Marketing bán hàng - Chapter 6: Executive summary

Copyright 2015 Jack M. Kaplan & Anthony C. WarrenPatterns of Entrepreneurship Management 5th Edition Chapter 6Chapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixWriting the Business PlanCopyright 2015 Jack M. Kaplan & Anthony C. WarrenBusiness Plan FundamentalsAttracts InvestorsEvaluates Feasibility of Business ConceptServes as an Operating GuideAttracts Potential Business Partners and Key EmployeesAttracts Potential Customers and SuppliersBusiness Plans are becoming more concise and more than 12 pages is considered too longAll really detailed content goes in the AppendicesEven the Business Model Canvas is being used to communicate plansChapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenBusiness Plan Development GuideOutline:The Executive SummaryBusiness DescriptionMarket AnalysisThe Management TeamOperationsCritical RisksThe Financial ProjectionsAppendixChapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenThe Executive Summary - 1Objective:Capture interest of investors and other stakeholdersGeneral overview of business ideaHow will it workBullet formEmphasize key issuesNo more than 2 pagesShould be written LASTChapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenInclude the following:Company profileNature of the product or service offering emphasizing any competitive advantagesIdentify foreign/domestic markets to be targetedSize and growth trend of marketMake-up and background of the management team - include individual skillsFinancing requirementsKey projections (i.e., sales, gross profits, net income.)The Executive Summary - 2Chapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenBusiness Description - 1Objective:Provide a detailed overview of the company and the nature of the product/service offering.Show long-term commitment to developing the venture.Show defensible competitive advantage.No more than one page for this section.Chapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenBusiness Description - 2Include:Mission statementHistory behind the idea or current businessCompany’s current or proposed legal formProposed entry strategyDescription of the initial product/service (including any anticipated competitive advantages)Product/service research and development.Chapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenMarket Analysis - 1Objective:Prepare an opportunity marketing analysis.Demonstrate how to capture a large share to support the venture.Show how to support claims and customer interest.No more than 2 pages for this section.Chapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenMarket Analysis - 2Address:Description of industry including size, trendsDescription of region and/or countries (international business)Targeted market segmentsPrimary and secondary market research CompetitionBarriers to entryMarketing entry strategy to deliver products/services to the targeted markets.Chapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenManagement Team - 1Objective:Show that the team can effectively manage the product/service into foreign or domestic markets.Does management have the background and skills to make the venture a success?Highlight synergistic skills.Show how deficiencies will be covered.Do not give up more control than absolutely necessary.No more than two pages for the whole section.Chapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2016 Jack M. Kaplan & Anthony C. WarrenAddress:Background and primary responsibilities of the management teamOrganizational structureBoard of directors/advisors/international trade specialistsOwnership structureFuture potential hiresManagement Team - 2Chapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenExit Strategy if Investment is SoughtObjectiveTo be determined and stated clearly up-frontNo more than one page for this section.Some options include: going public selling the business a stock buy-back at the going rate leveraged buy-out second round of investment allowing some liquidityChapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenOperations - 1Objective:Focus on relevant cost.Demonstrate ability to carry out implementation.Integrate operation costs with the financial section.Spell-out make/buy options.Explain use of external partners if planned.No more than 2 pages for this whole section.Chapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenAddress:International Considerationsmarket development activitiestransportationexport documentationforeign contacts and personal relationshipsFuture Research and Development Planscannot be built around a single service or productpresent the planned directions of R&Dextensions and new products/servicesnew markets to be consideredimprove on existing production processesOperations - 2Chapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenAddress:Production Planprocuring and transforming critical resourcesinternallyexternallytime line of eventsCustomer Supportfocus on getting and keeping customerscustomer servicewhat role it plays in achieving sales goalsOperations - 3Chapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2012 Jack M. Kaplan & Anthony C. WarrenAddress:Personnel creating management and infrastructure charts hiring trainingcompensation plansstock option plansOperations - 4Chapter 5Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenCritical Risks - 1Objective:Identify potential problems that could significantly affect the new company.Let potential investors know up-front that there are risks associated with the venture.No more than one page for this section.Chapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenCritical Risks - 2Internalloss of key employeesinadequate working capitalunproductive R&Dbreakdowns in plant and equipmentbottlenecks in the distribution channelsfactors not covered by insurance policiesChapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2012 Jack M. Kaplan & Anthony C. WarrenCritical Risks - 3Externalinability to protect IP and patent violationschanges in technology, government regulation or protectionist legislationadverse economic conditions, market changesfailure to procure sufficient fundingunstable banking/financial and transportation/distribution systemspotential effects on financial plansChapter 5Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenAddress:Contingency PlansprobabilitiesInsurance Provisionsfireliabilityautomobileworker’s compensationkey personCritical Risks - 4Chapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2012 Jack M. Kaplan & Anthony C. WarrenFinancial Projections - 1Objective:Convince investors or bankers that the venture makes sense from a financial standpoint.Address:Projections must address:allocation of expensesreturn on investmentcash flow managementChapter 5Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenExamples:Historical financial data, if anyFirst year financial projections by monthBalance SheetIncome StatementCash Flow StatementSecond year financial projections by quarterFive year annual forecastsBreak-Even AnalysisRatio AnalysisFinancial Projections - 2Chapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenValuation - 1“Residual Value” commonly used by investors.Should be done before meeting with investors.Will help you to assess what ownership you may have to give up based on the expected ROI for your type of venture.Use the “time value of money” equation: n Future Value = Present Value (1+i)i = estimated rate of return investors will require based on the perceived risk associated with your type of venturen = number of yearsChapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenCalculate the future value of the up-front investment needed.Example: Funds needed = $500,000Average annual return on investment (ROI) = 45% 4FV = $500,000 (1+.45)FV = $500,000 (4.4205)FV = $2,210,253Valuation - 2Chapter 5Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2006 Jack M. Kaplan & Anthony C. WarrenExample:Determine the point in time that will be used in the valuation calculations.Example: 4 yearsWhat are the projected after-tax profits?Example: $1,855,050 (year 4)Determine the valuation factor by looking at similar companies in your industry.Example: 10 times after tax earnings$1,855,050 x 10 = $18,550,500Valuation - 3Chapter 5Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2012 Jack M. Kaplan & Anthony C. WarrenDetermine the amount of equity you may have to give up, based on the value of the venture, and the future value of the potential investors’ initial investment.Example:$2,210,253-------------- = 12% $18,550,500ValuationChapter 5Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2012 Jack M. Kaplan & Anthony C. WarrenBalance SheetWorking Capital PositionCapital Asset PositionCapital StructurePro Forma Balance Sheet:Current Assets Current LiabilitiesFixed Assets Long-term DebtIntangible Assets Equity Total Assets = Total Liabilities + Equity Chapter 5Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenCash Flow Statement - 1Objective:Demonstrate that you have sufficient cash to run the operation.Assess the timing of future cash flows.Develop a plan for subsequent rounds of financing.Chapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenCash Provided (used) from OperationsNet income (loss)DepreciationAdjusted net income (loss)Cash Provided by Working CapitalAccounts receivable (increases) decreasesInventories (increases) decreasesAccrued liabilities (decreases) increasesPrepaid expenses (decreases) increasesCash Provided (used) by Continuing OperationsCash Flow Statement - 2Chapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenContinued:Cash Provided (used) from Financing ActivitiesLong-term debt (decreases) increasesInterest on notesCash dividends paidIssuance of stockTotal Cash Provided (used) from Financing ActivitiesCash Flow Statement - 3Chapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenContinued:Cash Provided (used) from Investment ActivitiesPurchase of property, plant and equipment Proceeds from sale of assetsOther acquisitions Cash Provided (used) from Investment ActivitiesIncrease (decrease) in cashCash at beginning of periodCash at end of periodCash Flow Statement - 4Chapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenIncome Statement - 1Revenue ProjectionsCost RelationshipsTie into the Operating StrategyChapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenIncome Statement - 2Pro Forma Income StatementRevenue- Cost of Goods SoldGross Profit Margin- Operating ExpensesNet Income Before Interest and Taxes- Interest- Taxes Net Income (Loss)Chapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendixCopyright 2015 Jack M. Kaplan & Anthony C. WarrenAppendixWhat goes here?Detailed financials, the sections covering all financial issues should be no longer than 2 pages of SUMMARY in the main text.Detailed researchMock-UpsMore Technical/Complex informationChapter 6Executive SummaryBusiness DescriptionMarket AnalysisManagement TeamCritical RisksOperationsFinancial ProjectionsAppendix