The Roles of Business Planning

in
Successful Business Growth

Jack Derby
Professor of the Practice, Tufts University
Head Coach, Derby Management
Venture Partner, Converge Ventures
 Class 4…
• Why create a Business Plan refresh
• How to actually write the plan

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 Jack Derby
– 25 year successful track record of coaching over 400 companies.
– 17 year successful track record in medical devices as Executive Vice
President of Becton Dickinson Medical Systems, CEO of Datamedix
Corporation and President of Litton Medical Systems.
– 3 years as President of CB Sports
– Co-founded 14 companies
– Raised over $840 million in venture and private equity
– Current Director: AIM, Aviant Healthcare, Brainshark, Rome
Snowboards, Loci, and Reiser
– Professor, Tufts University, Marketing, (Teacher of the Year in 2015)
– Activities…
• Partner, Converge Venture Partners
• Past Chair, Common Angels
• Past Chair, Association of Corporate Growth
• Past Chair, MIT Enterprise Forum- Distinguished Service Award
• Past Vice Chair, SBANE- Pro Bono Publico Award
• Past United States Peace Corps volunteer
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 Elevator Speech

What’s included? Executive Summary

Presentation Pitch

• 7-9 Sections… The Business Plan

1. Executive Summary
2. Introduction to the business
3. Definition of products & services
4. Overview of markets
5. Overview of sales & marketing plans
6. Overview of products and roadmap
7. Summary of manufacturing & operations
8. Management team bios
9. Four pages of financials
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 Elevator Speech

Why create a Business Plan? Executive Summary

For you as a company manager, it… Presentation Pitch

The Business Plan

• Communicates your strategies

• Communicates your tactics
• Communicates your objectives
• Communicates your budget requirements
• Provides for common agreement & buy-in
• Provides common language
24 months
Vision CEO & BOD
1-18 months
Strategies All Managers
1-12 months
Tactics & Objectives All Employees
Actions

Operations

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 Why create a Business Plan?
• For you as an entrepreneur, it…

– Provides the same as a company manager

– And …
…provides an architecture for investors

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 For the Team…

Most importantly,
for you & your team:
– The actual process of planning is the key.
• It consolidates management direction.
• It provides debate & finally consensus.

– It is a guide when speed bumps happen.

– It is your company & personal scorecard.

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 No Business Plan, No Outside Money

Early & later stage companies

– Plans are the foundation for outside investors

• Private angels
• Venture capitalists Elevator Speech

• Corporate investors Executive Summary

• Strategic partners Presentation Pitch

The Business Plan

22

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 Very
Elevator Speech

Writing a plan is tough work ! Executive Summary

Presentation Pitch

The Business Plan

It requires disciplined balance

– It’s visionary, but logical.

– It’s financially perfect, but flexible.
– It’s wrong & it’s right.
– It’s for today, but also for 3 to 5 years out
– It’s a formal Plan, but it’s easy to read.
– It’s creative, but it follows The Rules.

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 Elevator Speech

Executive Summary

Presentation Pitch

The Business Plan

ü Rules
ü Preparation
ü Start Writing

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 Elevator Speech

The Traditional Business Plan… Executive Summary

Presentation Pitch

• An Executive Summary The Business Plan

• 7-9 sections
• 20-30 pages with financials

• Provides clear details

• Brings out the richness of the business idea.
• Details the market opportunity & complexity
• Details the business and sales models

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 Elevator Speech

What’s included? Executive Summary

Presentation Pitch
• 7-9 Sections…
The Business Plan

1. Executive Summary
2. Introduction to the business
3. Definition of products & services
4. Overview of markets
5. Overview of sales & marketing plans
6. Overview of products and roadmap
7. Summary of manufacturing & operations
8. Management team bios
9. Four pages of financials
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 How do you start?
Pay attention to
Writing the Winning Plan…
– Be compelling
– Be brief, focused, & deliberate
Executive drawing idea network
on whiteboard © Clarion
Consulting, 2010

– Focus on the markets & on your

customers
– Provide solid market research & hard
data
– Be innovative and provide unique
value
– Define an experienced management
team
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 Rules…

Be brief & direct & detailed. Executive drawing idea network

on whiteboard © Clarion
Consulting, 2010

• Identify what the business is immediately

• Identify the business model immediately. What?
• Define the products & their technologies

• Detail the markets Where?

• Identify your customers. Who &

• Identify the sales model immediately How?
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 Rules…
• Be realistic with yourself.
– This is your Plan, Career, Time &
Money
• Define your 1 and your 3 year objectives
• Describe your 3 to 4 primary strategies.
• Always focus on…
– the cash
– growth in margin
– growth in revenue.
– the market changes Executive drawing idea network
on whiteboard © Clarion

– the customer changes Consulting, 2010

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 Don’t just start writing…

• Preparation = Key to Success

– Question everything…
Vision
• What is the business?
• What’s our vision?
Strategies
• Can we explain it to others ?
Tactics
• Who are our customers in 3 years ?
• How are we going to sell them?
• Do we have a 3 year product map?
Business Plan Focus

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 Don’t just start writing…

• Preparation = Key to Success.

– What do we really know about…

• Our market & customer targets?
• Market data, trends, & forecasts?
• Competition?
• Sales channels?
• New technologies in development?

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