麥肯錫-企業(yè)家商業(yè)計(jì)劃培訓(xùn)教程-PPT80

McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 Business plan preparation Training program for Entrepreneurs McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 AGENDA Short introduction to the use of business plans Preparation guidelines for business plans Wrap-up McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 AGENDA Short introduction to the use of business plans Preparation guidelines for business plans Wrap-up McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 Existing New Business system Existing New Product/ service TYPES OF NEW BUSINESSES Source: Planen, grnden, wachsen (McKinsey) New high-growth ventures EXAMPLES New product Palm Smart Sony Playstation Rollerblades New industry Direct satellite TV Netscape Mobile telephony Existing indus-tries and busi-nesses New business system Dell Fotolabo Charles Schwab FedEx McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 USE OF BUSINESS PLANS Source: McKinsey Start-up companies: Application for venture capital Search for management team members Communication with partners, suppliers, Established, developed businesses for investment decisions In-house budget allocations External financing High insecurity concerning technology, timing, and cash need Difficult data situation due to newness of innovative products Necessity of external know-how transfer Lack of skills/motivation/ time Standard use Complications for New Venture projects Start-up business plans to be tailored to new venture needs McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 GENERIC REQUIREMENTS Source: McKinsey Constantly adapting Impressing by clarity Convincing by facts Understandable even for non-experts Consistent and concise Optically compelling Explanation Business planning is an iterative and adaptive process that requires constant update and adjustment work Not the quantity of analyses, but the clarity and preciseness of the pack are important 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 The storyline and all the facts presented must fit together and generate a well rounded impression A clear, precise structure is a courtesy to those investing their time in reading the proposal McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 Source: McKinsey Milestones Completion of financing Step 3: VC-tailored business plan Step 2: Rough business plan Step 1: Idea description External evaluation (due diligence) Deal structuring Management team Implementation plan Financing Marketing and sales Business system Opportunities and risks New decision on further proceeding when next milestone is reached Level of maturity of business idea Time Product/service Market and competition DEVELOPMENT STEPS FOR BUSINESS PLANS McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 AGENDA Short introduction to the use of business plans Preparation guidelines for business plans Wrap-up McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 CHAPTERS OF COMPLETE BUSINESS PLAN Source: McKinsey Executive summary Product/ service Manage- ment team Market and com- petition Marketing and sales Business system Imple- mentation plan Financ- ing Opportunities and risks McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 CONTENT OF EXECUTIVE SUMMARY Source: McKinsey Executive summary Product/ service Manage-ment team Market and com-petition Marketing and sales Business system Implemen-tation plan Opportuni-ties and risks Financ- ing Gives a brief overview of the concepts most important aspects Describes idea as clearly, compellingly, and concisely as possible Raises interest of decision makers Is not more than 5 - 10 minutes to read Quality of summary decides if rest of business plan is read McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 EXECUTIVE SUMMARY KEY QUESTIONS Source: McKinsey Idea description What is your business idea? In what way does it fulfill the criterion of uniqueness? Who are your target customers? What is the value for those customers? What market volume and growth rates do you forecast? What competitive environment do you face? What additional stages of development are needed? How much investment is necessary (estimated)? What long-term goals have you set? Most important questions an investor asks! STEP 1 McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 EXECUTIVE SUMMARY ADDITIONAL QUESTIONS* * In addition to key questions answered by idea description (step 1) Source: McKinsey Rough business plan How high do you estimate your financing needs? What are the sales, cost, and profit situations? What are the most important milestones along the way to your goal? What test customers have you approached/ could you approach? What distribution channels will you use? What partnerships would you like to enter into? What opportunities and risks do you face? What is the picture on patents? Most important questions an investor asks!* STEP 2 McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 RUSMAR EXECUTIVE SUMMARY * See following blank form sheets Source: Inc. Magazine Product/service Potential foam plus applicator to replace expensive and space consuming earth that must be spread over garbage dumps every day Space savings of 30% for dump operators Costs of coverage reduced by 50% for dump operators Market and competition Customers: household garbage dump operator Market: 300 to 500 dumps in Eastern USA with capacity of 500 to 10,000 tons/day Major competitor: 3M/Sanifoam (application takes longer and is more complicated) Marketing and sales 1997: Investments of USD 850,000 required 1998: Sales of USD 2 million (break-even) 2002: Sales of USD 15 million, profit of USD 1.5 million Business system Sale of foam and applicators (product business) Opportunities and risks Necessary approval from authorities Proof of systems operational efficiency Exercise 1: Training participants check quality of executive summary with key questions* CASE EXAMPLE McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 EXERCISE 1 EXECUTIVE SUMMARY (1/2) Source: McKinsey Key questions for idea description What is your business idea? In what way does it fulfill the criterion of uniqueness? Who are your target customers? What is the value for those customers? What market volume and growth rates do you forecast? What competitive environment do you face? What additional stages of development are needed? How much investment is necessary (estimated)? What long-term goals have you set? Evaluation of Rusmar summary Answered questions Missing element See appendix for proposed solutions EXERCISE McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 EXERCISE 1 EXECUTIVE SUMMARY (2/2) * In addition to key questions answered by idea description (step 1) Source: McKinsey Additional questions* for rough business plan How high do you estimate your financing needs? What are the sales, cost, and profit situations? What are the most important milestones along the way to your goal? What test customers have you approached/ could you approach? What distribution channels will you use? What partnerships would you like to enter into? What opportunities and risks do you face? What is the picture on patents? Evaluation of Rusmar summary Answered questions Missing element See appendix for proposed solutions EXERCISE McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 CONTENT OF PRODUCT/SERVICE SECTION Source: McKinsey Executive summary Product/ service Manage-ment team Market and com-petition Marketing and sales Business system Implemen-tation plan Opportuni- ties and risks Financ- ing Describes the function the product/service fulfills and the benefits the customer will gain from it Product/service description Customer value Explains status and next steps of product/service development Addresses patents/IP protection issues Product/service section has to prove that entrepreneur can integrate the customers perspective McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 PRODUCT/SERVICE KEY QUESTIONS Source: McKinsey Idea description What end customers will you address? What are the customers needs? What customer value does your product/service provide? What is the nature of your innovation? Why is it unique? What partnerships are necessary to achieve full customer value? What competitor products already exist or are under development? What stage of development has your product or service reached? Do you have patents or licenses? What further development steps do you plan to take? What milestones must be reached? STEP 1 McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 PRODUCT/SERVICE ADDITIONAL QUESTIONS* * In addition to key questions answered by idea description (step 1) Source: McKinsey Rough business plan Which versions of your products/services are designed for which customer groups and applications? What patents/licenses do the competitors have? What kind of service/maintenance will you offer? What product or service guarantees will you grant? Compare the strengths and weaknesses of comparable products/services with yours in an overview! STEP 2 McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 DESCRIPTION OF THE PRODUCT/SERVICE Source: The American Heritage Dictionary, Duden A device that converts incident electromagnetic radiation of mixed frequencies to one or more discrete frequencies of highly amplified and coherent ultraviolet, visible, or infrared radiation High-performance device for the creation of a narrowly bundled beam of light Better: Technical description of lasers: EXEMPLARY McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 SUCCESSFUL PRODUCT POSITIONING Source: McKinsey Identify relevant customer needs and problems Address subjective perception of customers Define uniqueness and position offering vis-vis competition Define clear, sufficiently large customer segments McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 EXERCISE 2 CUSTOMER VALUE IN RUSMAR CASE * See Appendix for proposed solution Source: McKinsey Customer needs of dump operators Degree of fulfillment by Rusmar foam Fulfilled Not fulfilled Exercise 2: Training participants describe needs of Rusmars customers* CASE EXAMPLE McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 CONTENT OF MANAGEMENT TEAM SECTION Source: McKinsey Outlines educational background and professional experience of founders Describes how existing skill gaps can be closed in the future Convinces potential investors that both managerial and technological expertise is present to run the venture Venture capitalist will invest only if the venture is managed by an excellent team Executive summary Product/ service Manage-ment team Market and com-petition Marketing and sales Business system Implemen-tation plan Opportuni- ties and risks Financ- ing McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 MANAGEMENT TEAM KEY QUESTIONS Source: McKinsey Complete business plan Who are the members of your management team and what distinguishes them: education, professional experience, success, standing in the business world? What experience or abilities does the team possess that will be useful for implementing your concept and setting up your company? What experience or abilities are lacking? How will the gaps be closed? By whom? What targets do the team members pursue by starting up the business? How high is the motivation of the individual team members? McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 REASONS FOR BUSINESS PLAN REJECTION BIOTECHNOLOGY VENTURES* Percent* Weak management team Not market-driven Long time frame Money commitment too large Not patentable Inadequate technical expertise Other If you find good people, they can always change the product. Nearly every mistake I have made has been picking the wrong people, not the wrong idea Arthur Rock Arthur Rock & Co. 52383125151217* Reasons for rejecting business plans by firms experienced in biotechnology venture capital * Multiple responses given Source: Coopers and Lybrand, McKinsey McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 TEAM RAMP-UP EXAMPLES CEO Technology Sales Finance Marketing Idea and team devel-opment Venture begins Proof of economic viability Explosive revenue growth Technol-ogy & mkt. validation Sustained earnings growth X X X X X X Source: McKinsey analysis, external interviews EXEMPLARY McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 PERCENTAGE OF FOUNDERS OF FAST GROWING COMPANIES* 4221141364Unemployed or recent graduate * 4-year growth rate of 573% or higher, 1984 - 1990, 456 companies Source: McKinsey Not from business Running other businesses Small established companies Midsize to large companies (including Fortune 1000) Start-ups Examples include Intel Microsoft Lotus Sun Microsystems Mattel CompuServe Advanced Micro Devices Raytheon Fairchild Semiconductor TRW CondeNast News Corp McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 Traditional corporate experience does not fit new venture needs Skills aligned to achieving near term earnings and sustained revenue growth Processes based on internal milestones Staff support allows extensive delegation (e.g., HR, finance, marketing) Decision making enabled by significant capital resources Catherine Hapka, CEO Rhythms NetConnections Former EVP of US West Responsible for business and telecommunications units with USD 7.5 billion in revenues Started and built US Wests INTERPRISE Networking Services Unit to USD 400 million in revenue Established partnerships with 15 leading hardware and software providers Richard Thompson, CEO Aradigm Former President of Johnson & Johnson subsidiary, Lifescan Built Lifescan from the ground up Led within Johnson & Johnson expansion into Europe and Japan Business building roles, e.g., Led expansion into new geographic markets Built new product line or division Provided marketing leadership to develop a new brand Relevant industry sector experience Source: Executive search firm and VC interviews but corporate experience is valuable when it includes NECESSARY EXPERIENCE FOR VENTURE MANAGEMENT McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 SKILL SET OF TEAM MEMBERS High skill level Medium skill level Team members Technology Finance Project management Contacts Marketing/sales Production Human resources Social competence Initiative Communication Sales/negotiation skills HardfactorsSoft factorsObvious skill gaps to be filled with additional team members EXAMPLE J. Chapuis S. Fischer M. Tscharner Source: Planen, grnden, wachsen (McKinsey) Skill gaps McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 CONTENT OF MARKET AND COMPETITION SECTION Source: McKinsey Provides thorough understanding of markets and competitors: Market size and growth Market segmentation Competition Positioning of product vis-vis the competition The market and competition section has to outline the full economic potential of the venture Executive summary Product/ service Manage-ment team Market and com-petition Marketing and sales Business system Implemen-tation plan Opportuni- ties and risks Financ- ing McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 MARKET AND COMPETITION KEY QUESTIONS Source: McKinsey Idea description How is the industry developing? What role do innovation and technological advances play? How will you segment the market? What market volumes do the individual market segments have, now and in the future (rough estimates)? Who are your target customer groups? What major competitors offer similar products/services? How sustainable will your competitive edge be? STEP 1 McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 MARKET AND COMPETITION ADDITIONAL QUESTIONS (1/2)* * In addition to key questions answered by idea description (step 1) Source: McKinsey Rough business plan What market volume (value and amount) do you estimate for your individual market segments over the next five years? What will influence growth in the market segments? What is your estimate of current and future profitability of the individual market segments? What market shares do you hold in each market segment? What segments are you targeting? Who are your reference customers? How do you plan to get reference customers? What are the key buying factors for customers? STEP 2 McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 Most vertical specialty market-places expected to consolidate Attractive MARKET CHARACTERISTICS Market size and growth Market competitiveness Market growth percent Potential market size USD millions Total revenues of B2B marketplaces estimated to grow at over 100% per year revenue potential USD 50 bn in 2004 Number of B2B marketplaces 1999 2009 100 - 200 1.000 - 2.000 100 50 0 10 100 1000 1 Unattractive Source: McKinsey EXAMPLE ROUGH ESTIMATES McKinsey&Company Copyright 2002 020607MVA1_ZXK_265_V5 RUSMAR, INC. TARGET CUSTOMERS * Basic data on following page Source: Inc. Magazine Target customers: Operators Operators of one or more larger dumps for household garbage Eastern USA (approx. 300 to 500), beginning 2002, whole USA Throughput of 500 to 10,000 tons per day Fee of USD 65 per ton Target customers: Agencies Environmental Protection Agency (federal regulatory body) Department of N