProduct/serviceMana

36、ge-ment teamMarket and com-petitionMarketing and salesBusiness systemImplemen-tationplanOpportuni-ties andrisksFinanc-ingMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5MANAGEMENT TEAM KEY QUESTIONSSource: McKinseyComplete business planWho are the members of your management team and what dis

37、tinguishes them: education, professional experience, success, standing in the business world?What experience or abilities does the team possess that will be useful for implementing your concept and setting up your company?What experience or abilities are lacking? How will the gaps be closed? By whom

38、?What targets do the team members pursue by starting up the business? How high is the motivation of the individual team members?McKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5REASONS FOR BUSINESS PLAN REJECTION BIOTECHNOLOGY VENTURES*Percent*Weak management teamNot market-drivenLong time fr

39、ameMoney commitment too largeNot patentableInadequate technical expertiseOtherIf you find good people, they can always change the product. Nearly every mistake I have made has been picking the wrong people, not the wrong idea Arthur RockArthur Rock & Co.52383125151217* Reasons for rejecting busi

40、ness plans by firms experienced in biotechnology venture capital* Multiple responses givenSource: Coopers and Lybrand, McKinseyMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5TEAM RAMP-UP EXAMPLESCEOTechnologySalesFinanceMarketingIdea and team devel-opmentVenturebeginsProof of economic viabi

41、lityExplosive revenue growthTechnol-ogy & mkt. validationSustained earnings growthXXXXXXSource: McKinsey analysis, external interviewsEXEMPLARYMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5PERCENTAGE OF FOUNDERS OF FAST GROWING COMPANIES* 4221141364Unemployedor recent graduate * 4-year

42、 growth rate of 573% or higher, 1984 - 1990, 456 companiesSource: McKinseyNot from businessRunning other businessesSmall established companiesMidsize to large companies (including Fortune 1000)Start-upsExamples includeIntelMicrosoftLotusSun MicrosystemsMattelCompuServeAdvanced Micro DevicesRaytheonF

43、airchild SemiconductorTRWCondeNastNews CorpMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5Traditional corporate experience does not fit new venture needs Skills aligned to achieving near term earnings and sustained revenue growthProcesses based on internal milestonesStaff support allows ext

44、ensive delegation (e.g., HR, finance, marketing)Decision making enabled by significant capital resourcesCatherine Hapka, CEO Rhythms NetConnectionsFormer EVP of US WestResponsible for business and telecommunications units with USD 7.5 billion in revenuesStarted and built US Wests INTERPRISE Networki

45、ng Services Unit to USD 400 million in revenueEstablished partnerships with 15 leading hardware and software providersRichard Thompson, CEO AradigmFormer President of Johnson & Johnson subsidiary, LifescanBuilt Lifescan from the ground upLed within Johnson & Johnson expansion into Europe and

46、 JapanBusiness building roles, e.g., Led expansion into new geographic markets Built new product line or division Provided marketing leadership to develop a new brandRelevant industry sector experienceSource: Executive search firm and VC interviews but corporate experience is valuable when it includ

47、es NECESSARY EXPERIENCE FOR VENTURE MANAGEMENTMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5SKILL SET OF TEAM MEMBERSHigh skill levelMedium skill levelTeam membersTechnologyFinanceProject managementContactsMarketing/salesProductionHuman resourcesSocial competenceInitiativeCommunicationSale

48、s/negotiation skillsHard factorsSoft factorsObvious skill gaps to be filled with additional team membersEXAMPLEJ. ChapuisS. FischerM. TscharnerSource: Planen, grnden, wachsen (McKinsey)Skill gapsMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5CONTENT OF MARKET AND COMPETITION SECTIONSource:

49、McKinsey Provides thorough understanding of markets and competitors:Market size and growthMarket segmentationCompetitionPositioning of product vis-vis the competitionThe market and competition section has to outline the full economic potential of the ventureExecutive summaryProduct/serviceManage-men

50、t teamMarket and com-petitionMarketing and salesBusiness systemImplemen-tationplanOpportuni-ties andrisksFinanc-ingMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5MARKET AND COMPETITION KEY QUESTIONSSource: McKinseyIdea descriptionHow is the industry developing?What role do innovation and te

51、chnological advances play?How will you segment the market?What market volumes do the individual market segments have, now and in the future (rough estimates)?Who are your target customer groups?What major competitors offer similar products/services?How sustainable will your competitive edge be?STEP

52、1McKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5MARKET AND COMPETITION ADDITIONAL QUESTIONS (1/2)* In addition to key questions answered by idea description (step 1) Source: McKinseyRough business planWhat market volume (value and amount) do you estimate for your individual market segments

53、over the next five years?What will influence growth in the market segments?What is your estimate of current and future profitability of the individual market segments?What market shares do you hold in each market segment?What segments are you targeting?Who are your reference customers? How do you pl

54、an to get reference customers?What are the key buying factors for customers?STEP 2McKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5Most vertical specialty market-places expected to consolidateAttractiveMARKET CHARACTERISTICSMarket size and growthMarket competitivenessMarket growthpercentPoten

55、tial market sizeUSD millionsTotal revenues of B2B marketplaces estimated to grow at over 100% per year revenue potential USD 50 bnin 2004Number of B2B marketplaces19992009 100 - 200 1.000 - 2.0001005001010010001UnattractiveSource: McKinsey EXAMPLEROUGHESTIMATESMcKinsey&Company Copyright 20020206

56、07MVA1_ZXK_265_V5RUSMAR, INC. TARGET CUSTOMERS* Basic data on following pageSource: Inc. MagazineTarget customers: OperatorsOperators of one or more larger dumps for household garbageEastern USA (approx. 300 to 500), beginning 2002, whole USAThroughput of 500 to 10,000 tons per dayFee of USD 65 per

57、tonTarget customers: AgenciesEnvironmental Protection Agency (federal regulatory body)Department of Natural Resources (state regulatory body)Local licensors Consent required of three additional agenciesExercise 3:Training participants estimate market volume for Rusmars foam*CASE EXAMPLEMcKinsey&

58、Company Copyright 2002020607MVA1_ZXK_265_V5Potential market volume for Rusmar foam?* Assumption* See appendix for proposed solutionSource: Inc.-MagazineEXERCISE 3 MARKET VOLUMENumber of dumps: 300 to 500 (eastern USA)Daily capacity of garbage dump: 500 to 10,000 tons per dayCapacity per truck: rough

59、ly 5 - 10 tons*Average distance between cover layers: 5 m* Used area per day?Price of foam: 54 US cents per m2Price of garbage transportation: USD 150 per household per yearPrice of applicators: USD 150,000 per applicatorCASE EXAMPLEMcKinsey&Company Copyright 2002020607MVA1_ZXK_265_V5MARKET AND

60、COMPETITION ADDITIONAL QUESTIONS (2/2)* In addition to key questions answered by idea description (step 1) Source: McKinseyRough business planHow does the competition operate? What strategies are pursued?What are the barriers to market entry and how can they be overcome?What market share does your competition have in the various market segments?How profitable are your competitors?What are your competitors marketing strategies?What distribution channel