Let's Talk About

BUSINESS PLANNING AND MANAGING AN

ENTREPRENEURIAL VENTURE

Presentation Outline
INTRODUCTION
OBJECTIVES
VERSATILITY OF BUSINESS PLAN
MISSION,VALUE STATEMENT, GOALS
TYPES OF BUSINESS PLAN
VALUE STATEMENT
ELEMENTS OF BUSINESS PLAN
PLANNING BY 'IPA' - AN ALTERNATIVE
APPROACH
SUMMARY
CASE STUDY
 INTRODUCTION

Valuable tool that can benefit

companies at any stage of their
existence. Established firms, whether
they are growing, expanding, or dealing
with challenges, can use business plans
to communicate goals, secure financing,
and guide decision-making.

OBJECTIVES
01 02 03
Advantages of Planning
Comparison of Themes in Planning
for Business Success Traditional Business Processes
Plan

04 05
Themes
Importance ofin Planning and
Statements Incorporating Unusual
Processes
Analysis Processes in Planning
VERSATILITY OF BUSINESS PLANS
Investor Relations: Presenting goals and prospects to potential
investors.

Strategic Decision-Making: Guiding management in implementing

new projects and navigating changes.

Mergers and Acquisitions: Assisting retailers in evaluating merger

prospects or managing mergers.

Rapid Growth: Addressing challenges associated with rapid business

expansion.

Priority Setting: Setting priorities when planning changes or dealing

with contingencies.

Client Acquisition: Attracting new clients and strengthening

relationships

Problem Solving: Dealing with difficulties and unexpected challenges.

MISSION STATEMENT

Guides firm's current and future goals,

decision-making, and operations.
Serves as the basis for overall and
functional strategies.
Communicates the firm's purpose to
stakeholders.
Aligns everyone towards common
objectives.
WRITING A MISSION STATEMENT
1. Identify core competencies, strengths, and
weaknesses.
2. List primary internal and external customers and
their evaluations.
3. Organize sentences by importance to the firm's
vision.
4. Gather feedback from customers, employees, and
suppliers.
5. Refine statements to articulate the company's
vision.
6. Publish and share the mission statement.

VALUE STATEMENT

Guides firm's current and future goals,

decision-making, and operations.
Serves as the basis for overall and
functional strategies.
Communicates the firm's purpose to
stakeholders.
Aligns everyone towards common
objectives.
 REDEFINING FIRM'S GOALS

Entrepreneurial firms adapt goals as they

grow and conditions change.
Reassess and recalculate goals in response
to evolving needs and environmental
demands.
Continuously examine the mission
statement and set new goals accordingly.

ANS
IMPORTANCE OF EFFECTIVE BUSINESS PL

Organize a firm's goals, assets, and

resources efficiently, aligning them to
improve operations and achieve desired
outcomes.
 TWO TYPES OF BUSINESS PLANS
MINIPLAN
A concise plan used in the early stages of a business to test concepts or gauge investor interest. It
typically includes brief descriptions of the concept, financing needs, marketing plan, financial
statements, projected income, and cash flow.

WORKING PLAN
A comprehensive, detailed document suitable for established businesses in advanced stages. It
contains reliable data, facts, and figures, serving as a tool for managing business operations and
presenting the company's vision to investors, partners, and others.

AN
COMMON ELEMENTS OF ANY BUSINESS PL

MILESTONES: DEADLINES AND BUDGETS FOR SPECIFIC ACTIONS,

TRACKING AND MEASURING CONFORMITY TO THE PLAN.

CASH FLOW ANALYSIS: SOURCES AND AMOUNTS OF PAST AND

PROJECTED FINANCING, ALONG WITH MONTHLY EXPENSES AND
REVENUES.

PRIORITIES: WEIGHING THE IMPORTANCE AND URGENCY OF

ONGOING AND PLANNED PROJECTS AND ACTIVITIES.
 SWOT ANALYSIS

It is a valuable strategic planning tool used to evaluate a

company's internal strengths and weaknesses and external
opportunities and threats. It categorizes factors affecting
the business, offering insights into performance and the
surrounding environment. This analysis helps businesses
identify areas for improvement and capitalize on
opportunities.

BREAK-EVEN ANALYSIS

It involves comparing a company's costs and revenues,

considering fixed and variable costs. Fixed costs remain
constant, while variable costs fluctuate with production
levels. Understanding break-even points helps in pricing
strategies and profit goal setting.
 SETTING PRICES

Premium Pricing for exclusivity

Penetration Pricing to enter the market
Psychological Pricing to influence consumer
decisions
Promotional Pricing for attractive offers
Product-line Pricing for bundled services
Geographical Pricing based on regional factors.

R
WHAT ENTREPRENEURS SHOULD LOOK FO

01 02
RESOURCE ALLOCATION: STRATEGIC GOALS: STAY
EFFICIENTLY ALLOCATE FOCUSED ON GOALS
AVAILABLE RESOURCES. ESTABLISHED IN THE
ORIGINAL PLAN.

03 04
Themes in Planning
PRIORITIZATION: SET PRIORITIES STRATEGIC DECISION-MAKING: ENSURE THAT
Processes
TO AVOID SIDETRACKING DECISION-MAKING ALIGNS WITH THE
ACTIVITIES. ESTABLISHED GOALS.
 MAIN THEMES IN PLANNING

MAIN THEMES IN PLANNING

1. COMPANY 2. PRODUCT

What products and/or services

Who are we? Define the business
does the business offer?
strategy for establishing a legal
Why should people buy these
entity.
products/services, and what
How will initial ownership be
are their benefits?
distributed among founders?
What is the cost of delivering
What is the business's history
these products/services?
and past performance?
MAIN THEMES IN PLANNING

3. PROCESS 4. CUSTOMERS

Who are the main and

How are products/services sold? peripheral targeted clients?
Which target market segments, What are the characteristic
products, or services should be needs and trends in the
focused on? market?
How are sales and the cost of What is the competitive
sales forecasted? landscape, and how much
competition does the business
face?

MAIN THEMES IN PLANNING

5. DISTRIBUTION 6. FINANCING

How will the business's

What are the set-up costs and
products/services reach
investments required?
customers (e.g., website, sales Describe the financial strategy
representatives, retail sales)? and how it supports growth.
What type of distribution Calculate the break-even point
channel should be used (e.g., and consider factors like
direct, one-stage, traditional)? projected profit or loss, cash
Identify the companies, people, flow, and balance sheets.
or technologies involved in the
distribution process.
 ELEMENTS OF A BUSINESS PLAN
EXECUTIVE SUMMARY.
COMPANY INTRODUCTION, INCLUDING HISTORY AND KEY
PERSONNEL.
VISION.
DESCRIPTION OF PRODUCTS AND/OR SERVICES.
MARKETING STRATEGIES.
ANALYSIS OF COMPETITORS AND COMPETITIVE
ADVANTAGES.
DEVELOPMENT PLAN.
OPERATIONS AND MANAGEMENT PLAN.
FINANCIAL PLAN, INCLUDING REVENUE PROJECTIONS,
BREAK-EVEN ANALYSIS, AND FINANCIAL STATEMENTS.
FUTURE PLANS, INCLUDING GROWTH AND INVESTMENT
STRATEGIES.

OACH
PLANNING BY 'IPA' - AN ALTERNATIVE APPR

Input-Planning process-Action
plan (IPA).
Encourages adaptability.
Rethink and adjust plans.
Emphasizes creative thinking.
Suited for rapid changes and
uncertainties in
entrepreneurship.
SUMMARY
PLANNING IS PERCEIVED AS CRUCIAL FOR EFFECTIVE
ENTREPRENEURIAL BUSINESS MANAGEMENT.

INTUITION VS. PLANNING IS A DEBATE, WITH SOME ENTREPRENEURS

VALUING INTUITION OVER PLANNING.

PLANNING SHOULD BE FLEXIBLE AND ADAPTED TO THE BUSINESS'S

GOALS AND ROUTINES.

PRACTICAL, FLEXIBLE PLANNING TOOLS ARE RECOMMENDED

DURING STARTUP, CRISES, OR SIGNIFICANT CHANGES.

REFLECTIVE, INTUITIVE PLANNING PROCESSES ARE ENCOURAGED

FOR HANDLING UNCERTAINTIES.

AN IPA MODEL (INPUT-PLANNING PROCESS-ACTION PLAN)

EXEMPLIFIES ADAPTIVE PLANNING.

BUSINESS PLANS SHOULD COMBINE DATA AND FIGURES WITH

INTUITIVE AND REFLECTIVE PROCESSES.

A STRATEGIC PLAN FOCUSES ON MARKET PENETRATION AND

COMPETITIVE ADVANTAGE.

RESEARCH SHOWS PLANNING IS EFFECTIVE WHEN ACCOMPANIED

BY COMMON SENSE AND INTUITION IN ENTREPRENEURSHIP.

Y
NEIGER-CONSTRUCTEURS CASE SUMMAR

Siblings Rita, Eliane, and Jerome Neiger, living in rural France, had diverse backgrounds.
All university graduates, they were employed in various professions until late 2002.
Rita, an aviation engineer, faced job loss and accepted work with a Romanian builder in
France. She adjusted quickly, learned construction, and networked extensively.
Jerome also left his job and suggested starting a construction business.
Eliane, a teacher, joined as the third partner, and Neiger-Constructeurs was launched in
November 2002.

Initially, they had one satisfied client but struggled to find more due to their lack of
marketing knowledge. They attended a business planning course, realizing the need for
structured planning. Target market and service segmentation were key strategies.
They focused on small businesses and prefabricated construction.
Rita organized roles, set milestones, and established budget limits.
Traditional advertising methods did not yield desired results.
They successfully advertised and branded their business through professional websites.
The business is not yet stable but has multiple clients, with determination to succeed.
 NEIGER-CONSTRUCTEURS CASE

1. Identify the wrong steps taken by the Neigers in

the first stages of their venture creation:

LACK OF MARKET RESEARCH

OVERLOOKING MARKETING AND ADVERTISING
FAILURE TO DIVERSIFY SERVICES

NEIGER-CONSTRUCTEURS CASE
2. How did being an employee in a company prior to launching
their own business affect the Neigers' first steps as business
owners?

Rita's Experience: Rita's prior experience as an aviation engineer and

her later work in construction provided her with valuable industry
knowledge and connections.

Jerome's Expertise: Jerome's background in construction gave them a

foundation to start their own construction business.

Eliane's Transition: Eliane, transitioning from a teaching career,

brought her own set of skills but had to adapt to the entrepreneurial
world.
 NEIGER-CONSTRUCTEURS CASE
3. Identify the main themes of the business plan that the Neigers
implemented after attending a business planning course. How did
this promote Neiger-Constructeurs?

Target Market Definition: They defined their target market, focusing

on small businesses rather than private clients.
Service Segmentation: They concentrated on prefabricated
construction, specializing in mini-storage buildings and steel self-
storage units.
Milestones and Responsibilities: Rita organized roles, set milestones
for the business, and defined each co-founder's responsibilities.
Budgeting: They specified the company's budget limits.
Online Advertising: They adopted professional websites for
advertising and branding.

NEIGER-CONSTRUCTEURS CASE
4. Outline a miniplan for Neiger-Constructeurs that can facilitate
the stabilization of their business:

Market Expansion: Identify nearby regions or areas with potential clients who
require construction services.
Diversify Services: Explore additional construction services beyond prefabricated
construction to broaden the client base.
Networking: Attend industry events, join professional organizations, and continue
building a strong professional network.
Financial Management: Continuously monitor finances, control costs, and work
towards reaching the break-even point.
Customer Feedback: Gather feedback from existing clients to enhance service
quality and reputation.
Marketing Strategy: Invest in digital marketing, SEO, and social media advertising
to reach a wider audience.
Employee Training: Provide training to any employees they hire to ensure
consistent service quality.
Long-Term Planning: Develop a long-term business strategy with clear goals and
milestones for future growth and expansion.
 THANK YOU!

Presenters
MBA ESPINAR 3B6

Myca Michelle G. Emata Chaniry N. Eleazar Michelle Joie M. Pascual