Example: bankruptcy

21 Presenting the business plan and obtaining …

21 Presenting the business plan and obtaining approvalOBJECTIVESB efore drawing up a business plan you should have identified the potential 2 covers what should be contained in a business s plan and explains the structureof the business plan document. This goes a long way towards ensuring success. However,it is important to present the business plan in a way that avoids and overcomes objectionsand instils confidence in decision-makers. The objective is to get the support of allstakeholders, who may include colleagues and senior managers, and investors and lenders. PREPARATORY WORKT hroughout the preparation of the business plan , relevant team members and decision-makers should be involved and, if possible, asked for inputs.

21 Presenting the business plan and obtaining approval OBJECTIVES Before drawing up a business plan you should have identified the potential audience. Chapter 2 covers what should be contained in a business’s plan and explains the structure

Tags:

  Business, Plan, Approval, Presenting, Obtaining, Presenting the business plan and obtaining, Presenting the business plan and obtaining approval

Information

Domain:

Source:

Link to this page:

Please notify us if you found a problem with this document:

Other abuse

Transcription of 21 Presenting the business plan and obtaining …

1 21 Presenting the business plan and obtaining approvalOBJECTIVESB efore drawing up a business plan you should have identified the potential 2 covers what should be contained in a business s plan and explains the structureof the business plan document. This goes a long way towards ensuring success. However,it is important to present the business plan in a way that avoids and overcomes objectionsand instils confidence in decision-makers. The objective is to get the support of allstakeholders, who may include colleagues and senior managers, and investors and lenders. PREPARATORY WORKT hroughout the preparation of the business plan , relevant team members and decision-makers should be involved and, if possible, asked for inputs.

2 This extends a sense ofownership of the business plan to the people who will take part in the decision to approvethe plan . The early sharing of key assumptions and outputs invites comments andobjections that can be dealt with before the final plan is presented. Bear in mind that in anorganisation there are many vested interests and personal agendas. Some people may feelthreatened by a business plan because funding may be taken away from their projects. Aco-operative approach is more likely to overcome objections and allows good use to bemade of the experience and knowledge of a range of a sense of ownership among colleagues will also help successfully to implementthe plan . People will be more motivated and ready to go the extra mile to ensure that theplan is turned into a success if they feel that they have been part of it from its cases where the main objective is to get funding from banks or venture capital funds, itwill not be possible to involve them in the preparation of the business plan .

3 However, ithelps to establish a relationship with those from whom financing will be sought and togive them a rough outline of what the aim of the plan is and (realistically) when it will contact with investors will provide useful feedback; for example, an aversion toinvesting in particular industries or that the amount of finance being sought is too small ortoo large. It also allows investors to make room in their diaries to meet you once thebusiness plan is complete. At an early meeting it is also possible to gauge investors expectations in terms of format and level of detail, so that when the actual business plan ispresented it does not appear out of the blue and you have ensured that theseexpectations are met. Investors will then feel more receptive and are likely to look at theplan more SUMMARY AND PRESENTATION SLIDESIt is important to communicate your message effectively.

4 Different decision-makers requiredifferent levels of detail. A succinct two-page executive summary may be all a board ofdirectors will look at. Depending on the audience, this would normally include thefollowing: A short introduction, normally taken from the vision and mission. The objectives of the business . Why you intend to do it, that is, the rationale for the rest of the business . The current state of the business . Strategy and sources of competitive advantage. What you intend to do, that is, aspects of the marketing mix. Target market segments. Demand and market share forecast. How you intend to do it, that is, outline of operations, required resources. Summary balance sheet and profit and loss account (income statement) figures.

5 Key ratios. Required funding. The valuation. Implementation time people prefer to look at PowerPoint slides rather than reading through means the executive summary should also be available in the form of a PowerPointpresentation. In any event, you will have to prepare slides for a face-to-face presentation. The presentation slides should be organised in a modular fashion, telling the story witharound 20 30 slides. There should also be detailed appendices. The presentation should bestructured so that it can be easily used by anyone. Sections and relevant appendices mustbe clearly labelled to make navigation within the presentation easy. This means ifsomeone in the audience is particularly interested in an issue, you can immediately go intothe relevant appendix and then resume the presentation at the higher level.

6 Appendicesshould be available for any major point. Frequently, the audience is interested in theresults from any market surveys and more detailed financial projections. You should tailor your presentation to address the concerns of different members of theaudience: Lenders need to know that interest will be paid and that eventually their loan will berepaid. Thus they will be more interested in cash flow than profits. They will alsofocus on the risk of not being fully funded because this represents the greatestinsolvency risk. Bondholders have an interest in ratings. Ratings are also driven by solvency andinterest cover ratios. Shareholders are interested in return on investment and increases in shareholdervalue. Staff and trade unions need information on job creation, training, health and safety,and job security.

7 This is particularly important where board approval is sought andthe board includes representatives of the workforce. 21. Presenting THE business plan AND obtaining APPROVAL242 The presentation should have the right mixture of words and charts. It is recommendedthat any time series, such as the quarterly sales forecast or cumulative cash flow, areshown as charts. The chart type should include the values, so that viewers can read keyfigures off the chart without having to trace the top of a bar to the vertical axis scale. Avoidcomplex charts that require a lengthy explanation. If necessary, express the point in twoseparate THE PLANI nvestors do not just look at documents; theymust also have confidence in the ability ofthe people who will run the business .

8 Assuming that these people will also present theplan, a professional, smooth presentation is an essential element of gaining approval for abusiness the presentation by introducing everyone, mentioning relevant experience andqualifications. Decision-makersmust get to know you and start to believe in you. Howeverwell researched and supported your business plan is, personal credibility and the ability toexecute the plan are what investors are looking when the presentation has been circulated in advance, do not assume that anyonehas actually looked at it. Almost invariably there will be questions during the the presentation and be sure to have key data in your head. You mustbe able toanswer questions such as sales growth or time to break even without referring to adocument.

9 Try to find out who will be at the meeting. This may allow you to tailor thepresentation to particular people and anticipate their a question is not straightforward or requires a detailed answer, try to find out why it isbeing asked. Understanding the motive for a question will allow you to give the answerthe person is looking for, rather than getting lost in detail. If you sense a potentialstumbling block, you can gloss over it and modify your business plan to remove it. Thisdoes not mean that you misrepresent facts. Sometimes a question is not really a questionbut a request to modify certain aspects of the business plan . By listening to your audienceand showing flexibility you increase the chances of the end of the presentation, agree what the next steps are and make dates in your diaryfor follow-up meetings.

10 This makes it easier to chase decision-makers for responses. Beforeyou leave the room ensure that you have everyone s contact details and that they haveyours. Also leave sufficient copies of the business plan and the presentation with theaudience and offer to e-mail copies of APPROVALIt is unlikely that the business plan will be approved after the first presentation. Despitehaving taken the utmost care in covering all angles, there will be questions based on thewritten business plan . Bear in mind that decision-makers are duty bound to exercise dueExecutive summary and presentation slides243diligence. The easier you can make their task, the more supportyou will gain. Do not justanswer questions with an avalanche of detail, but provide what is asked for and what on the size and complexity of the business plan and whether it is an internalor external plan , approval may take several months.


Related search queries