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Rx for Business - Fundamentals of Planning Ajay Bhardwaj, MBA, CHE | March 20, 2014
Rx for Business - Fundamentals of Planning Ajay Bhardwaj, MBA, CHE | March 20, 2014
“Someone's sitting in the shade today because someone planted a
tree a long time ago.” ― Warren Buffett
Contents
Planning: Why Bother?
Fundamentals of Planning
Questions
Resources
Planning: Why Bother?
“One of our most striking findings was that of the entrepreneurs we surveyed who had a successful exit (that is, an IPO or sale to another firm), about 70% did NOT start with a business plan”. - Anthony K. Tjan
“Life is what happens to you while you're busy making other plans.” ― Allen Saunders
“Everybody has a plan until they get punched in the face.” ― Mike Tyson
Fundamentals of Planning Asking Some Questions…
Who are You? Company Summary
Mission, Vision and Values
What does your team look like?
Clinical Only? Management Only?
Selling products and services? (A feeling?)
What is your Value Proposition?
Unique Selling Position
What makes your business stand out?
Why customers should buy from you?
Who is your Customer? Customer Analysis
Patient Centered?
How do they fit in? Beginning? End?
What are you made of? SWOT Analysis
Internal and External Assessment of an entity
What is going on with your Colleagues? Industry Analysis - Porter’s 5 Forces
Supplier Power, Threat of New Entry, Buyer Power, Threat of Substitution, Competitive Rivalry
What is influencing you? Environmental Scan
PEST
Political, Economic, Social, Technological
The Financials
Best Estimation
Consider:
One time start up costs
Monthly costs during the start up phase
Revenues during the start up phase
Break-Even Analysis
When do we start making money?
Assumptions
Will they really come if you build it? Marketing Strategy
Simple to complex
Reality Check (Risk Analysis)
What Kind of Risks ?
Strategic
Operational
Financial
Reputational
How to Mitigate the Risk?
When do you stop? (Can you stop?)
Fundamentals of Planning - Summary
Executive Summary
Company Information
Customer Analysis
Market Analysis
Company – SWOT
Industry – Porter’s 5 Forces
Environment – PEST
Financials
Marketing Plan
Risk Analysis
Resources*
Harvard Business Review – Business Articles and HBR Blog
Quick MBA – Clearly Defines Business Concepts
Business Development Bank of Canada – Formal Business Plan Template with Templates for Financial Calculations
Business Start Up Cost Calculator – Simple Template for Calculating Start-Up costs
Break Even Analysis Calculator – Harvard Business School – Example from presentation
SmartDraw – Templates and Examples from the presentation
Requests for Proposals
* Links tested as of date of this presentation
Thank you
