How to write a BUSINESS PLAN and PITCH IT (Includes template)

1. Overview of the course: They've got a business idea and you've decided that you want to start a business. Well done, except there is more to a business than just having a good idea. She needs to think things through and maximize your chances of success. I read the right person to run the business. Will customers like your product? A business plan will actually help you to turn that idea into an actual business. The question is, how do you develop one? How do you communicate it to potential shareholders? Real quick about Moses manner, the founder of the network, which is an educational media company. We develop educational content on business, finance, law, and development related studies. But he is why you are here. By the time you're done with the next series of videos, you're going to be in a position to explain the content expected and developed in the business plan. Actually develop a business plan for a new business. Develop a pitch that delivers key information about your business to key stakeholders. The lessons we'll in a nutshell, Trenu on general idea, bn business plans, things like what is a business plan and who reads it. Reasons for you to write a business plan. The structure of a business plan. In developing a business plan for a new business idea. How to develop your business speech. Beat the elevator pitch, or the main business pitch. Since the plan here is learning by doing, you're going to undertake some projects based on the learning outcome that we've just stated. Basically, you will write a business plan and share an executive summary of Such, as well as develop an elevator pitch for a business. Remember, it's not about whether you're wrong or right at this point, it's just about getting things done and then improving. If you make a mistake, improve on it. So let's get started. 2. What is a business plan and who reads it: The first thing we need to agree on as you continue learning is that business plan is more than a document. It's a template to help you run your business and show other key stakeholders what they can expect and Tange to gain. The plant is going to summarize a number of things, okay, To summarize what your business will be, your objectives, and how you reach them. So generally, the business plan will serve two purposes that will be assessed the viability of your product and to promote your idea to investors. So remember, a good business plan is not a long business plan. Most people tend to think that if it is a long business plan, then it's a good one. Not really. A good business plan will depend on the kind of information it gives. What kind of information are we talking about? Now, a good business plan is supposed to show the following information. What you want to achieve, how you will get there, and the things you need to do along the way, which is the reason why it's good to tackle a business plan in small chunks. Just don't sit there and write the entire thing. I mean, you could do that and that's just going to be a Lean Canvas Model. But if you're going to do a detailed business plan, then separate it into small bits, which is what you're going to be doing in the next, in this lesson anyway. Next series of videos to follow. You wanted to separate it into small bits and walk on those bits. Who is going to read a business plan? Now that you've established that a business plan is actually a plan for your business. There are a number of parties who might be interested in reading that plan. So who are these parties? Well, they will include people like, what are the patterns in this category? Persons like investors, stakeholders, new staff, startup support agencies, business partners, shred. Now we are on the same page, right? We know what a business plan is and who's going to read it. Remember, it's not along the document, but also short document. It's just a documentary supposed to show the plan you have for your business, or at least the plant that you consumed at that moment. Remember, it's not about creating a perfect plan. It all starts with realizing that having a plan is better than no planet. All right, see you in the next lesson. 3. Why you need a business plan: Business plan is a document that describes your business. It covers the following things, Objectives, Strategies, sales, marketing, and financial focused. But then again, just because something is written doesn't mean that that thing is going to be a success. Business plan over will show you a number of things again, that's the reason why you need to write it. So a business plan will show you the flows that you're dealing with of ambitious calculations and can assist in prioritizing tasks. And therefore that is the reason why you write to and it will go further and help you to clarify your business idea. Spot potential problems, set out to your goals, and measure your progress as being all that you need to have at the back of your mind. You need to remember what the sort of people are going to be reading this plan. I mean, apart from me, you're talking about people like investors, stakeholders, new staff, startup support agencies, business partners, Greenberg. The business plan gives an overview of your vision for the company and how you intend to achieve success. Let's see, you know, know why a business plan is important. Those are some of the reasons why you need to have a plan. You just can't win edge. I mean, you could try. Then again, you're going to spend a lot of time on trying to perfect a business plan. Remember, it's not about writing up perfect theme, it's about having a plan, having a point where you can start and then the rest will follow as you go along. So don't be like, I'm still writing my plan and it's three months down the line? No. Anyway, see you in the next lesson. 4. How to Structure your business plan: Instructor of a business plan can be developed around the most important aspects of the enterprise. In this case, we're talking about the key things in your business. The question is, which areas do you think are key to you or your business, or to the business that you want to discharge. In this video, this video is gonna vote the structure, the details of those sections you just instructed sister template really, it's just a guide. Now the details will be following in the next videos. Most, most business plans will contain the following number one, digital information. In each case, you're going to talk about a number of things from a general perspective. Things like introduction, the business name, business and honors detail, business address, and contact details, e-mail and web address. Once you've talked about that kind of stuff, you move on to the basically you go to section one and section on, you're going to be talking about the executive summary. What exactly do you talk about in the executive summary where you talk about things like business summary, business aim, financial summary. And then you move and then, you know, just talk about the owner or the owners. If if there is more than new. As far as the honors background is concerned, you are going to talk about things like why you are setting up a business. Previous work experience, qualifications and education, training, including qualifications, and then any additional information that you think is relevant for that, for that particular, for that particular section. We've talked about yourself. If given us an idea, a background regarding a business, it's safe for you to talk about products and services. What products or services that you're going to be offered. Now in this section you will mention the product or service to be sold. Any variation to the product or service when the services will start. And then any information that supports that. Having a product or talking about your product is one thing was obvious for that matter. But then there is the market. Now it's time for you to talk about the market. Because these how you start to make money. What exactly do you know about the market? Now, as far as the market is concerned, you mentioned things like, who are the customers? Where are they based? Why will they buy the products and services? Have any products have been sold already? Had any customers ready to purchase from you. And then any additional information demonstrating that, you know, the market is one thing, but then there is what really happens on the ground. So the next section is market research. Market research will need to answer things like key findings from research, product testing and result in additional information. Product and service. Then there is the market. But how when people become aware of your production service, because you could be good with the operations. You could even have the money to back it up. But then if people don't prefer not aware that your product or service exists, you're not going to make any money. Hence, the marketing strategy. That is the next section, marketing strategy. Marketing strategy. You want to talk about basically your marketing mix that is praised. Why is it set that way? Promotion? Why in the cost plus where, where, where, and the cost of being in that place. Product marketing of a given productivity depends on what you sit under the production service. Once you've talked about your marketing strategy, the next thing, the next session will be competitor's analysis. You need to know number of things about your competitors. Just kinda assume mine is the best product and therefore there is no out-competed me. Maybe. But then the moment you hit the markets, people will see it didn't compute to view. These are already, people are doing the same thing and therefore the becoming a competitor, either directly or indirectly. It's like if you're the person who's producing electricity, and let me think, well, I have a monopoly on electricity and therefore, don't have competition. When you do that, people are doing solar panels. They are competing view. What do you need to know about your competitors? Number one, memory, location, business size, product, price, how do they price their product? Strengths and weakness, unique selling point. You need to mention all that stuff about your competitors. And then the next, the next section is operations and logistics. It's sinful. You talk about your operations and logistics. And we'll talk about things like production, suppliers, margin and payment, Delivery, payments and returns, premise and equipment, transport, legal and insurance requirements, which are requirements and any additional information. Now we're talking about operations and logistics. It's time for each talk about costs and pricing strategies. They are cost and pricing strategy will have to bring out costs and price per unit and then profit margin per unit. So of course we're going to talk about that in detail. Anyway, the profit margin, it's important the bigger the profit margin, the more chance that you're going to be super profitable, then the next thing to talk about will be sales forecasting. You need to show at least 12 months forecast for sales and profits. Personal survival budget. Most people tend to ignore that. But that is important because remember, you're going to start a business student didn't make money tomorrow. Okay. What is your personal survival budget? You also need to talk about cash-flow focused. And then after that, you need to bring out your measurement and key performance indicators. How do you know that if you're succeeding, what are you going to enter in this section, we will talk about financial and non-financial KPIs. After that, you have your appendix in case there are a lot of things that you could not put in the business plan, okay, like pictures or data to support the plan. You put them in the appendix. So that is the structure. That is a structure that you're going to use to write our business plan. I'll see you in the next video where we start talking about these things one by one. 5. Download PDF Template Guide: At this point, I just want to print out that there is a PDF, okay? There is a PDF template that goes with this video lessons. Download it. As you're going through the video series. You can see these where we are. This is what I'm expected. I mean, for instance, if you're talking about the executive summary of your taking a boat to your marketing strategy. You will have the marketing strategy One, 23 things that you need to reach, okay? So the PDF template Act is a guide to help you write your business plan, or at least to help you have an idea of what is expected of you as you're writing your business plan. So don't just when it is a guide, okay. I mean, you can do something better. It doesn't matter. The point is you don't have to struggle because there is a guide to help you go along with the lessons. So make sure you don't load that. I use it. It's in the resources better view of this viscous. So download that and then follow along with the lessons. 6. A guide to your Executive summary: Before you write anything, before you type anything, I want you to know these. The executive summary is going to be the last thing you write after you've written everything about your business plan. Why is that? Well, because look for summarizing everything about the business plan. Which means you need a business plan so that you can have an executive summary of that plan. It goes without saying it's the last thing you write, but then it appears before everything else in a business plan. Executive summary should summarize the whole plan, the business plan in one to two pages, it needs to convey facts about your business. They have to consider who's going to read it when you're doing that. Okay, So just don't, don't summarize it the way you want. Summaries it as a way of presenting information to people or parties are interested in the business plan, and we talked about those parties. Now, some key points, some key factors to include in your business plant or in the executive summary, rather, sorry, some key factors to include an executive summary will be things like what your business idea is. Do I eat a good idea? Who the lead players are on a ship and the way they will make the business a success. How the business has been developed, how much financing the business needs, how the Finance gap is to be filled, the returns, expected timeframe for returns. While your business is better than the competitor. In this case, you want to bring out your unique selling points or points that are going to sort of push for your success should also contain high. You will sell the market and who your customers are. Now an option point to add here will include your exit strategy. See, most people start a business and then they say era of an exit strategy. But to think of it this way, you couldn't be in love with the business, which you shouldn't be any up to a certain degree, but the people are investing in that business. Why are they investing? They could just be investing because they want money. They want money quickly. And that means they need to know your exhibit, exhibit strategy. Think of it from this point of view. If an investor puts X amount of money in your business in exchange for shares of that business. Denote only want shares, they also want their money back. What's your plan? Now, the exit strategy could be in the form of initial public offer, that is IPO or sale of the business. All these factors allow you to assess the viability of your plan and potential investors to decide if they want to pursue the investment. So you have that, then there's the question of your legal structure. What does that mean? Is your business a sole trader? Is it a partnership? And if it is a partnership, is it unlimited liability partnership? Number three, if it is a partnership, Is it a limited liability partnership? Is it private limited company? A public limited company? Is it not for profit? Is it a co-operative? All those have their advantages. For instance, public limited company can raise money by offering its shares to the public, which is something that the private limited company cannot do. Yes, it can raise money by offering its shares to people. But those two persons, I'm saying persons because we have natural persons Unite and then you have artificial persons, which is what companies are. So they can raise money by targeting private persons, which is not something that a sole trader would do. So all those ones will have certain advantages in terms of taxes, in terms of legal personality. So you need to bring that out. The legal structure of your business. If there is any question, you don't have to sit there with your question. You can always ask in the comments section and then we'll talk about it. See you in the next video. 7. Ownership and Background of Key players: Right, So let's talk about partnership in background of the key players. But remember these on a job interview, you want to keep the details simple, short and simple. Don't just put information that they don't even support what you're going for. I should talk about why you wanted to run a business. Basically, why is setting up the business? And then it should also talk about experience. You have, qualification and education, training, including qualification in additional information that supports your business. In case you have directors, you've already set up a board of directors or an equivalent of that, then you don't talk about these people. You want to talk about what makes them a good addition to the team running the company. How are they going to contribute to success? We don't know about directed in a business. You have to understand the structure of a business rate. We have members, what people are usually referred to as shareholders. These are people probably invested in that business. But then there could be if ten people. But then we have three of them were actively involved in decisions that craft where the company is going. This becomes the board of directors. And then this board of directors will appoint a CEO. If you're studying alone, then you're pretty much all those, all those persons. But if you have other people in your corner, then you talk about them. Now, you also want to bring out their CVs to put their CVs in the appendices if needed. Don't put the CV in the main body of your business plan, you don't twist. That is just going to make it bulk. You don't want to make it too bulky to remember about yourself. We are talking about the team that you're working in. The reason why that team is the good team, or if it is you, the reason why we should better knew what you're trying to bring out. An activity is what you need to start doing. Now, remember, you're writing a business plan. So step one, activity one. Now start tweeting about your background as a key player in this business. Why do you want to run your own business? What are your previous work experiences, if any, qualifications and indication that you possess training, you may have undertaken details of future training costs you want to complete. I mean, assuming you don't have that too much, you're not really academically credential, Let's see that. But right now you're taking this course. So this is an example of a cost that you're taking there to help you to be a business, or it could be any other online course for that matter. So bring that one note also at your hobbies and interests, if they relate to that business. As you're doing this, remember there is a PDF. I mentioned that there is a PDF that you should download in the resources so that it can guide you on how to write this. Let's get started. Start writing this section of your business plan and then I'll see you in the next video. So remember if you have a question chapter, Let's talk about it. 8. The range of products and services you provide: This part of your business plan is supposed to bring out the range of products or services you're going to provide. Products you're selling or intend to sell the service you offer or intend to offer. Again, remember, it really seemed so much that they're selling these products, are offering these services. Because what is going to make your business success as success or a failure is a unique selling point. What is it about the products and service or services that will lead to sales and profits? It means it's time for you to product to provide background information. I'm talking about things like information of both research and development that you can talk about issues to do with intellectual property. That isn't just talk about your products and services as though you are you're a catalog or as though you are a list or a menu, something that investors are not really interested in, that the fact that you have 16 products such as selling, it doesn't really mean much to them. What matters to them is your business model. How are those products going to move from the warehouse or from wherever they are to the customers. And then that translates into money. Investors are keen on things like that. This is the part where, as you talked about the products we also need to bring out. I mean, I said intellectual property, right? Imagine it's a software and then you have a unique intellectual property there, or a copyright or something there. These are things that help to show investors that they can always back your business plan. Now if you're not doing this for investors, it's the same thing. Exactly data about your product that make people want to buy. Your product features, you need to think about that. All right, so here's a quick thing about business models. Or business model describes the way a company operates to make sales and profit. Now there are a number of business models, but common business models will include affiliate, where you have people selling those things on your behalf. Amen, you are selling them, but then you have other people on social media. You can post the link and then somebody clicks on that link, buy your product, you pay them some commission, you still get the sale. So there is a failure. There is Freemium where there's a bit of free version of that product that somebody can use for a number of duration and then they can pay for the premium version or something along those lines. So there is a failure that is freemium. We have auction, there is subscription, there is the beta and HUC model. Think of somebody who's selling printers. They don't really make much money and selling printers, the make much money and selling things like toner cartridges wherever the printer leaves it. So it is who can beat model? We have franchising. Just think of McDonald's, most petrol stations and RL, Starbucks. Then there is direct sales. Okay, here's the product by boom, you're done. Come back and buy again. Hopefully. That's some of the common business models. You can pick one or you can choose a combination that best suits you or your business. Just think about that. Now, moving on, you should include all aspects of products, future variation, and when you will start selling. So all that needs to come out now is what I want you to do it remember this because it's not just about watching the video and feeling good. Okay? It's about watching the lesson and getting things done, learning by doing. So, this section, here's what you need to do. Stand for you to start writing. What are you going to sell? The product is if service, is it both right above that number to describe the basic product or service you're going to sell. If they are various types of products or services, describe them. If you're not going to sell all your product or service at the start of your business. Explained why not, and then explain when you start selling them. Alright, so get busy writing batch. Again, remember there is a template rate. So right about that. If there is any question, as always, ask, see you in the next lesson. 9. Your Market: All right, Let's talk about your ideal market. Does it exist or does it not exist? Remember, it's only a business if somebody is willing to pay for those products or services, otherwise, it's just either hobby and an expensive one for that matter. I will find a hobby. Still. It is a hobby. You don't want to do that. You need to know the market. You need to know that there is demand for these things so that you can supply. This section of your business plan is supposed to show knowledge of the nature and location of customers, which is going to be obviously based on the research that you've done. You don't want to make up this stuff. Number two, what motivates customers to buy from you rather than competitors? Your syringe, tell us that. Why would they buy from you? Why not just go to your competitors? So bring that out. If you already have a customer base, you will bring this out since it shows confidence in your ability. What exactly a good Right here. Yeah, that's the novel. He ought to do this. The battery is start typing. Now, I wanted to bring up, I wanted to show the following entry to show your customers, individuals, business, both. I'm talking about the business that you are in. Is it going to be a B2C business to customer, which means if your business is selling to customers or zeta B2B, where your business is selling to other businesses. Think of both. Think of something like Facebook, YouTube, and all that stuff. What the customers for Facebook is it B2B, B2C or both? Until it's both because people wanted to advertise. It could be an individual, it could be you, it could be AJ, who's advertising or product. So in that case, we are customer. It's business to customer. But if it is accompany, could've been accompanied. It could be a company that wants to advertise. The business switches from business to customers to business to business. There is one thing you need to bring out if you're selling phones, the acidic them to individuals. So that's B2C or both. Now that's number one. Is it individual or digital companies number to describe your typical customers? For instance, if you're selling SportsCar, people by SportsCar, I mean, it's actually somebody's just looking for the mean of transport from point a to point B. That person probably just buy some Toyota or whatever it is written. The password is being a SportsCar is obviously on a certain level as far as costs are concerned. Create another toe of your potential customer. What they will do, they look like. You need to know that because they're going to just make a product for everyone. It's going to work and get to live already spent a lot of money doing that. Number next, where are your customers based? Why will the customers buy your product or service? In short, what value are you offering? People don't just spend money because they have money. People spend money because they believe letting go of that money they get after letting go of the money is greater than the mine itself. I mean, think about it. If you choose to pay for an online course at X among it means the knowledge, the value you're going to dray from that one link cost is more than keeping the money. And so that's the thing, value, what value are you offering? Next, I'm going to talk about this point, right, about factors that will determine how your customers choose which business to buy from. What factors determine how your customers choose which businesses to buy from. Have you sold product or service to customers already? If yes, give details. Give details. How many people have bought your product is important because this will also help with financing. I mean, look, if you have a lot of purchase orders, purchase orders to the tune of like $20 thousand. Then it means that there are people who are willing to spend $20 thousand on a business. If you come in and say, Look, I need $30 thousand, do I need a $10 thousand to fulfill this dream $2 thousand purchase order, unlike sure, that money is going to come back. So you need to talk about that next. If you've got customers waiting to buy your products or services, again, if yes, give details buck with the purchase or the example that should be clear. And finally, you want to talk about additional information that supports your understanding of the market. Bringing that information, I'll write that stuff down. Again. Look, don't worry about it being perfect. But I just write what you know first of all, and then you correct it. Same goes by if there is any question again, as always asked. See you in the next lesson. 10. The Market Research: Okay, so you've successfully demonstrated that you understand the market, but that is just what you've said. Then there is what is actually happening out there. So it's time for you to do your research. So therefore, you talk about the market research. In this section, you want to bring out your understanding of the customers, the competition, the market. The thing is, the size of the market is important in understanding the variability of the market. This section will include understanding the value of the market, asking who the key players are and why. Understanding the size of their share of the market. Finding out whether the market is local, national, or international. And what does that mean to you as an entrepreneur? Well, as an intrapreneur, you're going to have to find out the following. You need to find out how to enter the market at their barriers to entry are going to think about some of these barriers could be legal, right to something like Brexit for instance, if you are in the, if you are in UK and joined to go to the rest of the European market issues. We could also just be something like cost of getting into that. Maybe it's a high capital intensive, capital-intensive market. So you need to figure out things like dozens barriers. But two, you also need to find out other factors that affect success. For instance, the nullity or geographical constraints. Now regarding a risk, the first step is to determine what kind of research the business needs. Number two, which kind of data does it need? There is a primary data and then there is a secondary data. I'm using primary data. For instance, a specifically commissioned survey is going to cost you, that is going to be expensive for you. You need to factor that in. Some data may be available on a subscription basis or via an academic library or Enterprise Club. But usually it is outside the budget of an enterprise because you're going to pay for these. I mean, you have companies that offer data, that kind of information. But you also have to be smarter about this because you can get some of this data from say, Facebook. Although it's not going to be that specific, you just need to know how to sift through the data. Let's say you have a website for instance. And you can set up something called pixel. Pixel is a code that trucks are many people who have been to your website. And then it shows you who these people are and which area they lived and social goods to market. You can target those people, but that is just an example of that. It depends on the kind of information you want. A cavity also depends on the service you're offering. Gathering data is usually more cost-effective if it is from secondary sources. This is data which is already available, for example, on the Internet or through articles in books and journals and textbooks. What are you supposed to do here? Since every, every video means you need to do something. This point, here's what I want you to do. Greater boat number one, key findings support your desk research. That is the kind of stuff that you just found out without going into the market. First of all, like the one that you checked online, the ones that you found from magazines or activity's about that, the market, okay, Number two, key findings from your field research. Let's say you developed questionnaires and you actually went to the market and you ask people or by the marketing management outside there. And to ask people, what's your take on this product or service, or do they think in and ask your friends, your friends are going to lie to you because they like you, or at least they look like if they like you and they don't hurt your feelings. Ask people who actually want to buy your products. I mean, if you're starting a YouTube channel for instance, and that is your business. And then ask your friends to subscribe to your channel is a problem. There is subscribers since they are being friendly to you, but then they're not going to be watching your videos because they are not your target market. So you always have to know that who's your target market? These are the people you need to ask and last or second last product testing results and then any additional information that is going to support This section, your research, write a board to that. I mean, say the business plan is going to be divided into chunks. And so you're doing all these things slowly. So now you've talked about your market research. It's all in bits. We are almost done with a business plan. I mean, it's just you moving on slowly and slowly. If there is any question, obviously, dilemma know Moses and I'll see you in the next, in the next video. 11. Your Marketing Strategy: Okay, So is what you need to know real quick. There are three things that really matter in business. That is, operations, what exactly you're doing, how you're doing it and all that stuff. Finance or finance or whatever it is that you're doing. Number three, marketing or do people know that you exist? Because if they don't know that you exist, the counter buy from you, It's that simple. In your business plan, you will need to show your marketing strategy. And that means focusing on four classic aspects of marketing, which are price, promotion. Please. Product, the marketing mix, the patho, you bring that up. All right. You want to show how much you're going to charge for that surprise, you need to talk about the Plessy bought the product. You need to talk about promotion. You also have to show some aspects of US sales funnel since this is going to be linked to your business model, how does that work? And then if there are samples, if there are samples of your products and services, you bring them out at this point, right? Because if you can't see it, we can sort of imagine all the rest will look like and you know what you're paying for. It kind of helps to know that there's a reason why we have all these things wear out of sight, out of mind and all those sorts of things. There's a reason why that exists. People tend to believe that if something is tangible, beat physically tangible in their mind, they can visualize the whole thing. It makes it easier for them to buy that thing. So this part is what, this is what matters in your marketing strategy, right? So it's auto Anti to do the PDF template provided act as a guide. But I want you to write about the following in relation to your business plan. Number one, what are you going to do? What are you going to do in terms of marketing actually going to do in terms of what your business is going to do, right? What are you going to do in terms of your marketing? Number two, why are witches and these marketing method? So probably I'm going to marketing facebook or I'm going to marketing Instagram, or I'm going to do YouTube videos to show, to talk about these products and talk about all that stuff. There, there's a number of marketing strategies that you can use. So why have you chosen any or all those? Number three, how much will it cost? What are you going to do whenever I chosen that particular method? And how much will it cost? Right about that? Then we move on to the next thing. Obviously, if there is a question, you know the rule, okay. Ask dot CTA with the occasion. See you in the next lesson. 12. Competititors anaysis: You're not doing a business in a vacuum. You have competitors and so it's sin for us. Talk about your competitors. Think of it this way. Again, as I said, in a business we have that the growth curve, that is introduction. There is the growth, there's maturity, and then there is deeply, when you introduce your business, it's pretty much you're doing it. You don't really have a lot of competitors. And you might think that's a good thing, but it's a good thing for a short while. And then you grow because one, it's a new thing people are interested to, non is really tend to rip you off. And so you're making a lot of money. And then suddenly people realize that that is a good idea and we can do it, maybe can do it even better. Incidentally, you have competitors and what follows after that decline because now you are sharing yourselves. It's like Netflix realize that they have competitors, which was the z, okay, they realize they have competitors. But what happens? Now? We have other streaming services, Disney, Amazon, Hulu, because there are a number of them. So does that mean to Netflix? It means they either increase the prices or the figure out how to avoid declining. That is the reason why you need to know who your competitors are from the wide gulf. Teaching a boat competitor's analysis. The intensity of the rivalry will depend on a number of factors such as threats from new entrance, barrier to entry, which gives you talk about things like capital cost of entering the market can be too high. Legal and regulatory issues to overcome. Brand loyalty and cost of switching. I mean, that could be a reason why people are not buying your product because it's expensive. I mean, think of with disease. If you have a product and you see this with mobile phone, companies, were they make it expensive for you to call somebody in another network? So if you switch from this and you go to the retailer network, it means people who are ready left in this network, 120 pediatric call you and you're like, Okay, I'm just going to stay here maybe a byte, two SIM cards or something. It kind of depends on which country you're from, but that's the thing. You also delete issues like economies of scale, access to input and distribution. Now, you also have threats from substitute products. There is always going to be an alternative product. For instance, if you don't want to take coffee, you can drink cocoa, or you can drink tea. That is just a substitute product. If it is cheaper than there is that somebody's going to look at the cost and then say, Well, I'm not taking this and I'm taking data. There is also the bargaining power of the buyers, which is important. I can think of it this way. If they are mostly less than bias, then simple economics, the buyers are powerful because they have a choice, they can switch. You have to know that. So don't just assume I'm bringing something new in the market. Sure, sure. How many of many of you are there? I will bring something new to the market, late gum whenever there is. Think of something like the reason pandemic issues, realistic. When there are a number of houses, vaccine doses, then that means the housing market, they are more sellers than they are biased and that makes buyers path. Then you also need to worry about the bargaining power of suppliers. That is another thing that will affect the nature of competition in a given market. If there is a scarce supply in the market and many buyers, this makes the suppliers powerful. That is a thing. Now at this point, what do I want you to do? Here's your assignment, okay, because it's all about doing stuff that is just a quick overview of the competitive analysis. In fact, you just need to look at Michael Porter's five competitive factors and then you'll understand that. But for now is what I want you to do. Okay? It's an assignment. The following things about your competitors. Their names, their location, their business size, product, price, strength and weakness, and their unique selling point. This way, you can come up with a plant when you know them, you know what they're doing, you know their size, you know, their products, you dissect the products, figured out his where they're failing or these waters making their product unique. And then you start from there. So right about that. And then I'll see you in the next video. 13. Operations and Logistics: Let's talk about you getting things done in the business and show to your operations and logistics. Operations and logistics section of your business plan covers your business operations, the logistics, human and physical resources. And you're looking at both tangible and intangible resources to this point, you also have to bring those arms out. The material resource, The Human Resource, Internet. I mean, all this stuff are part of what you're going to use to put your operations in play. Detecting the physical assets, you need to show details about the cost, the priorities for the patches, the method of acquisition. They're going about things like you're going to list some of the things you're going to use. What are you going to buy? You need to know why you're choosing any like do you hire or list or driven by? Regarding human resource, there should be details about required stuff, method of recruitment, along with estimated costs and time frame. There is much that 22 that you can do in this video board that because it just talking about operations. Since you're the one who knows the business that you are into, you know, your operations. But as a guide to your business plan, this section, I want you to talk about the following, so right about the following product suppliers, margin and payment, delivery. Payment and delivery, delivery terms of payment terms in case of delivery are going to be paying a supplier as immediately going to pick them off for 30 days, 60 days. These are accounting details that you need to know. I mean, they did they did the bottom details and these are the details that make a business profitable. The financial aspect of a business is not that interesting, and that is what makes the business succeed or fail. So BCS about that, also, write about premise and equipment, transport, legal and insurance requirements, HR requirements, and any other additional information that is going to support that. These are your operations. Again, I don't know what you're going to do regional. You're done. Most the business, you'll read it same for each talk about the operations and the logistics behind it. Because if you fail at this point, then you can have a nice hypothetical marketing strategy, nice hypothetical market or competitor's analysis. But if your operations are not that good, then what are your chances of succeeding? 0? That's what I'll see you in the next video. 14. Your Cost and Pricing Strategy: Let's talk about the money part of your business, the cost and pricing strategy. This part of your plan will include the pricing strategy, how much will be charged, and why. We also wanted to give you a profit margins, as well as the variables, as well as any variables that impact on financial receipt. As an entrepreneur, there are a number of pricing strategies that you can use, in fact, is a quick thing about pricing strategies. The strategy will give a significant effect on the success of a business. And so it's important to assess the value of each one carefully. Consider the market do wish to enter, and the size of the customer base. And competitors, which are the kind of pricing strategies that you can choose from. It's a quick single book. Number one, you can go with penetration pricing, which means setting a low price to gain market share. And then you can increase later. If you're starting something, you can start low. And then once you get enough customers to keep going, then you can increase the pressure gradually. Of course the risk is you may start low and then don't even get enough customers. So there is that also, but that's a myth. Number two, economy praising. In which case, you are practicing law, not because they're trying to get them into them. You'll get to try to get a number of customers. But because you have a way of controlling your cost of production, maybe volt source distinct to a country where the cost of production is low and ethical. So that means if your competitors are struggling to reproduce the same thing at a given cost, you can just charge the same amount of discharging except margins are going to be high. Number three, price skimming. Skimming is a product pricing strategy by which a firm charges the highest initial price that customers will pay, then lowers over time as the demand of the first customers satisfied and competition enters in the market, the farm lowers the price to attract another more price sensitive segment of the population. Then number four, we have psychological pricing. You see this, you see these in DC. It goes for 0.99 instead of just seeing $1 sigma and nine instead of saying under dollar, that is psychological praising. Number next, geographical praising, this case the present value depending on the location. You see that today because, I mean, how much does it cost to buy a car? Mc Europe, how much does it cost to buy the same kind, Japan. These are geographical praising which you search appraise according to the location. Next, value pricing, where customers are made to think that they're getting extra benefits. Often used as a bundled package of multiple items we perceived civic. And then you have premium pricing that is a higher price for premium brand despite the production and marketing costs. You see that with SportsCar, those guys are not expensive because they're like IP and all that. That's just the way it is. You want to buy a Ferrari, the rich pay more. Then because you've paid more, you feel like you've gained higher value. You go to a five-star restaurant to eat just about anything. You pay more. That's premium pricing, right? So what are you supposed to do at this point? Here's what you're supposed to do. Here's your assignment. Give details about the following costs and price per unit. Your profit margin. Again, if you're worried about how you're going to arrange these details, just check the template. Could check the PDF template that is part of the resources in this course and that they do and how to go about doing this. See you in the next lesson. 15. Your Sale forecast and Plan B: Okay, so the people are investing in your business, if at all the people are going to invest in your business, are interested in knowing how much you're going to make over a given time frame, your sales forecasting plan. We'll use some of the information from the marketing strategy section and cost and pricing strategy. This point. It's simple, really just want to know how do you protect your prediction of sales. So you have this product portfolio. What will it look like in six months? What will it look like in one ear, if you know how many producers are going to buy and how much will that translate to. The PDF is supposed to guide you as you're doing this. The personal survival budget will provide reassurance to investors in finance years that there is an ability of you to survive personally until the business is thriving. Personal finances are important because look, you're not going to make money now. At least that's how the businesses, you're probably going to make some income. And that doesn't translate to expenses because there is sales, which is just income or revenue, then there is a cost of sales. That number subtract the cost of sales or are you left with maybe gross profit or gross loss? Maybe it's gross profit, but then you still have other expenses that are not related to whatever it is that you are producing or the services you're offering. Talking about things like rent, insurance and all that stuff. Maybe don't make profits. Do you have a personal survival plan or budget? That one is also important. I mean, sometimes people just don't put that in the business plan. But if you're trying to convince somebody to fund your business, you also need to convince them that the money they'll give you is not going to be the Monday that you're going to use to pay your rent and feed your family. If you have a family, that is what you need to bring out at this stage, here's what you're supposed to do. Use the PDF to fill the following information about your plan. A 12-month forecast for sales and profit, personal survival budget, and cash-flow focused. So go ahead and do that. See you're talking about money now. It means we are almost adding towards the appendices. I mean, you are pretty much almost done with with a business plan. So don't give up. Keep on writing. I mean, it's your idea, it's your business in jaunty to succeed. There is no forgiving our pia, you can't afford to give up. See you in the next lesson. 16. Measurement and Key Performance Indicators: Most business plans tend to ignore this section. I don't know why, but the management of a business is very important to stakeholders and potential investors. The business plan needs to build confidence in the minds of those looking to provide finance for the business. So you need to set out targets. You need to tell them that you need to set out target these what you're going for. And this is altered to look like once you've achieved that. Hence the need for key performance indicators and knowing your business matrix what exactly you're going to measure. Key performance indicators, or KPIs, should be both financial and non-financial. Here's what I mean. So in case of financial, you focus on things like sales, costs, profit, tax levels, and monthly cashflows. All of which you'll have talked about in the cost and pricing strategies, as well as cell forecasting. Now in case of non-financial areas, part of your KPIs will include things like staff turnover, customer complaints, and other feedback methods and production to sales timeline. Now look. Minimizing a customer complaint. By minimizing you are stuffed ANOVA, you're saving yourself a lot of money because customers, if one customer complaints, they're not just going to complain and then walk away, they'll go and talk about that with other customers. That's the thing about consumer behavior. If a consumer gets a good service, they may choose to talk about it because they think of paid and therefore deserve the service. If they get a bad service, definitely talk about it on social media and other things that will not look good for your business. At this point is what you're supposed to be doing. Go on and talk about financial and non-financial KPIs. Right about that. And then yeah. And then, you know, if you have any question, make sure you ask. 17. The Elevator Pitch: Having a business plan, that's one thing. Presenting it in a convincing manner. Well, that's a business plan can be communicated to a number of interested parties. And as a minimum, you need to develop two pitches that are realized. I'm talking about number one, the elevator pitch, and number two, the full pitch. What if somebody okay. What if what if you meet someone and you start talking about your business and they're like, Okay, Okay. Hang on. Yeah. Tell me about your business. You have the seconds go. What do you do? Again, tell them, Look, I need at least 30 minutes. Then they tell you I don't have 30 minutes. Okay. This is where the elevator pitch comes in. Think of taking an elevator lift and depending on which country you are from. And this potential investor isn't any easy need to do is in that elevator with you. And you have no idea what's going to happen when the dose hoping, meaning you have 30 seconds to convince them of your business idea. So what are you going to do? Well, at this point you're supposed to answer the following questions. Number one, what do you do? Number two, what is your business about? Number Three, Why are you starting a business? Remember, it's an elevator and so it's just the clicked or rather they press the button that says they're going to certain flow from the hair to data flow. This bill don't have time to listen to your university or your college, whatever that you studied that really they're just interested in three things at this point. What do you do your business about? Why are you starting a business if it is a startup, as a business person, as an entrepreneur is what you need to do. You always need to have a short pitch and learned that in any situation, you can answer the questions without hesitation and look confidential and talking about your business. Right now. Something I want you to think about regarding an elevator pitch is an assignment for you. Imagine you are Mark Zuckerberg. Whether you liked him or not. That's not the point. The point here is Visa an exercise. This is an exercise in creating an elevator pitch. You are Mark Zuckerberg, the guy who started Facebook. Meeting a potential investor. Is elevator pitch for when he started Facebook? Again, I not about being correct. This is just an exercise in elevator pitch creation. So think of yourself as Zuckerberg studying Facebook and then you tell you are going to this building and then there is this potential investor. If you like, specific. Imagine the potential investors is Peter Thiel or whatever cities that just imagine it's Peter Teal or it's pretty much any billion-year that you can think of. You are there in the lift, this guy, and you have 30 seconds to convince them of your business idea, right, that pitch. Then if there is any question, well, I'll talk about it. I'll see you in the next lesson. 18. The Main Business Pitch: As an enterpreneur, having an elevator pitch properly mastered, that's a good thing. But you also need a plan, a proper plan for your main pitch. A full pitch can be between ten to 30 minutes long. It will depend on the audience and the purpose. To make it easy, you need to structure your pitch in terms of introduction, the main body, and summary, which is supposed to invite questions and all that. Let's talk about the introduction, the introduction of your, of your main piece. Remember this domain pitch now, the long one supposing you did an elevator pitch and the person was like, yeah, I'm interested. Let's meet and then tell me more about this business. So that's where the main pitches coming in. They made the introduction of the main pitch. Of an introduction in communication is that it has to capture the attention of your audience. So in this case, you want to tell the story of the products. The problem that is being addressed, or the moment you had the creative idea to fill the gap in the market. And then telling the stories one thing number to give a solution. So there is a problem. Tell us about the solution. So that's number two. A solution could be technical, which means there could be some members of the audience. We don't understand it. This way. You have to use visual aids. Always show them, don't tell them. I mean, that's pretty much the rule. Make it easier, make it clear, and make it easier for the audience to understand. The sad thing about your introduction. Build credibility, okay, Once the problem and the product has been discussed, it's important to present credentials and talking about things like history, qualifications, experience in the field, and why you're the best person to run the enterprise. That is part of the introduction, that is part of that is supposed to capture the audience's attention. Because once you have the attention, It's time for you to jump to the main body, which is number two, the main body of your pitch should cover timescale. Market. Customers and competition will show finance. To show finance and other needs. Let's talk about the timescale and all that stuff. So timescale, market, customer and competition. This point you want to bring up the timeline of how things are going to happen and if appropriate, the exit strategy for this period, which will demonstrate how you understand the market. That is, details about research forecasts and analysis. The customer's requirement, disposable income if appropriate, and their buying habits. You also need to show their buying habits. Because if they're just buying ones they didn't want to buy again, then you see that's a problem. You also want to show competition. So competition relating to the products, substitute, and power of suppliers. That is part of fusion that you really know what you're talking about. You also want to talk about your finances. There is a next thing, the finances, okay. So as far as finances are concerned, what do you need to show them where you need to talk about income, expenditure, investment and financial management. The finance itself is key, but you must also demonstrate how you will manage your income, which is important. How are you going to manager income? Because otherwise, you know, if these businesses which make money and then digests go bankrupt, why? Because of poor financial management? That happens if it happens in personal life. It can also happen in business. You have to be good at financial management. This will show competence and good blending. The pitch may not really allow time for you to go into other things, but that thing which are relevant to the pitch, things like intellectual property, premise and future product development. You want to bring that turned out. Now the last part is the summary. So you got the attention. You told him what you wanted to tell them. Remind them of what you say. Okay. So summarize the entire thing and if there is any question of if the equations you need to answer losers. Now your summary means it's time to invite questions from investors after you've summarized everything, this section reviews what is on offer, what is needed. It is also useful for you to ask the investors for advice and feedback and ask, who else should I talk to? Now, why is this? Why is that important? You see that is important because if they don't accept your deal and they've given you the firewalls, then at least you know where else you can go. That is your main pitch. I mean, it's going to belong. It's like ten to 30 minutes. Sometimes it's just ten minutes. The point is, you also need to have that master your elevator pitch the unfolded 30 seconds to one minute and then have a long pitching for if you're told, come in and talk about this team in details. If there is any question, guys, let me know. Moses. And I'll see you in the next lesson. 19. Top tips for making a business pitch: Quick tips you want to pay attention to if you are developing your pitch. And remember, it doesn't really matter if it is the elevator pitch or if it is the main pitch. So pay attention to the following factors. Number one, do not exceed your time limit. You always have to leave time for questions number two, have a copy of your full business plan. Because what if, what if you talking into C, can you have the business plan? You're going to tell them? Have a copy of that. Number three, avoid acronyms and abbreviations. Make the pitch clear. You don't waste people's time by talking about our ROI and they understand that, but you don't have to sound so technical. They convinced him. That is not to make them think about what you mean by what you're saying. It is to make it easier for them to understand. I'm just saying next, present your executive summary and then a handout. Copies. Don't start by giving them things they can read. Because if you are giving them, if you've given them things that repeats an equivalent of being in a class, and then give us notes and then you start making presentation. What is going to happen is that people are going to be reading the handouts as you're presenting. And so they aren't really not paying attention to your presentation. Next half as many financial details as you can. Investors you learn to know this information. So don't be shy. If you have a track record of success. Tell your audience that investing in new as well as the idea. The next thing that you also want to pay attention to is have a backup plan. So you always need to know what your plant if the presentation doesn't go as planned. I mean, you went there to present and then there is outage the predictors into AKI. So that's the plan against tell them going to reconvene this thing. Now, you need a backup plan. Next, rehash your speech. Next, understand your audience. You always have to know your audience and they're not talking too many people talking to one person. If there are three people, just make a speech for one person didn't make a speech for three people that we can connect to the audience. You're not just delivering a speech, you are having a conversation. You need to understand your audience. Next, manage the questions. Remember they're going to ask questions. If they don't ask questions, probe for questions, that way you can get them. Finally, seek feedback. Feedback is important for your future, your future pitches. Because if you just make one pitch doesn't go according to plan and you don't know why it didn't go according to plan. And you're even bother trying to find out and then you go and try to make another one. You repeat the mistake, and you are back to where you are with your first speech. So always make room for feedback because the things that you need to pay attention. There's any questions as always, let me know. I'll see you in the next lesson. 20. Appendices: Alright, so the last particular business plan, the last particular business plan, not the last part of the course. Appendices, there are a number of materials that you can use to support your plan, except there is no enough room for such in the body of the business plan. The reason why you have the appendix section, let's say you have pictures, you have maps which which point at a given location, the CVs of your directors and pretty much everybody who is supposed to be helping me that business. You don't want to put all that information into the plant because then you end up having a bulky business plan that nobody is interested in reading. Exact natural. I mean, just like to think about evolution. You can see staff, you can talk, you can touch them. You just have to sit somewhere and actually learned to do it. It doesn't really aid the survival. If you go back to the caveman, sort of, these people aren't exactly walking around and seeing a sign saying Danger, Beware of the saber-tooth tiger or beware of wherever it is, not really within there could hear somebody screaming liquids see the trigger. So that is the reason why it's not. People don't like to read. You don't want to waste your time with bulky stuff. All that stuff will go to the appendix section can include any statistical data and research to support claims made in the business plan. Since the question that you need to ask yourself, the information in the appendices relevant and useful to potential investors. If that information isn't relevant or useful to a potential investor, don't put it there. Otherwise, if it is a kind of information that supports what you've already talked about in the business plan, then put it there. That's the end of your business plan. So I hope you've been writing all that stuff that we've talked about from the executive summary actually from the introduction part. All the way to your appendix if need be for that. Now, the next phase of your landing will be how do you pitch your business plan? How do you convince an investor to invest fully aquatic? Thirty-seconds. Let me rephrase that for like 30 seconds to one minute. And if they give you 30 minutes to convince them, how do you do that? You're talking about an elevator pitch and a main pitch. So we'll talk about that in the next videos. If there is any question asked at this point. I hope you've written something that is going to act as a template or it's going to act as a guide to your business plan. Or it's actually a business plan depending on how fast you're going through this course. But if there is any questions, let me know. And I'll see you in the next video. 21. Now that you are done: That marks the end of these costs. How to develop a business plan and pretty much developed a business pitch. Their idea was for you to understand how to do three things. In this case, understand the general idea behind the business plan. Things like what is a business plan? Read seat, the reasons for you to write a business plan, the structure of a business plan. Number two, you're supposed to actually write the plan. So in those videos, you notice they were, each video had its own assignment that is supposed to do. And the end of the day, that meant having written your plant, your business plan, as well as the template to guide you on how to do it. And the third thing you also were supposed to learn from this course was how to develop your business speech be to the elevator pitch or the main business pitch. That was all about learning by doing. So you do it and then you learn from it. Present about being correct, It's about starting and then correcting your mistakes as you go along. So congruently, congratulations for finishing the cost. If there is any question, make sure you ask and it doesn't really end with you just sending out in the video? No, not really. If there is a question you can always ask. Okay. Come back to the course. Checkout as the question. I'll answer it in a minute, translate immediately, but definitely on-site. All the best with your business. And I'll see you in the next course.