Developing Business Plans and

Pitching Opportunities
Four problems of business models
• Flawed assumptions underlying the core logic.
• Limitations in the strategic choices considered.
• Misunderstandings about value creation and
value capture.
• Flawed assumptions about the value network.
Flawed assumption of business models

Case of eToys

A case of Yahoo!
From Business Model to Business Plans

While a business opportunity based on

a flawed business model often fails, so
too will an amazing opportunity that no
one understands.
 What Is a Business Plan?

• Business Plan
– A business plan is a written narrative, typically 25 to 35
pages long, that describes what a new business plans to
accomplish.
• Dual-Use Document
– For most new ventures, the business plan is a dual-purpose
document used both inside and outside the firm.
Why Reads the Business Plan—And What
Are They Looking For?
There are two primary audience for a firm’s business plan

Audience What They are Looking For

A Firm’s A clearly written business plan helps the

Employees employees of a firm operate in sync and move
forward in a consistent and purposeful manner.

Investors and A firm’s business plan must make the case that the
other external firm is a good use of an investor’s funds or the
stakeholders attention of others.
 Guidelines for Writing a Business Plan

• Structure of the Business Plan

– To make the best impression a business plan should follow
a conventional structure (to be discussed in this lecture)
– Although some entrepreneurs want to demonstrate
creativity, departing from the basic structure of the
conventional business plan is usually a mistake.
– Typically, investors are busy people and want a plan
where they can easily find critical information.
 Guidelines for Writing a Business Plan
• Structure of the Business Plan (continued)
• Software Packages
– There are many software packages available that employ an interactive,
menu-driven approach to assist in the writing of a business plan.
– StratPad
– Enloop https://enloop.com/
– Plan Cruncher
• Some of these programs are very helpful. However, entrepreneurs
should avoid a boilerplate plan that looks as though it came from a
“canned” source.
• Sense of Excitement
– Along with facts and figures, a business plan needs to project a sense of
anticipation and excitement about the possibilities that surround a new
venture.
 Guidelines for Writing a Business Plan

• Content of the Business Plan

– The business plan should give clear and concise
information on all the important aspects of the proposed
venture.
– It must be long enough to provide sufficient information
yet short enough to maintain reader interest.
– For most plans, 25 to 35 pages is sufficient.
• Types of Business Plans
– There are three types of business plans, which are shown
on the next slide.
Guidelines for Writing a Business Plan

Types of Business Plans

 Guidelines for Writing a Business Plan

• Recognizing the Elements of the Plan May Change

– It’s important to recognize that the plan will usually change
while written.
– New insights invariably emerge when an entrepreneur or a
team of entrepreneurs immerse themselves in writing the
plan and start getting feedback from others.
• Executive Summary
• Industry Analysis • Company Description
– Industry Size, Growth – Company History
Rate, – Mission Statement
– Sales Projections – Products and Services
– Industry Structure – Current Status
– Nature of Participants – Legal Status and
– Key Success factors Ownership
– Industry Trends – Key Partnerships (if any)
– Long-Term Prospects
• Market Analysis • The Economics of the
– Market Segmentation Business
and Target Market – Revenue Drivers and
Selection Profit Margins
– Buyer Behavior – fixed and variable Costs
– Competitor Analysis – Operating Leverage and
– Estimates of Annual Its Implications
Sales and Market Share – Start-up Costs
– Break-Even Chart and
Calculation
• Marketing Plan
– Overall Marketing
Strategy
– Product, Price,
Promotions, and
Distribution
– Sales Process (or Cycle)
– Sales Tactics
• Design and
Development Plan
– Development Status and
Tasks
– Challenges and Risks
– Projected Development
Costs
– Proprietary Issues
(Patents, Trademarks,
– Copyrights, Licenses,
Brand Names)
• Operations Plan
– General Approach to
Operations
– Business Location
– facilities and Equipment
• Management Team and
Company
– Structure
– Management Team
(Including a Skills Profile)
– e.g. Board of Directors
– e.g. Board of Advisors
– e.g. Company Structure
• Overall Schedule
• Financial Projections
– Sources and Uses of funds Statement
– Assumptions Sheet
– Pro forma Income Statements
– Pro forma Balance Sheets
– Pro forma Cash flows
– Ratio Analysis
• Appendices
• While there are examples of successful firms
that did not write a formal business plan,
formal business planning does offer benefits,
which fall into three categories

• First, some investors still require a written

business plan that they can evaluate prior to
selecting entrepreneurs to pitch in person
• Second, the process of writing a business plan
enables entrepreneurs and founding teams to
debate critical assumptions they are making
and to identify areas of uncertainty. In this
scenario, the business plan becomes a
document of record that captures decisions
and assumptions, identifies early essential
activities, and enables entrepreneurs to clarify
and develop a plan for mitigating areas of
uncertainty.
• Third, these same assumptions, along with
projected milestones, are used to identify
resources needed and to develop cash flow
forecasts, which in turn determine how much
financing must be raised, when it will be
needed, and the type of investors needed at
different stages of the new venture’s life cycle
 Business Plan Evaluation
The 10 Most important Questions a business plan should answer
1. Is the business just an idea, or is it an opportunity with real potential?
2. Is the product or service viable? Does it add significant value to the customer?
Has a feasibility analysis been completed? If so, what are the results?
3. Is the business entering an exciting, growing industry, and has the firm identified
an attractive position within the industry?
4. Does the business have a well-defined target market?
5. Does the business have points of differentiation that truly separate it from its
competitors? Are these points of differentiation sustainable?
6. Does the business have a sound marketing plan?
7. Is the management team experienced, skilled, and up to the task of launching
the new firm?
8. Is the business’s operations plan appropriate and sound?
9. Are the assumptions that the firm is basing its financial projections on realistic?
10. Are the financial projections completed correctly, and do they project a bright
future for the firm?
 Red Flags in Business Plans
• Founders with none of their own money at risk
• If the founders aren’t willing to put their own money at risk, why should
anyone else?
• A poorly cited plan
• A plan should be built on hard evidence and sound research, not
guesswork or what an entrepreneur “thinks” will happen. The sources for
all primary and secondary research should be cited.
• Defining the market size too broadly
• Defining the market for a new venture too broadly shows that the true
target market has not been clearly identified. for example, saying that a
new venture will target the global pharmaceutical industry isn’t helpful.
The market opportunity needs to be better defined. Obviously, the new
venture will target a segment or a specific market within the industry.
 Red Flags in Business Plans
• Overly aggressive financials
• Many investors skip directly to this portion of the plan. Projections that
are poorly reasoned or unrealistically optimistic lose credibility. In
contrast, sober, well-reasoned statements backed by sound research
and judgment gain credibility quickly.

• Sloppiness in any area

• It is never a good idea to make a reader wade through typos, balance
sheets that don’t balance, or sloppiness in any area. These types of
mistakes are seen as inattention to detail and hurt the entrepreneur’s
credibility.
COMPARING A BUSINESS MODEL
TO A BUSINESS PLAN AND A
BUSINESS PITCH
 Business Model
A business model is created using an analytical process through which
an entrepreneur collects and analyzes information needed to make
choices on Strategic positioning Capabilities and resources, Value
proposition/creation and the value capture/financials
Barringer/Ireland Business Model Template
• A business plan is a document that articulates
the proposed venture’s business model and
provides significant additional detail.

• A business pitch is a presentation that can be

used to communicate the business model to
investors, customers, partners, advisers,
potential employees, and other stakeholders.
• It's a 30-second memorable description of
what you do and/or what you sell. The goal is
to earn a second conversation, not to convince
the person you're talking to they should hire
you or buy your solution.
 Preparing to Pitch
• The first guiding principle for an entrepreneur
preparing a pitch is straightforward: Do your
homework.
• Clarify your objectives in making the pitch.
• Be clear about your audience
• Is it to gain financial commitments or attract
partners, or do you have another purpose?
• Innovation, solution, or profits ????
• For example, the entrepreneur can find out
who will be attending the pitch presentation
and what the attendees would like to learn
about the founding team and company
• If possible, before pitching to key investors and
partners, entrepreneurs should also talk with
industry and market experts so that they are
prepared to answer tough questions and
clarify how they plan to attract the key
partners, customers, and suppliers.
 Crafting the Pitch
1. Why?
2. Who?
3. Where?
4. What?
5. When?
6. How?
 Crafting the Pitch
1. Identify Your Goal
2. Explain What You Do
3. Communicate Your USP
4. Engage With a Question
5. Put It All Together
6. Practice
 Crafting the Pitch
• REMEMBER !
– Get the interest of the audience
– Action Phrase
– Unique Value
– Impact
 Crafting the Pitch
• https://thewritelife.com/get-better-at-pitching
/
• https://www.makealivingwriting.com/tools-for
-writing-a-pitch/

• https://businessofstory.com/elevator-pitch-on
line-tool
/
Example: HyConn LLC - Shark Tank Business
Plan Pitch Video
• https://www.kaltura.com/index.php/extwidge
t/preview/partner_id/506471/uiconf_id/9952
721/entry_id/1_i7kxga1i/embed/auto?&flashv
ars[streamerType]=
auto
• https://www.kaltura.com/index.php/extwidge
t/preview/partner_id/506471/uiconf_id/9952
721/entry_id/1_opf3u4dq/embed/auto?&flas
hvars[streamerType]=
auto
 Example: baby dream machine
• https://
www.youtube.com/watch?v=H-2a84QGN2s
 Elevator Pitch Examples to Inspire Your
Own
• https://
blog.hubspot.com/sales/elevator-pitch-exampl
es

• https://venngage.com/blog/best-pitch-decks/
• https://www.yesware.com/blog/sales-pitch-ex
amples
/
• https://articles.bplans.com/what-to-include-in
-your-pitch-deck
 Business Plan Competition around the
world
• https://www.gistnetwork.org/
• https://
imaginecup.microsoft.com/en-us/Events?id=0
• https://startups.microsoft.com/en-us/
• https://fics.nust.edu.pk/
• http://www.prestonentrepreneurialchallenge.com/
• TechCrunch Disrupt 2021
https://techcrunch.com/events/techcrunch-disru
pt-2021
/
 Business Plan Competition around the
world
• Resurgence - TiEcon Delhi-NCR 2021
• https://
hub.tie.org/e/resurgence-tiecon-delhi-ncr
• ChangeMakers Seed Grant Opportunity 2021
• https://startupxs.com/fund/changemakers-se
ed-grant-opportunity-2021
/