The Entrepreneurs Guide to Business Planning
\nYour plan must be for an idea that is linked to Life Sciences with a Biological component. The
\nidea could be based on your undergraduate research project, a scientific paper you have
\nread, a scientific product you have used, a published patent or your own idea. Examples
\ninclude: new scientific equipment; providing a service for scientific companies; products that
\nare used in food, cosmetics, pharmaceutical, biotechnology industries; environmental
\nproducts etc. Provided there is a Biological component this should be acceptable, if you are
\nunsure about your idea ask before writing the plan.
\nThe criteria for the assessment of the elevator pitch will be the marks given by the panel an effective presentation, coverage of key attributes of business proposal including economic and commercial considerations plus inclusion of statements of key details that an investor would need to follow up on the presentation. Criteria for the assessment of the business plan will include the standard of presentation and analysis of the business, the feasibility of the project, the projected capital and financial structures and the evidence of economic and commercial understanding within the plan, especially presentation of it to potential investors. The criteria for assessment of the skills for preparation of a CV will be with reference to an \u201cideal\u201d CV issued to the students, with particular attention paid to neatness, intelligence of presentation and content.
\n1. understand all the economic and commercial considerations which determine successful development of scientific research discoveries;
\n2. befamiliarwiththewiderangeofapproachesusedtostart,runandcontribute to a Bioscience linked Business;
\n3. develop a critical understanding of the different methods and resources used to plan a commercial venture in the Bioscience Industry;
\n4. be able to use patenting and other methods to protect intellectual property rights;
\n5. generate and present business plans that include an appropriate CV with respect to biotechnological products.<\/p>\n
Writing a Business Plan<\/p>\n
This document contains some suggestions on what your Business Plan should contain, although these should not<\/p>\n
be viewed as rules or requirements but only as guidelines.<\/p>\n
Phase 1: Firstly you will develop an idea. The aim will be to write a short summary of your idea for a business.<\/p>\n
This can be based on the template (IdeaTemplate.doc), which is available on Blackboard. This document will form<\/p>\n
the background to build your plan around. In effect it can form a draft of your Executive Summary.<\/p>\n
Your idea should be based around a single publication as the technology you are building your imaginary<\/p>\n
Business around. This publication can be a piece of scientific research (use Science Direct or PubMed Central to<\/p>\n
access full papers) or a patent publication (use the European Patent Database for a downloadable pdf of a<\/p>\n
patent).<\/p>\n
As part of the course you will be required to make a short 2 minute elevator-pitch presentation to staff and<\/p>\n
students in week 5 and this Phase 1 idea is a useful preparation for this section.<\/p>\n
Phase 2: The IdeaTemplate has a well-defined structure and can be built on in your Business Plan. However, the<\/p>\n
plan will be a longer document with fewer restrictions on the structure than in the Phase 1 and will be in the form<\/p>\n
of a business plan. The business plan must cover a number of topics, but can be expected to include:<\/p>\n
\u2022 Executive Summary<\/p>\n
\u2022 Background<\/p>\n
\u2022 Product and Sevices Description<\/p>\n
\u2022 Market analysis<\/p>\n
\u2022 Financial Projections<\/p>\n
\u2022 Risk analysis<\/p>\n
Again, there are notes on writing a business plan later in this handbook. Sample business plans can be found on<\/p>\n
the internet. Please note that your plan will be submitted through Turnitin and you must be very careful not to cut<\/p>\n
and paste from these sites. You are required to give a presentation on your plan in Week 12 and it will be very<\/p>\n
clear to the examiners how well you understand your plan.<\/p>\n
Phase 3: A real Business This section gives advice on how to take such a venture from a plan to a reality\u2026\u2026<\/p>\n
The Entrepreneurs Guide to Business Planning
\nPHASE 1 \u2013 THE IDEA SUMMARY<\/p>\n
The first stage of evaluating an idea is a short summary of the idea. This is sometimes known as the Preliminary<\/p>\n
Venture Analysis (PVA).<\/p>\n
A PVA is a framework for a quick analysis of a business opportunity. It provides a concise overview of key factors<\/p>\n
relating to the likely viability and success of the business idea, and provides a framework for deciding whether<\/p>\n
more detailed work and investment of time and energy is warranted. It can play an important role in helping to<\/p>\n
communicate the nature of the opportunity to other interested parties.<\/p>\n
What Should the Summary Look Like <\/p>\n
There is no \u2018one right way\u2019 to construct a PVA. However, the following framework is strongly suggested. The<\/p>\n
document should start with a short executive summary and a brief discussion of the proposed venture under the<\/p>\n
following headings. The complete document should be short \u2013 no more than two to three sides of A4 at most! So,<\/p>\n
it is important to remember that the following topics and questions are indications of what you should think about<\/p>\n
and not all of the points will need to be covered in the summary \u2013 only the most important points are relevant.<\/p>\n
Opportunity conditions<\/p>\n
Examine the context in which the opportunity occurs. For example, why does the opportunity exist, what is the<\/p>\n
time frame in which it occurs, can the opportunity be captured <\/p>\n
\u2022 Feasibility \u2013 technical and marketing<\/p>\n
\u2022 Competitive advantages \u2013 core competency \u2013 \u201cwhy us\u201d <\/p>\n
\u2022 Pay-off \u2013 over the next 5-7 years<\/p>\n
\u2022 Time window for this opportunity<\/p>\n
\u2022 Can the opportunity be harvested Do you have an exit strategy <\/p>\n
\u2022 Product\/service strategy is sound<\/p>\n
\u2022 Entry strategy is sound<\/p>\n
\u2022 Linkage between technology and the market<\/p>\n
\u2022 Why is this opportunity for you Can a team be built to do this <\/p>\n
Describe your business<\/p>\n
What have you got that is of value Describe what it is, what its development status is, what the first product and<\/p>\n
future products are, what does it do, and not do Also include here your intellectual property position, e.g. can it<\/p>\n
be protected <\/p>\n
\u2022 Description of the business.<\/p>\n
\u2022 Development status \u2013 current status, time to first sale; tasks and resources needed.<\/p>\n
\u2022 Protectability (intellectual property position \u2013 copyright\/patent ).<\/p>\n
\u2022 First products\/services, follow-on products\/services.<\/p>\n
\u2022 Customers \u2013 first customers and why they will buy from you. Later customers.<\/p>\n
\u2022 Strengths\/weaknesses of product\/service.
\nExamine the market<\/p>\n
What does the market for your product or service look like What is the size of the market and what trends are<\/p>\n
relevant How is the market segmented, who are your customers, how will you reach them, how will you enter the<\/p>\n
market <\/p>\n
\u2022 Size and trends \u2013 3 or 4 years history and 5 years future.<\/p>\n
\u2022 Customers \u2013 prior direct contact, in-person survey, the buying decision.<\/p>\n
\u2022 Entry marketing plan \u2013 products, customers, marketing and sales effort, number of units, sales, growth<\/p>\n
rate (5 year projection).<\/p>\n
Examine the competition<\/p>\n
\u2022 What is nature of the competitive environment Who is doing it now, who are they, where are they, how<\/p>\n
are they doing it, and what are their strengths and weaknesses <\/p>\n
\u2022 Names of competitors, location, size, products sold, strengths, weaknesses, age, sales tactics, pricing,<\/p>\n
financials.<\/p>\n
Examine the economics<\/p>\n
\u2022 Describe your business model. How much will your product or service cost, how long to profitability,<\/p>\n
where is the money coming from, and are the risks and rewards acceptable <\/p>\n
\u2022 Estimate of selling price, costs, margins, Break Even, months to Break Even, months to positive cash<\/p>\n
flow, Return on equity, estimate of capital needed for start-up and for 2nd year and 3rd year sales, source<\/p>\n
of funds.<\/p>\n
Examine the potential team required<\/p>\n
\u2022 Do you have ability to make it happen What are your strengths, skills and experience What evidence<\/p>\n
do you have of past achievements, what skills are lacking and how will gaps in your team be filled <\/p>\n
\u2022 Commitment of founders.<\/p>\n
\u2022 Relevant experience.<\/p>\n
\u2022 Team voids \u2013 how will they be filled When <\/p>\n
\u2022 Positions, responsibilities, ownership of founders and team members.<\/p>\n
Risks and Problems<\/p>\n
\u2022 Demonstrate that you have considered the challenges you will face. How will you protect the downside,<\/p>\n
what is your exit strategy, and how will you minimise the chances of failure <\/p>\n
\u2022 Risks and problems \u2013 impact on venture, how to minimize.<\/p>\n
\u2022 Overall risk of venture. Changes in venture concept<\/p>\n
\u2022 Identify changes in concept of venture resulting from above analysis.<\/p>\n
\u2022 Decision -GO or NO GO.
\nNext steps<\/p>\n
What do you need to make your venture happen What are the next steps, where do we go from here, what do<\/p>\n
you want <\/p>\n
Usually the amount needed to develop the market is underestimated \u2013 you need to include channel development<\/p>\n
and customer education.<\/p>\n
Usually marketing people are brought on too late in a company\u2019s development.<\/p>\n
Finally, ask yourself: \u201cwhy hasn\u2019t someone done this before \u201d<\/p>\n
The Entrepreneurs Guide to Business Planning
\nPHASE 2 \u2013 THE BUSINESS PLAN<\/p>\n
The business plan can mean different things to different people and can be modified to suit a particular purpose.<\/p>\n
Broadly speaking the business plan should explain the nature of the company\u2019s business, what it wants to achieve<\/p>\n
and how it is going to do it. The company\u2019s management should prepare the plan and should set challenging but<\/p>\n
achievable goals.<\/p>\n
In essence, much of what will be included in a business plan is an extension of the information already considered<\/p>\n
in the idea summary (see previous section) and is a natural extension of it.<\/p>\n
Frequently the Business Plan is used to raise investment in the business. The business plan must therefore<\/p>\n
convince the investor that the company and the management team have the ability to achieve the goals of the<\/p>\n
company within the specified time of the plan. The length of the business plan depends on the particular<\/p>\n
circumstances but, as a general rule, it should be no longer than six to ten pages. It is important to use plain<\/p>\n
English \u2013 especially if you are explaining technical details.<\/p>\n
The following covers the important areas of a business plan and can be applied to almost any business. The<\/p>\n
format and structure of a business plan though can vary widely depending on the business in question and the<\/p>\n
perspective of the people putting the plan together.<\/p>\n
Important Areas to Cover<\/p>\n
Executive Summary<\/p>\n
This is the most important section and is often best written last. It summarises your business plan and is placed at<\/p>\n
the front of the document. It is vital to give this summary significant thought and time, as it may well determine the<\/p>\n
amount of consideration an investor will give to your detailed proposal.<\/p>\n
It should be clearly written and powerfully persuasive, yet balance \u201csales talk\u201d with realism in order to be<\/p>\n
convincing. It should be limited to no more than two pages and include the key elements of the business plan.<\/p>\n
Background on the company<\/p>\n
Provide a summary of the fundamental nature of the company and its activities, a brief history of the company and<\/p>\n
an outline of the company\u2019s objectives.<\/p>\n
The product or service<\/p>\n
Explain the company\u2019s product or service in plain English. This is especially important if the product or service is<\/p>\n
technically orientated. A non-specialist must be able to understand the plan.<\/p>\n
\u2022 Emphasise the product, or service\u2019s competitive edge or unique selling point.<\/p>\n
\u2022 Describe the stage of development of the product\u2019s or service. Is there an opportunity to develop a<\/p>\n
second-generation product in due course Is the product or service vulnerable to technological<\/p>\n
redundancy <\/p>\n
\u2022 If relevant, explain what legal protection you have on the product, such as patents obtained, pending or<\/p>\n
required. Assess the impact of legal protection on the marketability of the product.<\/p>\n
Market analysis<\/p>\n
You need to convince the investor that there is a real commercial opportunity for the business and its products<\/p>\n
and services. Offer the reader a combination of clear description and analysis, including a realistic \u201cSWOT\u201d<\/p>\n
(strengths, weaknesses, opportunities and threats) analysis.<\/p>\n
\u2022 Define your market and explain in what industry sector your company operates. What is the size of the<\/p>\n
whole market What are the prospects for this market How developed is the market as a whole, ie.<\/p>\n
developing, growing, mature, declining <\/p>\n
\u2022 How does your company fit within this market Who are your competitors For what proportion of the<\/p>\n
market do they account What is their strategic positioning What are their strengths and weaknesses <\/p>\n
What are the barriers to new entrants <\/p>\n
\u2022 Describe the distribution channels. Who are your customers Comment on the price sensitivity of the<\/p>\n
market.<\/p>\n
\u2022 Explain the historic problems faced by the business and its products or services in the market. Have<\/p>\n
these problems been overcome, and if so, how Address the current issues, concerns and risks affecting<\/p>\n
your business and the industry in which it operates.<\/p>\n
\u2022 What are your projections for the company and the market Assess future potential problems and how<\/p>\n
they will be tackled, minimised or avoided.<\/p>\n
Marketing<\/p>\n
Having defined the relevant market and its opportunities, it is necessary to address how the prospective business<\/p>\n
will exploit these opportunities.<\/p>\n
\u2022 Outline your sales and distribution strategy. What is your planned sales force What are your strategies<\/p>\n
for different markets What distribution channels are you planning to use and how do these compare with<\/p>\n
your competitors\u2019 Identify overseas market access issues and how these will be resolved.<\/p>\n
\u2022 What is your pricing strategy How does this compare with your competitors\u2019 <\/p>\n
\u2022 What are your advertising, public relations and promotion plans <\/p>\n
Business operations<\/p>\n
Explain how your business operates:<\/p>\n
\u2022 Explain how you make the products or provide the service, first in brief and then in more detail.<\/p>\n
\u2022 What are the sources of raw materials <\/p>\n
\u2022 Who are your suppliers <\/p>\n
\u2022 What are the labour requirements What is the company\u2019s approach to industrial relations <\/p>\n
\u2022 Outline your company\u2019s approach to research and development.<\/p>\n
The management team<\/p>\n
Demonstrate that the company has the quality of management to be able to turn the business plan into reality.<\/p>\n
The senior management team ideally should be experienced in complementary areas, such as management<\/p>\n
strategy, finance and marketing, and their roles should be specified. The special abilities each member brings to<\/p>\n
the venture should be explained. A concise curriculum vitae should be included for each team member,<\/p>\n
highlighting the individual\u2019s previous track record.<\/p>\n
\u2022 Identify the current and potential skills gaps and explain how you aim to fill them. Investors will sometimes<\/p>\n
assist in locating experienced managers where an important post is unfilled, provided they are convinced<\/p>\n
about the other aspects of your plan.<\/p>\n
\u2022 Explain your controls, performance measures and remuneration for management, employees and others.<\/p>\n
\u2022 List your auditors and other advisers.<\/p>\n
\u2022 Include organisation chart.<\/p>\n
Financial projections<\/p>\n
Describe the company\u2019s business model and how funds will be used.<\/p>\n
\u2022 Explain the research undertaken to support these assumptions.<\/p>\n
\u2022 What are the costs associated with the business Remember to split sales costs (e.g. communications to<\/p>\n
potential and current customers) and marketing costs (e.g. research into potential sales areas).<\/p>\n
\u2022 What are the sale prices or fee charging structures <\/p>\n
Keep the plan feasible. Avoid being overly optimistic. Highlight challenges and show how they will be met.<\/p>\n
Risks, Investment and Exit opportunities<\/p>\n
State how much finance is required by your business and from what sources (i.e. management, venture capital,<\/p>\n
banks and others) and explain the purpose for which it will be applied. Outline the capital structure and ownership<\/p>\n
before and after financing.<\/p>\n
\u2022 Consider how any investors will exit the investment and make a return. Possible exit strategies for the<\/p>\n
investors may include floating the company on a stock exchange or selling the company to a trade buyer.<\/p>\n
\u2022 Show that you have considered the risks and challenges you will face. How will you protect the downside<\/p>\n
and how will you minimise the chances of failure.<\/p>\n
PHASE 3 \u2013 A REAL BUSINESS<\/p>\n
PRESENTING YOUR IDEA<\/p>\n
So, you have your product or service, you have your business plan, you\u2019ve looked at the market and you\u2019ve<\/p>\n
compiled your list of possible funding sources \u2013 what now <\/p>\n
It is time to sell your idea to those with the money \u2013 in other words, it\u2019s time to pitch.<\/p>\n
Pitching in Writing<\/p>\n
Successful pitching is a combination of many things, but primarily -luck, timing and skill. To begin with, your initial<\/p>\n
pitch letter needs to:<\/p>\n
\u2022 get to the right person;<\/p>\n
\u2022 get to the point;<\/p>\n
\u2022 get their attention;<\/p>\n
\u2022 get their confidence that you are a pro; and<\/p>\n
\u2022 not get too long-winded. Remember \u2013 the person you\u2019re aiming to entice into business with you is likely to<\/p>\n
get information overload every day. Keep it short, concise and simple.<\/p>\n
Here are some suggestions that may help in the initial stages of pitching your idea.<\/p>\n
Do your homework. Know about the investor you\u2019re approaching. Find out everything you can about them, their<\/p>\n
company, their operations and their mission. Show you fit in with their long-term vision.<\/p>\n
Phone first. Call the company before you even put fingers to keyboard. Get a name \u2013 the right contact person to<\/p>\n
send your information to. If you don\u2019t do this, you may as well not send the pitch in at all.<\/p>\n
Network, network, network. Yes, you\u2019ve heard it a thousand times, and that\u2019s because it\u2019s true networking is a<\/p>\n
great way to unearth contacts, and contacts often mean that pitching is that little bit easier. It is much more<\/p>\n
difficult to get a positive response from cold calling. If someone is prepared to introduce you to a potential<\/p>\n
investor, you already have your foot in that proverbial door, before you even open your mouth.<\/p>\n
Write a punchy pitch letter. A good pitch letter consists of a lead, a body and a close. Take the time to write a<\/p>\n
catchy lead that grabs their attention, then compose some brief and interesting text about your idea and lastly,<\/p>\n
wrap it up as fast as politely possible. Your pitch letter is crucial to getting interest in your idea. Sometimes it is the<\/p>\n
only thing a potential investor has time to read, so if you lose them in the letter, you\u2019ve lost them \u2013 period.<\/p>\n
Pitching in Person
\nBut what if you get that \u201cone in a million\u201d chance to verbally pitch your idea, face to face to your intended target <\/p>\n
Be it in an elevator, a party or a boardroom \u2013 here are some basic guidelines on how to survive the verbal pitch.<\/p>\n
Know this: verbal pitching is an art form comprised of about 50% solid homework and 50% improvisational skill. If<\/p>\n
you are not too good at public speaking, go and do a course, or start practicing in front of a mirror or your family<\/p>\n
or friends. Confidence is the key and you\u2019ll need lots of it to successfully verbally pitch your idea.<\/p>\n
Don\u2019t forget: you have about 60 seconds to win your target investor over. First impressions do count, so make<\/p>\n
sure yours is a good one. You\u2019re not only selling your business idea \u2013 you\u2019re selling yourself.<\/p>\n
Research, research, research. Be professional and be clear. Know what you\u2019re talking about inside-out. If you\u2019re<\/p>\n
not sure what you\u2019re pitching, neither will the investor, and you\u2019ll lose your chance of securing interest.<\/p>\n
The in-the-room improvisation requires a lot of instinct. Learn how to \u201cread\u201d the people listening to your pitch. If<\/p>\n
they start to glaze over \u2013 hit them with the best angle on your idea: clearly, succinctly and forcefully. This kind of pitching isn\u2019t called the \u201chard sell\u201d for nothing!
\nBe passionate about your business. If you are excited about it\u2019s potential and have backed up that excitement<\/p>\n
with cold, hard business research, the odds are that your target will \u201ccatch\u201d your enthusiasm. If they themselves<\/p>\n
can\u2019t help you with your business, then they are likely to then suggest others you should talk to.<\/p>\n
This is what you have to remember in pitching. Keep your pitch short (2-3 min), even shorter if the idea\u2019s pretty<\/p>\n
simple (1-2 min). You give someone a 15-20 minute pitch, they probably stop listening half way through.<\/p>\n
The Ten Commandments for Verbal Pitching<\/p>\n
1. Know your business idea backwards and be professional, yet passionate.<\/p>\n
2. Give the buyer an emotional\/personal investment in the idea. If they\u2019re talking, let them.<\/p>\n
3. Get them involved.<\/p>\n
4. Your goal is to reach a point of intimacy. Be responsive, listen to them and hear what they want.<\/p>\n
5. Don\u2019t rely on notes \u2013 they distance you. Have them, but don\u2019t rely on them. Include everybody present in<\/p>\n
your pitch (assistants too).<\/p>\n
6. Make comparisons to successful businesses.<\/p>\n
7. Don\u2019t pitch what you don\u2019t believe in. Know their business and their background well.<\/p>\n
8. Refer to it in the pitch.<\/p>\n
9. Don\u2019t promise what you don\u2019t intend to deliver.<\/p>\n
10. When it\u2019s sold, shut up. Remember: You usually get just one shot at a pitch, so you better be great!<\/p>\n","protected":false},"excerpt":{"rendered":"
The Entrepreneurs Guide to Business Planning Your plan must be for an idea that is linked to Life Sciences with a Biological component. The idea could be based on your undergraduate research project, a scientific paper you have read, a Read More …<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-95816","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/95816","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=95816"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/95816\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=95816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=95816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=95816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}