Writing a Business Plan
การเขียนแผนธุรกิจ
8-12 มีนาคม 2553
Toryos Pandejpong, Ph.D. 1
อ. ต่อยศ ปาลเดชพงศ์, Ph.D.
ภาพรวมของหลักสู ตร
Day 1
Day 2
Business
Overview
Marketing
Strategy
Industry
Analysis
Vision
Marketing Mix
Financial Plan
External
Analysis
Internal
Analysis
Toryos Pandejpong, Ph.D. 2
Break-even
Analysis
Day 3
Operation
Plan
Human
Resource Plan
Day 4
Balanced
Scorecard/KPI
Business Plan
Presentation
9
8:45-9:30
9:30-10:15
10:30-12:00
12:00-13:00
13:00-13:30
2553
.
(Vision, Mission
and Strategy, Company Description, Scope and
Product & Service Portfolios)
Workshop
.
(Why
.
must we write a business plan?)
13:30-14:15
.
(External and Internal Analysis)
(SWOT Analysis)
14:30-15.45
Toryos Pandejpong, Ph.D. 3
Workshop
.
10
2553
8:45 -9:30
(Marketing Plan)
(Key Success
.
Factors)
9.30-9.40
Workshop
.
9.40-10.30
10.30-11.00
11.00-11.45
11.45-12.00
(Target
Marketing)
Workshop& Coffee Break
.
(Marketing Strategy)
Workshop
12:00-13:00
13.00-13.40
13.40-14.00
14.00-15.20
.
.
.
.
(Marketing Mix)
Workshop
(Technology
.
.
.
Marketing)
15.20-15.30
15.30-15.45
Toryos Pandejpong, Ph.D. 4
Workshop
.
.
11
2553
8:45-10:15
10:30-12:00
12:00-13:00
13:00-14:15
14:30-15:45
Toryos Pandejpong, Ph.D. 5
(Breakeven Point, Profit & Loss Statement)
(Cash Flow
Statement, Balance Sheet)
Workshop
(BCR,
IRR, NPV)
Workshop
.
.
.
.
.
12
2553
8:45-10:15
10:30-12:00
12:00-13:00
13:00-14:15
.
(Balanced Scorecard, Key Performance
Indicators and Key Risk Indicators)
Workshop
(Operational Plan)
(Human Resources Plan)
(Growth Plan)
(Executive Summary)
.
.
.
14:30-15:30
(Business Plan Presentation)
15:30-15.45
Toryos Pandejpong, Ph.D. 6
.
.
Selected Businesses
บริการโทรศัพท์ ระหว่ างประเทศ
บริการสื่ อสารข้ อมูล
บริการสื่ อสารไร้ สาย
บริการอิเลคทรอนิกส์
Toryos Pandejpong, Ph.D. 7
กระบวนการในการวางแผนธุรกิจ
Environmental
Scan
WHERE ARE WE?
KSF
Gap Analysis
SWOT
Critical Issues
Vision, Mission
Culture, Values
WHERE DO WE
WANT TO GO?
Objectives, Goals
Strategies
Marketing Plan
HOW DO WE
GET THERE?
Operational Plan
Human
Resources Plan
BSC & KPI
Test and Feedback
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Financial Plan
Schedule, Priority
Policy and
Program
จ ป็ ปู แ แ โ
้
ข แผ
จ (Why must we write a business plan?)
อ. ต่อยศ ปาลเดชพงศ์, Ph.D.
Toryos Pandejpong, Ph.D. 9
Why new business at all?
Forward Mail จาก เพื่อน
Philip Kotler, Ph.D.
Kellogg School of Management
Northwestern University
Thailand Management Association
Bangkok, Thailand
June 2, 2009
Toryos Pandejpong, Ph.D. 10
Major Shifts in New Economy
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Major Shifts in New Economy
Toryos Pandejpong, Ph.D. 12
Toryos Pandejpong, Ph.D. 13
Toryos Pandejpong, Ph.D. 14
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Opportunities: Their Origins and
Suitability for New Ventures
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“It still holds true that human beings are most uniquely human when
they turn obstacles into opportunities.”
--Eric Hofer
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Opportunity
 Situation in which a person can
develop a new business idea that
has potential to generate profit.
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Origins
 Information helps people recognize
changes in the external world that
create new opportunities.
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Opportunities from Change
Truly valuable opportunities come
from an external change that either
Makes it possible to do things that
had not been done before.
Makes it possible to do something
in a more valuable way.
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Change Leads to Potential
 New technology
 Political and regulatory shifts
 Social and demographic change
Potential
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Technological Change
 Makes it possible for people to do
things in new and more productive
ways
 The most important source of
opportunity
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Political and Regulatory Change
Makes it possible to develop business ideas
to use resources in new ways that are either
more productive, or that redistribute wealth
from one person to another.
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Social and Demographic Change
 Alters demand for products and services
 Makes it possible to generate solutions to customer
needs that are more productive than those currently
available
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Forms of Opportunity
Entrepreneurs develop business ideas by
Developing new products and services
Tapping new markets
Formulating new methods of production
Identifying new raw materials
Developing new ways of organizing
processes
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Competence Destroying Change
Large Companies
 Locked into old ways of
thinking
 Must cannibalize existing
business
Small Companies
 Can think in new ways
 No concerns with
existing business
 Hindered by established
routines
 Can form new routines
easily
 Must seek to satisfy existing
customers
 No existing customer
base to satisfy
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What Do We Need to Know Before We Start
Business?
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Pitfalls in Selecting New Ventures
 Lack of objective evaluation
 No real insight into the market Customer availability
 Inadequate understanding of technical requirements
 Poor financial understanding
 Lack of venture uniqueness
 Ignorance of legal issues
 Sales growth, Product availability
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Causes for Failure
 Product/Market Problems
– Poor timing.
– Product design problems.
– Inappropriate distribution
strategy.
– Unclear business definition.
– Overreliance on one
customer.
 Financial Difficulties
– Initial undercapitalization.
– Assuming debt too early.
– Venture capital relationship
problems.
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 Managerial Problems
– Concept of a team approach
– Human resource problems
Determinants of New-Venture Failures
Source: Andrew L. Zacharakis, G. Dale Meyer, and Julio DeCastro, “Differing Perceptions of New Venture Failure: A Matched
Exploratory Study of Venture Capitalists and Entrepreneurs,” Journal of Small Business Management (July 1999): 8.
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Information You Need
Potential markets
Existing and potential competitors
Ability to launch and run a new business
Government regulations and policies
Capital needs
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Components of Feasibility
Answers the question: Is the idea
viable?
Product or service feasibility
Industry/market feasibility
Organizational feasibility
Financial feasibility
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Competitor Analysis
Reputation
Physical resources
Advertising/marketing resources
Financial resources
Technical resources
Human resources
Relative product quality
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Government Policies and Regulations
May make it harder or easier to
start and run a new venture e.g.
higher marginal tax rate, lower
the self employment rate.
Gather relevant information on
the government policies and
regulations that will affect a new
business
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The Evaluation Process: Some Useful Questions
 Asking the Right Questions
– Initial Competitive Advantage
• Is it a new product/service idea?
• Is it proprietary? Can it be patented or copyrighted?
• Is it unique enough to get a significant head start on the competition before it
can be imitated or copied?
– Product Development
• Has a prototype been tested by independent testers?
• What are its weak points? Will it stand up?
• What level of research and development should it receive over the next five
years?
• If it is a service, has it been tested on potential customers?
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The Evaluation Process (cont’d)
 Asking the Right Questions (cont’d)
– Marketing
• What is the overall market? What are the market
segments? Can the product penetrate these segments or
exploit special niches?
• How big is the market? How fast is it growing? What are
the trends?
• Has it been taken to trade shows? If so, what reactions
did it receive? Were any sales made? Has it been taken
to distributors? Have they placed any orders?
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The Evaluation Process (cont’d)
 Asking the Right Questions (cont’d)
– Marketing (cont’d)
• What is the projected life cycle of the product or service? What
type of advertising and promotion plan will be used?
– Distribution
• What distribution and sales methods will be used? How will the
product be transported?
– Production
• How will the product be made? How much will it cost? Will it be
produced in-house or by others? Will production be by job
shop or continuous process? What is the present capacity of
company facilities? What is the breakeven point?
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The Evaluation Process (cont’d)
 Asking the Right Questions (cont’d)
– Expansion
• Will the business concept be developed and licensed to others or
developed and sold away?
– Staffing
• Can the company get—or has it already lined up—the necessary
skills to operate the business venture? Who will be the workers? Are
they dependable and competent?
– Funding
• How much capital will be needed now? How much more in the
future?
• Is the product or service easily understood by bankers, venture
capitalists, accountants, lawyers, and insurance agents?
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Effective Business Plan: Building a Roadmap to
Success
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Business Plan
A detailed road map for converting a
recognized opportunity into a profitable
business
Describes the business model
Persuades potential investors
Contributes to the ultimate success of the
venture
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Why Write a Business Plan?
 Attracting key employees into your company
 Convincing key suppliers to give you credit
 Forming strategic alliances To support the good
management of your business…
 Ensuring that everyone in your company is
working towards the same goals
 Convincing others in your company to allocate
resources
 Collecting your thoughts about how to run the
business-which helps you monitor its progress
and make course corrections
 Managing your growth
 Obtaining input from employees and investors
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What readers want to know...
1.
2.
3.
4.
Who are you?
Why are you in business?
What is the opportunity here?
What is the current situation in the
world?
5. How big is the market?
6. What will you sell?
7. How is your business structured?
8. How will you make money?
9. Who else is doing the same thing?
10. How do you compare?
11. Who are your most important
customers?
12. How will you reach and inspire them
to buy from you?
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13. Do you have any strategic partners who
will help?
14. Who are the people running your
business?
15. What experience do you/they have?
16. Who else are you working with?
17. Who are your advisors?
18. Who is on your board?
19. Where are you today?
20. What have you accomplished?
21. How much money do you need to start /
grow?
22. What will you do with the money?
23. How much money will investors make?
24. When & how will investors make their
money back?
Types of Plans
 There are three general types of business plans, each written
for different purposes or situations. In general, a Complete
business plan and a Summary business plan are intended for
readers outside your company. An Operational Business Plan
is intended for internal usage in an ongoing business
Toryos Pandejpong, Ph.D. 43
A Complete business plan
 A Complete business plan is necessary when you
are seeking a significant amount of funding or want
to give your external reader a full picture of your
business. The Complete plan can range from 15 to
40 pages or more. Here you need to explain your
business concept in detail to potential backers,
strategic partners, or potential buyers of your
company. It should clearly state the specific
request(s) you are making with your business plan
and what your company brings to the table should
the request be fulfilled by the reader.
Toryos Pandejpong, Ph.D. 44
A Summary business plan
 A Summary business plan is a much shorter document
that highlights the most important information about your
business and its direction. It should make clear the
specific request(s) you are making of your reader and
the purpose of the request. It is ideal when your
request is simple or minimal, when you are strapped
for time, or when you want to give your reader a preview
of your business plan, to gauge if they would have
sufficient interest to see your Complete plan. A Summary
plan is usually about 10-15 pages long and includes an
expanded Executive Summary (generally 3-5 pages in
length), a concise Financial Plan (usually 2-3 pages) and
a few Supporting Documents, including your 5 year
Income Statement, your 5 year Balance Sheet and your
5 year Cash Flows
Toryos Pandejpong, Ph.D. 45
An Operational business plan
 An Operational business plan is an important
internally oriented document of your established
company. It is used primarily by the
management team, board of directors and your
high level professional advisors. It’s excellent for
focusing and aligning the efforts of key
managers toward common company goals, and
therefore should be updated at least annually. It
is your master blueprint to which you tie your
budgets and departmental plans. The key
elements of the operational plan are the
Company Direction, supported by sound plans
for Products/Services, Marketing/Sales and
Finance/ Administration.
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A Living Document
 A business plan changes often as a new
business develops.
 Do just enough business planning to get the new
company started.
 Refine the plan with information gathered from
running the new venture.
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Model of Successful
Business Planning
Prepare a
relatively
simple plan
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Start the
business
Refine the
business plan
Continue to
grow the
business
A Successful Plan
 Orderly
 Succinct
 Persuasive
 In proper form
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Executive Summary
Your elevator pitch
Provides a brief, clear, and
persuasive overview of the new
venture
Target 2 to 3 pages
Toryos Pandejpong, Ph.D. 50
Business Plan Sections
 Background, purpose, and
opportunity
 Management
 Marketing
 Risk factors
 Competition
 Harvest or exit
 Development, production,
and location
 Scheduling and milestones
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 Financial section
 Appendices
Background, Product, and Opportunity
 What is the nature of the idea driving your company
and how did it arise?
 What does the product have to offer?
 What is the basic nature of the company?
 What are the company’s goals?
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Market Analysis
 What have you done to identify the market?
 How large is the market?
 How will products or services be promoted?
 What do you know about competing products and
companies?
 How will the product or service be priced?
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Development, Production, and Location
 Where are the products or services in the
development process?
 What are the projected costs and timetable for making
the product or delivering the service?
 What steps have been taken to assure quality and
safety?
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Management Team
 Do team members have the experience, expertise,
skills, and personal characteristics needed?
 Do team members having good working relationships,
defined roles, and clear communication?
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Financial Plans and Projections
Proforma balance sheet
Proforma income statement
Cash flow statement
Breakeven analysis
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Critical Risks
Price cutting by competitors
Unforeseen industry trends
Sales projections not achieved
Costs exceed estimates
Schedules not met
Lack of experience
Difficulties raising financing
Unforeseen trends
Toryos Pandejpong, Ph.D. 57
Harvest and Exit
 Management succession
 Exit strategies
– Transfer to insider
– Sale to outsider
– Take company public
– Bankruptcy
Toryos Pandejpong, Ph.D. 58
Scheduling and Milestones
Formal incorporation Product displays
Completion of
design
Agreements
Completion of
prototypes
Receipt of orders
Hiring of initial
personnel
Profitability
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Moving into production
First sales
The Presentation
Remember: This is important!
Prepare, prepare, prepare
Choose content carefully
Persuade, don’t overwhelm
Show enthusiasm tempered with reality
Rehearse
Don’t overlook the basics
Respond positively to questions
Toryos Pandejpong, Ph.D. 60