Business Model

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Business plan preparation
Training program for Entrepreneurs
Enno de Boer (GE/MU) Oliver T. Lohfert (GE/MU) Johannes Pruchnow (GE/MU) PD Paper

McKinsey&Company – Copyright 2002

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AGENDA

• Short introduction to the use of business plans

0:15 hours

• Preparation guidelines for business plans

3:30 hours

• Wrap-up

0:15 hours

McKinsey&Company – Copyright 2002

1

020607MVA1_ZXK_265_V5

AGENDA

• Short introduction to the use of business plans

0:15 hours

• Preparation guidelines for business plans

3:30 hours

• Wrap-up

0:15 hours

McKinsey&Company – Copyright 2002

2

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TYPES OF NEW BUSINESSES

EXAMPLES

New high-growth ventures

New New product New industry • Palm • Direct satellite TV • Smart • Netscape • Sony Playstation • Mobile telephony • Rollerblades Product/ service Existing industries and businesses New business system • Dell • Fotolabo • Charles Schwab • FedEx New Business system
Source: Planen, gründen, wachsen (McKinsey) 3

Existing Existing

McKinsey&Company – Copyright 2002

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USE OF BUSINESS PLANS

Standard use

• Start-up companies:
– Application for venture capital – Search for management team members – Communication with partners, suppliers, …

Complications for New Venture projects

• High insecurity concerning technology, timing, and cash need

• Difficult data situation due to newness of innovative products

• Established, developed businesses for investment decisions – In-house budget allocations – External financing

• Necessity of external know-how transfer

Start-up business plans to be tailored to new venture needs

• Lack of skills/motivation/ time Source: McKinsey

McKinsey&Company – Copyright 2002

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GENERIC REQUIREMENTS
Explanation Constantly adapting Impressing by clarity Convincing by facts Business