Source: McKinsey
McKinsey&Company – Copyright 2002
DEVELOPMENT STEPS FOR BUSINESS PLANS
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Milestones
Level of maturity of business idea
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EXAMPLES
New high-growth ventures
USE OF BUSINESS PLANS
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Standard use
• Start-up companies:
– Application for venture capital
GENERIC REQUIREMENTS
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Constantly adapting
Explanation
Business planning is an iterative and adaptive process that requires constant update and adjustment work
• Necessity of external
know-how transfer
• Lack of skills/motivation/
time
Start-up business plans to be tailored to new venture needs
Source: McKinsey
McKinsey&Company – Copyright 2002
– External financing
Complications for New Venture projects
• High insecurity concerning
technology, timing, and cash need
• Difficult data situation due
to newness of innovative products
Completion of financing
Step 3: VC-tailored business plan
McKinsey&Company – Copyright 2002
TYPES OF NEW BUSINESSES
Product/ service
New
New product
• Palm • Smart • Sony Playstation • Rollerblades
New industry
• Direct satellite TV • Netscape • Mobile telephony
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Business plan preparation
Training program for Entrepreneurs
McKinsey&Company – Copyright 2002
AGENDA
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• Short introduction to the use of business plans • Preparation guidelines for business plans • Wrap-up
The storyline and all the facts presented must fit together and generate a well rounded impression
Optically compelling
A clear, precise structure is a courtesy to those investing their time in reading the proposal
Existing industries and businesses
Existing Existing
New business system
• Dell • Fotolabo • Charles Schwab • FedEx
New
Businesቤተ መጻሕፍቲ ባይዱ system
Source: Planen, gründen, wachsen (McKinsey) McKinsey&Company – Copyright 2002
McKinsey&Company – Copyright 2002
AGENDA
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• Short introduction to the use of business plans • Preparation guidelines for business plans • Wrap-up
Impressing by clarity
Convincing by facts
Understandable even for non-experts
Consistent and concise
Not the quantity of analyses, but the clarity and preciseness of the pack are important
– Search for management team members
– Communication with partners, suppliers, …
• Established, developed
businesses for investment decisions
– In-house budget allocations
No hype, but factual statements. Enthusiasm will be generated by the investor realizing the opportunity on his own
Those who allocate investment resources rarely are technical experts for the technology used in the proposal