Mckinsey - How to write a business plan
美国人教你写商业信函
★美国人教你写商业信函★（希望加精哦）Paragraph One:Attracting AttentionThe first sentence must get the reader's attention. Asking a question in which the answer is guaranteed to be "yes" is a good way to start. "Would you like to improve your life?" The opening paragraph, in fact the first sentence, should excite curiosity or attract the attention in some way that will make the reader continue to read the letter.The most difficult paragraph to write in a sales letter is the first one. You have just a few seconds to get the reader's attention.Would you like to see your factory's production increase by 15% or more?Wouldn't you prefer to have your wedding pictures taken by the leader in the field?Another way to start a sales letter is to write a sentence that will surprise or shock the reader.In 1996 we helped over 250 small businesses like yours to increase their productivity.Since 1991 we havegrown from a small printing company to one of the largest publishing houses in the city.If you are contacting the customer for the first time or if your company is unknown, you might start with a general introduction of yourself.Example A:Alfred's Textile Marketing Co. Ltd. is a leading Russian manufacturer and exporter of socks and hosiery. The range of our product line, good quality, and competitive prices have made us one of the fastest growing companies of its kind in Russia. Example B:Floppy Textile Buying Agency, established in 1987, is one of the fastest growing agents in India. We currently represent a number of major European importers, such as Fe Fe LaMew Mail Order of France and others.Other Examples:The ABC Trading Company was founded in 1986 to serve the construction industry in New York state. Since then we have expanded our market year by year to where we now have customers in 12 countries around the world.Paragraph Two: Building Interest and DesireThe second paragraph must convince the reader of thevalue of the product. When you have succeeded in getting the reader's attention, you must hold that attention. The best way to hold it is to build interest by describing your product so that the reader can virtually experience it. Use colorful, descriptive words. In paragraph two you must show the reader that he/she either- needs your product (a car)- could use your product (an easier inventory system)- should not be without your product (insurance)OR - would benefit from your product (a new line of clothes he/she could sell)Sentence by sentence you lead the reader through your sales pitch. If he closes his eyes he can see that new car, going home earlier because of his new inventory system, the comfort of having insurance, and increased sells because of the new line of clothes. Example A: located in Moscow, we produce a wide variety of socks and hosiery items in a cotton-woolen-nylon blend for men, women, and children. These socks are of good quality, are popular with customers, and sell well. Our total production averages 10 million pairs per year, 70% for export and 30% for the domestic market.Example B:We are happy to announce that we are now offering this same service to American import companies like yours. From our office in New Deli, the heart of low cost and good quality ready- to-wear garments, we can supply your company with whatever kind of apparel you would like.Paragraph Three: Convincing the Reader If you have done your work well to this point, the reader is already interested and is partially convinced. You must convince readers that it is to their advantage to buy your product or use your service.If the reader has read your letter to this point then he/she is interested in your product. Paragraph three convinces him/her to buy it. It is here that you show what buying your product would mean to the reader.Example A:The wide range of Indian export companies that we work with insure you of getting just the items that you are looking for. Whether it be baby wear, children's wear, ladies and men's outer and underwear, leather wear, socks, belts, bags, shoes, or household items such as bed linen, towels, bathrobes, or tableclothes we can make sure that you get the quantity you need at the best possible price. And our staff of quality controllers insure that the garments are well made. Other Examples:The machine that we sell is called the Safehouse. It turns the lights on at your house at night when you're coming home. And you can reverse the process when you leave, turning off the lights when you have locked the door, gone down the steps, and left the yard. Amazingly, the Safehouse weighs only 150 grams and fits easily in your pocket or purse. Paragraph Four: Directing Favorable ActionYou have now reached the point where if your letter was successful, you must move the reader to act. The fourth paragraph must tell the reader what to do to get the product. Tell the reader exactly what you what him/her to do and make it easy to do. The desired action is go to your web site to get more information and, hopefully contact you for specifics or to place an order. Even the most highly motivated and excited customer will not act if the action you are requesting is too difficult.Example A:Our company is expanding its market to include the United States and we would like very much to do business with your company. Enclosed is our price list (brochure) describing our wide range of products. I would welcome the opportunity to introduce you to our line socks and hosiery. For more information or to place an order, please visit our web site at*******B:If you would like to take advantage of the services that Floppy Textile Buying Agency has to offer your company, please log on to our web site at******* or contact us by fax at (56/324) 785 48 96. Thank you. We look forward to hearing from you.Other Examples:To order, please go to our web site at******, or fill out the enclosed order form and send it by fax or post to our office in Washington. Before you know it, you will be wearing this beautiful men's business swim suit - and feeling like royalty.-------------------------------------------------------------------------------A Typical Well Written Letter for An AgentStar Textile Exports, established in 1987, is one of the fastestgrowing agents in Turkey. We currently represent a number of major European importers, such as Blue Cloud Mail Order of France and others.We are happy to announce that we are now offering this same service to American import companies like yours. From our office in Istanbul, the heart of low cost and good quality ready-to-wear garments, we can supply your company with whatever kind of apparel you would like.The wide range of Turkish export companies that we work with insure you of getting just the items that you are looking for. Whether it be baby wear, children's wear, ladies and men's outer and underwear, leather wear, socks, belts, bags, shoes, or household items such as bed linen, towels, bathrobes, or table clothes we can make sure that you get the quantity you need at the best possible price. And our staff of quality controllers insure that the garments are well made.If you would like to take advantage of the services that Star Textile Buying Agency has to offer your company, please go to our web site at******, or contact us by fax at (90/212) 123 45 67.Thank you. We look forward to hearing from you.--------------------------------------------------------------------------------A Very Simple Sales LetterDear Sirs,We are a Polish company that specializes in making men's shirts and would like to tell you about our line of products.Our products are special because they are made of good quality cloth . In the 15 years that we have been selling our products we have made a good name for ourselves in countries around the world.Enclosed is a price list and brochure. If you would like to place an order or receive more information, please log onto our web site at******or contact us by telephone.Sincerely yours.--------------------------------------------------------------------------------A Simple Proposal LetterDear Mr Customer:Thank you for your interest in our company. Enclosed is the proposal that you requested.The Model XR 17 is designed to help those companies who want to sell the latest model on the market, at the best possible price. This low-cost machine is made in Germany - the land of good quality machines.This model sells well because:the price is competitivethe technology is state-of-the-artthere is a great demand for such amachine.We hope that you will soon join the growing list of companies that are selling our model XR 17. If you would like more information, please visit our web site at****** or contact us directly.Sincerely yours.。
商务英语写作-how to write business letter
商务英语写作how to write business letterHow To Write Business Letters That Get The Job Done --------------------------------------------------------------------------------Business Letter TemplatesFast and easy: Instant download of over 100 actual business letter templates -- here.Despite the widespread use of e-mail in commerce today, traditional business letters are still the main way way that the majority of businesses officially communicate with their customers and other businesses.This is especially true when businesses want to formalize an agreement or an understanding. So far, emails are great for all of the preparatory work, but a formal businessletter is still most often needed to “seal the deal”.There are two basic categories of business letters: business to business, and business to customer.BUSINESS TO BUSINESS LETTERSMost business to business letters are written to confirm things that have already been discussed among officials in meetings, on the telephone, or via e-mail.Can you imagine the letters that would have to go back and forth to cover all of the questions and possibilities that can be covered in a one-hour meeting, a half-hour phone call, or a few quick e-mails?The main purpose of a typical business letter is to formalize the details that were arrived at in those discussions, and to provide any additional information that was agreed upon.Over the years, certain general standards have evolved in the business world that the vast majority of businesses use in drafting their business to business correspondence.BUSINESS TO CUSTOMER LETTERSThere are many different types of business to customer letters. They include: sales and marketing letters, information letters, order acknowledgement letters, order status letters, collection letters, among others.As with business to business letters, over the years certain general standards have evolved in the business world that the vast majority of businesses use in drafting letters to existing and potential customers.Of course, going in the other direction are customer to business letters. These include: order letters, order status inquiry letters, complaint letters, and others.Since these are customer-generated letters, there is no particular expectation that they follow any particular letter- writing standard. Typically, they are handled just like any other piece of personal correspondence.BUSINESS LETTER WRITING TIPSHere are a few tips I have picked up while writing literally hundreds of business letters over the past 20+ years. This is a slightly modified version of the tips included in my eBook, “Instant Home Writing Kit”.Limit Them To One PageBy definition, business letters should be short and to the point, preferably one page in length. Studies have found that busy business people do not like to read beyond the first page, and will actually delay reading longer letters.Relegate Technical Details To AttachmentsOften, it is necessary to include detailed technical information as part of a business letter package. In such cases, use the main letter as a cover letter that lists and briefly explains the attached (or enclosed) documents.Keep Them Formal and Factual Generally speaking, the tone and content of business letters should be formal and factual. Feelings and emotions do not have a place in business letters.Carefully Plan Your LetterBefore writing the letter, take a few minutes to list all of the specific points you need to cover. Sometimes it may even mean a call to the recipient or his/her company to confirm a specific point. Remember, the purpose of the letter is to tie up all of the details on the subject at hand, so that more letters won’t have to be written back and forth.Be Customer FriendlyWhen writing directly to customers, always focus on their needs and their perspective. Put yourself in their position and imagine what it would be like receiving your letter. Everyone can do this, since we are all customers of some other business in some part of our lives.Use Non-Discriminatory LanguageMake sure that you avoid language that is specific to gender, race, or religion in all business letters, either to other businesses, or to customers. For example, use “workforce”instead of “manpower”, or “chairperson”rather than “chairman”. Most style guides contain detailed lists of the offensive terms and some suggested substitutes.To see a fully-formatted “real-life template” of a typical business letter, click on the following link:--------------------------------------------------------------------------------Shaun Fawcett is Webmaster of two of the most visited writing-help websites on the Net. He is the author of numerous “how-to”books on everyday practical writing help. His Business Letter Writing Kit with real-life templates is a leading resource on how to write and format business letters for ALL types of business situations.。
Mckinsey新员工培训手册(内有全部某咨询的工具和方法介绍)英文
This document focuses on one vertex of this triangular relationship. It would be wrong, however, to believe that you can achieve the impact we seek by focusing on one vertex. We need to consider all three in every study.
However, a recent survey of engagements in which clients failed to implement proposed strategies found, in three cases out of four, that the client organization was not change-ready or even capable of implementing the strategy we proposed.
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how to write bussiness plan
U.S. Small Business Administration MP-32 HOW TO WRITE A BUSINESS PLANManaging and Planning Series______________________________________________________________________________ Copyright 1993, Linda Pinson and Jerry Jinnett. All rights reserved. No part may be reproduced, transmitted or transcribed without the permission of the authors. SBA retains an irrevocable, worldwide, nonexclusive, royalty-free, unlimited license to use this copyrighted material. While we consider the contents of this publication to be of general merit, its sponsorship by the U.S. Small Business Administration does not necessarily constitute an endorsement of the views and opinions of the authors or the products and services of the companies with which they are affiliated.All of SBA's programs and services are extended to the public on a nondiscriminatory basis.______________________________________________________________________________TABLE OF CONTENTSINTRODUCTION 1COVER SHEET 1STATEMENT OF PURPOSE (MISSION STATEMENT) 2THE BUSINESSLegal Structure 2Description of the Business 2Products or Services 3Location 3Management 3Personnel 3Methods of Record Keeping 3Insurance 4Security 45SummaryMARKETINGTarget Market 5Competition 5Methods of Distribution 5Advertising 7Pricing 7Product Design 7Timing of Market Entry 7Location 8Industry Trends 8FINANCIAL DOCUMENTSSummary of Financial Needs 8Sources and Uses of Funds Statement 9Cash Flow Statement (Budget) 9Three-year Income Projection 10Break-even Analysis Graph 15Actual Performance Statements 16Balance Sheet 1621SummarySUPPORTING DOCUMENTSPersonal Resumes 22Personal Financial Statement 22Credit Reports 22Copies of Leases 22Letters of Reference 22Contracts 22Legal Documents 23Miscellaneous Documents 23PUTTING YOUR BUSINESS PLAN TOGETHER 23KEEPING YOUR BUSINESS PLAN CURRENTMaking Revisions 23Implementing Changes 23Anticipating Problems 24REFERENCES 24APPENDIX: INFORMATION RESOURCES 25______________________________________________________________________________ INTRODUCTIONThere are two main purposes for writing a business plan. The first, and most important, is to serve as a guide during the life of your business. It is the blueprint of your business and will serve to keep you on the right track. To be of value, your plan must be kept current. If you spendthe time to plan ahead, many pitfalls will be avoided and needless frustrations will be eliminated. Second, the business plan is a requirement if you are planning to seek loan funds. It will provide potential lenders with detailed information on all aspects of the company's past and current operations and provide future projections.The text of a business plan must be concise and yet must contain as much information as possible. This sounds like a contradiction, but you can solve this dilemma by using the Key Word approach. Write the following key words on a card and keep it in front of you while writing:Who What Where When Why How How MuchAnswer all of the questions asked by the key words in one paragraph at the beginning of each section of the business plan. Then expand on that statement by telling more about each item in the text that follows.There is no set length to a business plan. The average length seems to be 30 to 40 pages, including the supporting documents section. Break the plan down into sections. Set up blocks of time for work with target dates for completion. You may find it effective to spend two evenings per week at the library where the reference materials needed will be close at hand. It takes discipline, time and privacy to write an effective business plan.You will save time by compiling your list of supporting documents while writing the text. For example, while writing about the legal structure of your business, you will realize the need to include a copy of your partnership agreement. Write partnership agreement on your list of supporting documents. When compiling that section of your plan, you will already have a list of necessary documents. As you go along, request any information that you do not have, such as credit reports.With the previous considerations in mind, you are ready to begin formulating your plan. Read through this entire publication to get an overall view of the business planning process.______________________________________________________________________________ COVER SHEETThe first page of your business plan will be the cover sheet. It serves as the title page of your plan. It should contain the following information:Name of the companyCompany addressCompany phone number (include area code)Logo (if you have one)Names, titles, addresses, phone numbers (include area code) of ownersMonth and year in which the plan is issuedName of preparerThe following example will serve as a guide._____________________________________________________________________CORPORATIONABC372 East Main StreetBurke, BY 10071526-4319 (207)John Smith, President (207) 814-0221724 South StreetJamestown, NY 10081Mary Blake, Vice President (207) 764-121386 West AvenueBurke, NY 10071James Lysander, Secretary (207)842-1648423 Potrero AvenueJessup, NY 10602Tandi Higgins, Treasurer (207) 816-0201321 Nason StreetAdams, NY 10604Plan prepared September 1992by Corporate Officers_________________________________________________________________STATEMENT OF PURPOSE (MISSION STATEMENT)The statement of purpose is also called the mission statement or executive summary. If your lender were to read only this information, he or she would know the name and nature of your business, its legal structure, the amount and purpose of your loan request and your plan for repayment. Use the key word approach mentioned earlier. Be concise and clear. The statement of purpose is contained on one page. Although it is positioned after the cover sheet, it is most effectively written after the plan has been completed. At that time, all the information and financial data needed are available.If you are writing your plan for a lender, be specific about the use of funds. Support the amount requested with information such as purchase orders, estimates from suppliers, rate sheets and marketing results. Include this information in the supporting documents section. Address the question of loan repayment. You want to show the lender your company's ability to meet payments of interest as well as principal. Some investors like to see two ways out, i.e., two different sources of repayment. When you have answered the key word questions, you are ready to present that information in one or two concise paragraphs. A sample statement of purposefollows.______________________________________________________________________STATEMENT OF PURPOSEABC CORPORATION, an S-Corporation established in 1985, is atool and die company that manufactures specialized parts for theaerospace industry and is located at 372 East Main Street, Burke,N.Y. The company is seeking growth capital in the amount of$50,000 for the purpose of purchasing new and more modernequipment and for training existing personnel in the use of thatnew equipment.Funding is needed in time for the equipment to be delivered and inplace by 11 January 1993. There is a two-month period betweenorder placement and delivery date.The modernized equipment will result in a 35 percent increase inproduction and a 25 percent decrease in the unit cost. Repaymentof the loan and interest can begin promptly within 30 days ofreceipt and can be further secured by real estate, which is ownedby the company and which has a 1990 assessed valuation of$185,000._________________________________________________________________ ______________________________________________________________________________THE BUSINESSThe first major section of your plan covers the details of your business. Begin this section with a one-page summary addressing the key elements of your business. The following text will expand on each area presented in the summary. Use the key word system to help you write concisely. Address all of the topics as they relate to your business in an order that seems logical to you. Include information about your industry in general, and your business in particular. Be prepared to back up statements and justify projections with data in the supporting documents section.Legal StructureState the reasons for your choice of legal structure. If you are a sole proprietor, you may include a copy of your business license. If you have formed a partnership, include a copy of your partnership agreement in the supporting documents section. Your agreement should include provisions for partners to exit and for the dissolution of the company. It must spell out the distribution of the profits and the financial responsibility for any losses. Explain the reasoning behind the terms of the agreement. If you have formed a corporation, explain why this legal form was chosen and how the company will operate within the corporate structure, and include a copy of the charter and articles in the supporting document section.If you plan to change your legal structure in the future, make projections regarding why you would change, when the change would take place, who would be involved and how the change would benefit the company.Description of the BusinessThis is the section of the plan in which you go into greater detail about your business. Answer the key word questions regarding the business's history and present status, and your future projections for research and development. Outline your current business assets and report your inventory in terms of size, value, rate of turnover and marketability. Include industry trends. Stress the uniqueness of your product or service and state how you can benefit the customer. Project a sense of what you expect to accomplish three to five years into the future.Products or ServicesGive a detailed description of your product from raw materials to finished item. What raw materials are used, how much do they cost, who are your suppliers, where are they located and why did you choose them? Include cost breakdowns and rate sheets to back up your statements. Although you may order from one main supplier, include information on alternate suppliers. Address how you could handle a sudden increase of orders or a loss of a major supplier.You may hear a lender refer to the worst case scenario. This means that the lender wants you to be able to anticipate and solve potential problems. It is also to your advantage to think in terms of alternatives and to prepare for the unexpected so that your business can continue to run smoothly. Some businesses fail because they become too successful too soon. Therefore, it is also good to plan for the best case scenario. If you are inundated with orders, your business plan should contain information needed to hire staff and contact additional suppliers.If you are providing a service, tell what your service is, why you are able to provide it, how it is provided, who will be doing the work and where the service will be performed. Tell why your business is unique and what you have that is special to offer to your customers. If you have both a product and a service that work together to benefit your customer (such as warranty service for the products you sell) be sure to mention this in your plan. Again the key words come into use. List future services you plan to add to your business. Also, anticipate any potential problem areas and work out a plan for action.You should state any proprietary rights, such as copyrights, patents or trademarks, in this section.LocationIf location is important to your marketing plan, you may focus on it in the marketing section. For example, if you are opening a retail shop, your choice of location will be determined by your target market. If you are a manufacturer and ship by common carrier, your location is not directly tied to your target market so you can discuss location in the business section. You maybegin this topic with a sentence such as "ABC Corporation is housed in 25,000 square feet of warehouse space located at 372 East Main Street, Burke, NY. This site was chosen because of accessibility to shipping facilities, good security provisions, low square footage costs and proximity to sources of supplies."Now expand on each reason for choosing that location and back up your statements with a physical description of the site and a copy of the lease agreement. Give background information on your site choice and list other possible locations. You may want to include copies of pictures, layouts or drawings of the location in the supporting document section.Use the worksheet on page 4 as a guideline for writing a location (site) analysis. Cover only those topics that are relevant to your business. If you need assistance, contact the SBA resource center nearest you (see Information Resources)._____________________________________________________LOCATION ANALYSIS WORKSHEET1. Address:2. Name of realtor/contact person:3. Square footage/cost:4. History of location:5. Location in relation to target market:6. Traffic patterns for customers:7. Traffic patterns for suppliers:8. Availability of parking: (include diagram)9. Crime rate for area:10. Quality of public services (e.g. police, fire protection)11. Notes on walking tour of area:12. Neighboring shops and local business climate:13. Zoning regulations:14. Adequacy of utilities (get information from utility company representatives):15. Availability of raw materials/supplies:16. Availability of labor force;17. Labor rate of pay for the area:18. Housing availability for employees:19. Tax rates (state, county, income, payroll, special assessments):20. Evaluation of site in relation to competition:_________________________________________________________ ManagementThis section describes who is behind the business. If you are a sole proprietor, tell about your abilities and include your resume. Be honest about areas in which you will need help and state how you will get that help. Will you take a marketing seminar, work with an accountant or seek the advice of someone in advertising?If you have formed a partnership, explain why the partners were chosen, what they bring to the company and how their abilities complement each others. Experience, background and qualifications will be covered in their resumes in the supporting documents section.If your business is incorporated, give detailed information on the corporate structure and officers. Include a resume for each officer and describe each one by answering the following questions: Who are they? What are their skills? Why were they chosen? What will they bring to the organization?PersonnelWho will be doing the work? Why are they qualified? How will they be hired? What is their wage? What will they be doing? Outline the duties and job descriptions for all personnel. Explain any employee benefits. If you are inundated with orders for your product or items to be serviced, do you have a plan for increasing personnel?Methods of Record KeepingTell what accounting system will be used and why the system was chosen. What portion of your record keeping will be done internally? Who will be responsible for keeping those records? Will you be using an outside accountant to maximize your profits? If so, who within your company will be skilled at reading and analyzing financial statements provided by the accountant? It is important not only to show that your accounting will be taken care of, but that you will have some means of using your financial statements to implement changes to make your company more profitable. After reading this section, the lender should have confidence in your company'sability to keep and interpret a complete set of financial records.InsuranceInsurance is an important consideration for every business. Product liability is a major consideration, especially in certain industries. Service businesses are concerned with personal liability, insuring customers' goods while on the premises or during the transporting of those goods. If a vehicle is used for business purposes, your insurance must reflect that use. If you own your business location, you will need property insurance. Some types of businesses require bonding. Partners may want life insurance naming each other as the beneficiary. Consider the types of coverage appropriate to your business. Tell what coverage you have, why you chose it, what time period it covers and who the carrier is. Keep your insurance information current. SecurityAccording to the U.S. Chamber of Commerce, more than 30 percent of business failures result from employee dishonesty. This concerns not only theft of merchandise, but also theft of information.Address the issue of security as it relates to your business. For example, if you are disposing of computer printout data, a small paper shredder may be cost-effective. Anticipate problem areas in your business, identify security measures you will put into practice, tell why you chose them and what you project they will accomplish. Discuss this area with your insurance agent. By installing security devices you may be able to lower certain insurance costs along with protecting your business.SummaryYou have now covered all the areas which should be addressed in the business section. Use the key words, be thorough, anticipate any problem areas and be prepared with solutions, and analyze industry trends and be ready to project your business into the future. When you have completed the business section, you are ready to begin developing the marketing section.______________________________________________________________________________ MARKETINGThe second major section of your business plan covers the details of your marketing plan. A good marketing plan is essential to your business development and success. Include information about the total market with emphasis on your target market. You must take the time to identify your customers and find the means to make your product or service available to them. The key here is time. It takes time to research and develop a marketing plan, but it is time well spent. Most of the information you need will be found in your public library and in the publications of the U.S. Department of Commerce, the U.S. Small Business Administration (SBA) and the U.S. Census Bureau. Remember that you need a clear understanding of who will purchase your product, who will make use of your service, why they will choose your company and how they will find out about it.Begin this section with a one-page summary covering the key elements of your marketing plan. The following text will expand on each area presented in the summary. Back up statements and justify projections with data in the supporting documents section. Again, the key word approach will help you to thoroughly cover each area. The topics may be covered in any order that seems logical to you.Target MarketThe target market has been defined as that group of customers with a set of common characteristics that distinguish them from other customers. You want to identify that set of common characteristics that will make those customers yours. Tell how you did your market research. What were your resources and your results? What are the demographics of your target market? Where do your customers live, work and shop? Do they shop where they live or where they work? If you are in the business of video cassette recorder (VCR) repair, how many VCRs are owned within a certain radius of your shop? Would in-home service be cost-effective and a benefit to your customers? Back up your findings with U.S. Census Bureau reports, questionnaires and test marketing results. State how you feel you can serve this market in terms of your resources, strengths and weaknesses. Focus on reasonable, believable and obtainable projections regarding the size of your potential market. (See Information Resources.) CompetitionDirect competition is a business offering the same product or service to the same market. Indirect competition is a company with the same product or service but with a different target market. Evaluate both types of competitors. You want to determine the competitors' images. To what part of the market are they trying to appeal? Can you appeal to the same market in a better way? Or can you find an untapped market?Use the worksheet to compile, organize and evaluate information on your competition. Your analysis of this information will help you plan your market entry. What is the competition's current market share (what percent of the total customer base is theirs)? Can you tap into this share or will you need to carve out your own market niche?_______________________________________________________COMPETITOR PROFILE WORKSHEETCompetitorsItem 1 2 31. Name of Competitor(s):2. Location:3. Products or services offered:4. Methods of distributionmarketingretail,(wholesale,selling,personalreps,sales):corporate5. ImagePackaging:materials:Promotionaladvertising:ofMethods(customers'Positioningperception of quality ofservice):productor6. Pricing structure:7. Performance (past and present):8. Market share (by number, type and location of customers):9. Strengths (The strengths of the competition become your strengths):10. Weaknesses (Looking at the weaknesses ofthe competition can help you find ways ofbeing unique and of benefiting the customer.):_______________________________________________________After completing this section you or your lender will know who your competitors are, where they are located, what products or services they offer, how you plan to compete, how your customers can access your business and why you can provide a unique and beneficial service or product.Methods of DistributionDistribution is the manner in which products are physically transported to the consumer or the way services are made available to the customer. Distribution is closely related to your target market.Establish the purchasing patterns of your customers. If you are selling a product, do your customers purchase by direct mail, buy through catalogues or make in-store purchases? Will you sell directly or through a manufacturer's representative? If you are shipping the product, who will absorb the shipping costs and what carrier will be used? Use the key words to answer questions regarding your distribution plan. Back up your decisions with statistical reports, rate sheets from shippers, contracts with manufacturer's representatives or any other supporting documents. If you are involved in a service business, will you provide in-shop service? Will you make service calls, and, if so, how will mileage costs be handled? What is your planned response time to fill your customers' needs?List the pros and cons of the various methods of distribution and give reasons for your choices. Keep in mind the worst case scenarios mentioned above. Present alternatives. For example, if United Parcel Service, your major shipper, were to go on strike, how would you distribute your products? If your mobile service van were to break down, do you have a vehicle which could be used as backup? Provide for a smooth business flow.AdvertisingAdvertising presents the message to your customer that your product or service is good and desirable. Tailor your advertising to your target market. Your marketing research will have spelled out which television and radio stations and which publications are of interest to your target market. Those are the ones you will use. Analyze your competitors' advertising in these publications. Be ready to back up your decisions. Include copies of your promotional materials, such as brochures, direct mail advertisements and flyers. Tell the lender where you will put your advertising dollars, why you chose those methods, how your message will reach your target market, when your advertising campaign will begin, how much your plan will cost and what format your advertising will take.PricingYour pricing structure is critical to the success of your business and is determined through market research and analysis of financial considerations. Basic marketing strategy is to price within the range between the price ceiling and the price floor. The price ceiling is determined by the market; it is the highest cost a consumer will pay for a product or service and is based on perceived value. What is the competition charging? What is the quality of the product or service you are offering? What is the nature of the demand and what is the image you are projecting? The price floor is the lowest amount at which you can offer a product or service, meet all your costs and still make your desired profit. Consider all costs -- raw materials, office overhead, shipping, vehicle expense, taxes, loan and interest payments and owner draws are a few. The profitable business operates between the price ceiling and the price floor. The difference allows for discounts, bad debt and returns. Be specific about how you arrived at your pricing structure and leave room for some flexibility.Positioning -- predetermining the perceived value in the eyes of the consumer -- can be accomplished through promotional activities. To be successful, you must decide what your product or service offers that your competitor's does not and promote it as the unique benefit. Very few items on the market have universal appeal your product or service cannot be all things to all people. However, if you position your product or service properly, prospective purchasers or users will immediately recognize its benefits to them.Product DesignPackaging and product design can play a major role in the success of your business. It's whatfirst catches the customer's eye. Consider the tastes of your target market in the ultimate design of your product and your package design. Decide what will be most appealing in terms of size, shape, color, material and wording. Packaging attracts a great deal of public attention. Be advised of the Fair Packaging and Labeling Act, which established mandatory labeling requirements. The U.S. Food and Drug Administration (FDA) has strict procedures for the labeling of items falling within its jurisdiction. The packaging guidelines can be obtained from the FDA or found in the library.Use key words to answer questions regarding your product design and packaging. Include sketches or photographs. Also include information on any proprietary rights, such as copyrights, trademarks or patents.Timing of Market EntryThe timing of your entry into the marketplace is critical and takes careful planning and research. Having your products and services available at the right time and the right place depends more on understanding consumer readiness than on your organizational schedule. The manner in which a new product is received by the consumer can be affected by the season, the weather and holidays. Early January and September are the best times to mail flyers and catalogs, as consumers seem to be more receptive to mail order purchasing in those months. The major gift shows are held in the summer months (June, July, August) and again in January and February. Most wholesale buying takes place at these shows. November and December are not good months for introducing new service businesses unless they relate in some way to the holiday season. Spring is a better time to introduce a service. Trade journals and trade associations in your field can provide the information you need on the timing patterns of your industry. Tell the lender when you plan to enter the market and how you arrived at your decision.LocationIf your choice of location is related to your target market, cover it in this section of your business plan. List the reasons for your choice. What is the character of the neighborhood? Does the site project your business image? Where is the competition in the area? What is the traffic pattern? What are the terms of the lease? What services, if any, does the landlord provide? What is the occupancy history of your location? Did any companies in the area go out of business within the past few months? If so, try to find out if it was related to location. Is the area in which you plan to locate supported by a strong economic base? What alternate sites were considered?These are some of the questions to be considered. Refer to Location in the business section for additional information.Industry TrendsBe alert for changes in your industry. New technology may bring new products into the marketplace that will generate new service businesses. Read trade journals and industry reports in your field. Project how your market may change and what you plan to do to keep up.______________________________________________________________________________。
麦肯锡_HOW TO WRITE A BUSINESS PLAN
HOW TO WRITE A BUSINESSPLANTable of ContentsPreface (4)1. THE ROUTE FROM CONCEPT TO COMPANY (4)1.1 Success factors (4)1.2 Stages of development (5)2. THE BUSINESS IDEA (8)2.1 Development of a business idea (8)2.2 Elements of a promising business idea (9)2.3 Protecting your business idea (13)2.4 Presenting to investors (14)3. THE BUSINESS PLAN (16)3.1 Advantages of a business plan (16)3.2 Characteristics of a successful business plan (16)3.3 The investor's point of view (18)3.4 Tips on preparing a professional business plan (21)4. STRUCTURE AND KEY ELEMENTS OF A BUSINESS PLAN (23)4.1 Executive summary (23)4.2 Product or service (24)4.3 Management team (26)4.4 Market and competition (28)4.5 Marketing and sales (32)4.6 Business system and organization (37)4.7 Implementation schedule (41)4.8 Opportunities and risks (42)4.9 Financial planning and financing (42)5. CASE STUDY: "CITYSCAPE" (48)5.1 "CityScape": Idea and business concept (48)5.2 "CityScape": Business plan (49)5.2.1.- EXECUTIVE SUMMARY (50)5.2.2. - SERVICE IDEA (52)5.2.3. - MANAGEMENT TEAM (53)5.2.4. - MARKET AND COMPETITION (54)5.2.5. - COMPETITOR ANALYSIS (55)5.2.6. – CITY SCOPE'S COMPETITIVE ADVANTAGES (56)5.2.6. - MARKETING AND SALES (57)5.2.7. - BUSINESS SYSTEM AND ORGANIZATION (58)5.2.8. - IMPLEMENTATION SCHEDULE (60)5.2.9. - OPPORTUNITIES AND RISKS (61)5.2.10. - FINANCIAL PLANNING AND FINANCING (62)5.3.- Critique of elements of "CityScape" business plan (68)PrefaceThis Guide to writing a business plan is designed to help you in developing your business idea, "from concept to company". It details the contents, scope, and structure of a business plan and the expectations venture capitalists have when reading one, and provides valuable pointers on starting up a company.The Guide is not intended as a business studies resource nor is it a theoretical treatise on the nature of business plans per se. Rather, it offers practical tips to help you get started setting up your company. Naturally, there is no guarantee that all aspects of this Guide will be relevant to your particular company or that all topics relevant to your company will be covered. The "Key questions" about the main elements of a business plan make no claim to completeness; those questions not relevant to your specific business plan need not be answered.If you are reading this Guide because you have a business idea you want to transform into a successful company, we offer you a word of encouragement: Make the most of this opportunity!McKinsey & Company, Inc.1. The Route from Concept to CompanyNew, innovative companies generally try to grow from a startup into an established company within five years. But they can seldom finance their activities alone along the way. Rather, they are dependent on professional investors with considerable financial clout. For entrepreneurs, financing is an existential question – the business plan must thus be viewed from the point of view of potential investors right from the outset.1.1 Success factorsSuccessful companies arise from a combination of five elements (exhibit 1).1. No business concept, no business. Having an idea is just the beginning of the creative process. Many entrepreneurs are initially infatuated with their inspiration, losing sight of the fact that their idea is the point of departure for a long process of development which must face – and withstand – tough challenges before it can enjoy financing and market success as a mature business concept.2. Money matters. Without finding somebody who invests money into growing the idea into a viable business, this business will never become a reality. Therefore, from early on a lot of attention has to be put on convincing investors to provide the necessary funding.3. No entrepreneurs, no enterprise. Growing new firms is not a one-person job. It can only succeed with a team of, usually, three to five entrepreneurs whose talentsare complementary. Putting together well-functioning teams is known to be a difficult process, taking time, energy and an understanding of human nature. Do not lose any time in putting your team together, and work on perfecting it throughout the entire startup process. The characteristics of a high-performance management team are discussed in more detail in section 5.3 of this Guide.4. Traditional service providers will help you clear the first hurdles. You will often need the advice of professional service providers such as patent lawyers, tax advisors, and market researchers, especially at the beginning. Getting the right information early, e.g., for registering a patent, can have consequences for later success or failure.5. Strong networks are a "shot in the arm" for every new company. Professional guidance of potential entrepreneurs by means of a network of non-material sponsors, entrepreneurs, venture capitalists, and service providers is decisive in making viable ideas into real companies. Prime examples for such regional networks can be found in Silicon Valley and the Boston area.1.2 Stages of developmentThe typical progression of the startup and development of growing companies into established firms can be subdivided into three stages. The end of each stage serves as a milestone for venture capitalists by which to gauge the status of their investment. Being familiar with each stage and the challenges it poses may spare you wasted energy and disappointment. Please note, however, that the three stages in the development of a functioning startup do not match the three phases in the development of a business plan within the framework of this competition (see exhibit 2).If you intend to be successful, this startup process should influence both your activities as the initiator of a business concept and your path toward forming your own company. To a large extent, it is the demands of investors that will determine how you must approach the individual stages of the startup.Stage 1: Business idea generation. In the beginning is the inspiration – your solution to a problem. It must be evaluated to determine if it delivers an actual customer value, whether the market is big enough, and just how big it will be. The idea itself has no intrinsic economic value. It acquires economic value only after it has been successfully transformed into a concept with a plan and implemented.You will need to start putting together your team as soon as possible, and finding partners who can develop your product or service until it is ready for market (or at least until shortly before). In the case of products, this usually involves a functioning prototype. You will most likely have to do without venture capital during this stage. You will still be financing your plan with your own money, help from friends,perhaps state research subsidies, contributions from foundations or other grants. Investors refer to this as "seed money," as your idea is still a seedling, not yet exposed to the harsh climate of competition.Your objective at this stage is to present your business concept and market – which forms the foundation of your new company – so clearly and concisely as to pique the interest of potential investors in helping you cultivate your idea further.Stage 2: Business plan preparation. At this stage, it is most important to focus on the big picture: don't lose sight of the forest for the trees! The business plan itself will help you do this as you must consider and weigh the risks involved, prepare for any contingency, learn to anticipate a variety of possible situations or "scenarios." You will need to lay down plans and create a budget for the key activities of the business – for development, production, marketing, distribution and finance. Naturally, you will need to make many decisions, such as which customers or segments will you target? What price will you ask for your product or service? What is the best location for your business? Will you handle production yourself or outsource it to third parties? And so on.In preparing the business plan you will come in contact with many people outside your startup team. In addition to investors, you will talk to many specialists: attorneys, tax advisors, experienced entrepreneurs, ad experts. The business plan competition organizers will help you get in touch with just the right people. You will also have to begin reaching out to your potential customers, i.e., by means of consumer surveys, to make initial assessments of your market. Always keep in mind that customer acceptance is an essential prerequisite to the success of your company! Seek out about possible suppliers and perhaps close your first agreements. You will also want to become aware of who your competitors are.This whole process will not come cheap. The team must earn a living, you must run a rudimentary operation, and perfect a prototype. Yet at this stage, you should also be able to estimate your expenses. Financing will generally still be provided from the same sources you relied on during stage one, although some investors may be willing to make the occasional advance.This stage concludes successfully for you as a new entrepreneur when an investor expresses a willingness to finance your undertaking.Stage 3: Startup and growth. Now that the conceptual work is largely complete, it is time to start implementing your business plan.Your role now changes from that of architect to that of builder. Business success must now be sought and achieved on the market. The day of reckoning has come when you will learn whether your business concept was a good and ultimately profitable one.Investor exit en route to becoming an established company. The pull-out of your initial investors is a completely normal step in the development of a startup, for if everything has gone well, your risky venture will have gradually become a stable enterprise (see exhibit 3). In the course of its short life, you have created a number of jobs, and wooed many customers with your innovative solution to their problem. Your commitment is paying off as the value of your business increases.A profitable exit has been the objective for the venture capitalist from the outset. Capital recovery can happen in very different ways. Normally, the business is sold to a competitor, supplier, or customer, for instance, or it is listed on the stock exchange (the "initial public offering" or IPO). It is also possible for investors who want out to be paid off by the other partners.2. The Business Idea"There is nothing in the world as powerful as anidea whose time has come."Victor HugoThe above statement undoubtedly applies to ideas for starting a new business. But how do you come up with such an idea? And how can you know if the idea for the business will have a promising future?Studies show that the lion's share of original and successful business ideas were generated by people who had already had several years of relevant experience. Gordon Moore and Robert Noyce, for example, had a number of years behind them at Fairchild Semiconductors before teaming up with Andy Grove to form Intel. But there are also examples of revolutionary ideas brought to life by mere novices, as Steve Jobs and Steve Wozniak demonstrated when they dropped out of university to start Apple.2.1 Development of a business ideaIn economic terms, a spark of genius is worthless, no matter how brilliant it may be. For an idea to grow into a mature business concept, it must be developed and refined, usually by many different people.The initial idea must first pass a quick plausibility check. Before you follow up on an idea, you should evaluate it in light of its (1) customer value and (2) market chances and its (3) degree of innovation, as well as considering whether it will be both (4) feasible and profitable.•Talk your idea over with friends, professors, experts, and potential customers.The broader the support you find for your idea, the better you will be able to describe its benefits and market opportunities. You will then be well prepared when it comes time to discuss your project with professional investors.•Is your idea really novel? Has someone else already developed it or even applied to patent it?•Will it be possible to develop your idea in a reasonable period of time and with a justifiable level resources?It takes at least four weeks to develop a business idea. In light of the multiple stages of development, it is improbable – and fairly unrealistic – that you will spend fewer than four weeks developing your concept. Generally, a business idea is not worthy of being financed until it is so concrete that it can be launched on the marketin the foreseeable future at reasonable risk. Investors talk of the "seed phase" of a business concept, which usually has to be financed with "soft" money, i.e., from sources that as yet place no hard and fast demands on the success of the idea.The seed phase can take longer, in particular if the idea is ahead of its time. Although the perfect product has been found, it cannot yet be marketed because the development of complementary technologies or systems is still in the works. One example is the Internet. The ideas for marketing products and services came early, but a lack of security in the available payment systems hampered and delayed its commercial exploitation for some time.2.2 Elements of a promising business ideaA business idea can be considered promising if it has the following four elements (exhibit 4):1. Clear customer valueThe key to success in the marketplace is satisfied customers, not great products. Customers spend their hard-earned money to meet a need or solve a problem. The first principle for developing a successful business idea is thus that it clearly shows which need it will fulfill and how it will do so.Initially, many entrepreneurs have the product and the technical details of design and manufacture in mind when they speak of their solution. Not so the investor –the investor first looks at the idea from the perspective of the market. For investors, customer value takes top priority, and everything else is secondary. What's the difference? If innovators say, "Our new device can perform 200 operations per minute," or "Our new device has 25% fewer parts," they are focusing on the product.By contrast, saying, "Our new device will save the customer a quarter of the time and therefore 20% of the costs," or "Our new solution can boost productivity by up to 25%," adopts the customer's point of view. The product is merely a means of delivering value to customers.The customer value of a product or service expresses what is novel or better about the item when compared to competitive offers or alternative solutions. As such, it plays a key role in setting your product apart from others – a core issue in marketing, as we will learn – and is essential to the market success of your business concept. Try, whenever possible, to also express the customer value in figures if you can.Marketing theory states that the customer value must be formulated into a unique selling proposition or USP. This means two things: first, your business concept must be presented in a way that makes sense (selling proposition) to the customer. Many startups fail because the customer does not understand the advantage of using the product or service and thus does not buy it. Second, your product must be unique. Consumers shouldn't choose just any solution that hits the market – they should choose yours. You must therefore persuade them that your product offers a greater benefit or added value. Only then will your customers give you an edge.In describing your business concept, you need not present a fully formulated USP, but it should be more or less obvious to potential investors.2. Market of adequate sizeA business idea will have economic value only when it succeeds in the market. This second principle of a successful idea is that it demonstrates how big the market is for the product offered, which target group(s) it is designed for and to what degree it will differ from the competition.A detailed analysis of the market is not yet necessary at this point. Estimates, deriving from verifiable basic data, will suffice. Sources could include official statistics, information from associations, articles in trade journals, the trade press and the Internet. It should be possible to draw a reasonable conclusion about the size of the target market from this base data. It is sufficient for you to summarize the results of this investigation in your presentation of the business idea.The same is true for your target customers; you will need only a loose definition of who they will be. Describe why your business idea will offer a special value to this group in particular, and why this group is financially the most interesting to you. You will always face competition - both direct, from companies that offer a similar product and indirect, from substitute products that can also fulfill the customer's need. A noodle manufacturer competes not only with other noodle manufacturers, but also with rice and potato producers and bakeries in particular and, more generally, with all other foodstuffs as well. Your business idea will need todemonstrate that you have understood who your competitors are. Name them – and describe why and how you can take the lead with your business idea.3. Sufficient degree of innovationBusiness ideas can be classified along the two dimension products/services and business system. In each of these categories, you can develop something new or capitalize on something that already exists. Simplified, a business system is a way of understanding how a product or service is developed, manufactured, and marketed (see exhibit 5).The term innovation is generally used in the context of new products which are made with conventional production methods and delivered to the customer through existing distribution channels. Microsoft, for instance, developed DOS, making use of the IBM sales organization to bring it to the market.Innovations in the business system are less obvious but just as important. The success of Dell is attributed to significant cost savings thanks to a new form of direct distribution and a novel production process in which a computer is produced only after it is ordered, and in the shortest possible time frame.In developing new products, improvement of the multi-layered dimension "customer value" is at the forefront while innovations in the business system are targeted at lower costs and faster processes, savings which can then be passed on to the customer in the form of lower prices.It is rare that both types of innovation - in product and business system - can be combined to create a completely new industry. Netscape contributed significantly to the success of the World Wide Web by distributing its new browser over the Internet free of charge. In doing so, Netscape passed up initial sales revenues but, throughthe increased number of visitors to its website, succeeded in raising advertising revenues.4. Feasibility and profitabilityFinally, to arrive at an actual startup, the feasibility of the business idea must be assessed. In addition to specific factors that could make the project unfeasible (e.g. legal considerations, standards), the assessment may include the time and resources needed to carry out the project. The construction of hotels on the moon may be technically feasible, for example, but their cost-benefit ratio is unreasonable. Interwoven with the feasibility criterion is profitability. A company must be able to generate profit over the long term. This fourth element of a successful business idea should thus indicate how much money can be made and how.Traditionally, profit calculations for a business are made as follows: a company buys material or services, thereby incurring costs. It also sells products or services to customers, thereby earning revenues. If your business follows this pattern, it is not necessary to provide any greater detail in the description of your idea. Do, however, make rough estimates of anticipated expenses and profits. One rule of thumb for growing companies is that the startup phase should generate gross profits (revenues minus direct product costs) of 40% to 50%.But many businesses do not function according to this traditional model. McDonald's, for example, earns its money from the licensing fees it charges franchisers. The restaurant owner pays McDonald's for the name and the way the restaurant is run. If your business idea is based on this kind of innovation in profit generation, you should detail it in your business idea.Key Questions: Business Idea•Who will buy your product?•Why should customers buy the product? What need does it fulfill?•How will the product be distributed to the customer?•What, exactly, is innovative about your business concept?•How is the business concept unique? Is it protected by patent?•How is the product better than comparable alternatives?•What competitive advantages will the new company have, and why can't a competitor simply copy them?•Can money be made with the product? What costs will be incurred, what price will be asked?2.3 Protecting your business ideaOnly a few ideas are genuinely ingenious. True breakthroughs are the result of hard work and therefore cannot be easily replicated. A compromise must be found toprotect the idea sufficiently while disclosing sufficient information to test itsviability.Patenting. Early patenting is recommended, especially in the case of new products or processes. Get the advice of experienced patent lawyers: The future success ofyour business can depend on a patent, and in every industry, there are powerfulcompetitors with the means to keep an unfavorable patent from being granted. Butsome degree of caution is advised: a patent can also miss the mark when it comes toprotecting your idea by making the idea public. Be sure to keep this in mind if thepatent can be improved upon easily – and thus thwarted. The recipe for Coca-Cola,for example, is still "secret" and has never been patented because the patent can becircumvented with a very few, neutral-tasting changes.Confidentiality agreement. Lawyers, trustees, bank employees, are all required by law to maintain confidentiality vis-à-vis their clients' businesses. Venture capitalistsalso have an interest in keeping things under wraps as someone who gets areputation for "poaching" ideas will not be made privy to new ideas any time againsoon. The same is true for professional consultants. Yet a confidentiality agreementcan be effective in some cases. The coaches, service providers and jurors involved in the North Bavarian Business Plan Competition are required to sign a confidentiality agreement. But, like every legal document, it has its limits where there are gray areas that couldmake it difficult to prove a violation of the agreement in court.Quick implementation. Your best protection against intellectual property theft is probably to implement your plan as quickly as possible. A great deal of work must be done between dreaming up an idea and opening for business. This effort, called the entry barrier, can keep potential copycats at bay, because in the end, it's crossing the finish line first that makes you the winner, not having the fastest shoes!2.4 Presenting to investorsHow you present your business idea to an investor will put all your previous efforts to the test. It is critical to attract attention and pique interest through content and professional appearance. Good venture capitalists are presented with up to 40 business ideas per week, and their time is limited.In presenting the business idea, neither fanfare nor a wealth of details is as important as a clear and thoughtful presentation.Example 1: The hard sell. "I have a great idea for a new, customer-friendly method of payment with a big future. This is something everybody has always wanted. You could earn a lot of money from this..." The investor thinks, "That sounds like a lot of hot air. I've heard of a hundred such miracle solutions before.... Next!"Example 2: The technical approach. "I have an idea for a computerized machinery control system. The key is the fully-integrated SSP chip with 12 GByte RAM and the asymmetrical XXP-based direct control unit. It took me five years to develop." The investor thinks, "Techie. In love with technology. She's her own market.... Next!" Example 3: The entrepreneur. "I have an idea which will enable companies with up to 100 employees to save 3-5% of their costs. Initial cost-price analyses have convinced me that a spread of 40-60% should be possible. I have found a focused advertising channel through the Association of Small and Medium Sized Businesses and the ABC Magazine. The product will be distributed by direct sale." The investor thinks, "Aha! She has identified the customer value, and even worked out the figures! She's thought about the market and the profit potential and knows how she will get the product to her customers. Now I'd like to get a look at the product..." These examples demonstrate why clarity should be your foremost goal. It is best to assume that investors are not familiar with the technology of your product or the industry jargon. They are also not likely to take the time to look up an unknown term or idea. Describing your concept clearly and incisively is your next goal. You must be able to convey the basic mechanics of your business idea to an investor with credibility. There will be plenty of time at a later point for detailed descriptions and exhaustive financial calculations.Normal requirements of a business concept presentationTitle page!Name of the product or service!Name of the person submitting!Confidentiality notice!Illustration, where appropriate, of the product or service in actionBody!4-7 pages (including a one-page executive summary)!Clear structure with headings and indentations as visual organizersCharts, illustrations, tables!Maximum of 4 illustrations, placed in the appendix!Use only if necessary for comprehension!Make reference to the illustrations in the text!Simple, clear presentation3. The Business PlanThe modest term "business plan" does not really do justice to this very important business tool. The business plan was first used in the USA as means of acquiring funds from private investors and venture capitalists who then participate in the company as co-owners and provide the guarantee capital. In Italy and other countries too, the presentation of this type of startup strategy has become a mandatory courtesy when seeking to do business with any partners, including customers, suppliers, and distributors, to say nothing of venture capitalists and banks. But business plans are not only used by startups; even major corporations rely increasingly on project-specific business plans to help them make internal investment decisions.3.1 Advantages of a business plan"Writing a business plan forces you intodisciplined thinking, if you do an intellectuallyhonest job. An idea may sound great, but whenyou put down all the details and numbers, itmay fall apart."Eugene Kleiner, Venture CapitalistThe great importance attached to the business plan is well justified. With it, entrepreneurs can prove that they are in a position to articulate and handle the diverse aspects of startups and their management. Properly conceived and executed, the business plan becomes a key document for evaluating and managing an operation.A business plan details the overall entrepreneurial concept behind a planned business. It gives an exact summary of the economic circumstances, the targets set, and the resources necessary. The business plan forces entrepreneurs to think through their ideas systematically, it identifies gaps in knowledge, demands decisions, and promotes the formulation of a well-structured and focused strategy. During its preparation, one after the other, alternative approaches come to light and are evaluated and pitfalls are identified. With its clear analysis of the situation, the business plan becomes an invaluable tool for overcoming problems and contributes substantially to boosting efficiency and effectiveness.3.2 Characteristics of a successful business planHow a business plan is designed depends on what kind of venture is envisioned and what the plan should accomplish. If a plan is being written for a startup, for。
Howtowriteabusinessproposal
How to Write a Good Business Proposal?If you want to know how to write a business proposal, the person to ask is your customer. The goal of business proposal writing is to answer your custo mer's questions and persuade them to select you. Business proposal writing sho uld be more about your customer than it is about you. You should write your business proposal to meet your customer's expectations.A typical business proposal might include:∙ A Summary introducing your company, what you will do or provide to the customer, and how the customer will benefit from what you propo se.∙ A statement of work or technical approach describing what you will do or provide to the customer. If products are being proposed, then produ ct deions are usually provided (the amount of detail depends on the cus tomer’s requirements).∙ A management plan describing how you will organize and supervise any work to be performed. A schedule of major milestones（重大事件）andallocation（分配）of resources may be provided.∙Corporate（公司的）qualifications（资历，资格）that describe your cap ability to do or provide what you are proposing. Relevant prior experien ce is usually highlighted.∙ A Staffing（人员配备）Plan that describes how the project will be staff ed is sometimes on large service contracts. If particular people are impo rtant to the approach, their resumes（简历）are usually provided.∙Contracts（合同）and Pricing. If the proposal is being used to close a b usiness deal, then business and contractual terms are usually provided.7 Tips for Creating a Great Business Proposal:1.Write Clearly and Succinctly（简洁地）:When people begin reading the proposal, they have little or no idea what you are proposing, so youhave to walk them through the process. You do so by starting at thebeginning and clearly, simply, and logically moving forward by making your points one at a time.2.Make a Good Argument and Counter（反击，申辩）Possible Obstacles（障碍）:In a good business proposal, you put your best foot forwar d, put your company in the best light, and make yourself irresistible to the reader. The best way is to marshal（整理）the top facts and argume nts in your favor.3.Show your Personality:Far too often, business proposals are devoid（没有）of life. This is business and you have to follow some business conventions, but as you do, also let the reader see who you are. Share yo ur enthusiasm（热情）for your business, their business, the idea, ect. e Graphics（文字）Intelligently:Don't make the mistake of boggingdown a perfectly fine proposal with excess graphics. Just be sure that t he graphics reinforce the sale rather than distracting from the point. 5.Don't Overstate:Avoid exaggeration. Once readers think you're not shooting straight with them, they may question the truthfulness of everything in your proposal, then you may lose credibility.6.Avoid Boilerplate(样板文件)Language: Certainly you can reuse persuasive information from elsewhere, but try to keep it to a minimum and don't make it obvious. Your proposal should read as if it were created especially for this particular client or customer.7.Always Keep the Reader in Mind:A proposal is a marketing tool, and as such, remember Marketing 101: Stress benefits, benefits, benefits.Finally, while price is important and must be discussed, do so only after y ou have attracted readers with your crisp writing, powerful arguments, supp orting graphics, and enough potential benefits. Then you can go in for the sale.Questions:1.What are the purposes of a business proposal?2.When should prices be discussed in a business proposal?。
How to writeBusiness plan
BUSINESS DEVELOPMENT PROJECTChapter 1: Business Plan BasicsBusiness plan: a written description of your business’s future telling what you plan to do and how you plan to do it.When should you write it? Reasons:∙Explore the feasibility of new business∙Business facing a major change∙Seek financing∙Seek investmentAdvices:∙Know your competition∙Know your audience∙Have proof to back up every claim you make∙Be conservative in all financial estimate and projection∙Be realistic with time and resources available∙Be logical∙Have a strong management team∙Document why your idea will work∙Describe your facilities and location for performing the workWhat NOT to include in a business plan∙Form over substance∙Empty claim∙Rumors about the competition∙Superlatives and strong adjectives∙Long documents∙Overestimate financial projection∙Overly optimistic time frames∙Gimmicks∙Typos and misspelled wordsChapter 3: Put Your Plan to Work – a thorough, comprehensive look at your business (not important chapter)Chapter 4: Before Beginning Your Plan∙Determine your Goals and Objectives (Fig. 4.1 worksheet)Chapter 6: Executive summariesPoints to include (a suggested format):∙Company description (Current business position)∙How much financing you seek? (Financial requirements)∙What will the return be to the investor? Over hat length of time?(Financial features)∙What is the perceived risk level?∙What are the product and competitive strategies?∙Major achievements (patents, prototypes, facilities, product development, test marketing etc)Company mission/vision & objectivesThe Industry (Fig. 9.1)-General features-state of industry (growing, mature, declining, new potential)-regulations & standards that are implemented in the industry-technological trends-Any barrier to entry into the industry?Identify your competitorsIdentify your competitors∙Based on customer choice∙Based on product use∙Based on strategyCompetitors’ actions∙Their management∙Organization∙Customer base∙Research and development∙Operations∙Marketing and sales∙Distribution and delivery∙Financial conditionCompetitors’ strategies∙Low lost∙Differentiation∙Focus∙DirectionMarket profiles-About your market types (sole/few/many companies)-what is the position of your organization in the industry?-product distribution according to market segmentsMarket segments(Definition of market segments:- a group of customers who have specific needs and wants in common;-grouping similar customers, can satisfy their needs more efficiently-the more features and choices that customers demand, the more reason to divide customers into groups)The market direction & trendsChapter 8Product & service (Fig 8.1 & 8.2)1.Description & concepts- knowledge, experience, belief/idea, uniqueness (newly improved), brand name, made-by2.Features & specification (with benefits where appropriate)- quality, reliability, ease of use- packaging- color, sizes, weight, shape, freshness- accessories- price (markup pricing – cost + markup (cover expenses))- leader (below markup), penetrating, skimming (high initial price, lower over time), bundling (with related products)3.Other features- warranty, training- service (product care)- financing- customer preference/trend- availability (market outlets)Marketing(Chapter 10)Define & describe your productDefine your customer-Who are your customers?o Profile of your customer (demographic & large client distribution) ▪Major customer profile – how large are they in term of yourcustomer profile, years of business with you▪Demographic data - age, gender, family size, edu, occupation,income, ethnicity, nationality, religion)▪Lifestyle (preference, hobbies, social activities, trend,expectation, behaviour)▪Geography (where do they live?)▪PersonalityInnovators, early adopters, follow majority, laggards -What do they buy?o Featureso Packagingo Pricingo Delivery options-Why do they buy?o Benefits▪Awareness▪Interest▪Evaluation▪Trial▪adoptionThe Four Ps:Product or servicesPrice (that you will charge)Place (that you will sell or distribute your product)Promotion and advertising (that you will use to communicate with potential customers) Price-Pricing objectives (fig 10-1, pg 133)-Price range (fig 10-2, pg 134)-Price/quality grid (fig 10-3, pg 134) – optionalPlace-Location & site selectionso Traffic, demographics, populations, estimated sales, rental rates & other economic indicators-Distribution concernso how will the buyers obtain your product? (wholesalers or middlemen?)o how will you manage distribution?o How will you focus your distribution? (on the most likely markets, withina certain geographic area or where your competition is weak?)o Any alternative distribution channel (discount retailers, website)?▪Your website∙Purpose∙Design∙Tracking system∙Marketing your website (bookmark, on printed material,store signs, broadcast & ads, links with other sites)▪E-mail campaigns▪BlogsPromotion-Advertising concerns, be specific & precise & detailed (fig 10-4, pg 139), include paid advertising (TV, billboards, radio, newspapers, magazines, website ads) -Free media for events, create & write stories to attract attention & enhance your business planPlan for advertising campaign-research how your competitors advertise- talk with advertising representatives- develop a focused and accountable planFollow-up Plan (Plan for long term)Business Operations(Chapter 11)Organisation chart (if available append to report)Marketing implementation policy-Who are your people?o Hierarchical structure▪Senior manager -> area manager -> team leader -> salesexecutiveo Control sheets (use by managers)▪Add an extra column (on the right hand side) – Person-in-charge▪ A job distribution matrix for sales executive (see below) Sales policy-Shop front – maximum waiting time for customers?-Refund & goods return policies?Goods delivery policy–manners of delivery (how?)-longest waiting period before goods are delivered? Any compensation for late delivery?Follow-up policy-When after delivery of goods? Any contract of after-sales service? If none, when does a customer receive calls after purchase? How frequent & for how long?(design a chart)Administrative & staff control policy-For manufacturing & production only (design staff work schedule/roster)。
HOW TO WRITE A BUSINESS LETTER
HOW TO WRITE A BUSINESS LETTERWriting a business letter in English is somewhat formulaic. The formats are standardized and the style, punctuation and language are quite formal. There are several standard phrases that people use when writing business letters, which makes writing business letters somewhat straight forward.As to content, the most important thing you must include in a business letter is all relevant information!Style, Punctuation and Language:Business letters are written in a concise, clear style just say what you need to say simply, clearly, and respectfully. Do not add any information that is not necessary to the purpose of the letter.Style: The style is formal, so do not use contractions, slang, or expressions/idioms. The structure of a business letter usually comprises three paragraphs:1st paragraph: Introduction> states what the purpose of your letter is (i.e., why are you writing it)2nd paragraph: Main body>gives details/explanation3rd paragraph: Close>concludes the letterLanguage and Standard Phrases: You can use some standardised phrases for the introductory and closing paragraphs.1st Paragraph: Introduction:I am writing3rd Paragraph: CloseGreeting:If you know the name and title of the person you are writing to, use the full title, followed by a colon.e.g.,Dear Mrs. Smith:If you don’t know the name of the person you are writing to, use Sir/Madam, followed by a colon.e.g., Dear Sir/Madam:If you know the name and title of the person, but don’t know whether they are male or female, write the name as it appears, followed by a colon.e.g., Dear L. Lee:Complimentary close:If you use a person’s name in the greeting, use “Yours sincerely,” (make sure you remember the comma!)If you use “Dear Sir/Madam”, use “Yours faithfully,” (make sure you remember the comma!)Signature:Your hand-written signature is directly below the complimentary close. Leave a line and then print your name below your signature.FormatPersonal Business Letter:There are a few different formatting styles for business letters. As most people now type their business letters on the computer, the block format is becoming the most commonly used and accepted. The block format is the one you will learn in this class.If you are writing a business letter as part of your professional work, your company will have a standard format that they use, so you will just follow the rules for that one.The format given below is what most people use when they are writing a personal business letter:YOU’RE ADDRESS:Unit or house number, name of roadName of city/town, name of province/stateCountry (if you are sending to another country)Postal/zip code (if there is one)DATE(you must leave a double space between theaddress and the date) RECIPIENT’S ADDRESS:Unit/building number, name of roadName of city/town, name of province/stateCountry (if you are sending to another country)Postal/zip code (if there is one)RE: in a few short words write what your letter will refer toAccount/Customer/Billing number:Dear Sir/Madam:1st paragraph -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.2nd paragraph-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.----------------------------------------------------------------------------------------------------------------------------.3rd paragraph------------------------------------------------------------------------------------------------------------------------------.Yours faithfully,John DoeJohn DoeEXAMPLE BUSINESS LETTER1876 Fuller AvenueSeaton, KentPO49 4DK18 August 2012Seaton Library4660 High Street, KentPO65 8DKRe: Lost library cardMembership number: 2765410Dear Sir/Madam:I am writing to request a new membership card because I have lost mine.I would be very grateful if you could send me the new card by post because I am an invalid and so I am unable to get to the library to pick it up in person. Could you also send it to me by the end of this week because the mobile library comes on Monday and I will need my card by then in order to return the books I have borrowed and to get new ones?Thank you for your time and attention and I look forward to receiving my new card.Yours faithfully,Sarah JonesSarah Jones。
Mckinsey(麦肯锡)如何写商业计划书
• Young, growing
companies
• IPO (Initial Public
Offering)
• Sale of stake to
third parties
5–8 years post Start-up
8
Collective team strength
SUCCESS
Entrepreneurs
7
Role of a venture-capital company
Capital recovery
$$$
Investments
• Seed capital (pre
start-up)
• Start-up capital (at
or shortly before
start-up)
• Expansion capital
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
Traditional service providers • Attorneys • Patent lawyers • Tax consultants/
accountants • Market researchers
4
Elements of a promising business idea
The key to success is satisfied customers, not a great product
How to Write a Great Business Plan
How to Write a Great Business Planby William A. SahlmanReprint 97409Harvard Business ReviewFew areas of business attract as much attention as new ventures, and few aspects of new-venture creation attract as much attention as the business plan. Countless books and articles in the popular press dissect the topic. A growing number of annual business-plan contests are springing up across the United States and, increasingly, in other countries. Both graduate and undergraduate schools devote entire courses to the subject. Indeed, judging by all the hoopla surrounding business plans, you would think that the only things standing between a would-be entrepreneur and spectacular success are glossy five-color charts, a bundle of meticulous-looking spreadsheets, and a decade of month-by-month financial projections.Nothing could be further from the truth. In my experience with hundreds of entrepreneurial start-ups, business plans rank no higher than 2–on a scale from 1 to 10–as a predictor of a new venture’s suc-cess. And sometimes, in fact, the more elaborately crafted the document, the more likely the venture is to, well, flop, for lack of a more euphemistic word. What’s wrong with most business plans? The an-swer is relatively straightforward. Most waste too much ink on numbers and devote too little to the information that really matters to intelligent in-vestors. As every seasoned investor knows, finan-cial projections for a new company–especially de-tailed, month-by-month projections that stretch out for more than a year–are an act of imagination. An entrepreneurial venture faces far too many unknowns to predict revenues, let alone profits. Moreover, few if any entrepreneurs correctly antici-pate how much capital and time will be required to accomplish their objectives. Typically, they are wildly optimistic, padding their projections. In-vestors know about the padding effect and therefore discount the figures in business plans. These ma-Which information belongs–and which doesn’t–may surprise you. How to Write a Greatby William A. SahlmanWilliam A. Sahlman is Dimitri V. d’Arbeloff Professorof Business Administration at the Harvard BusinessSchool in Boston, Massachusetts. He has been closelyconnected with more than 50 entrepreneurial venturesas an adviser, investor, or director. He teaches a second-year course at the Harvard Business School called “En-trepreneurial Finance,” for which he has developed morethan 100 cases and notes.Business Planneuvers create a vicious circle of inaccuracy that benefits no one.Don’t misunderstand me: business plans should include some numbers. But those numbers should appear mainly in the form of a business model that shows the entrepreneurial team has thought through the key drivers of the venture’s success or failure. In manufacturing, such a driver might be the yield on a production process; in magazine pub-lishing, the anticipated renewal rate; or in software, the impact of using various distribution channels. The model should also address the break-even issue: At what level of sales does the business begin to make a profit? And even more important, When does cash flow turn positive? Without a doubt, these questions deserve a few pages in any business plan. Near the back.What goes at the front? What information does a good business plan contain?If you want to speak the language of investors–and also make sure you have asked yourself the right questions before setting out on the most daunting journey of a businessperson’s career–I rec-ommend basing your business plan on the frame-work that follows. It does not provide the kind of “winning” formula touted by some current how-to books and software programs for entrepreneurs. Nor is it a guide to brain surgery. Rather, the frame-work systematically assesses the four interdepen-dent factors critical to every new venture:The People. The men and women starting and running the venture, as well as the outside parties providing key services or important resources for it, such as its lawyers, accountants, and suppliers.The Opportunity. A profile of the business itself–what it will sell and to whom, whether the business can grow and how fast, what its economics are, who and what stand in the way of success.The Context. The big picture–the regulatory environment, interest rates, demographic trends, inflation, and the like–basically, factors that in-evitably change but cannot be controlled by the entrepreneur.Risk and Reward. An assessment of everything that can go wrong and right, and a discussion of how the entrepreneurial team can respond.The assumption behind the framework is that great businesses have attributes that are easy to identify but hard to assemble. They have an experi-enced, energetic managerial team from the top to the bottom. The team’s members have skills and experiences directly relevant to the opportunity they are pursuing. Ideally, they will have worked successfully together in the past. The opportunity has an attractive, sustainable business model; it is possible to create a competitive edge and defend it. Many options exist for expanding the scale and scope of the business, and these options are unique to the enterprise and its team. Value can be extract-ed from the business in a number of ways either through a positive harvest event–a sale–or by scal-ing down or liquidating. The context is favorable with respect to both the regulatory and the macro-economic environments. Risk is understood, and the team has considered ways to mitigate the im-pact of difficult events. In short, great businesses have the four parts of the framework completely covered. If only reality were so neat.The PeopleWhen I receive a business plan, I always read the résumé section first. Not because the people part of the new venture is the most important, but because人员结构很重要丆因为是团队without the right team, none of the other parts real-ly matters.I read the résumés of the venture’s team with a list of questions in mind. (See the insert “Who Are These People, Anyway?”) All these questions get at the same three issues about the venture’s team members: What do they know? Whom do they know? and How well are they known?What and whom they know are matters of insight and experience. How familiar are the team mem-bers with industry players and dynamics? Inves-tors, not surprisingly, value managers who have been around the block a few times. A business plan should candidly describe each team member’s knowledge of the new venture’s type of product or service; its production processes; and the market it-self, from competitors to customers. It also helps to indicate whether the team members have worked together before. Not played–as in roomed together in college–but worked.Investors also look favorably on a team that is known because the real world often prefers not to deal with start-ups. They’re too unpredictable. That changes, however, when the new company is run by people well known to suppliers, customers, and employees. Their enterprise may be brand new, but they aren’t. The surprise element of working with a start-up is somewhat ameliorated.Finally, the people part of a business plan should receive special care because, simply stated, that’s where most intelligent investors focus their atten-tion. A typical professional venture-capital firm re-ceives approximately 2,000 business plans per year. These plans are filled with tantalizing ideas for new products and services that will change the world and reap billions in the process–or so they say. But the fact is, most venture capitalists believe that ideas are a dime a dozen: only execution skills count. As Arthur Rock, a venture capital legend as-sociated with the formation of such companies as Apple, Intel, and Teledyne, states, “I invest in peo-ple, not ideas.” Rock also has said, “If you can find good people, if they’re wrong about the product, they’ll make a switch, so what good is it to under-stand the product that they’re talking about in the first place?”Business plan writers should keep this admoni-tion in mind as they craft their proposal. Talk about the people–exhaustively. And if there is nothing solid about their experience and abilities to herald, then the entrepreneurial team should think again about launching the venture.The OpportunityWhen it comes to the opportunity itself, a good business plan begins by focusing on two questions: Is the total market for the venture’s product or ser-vice large, rapidly growing, or both? Is the industry now, or can it become, structurally attractive? En-trepreneurs and investors look for large or rapidly growing markets mainly because it is often easier to obtain a share of a growing market than to fight with entrenched competitors for a share of a mature or stagnant market. Smart investors, in fact, try hard to identify high-growth-potential markets ear-ly in their evolution: that’s where the big payoffs are. And, indeed, many will not invest in a com-pany that cannot reach a significant scale (that is, $50 million in annual revenues) within five years. As for attractiveness, investors are obviously looking for markets that actually allow businesses to make some money. But that’s not the no-brainer it seems. In the late 1970s, the computer disk-drive business looked very attractive. The technology was new and exciting. Dozens of companies jumped into the fray, aided by an army of professional investors. Twenty years later, however, the thrill is gone for managers and investors alike. Disk drive companies must design products to meet the per-ceived needs of original equipment manufactur-ers (OEMs) and end users. Selling a product to OEMs is complicated. The customers are large rela-tive to most of their suppliers. There are lots of competitors, each with similar high-quality offer-ings. Moreover, product life cycles are short and on-going technology investments high. The industry isBUSINESS PLANmous package containing an empty can of dog food and a copy of his prospectus. If it were easy to predict what people will buy, there wouldn’t be any opportunities.Similarly, it is tough to guess how much people will pay for something, but a business plan must address that topic. Sometimes, the dogs will eat the dog food, but only at a price less than cost. Investors always look–that is, marketsBUSINESS PLANⅪWho else might be able to observe and exploit the same opportunity?ⅪAre there ways to co-opt potential or actual com-petitors by forming alliances?Business is like chess: to be successful, you must anticipate several moves in advance. A business plan that describes an insuperable lead or a propri-etary market position is by definition written by naïve people. That goes not just for the competition section of the business plan but for the entire dis-cussion of the opportunity. All opportunities have promise; all have vulnerabilities. A good business plan doesn’t whitewash the latter. Rather, it proves that the entrepreneurial team knows the good, the bad, and the ugly that the venture faces ahead. The ContextOpportunities exist in a context. At one level is the macroeconomic environment, including the level of economic activity, inflation, exchange rates, and interest rates. At another level are the wide range of government rules and regulations that affect the opportunity and how resources areBUSINESS PLANand give all the risk to others. The best business is a post office box to which people send cashier’s checks. Yet risk is unavoidable. So what does that mean for a business plan?It means that the plan must unflinchingly con-front the risks ahead–in terms of people, opportu-nity, and context. What happens if one of the new venture’s leaders leaves? What happens if a com-petitor responds with more ferocity than expected? What happens if there is a revolution in Namibia, the source of a key raw material? What will man-agement actually do?Those are hard questions for an entrepreneur to pose, especially when seeking capital. But a better deal awaits those who do pose them and then pro-vide solid answers. A new venture, for example, might be highly leveraged and therefore very sensi-tive to interest rates. Its business plan would bene-fit enormously by stating that management intends to hedge its exposure through the financial-futures market by purchasing a contract that does well when interest rates go up. That is the equivalent of offering investors insurance. (It also makes sense for the business itself.)companies, but rather products –they are not sustainable as indepen-dent businesses.Therefore, the business plan should talk candidly about the end of the process. How will the investor eventually get money out of the business, assuming it is successful,even if only marginally so? Whenwhen you have directions.The Deal and Beyondlarge share of the returns.tailed financial projections are useful –BUSINESS PLANnomics of the business and can help enormously in determining how much money the new venture actually requires and in what stages. Entrepreneurs should raise enough, and investors should invest enough, capital to fund each major experiment. Ex-periments, of course, can feel expensive and risky. But I’ve seen them prevent disasters and help create successes. I consider it a prerequisite of putting to-gether a winning deal.Beware the AlbatrossAmong the many sins committed by business plan writers is arrogance. In today’s economy, few ideas are truly proprietary. Moreover, there has never been a time in recorded history when the sup-ply of capital did not outrace the supply of opportu-nity. The true half-life of opportunity is decreasing with the passage of time.A business plan must not be an albatross that hangs around the neck of the entrepreneurial team, dragging it into oblivion. Instead, a business plan must be a call for action, one that recognizes man-agement’s responsibility to fix what is broken proactively and in real time. Risk is inevitable,avoiding risk impossible. Risk management is the key, always tilting the venture in favor of reward and away from risk.A plan must demonstrate mastery of the entire entrepreneurial process, from identification of op-portunity to harvest. It is not a way to separate un-suspecting investors from their money by hiding the fatal flaw. For in the final analysis, the only one being fooled is the entrepreneur.We live today in the golden age of entrepreneur-ship. Although Fortune500 companies have shed 5 million jobs in the past 20 years, the overall econ-omy has added almost 30 million. Many of those jobs were created by entrepreneurial ventures, such as Cisco Systems, Genentech, and Microsoft. Each of those companies started with a business plan. Is that why they succeeded? There is no knowing for sure. But there is little doubt that crafting a busi-ness plan so that it thoroughly and candidly ad-dresses the ingredients of success–people, opportu-nity, context, and the risk/reward picture–is vitally important. In the absence of a crystal ball, in fact, a business plan built of the right information and analysis can only be called indispensable.Reprint 97409To place an order, call 800-988-0886. BUSINESS PLAN。
HowtoWriteaBusinessReport
HowtoWriteaBusinessReportHow to Write a Business Report1.Planning your business reportAs in all writing, planning is vitally important. The key questions to ask yourself when planning a business report are: -what is the purpose of this report-who are the readers of this report-what are the report’s main messages-how will the report be structured?1.1 What is the purpose of this report?Keep in mind that the purpose of a business report is generally to assist in decision making. Be sure you are clear on what decision is to be made and the role the report plays in this decision. It might be useful to consider the purpose in this way: As a result of this report, my reader/s will …For example:As a result of this report, my reader/s will know:- how well our recycling programme is doing- how to increase participation in it.1.2 Who are the readers of this report?Consider the main reader/s, but also secondary readers. The main reader for the recycling report alluded to above is the director of the recycling programme. Secondary readers might be the facilities management team on campus, the finance team, etc.Try to understand what the readers already know, what they need to know, and how they will use this report. You will need to give enough information to satisfy all these potential readers. You will need to use headings carefully so that different readerscan use the report in different ways.1.3 What are the report’s main mess ages?Taking into account the information above, think carefully about the main message/s you need to convey, and therefore what information is required.Ask yourself:-What are the required pieces of information I need to include?-What are the additional pieces of information I need to include?1.4 How will the messages be structured?The modern business approach is direct (or deductive, to use a more sophisticated term). This approach presents the conclusions or recommendations near the beginning of the report, and the report provides justification for these recommendations.It should be noted, however, that there is sometimes a place for the indirect (inductive) approach. This approach leads the reader through the discussion first and reveals the conclusions and recommendations at the end of the report. This approach might be usedif the recommendations are likely to be controversial or unpopular.The next step is to construct an outline, or structure, for your report. Check for a logical flow, and check your outline against your purpose, your reader/s, and the report’s relevant information requirements.2.Structuring your business reportYour business report may contain:- a title page-an executive summary- a table of contents-an introduction-literature review-findings and discussion- a list of references-appendix.2.1 Title PageThe title page should be brief but descriptive of the project. It should also include the date of completion/submission of the report, the author/s, and their association/organization name.2.2 Executive SummaryThe executive summary follows the title page, and should make sense on its own. The executive summary helps the reader quickly grasp the report’s purpose, conclusions, and key recommendations. You may think of this as something the busy executive might read to get a feel for your report and its final conclusions. The executive summary should be no longer than one page. The executive summary differs from an abstract in that it provides the key recommendations and conclusions, rather than a summary of the document.2.3 Table of ContentsThe table of contents follows the executive summary on a new page. It states the pages for various sections. The reader receives a clear orientation to the report as the table of contents lists all the headings and sub-headings in the report. These headings and sub-headings should be descriptive of the content they relate.2.4 IntroductionThe introduction sets the stage for the reader. It gives thecontext for the report and generates the reader’s interest. It orients the reader to the purpose of the report and gives them a clear indication of what they can expect.The introduction should:-briefly describe the context-identify the general subject matter-describe the issue or problem to be reported on-state the specific questions the report answers-outline the scope of the report (extent of investigation)-preview the report structure-comment on the limitations of the report and any assumptions made.scholarly paper, which includes the current knowledge including substantive findings, as well as theoretical and methodological contributions to a particular topic.Literature reviews are secondary sources, and do not report new or original experimental work. Most often associated with academic-oriented literature, such reviews are found in academic journals. Literature reviews are a basis for research in nearly every academic field2.6 Findings and discussionThe discussion is the main part of your report and should present and discuss your findings. It should give enough information, analysis, and evidence to support your conclusions, and it should provide justification for your recommendations. Structure of this part will depend on your purpose, scope, and requirements, but it should follow a logical and systematic pattern. The discussion should be subdivided into logical sections, each with informative, descriptive headings and anumber.If your report’s purpose includes recommending solutions to a problem, you should show clear analysis of all options. You should explain any analytical framework you used, such as SWOT or cost benefit analysis. This analysis of options can often be presented effectively in tables.If some of you conduct regression analysis, you also need to show your related analysis results.2.7 ReferencesWhenever you use information from other sources, references must be provided in-text and in a list of references. There are different style of reference, you may use APA 2.8 AppendixIf material is important to your discussion and is directly referred to, then it should be included in your discussion proper. However, you might want to use appendix to include supplementary material that enhances understanding for the reader. You might use appendix to provide details on the process or analysis you underwent.When you choose to include information in appendices, you should refer to it clearly in your text (refer Appendix A). A single appendix should be titled APPENDIX. Multiple appendices are titled APPENDIX A, APPENDIX B, etc. Appendix appears in the order that they are mentioned in the text of the report.Appendix should:-provides detailed explanation serving the needs of specific readers-be clearly and neatly set out-be numbered/lettered-be given a descriptive title-be arranged in the order they are mentioned in the text-be related to the report’s purpose—not just ‘tacked on’.3. Writing your business reportNow that you have organised your thoughts, you need to put them into writing. Ensure your writing demonstrates clarity and logic. You should think constantly about your readers and make your report easy for them to read. T o achieve good readability, you should:-use effective headings and subheadings-structure your paragraphs well-write clear sentences with plain language-keep your writing professional-use white space and well-chosen fonts-number your pages-use footnotes, tables, figures, and appendices appropriately.3.1 Use effective headings and subheadingsHeadings and subheadings are useful tools in business writing. Ensure they are descriptive of the content to follow. For example, rather than labelling a section Section 2.5, it would be better to describe it as 2.5 Justification for the high risk scenario.It is also essential that the hierarchy of headings and subheadings is clear. Use formatting (font size, bold, etc.) to show headings versus subheadings.Remember to ensure that all material placed underneath a heading serves that heading. It is easy to go off on a tangent that does not relate to a heading. Remember also that all content must relate to your purpose. Every time you write a new section of your report, check that it fulfils the purpose of the report.3.2 Structure your paragraphs wellYour headings will help create logical flow for your reader,but under each heading, you should create a series of paragraphs that are also logically ordered and structured. Paragraphs should be ordered in a logical sequence beginning with the most important material first. Within your paragraphs you should also use a structure that helps your reader. Each paragraph should begin with a topic sentence that states the main idea or topic of the paragraph.3.3 Write clear sentences with plain languageAcademic and business writing should be clear. You want to clearly communicate your understanding of the topic and the strength of your argument. In order to do this, keep your sentences short and use plain language where you can.3.4 Keep your writing professionalWhen editing, check for:-illogical structure-missing headings-irrelevant or missing content-unnecessary content-redundant phrases or words.When proofreading, check for:-grammar-punctuation-spelling-formatting-consistency.Remember to leave enough time for these two stages. Thorough editing and proofreading will make a big difference to the readability of your report (as well as to your marks), and it isa courtesy to the reader.3.5 Use white space and well-chosen fontsIn this report, we recommend you to use Times New Roman as font of your report.3.6 Number your pagesYour title page has no number. Use Roman numerals for the executive summary and table of contents (i, ii, iii), and Arabic numbers for the remainder of the report (1, 2, 3 …).3.7 Use footnotes, tables, figures, and appendix appropriately。
mckinsey分析问题的框架和思路英文
Staff
Style
The way managers collectively behave with respect to use of time, attention and symbolic actions
Systems
The processes and procedures through which things get done from day-to-day
Communications
• Flow of 2-way communications
• People’s understanding, belief and contribution to act on vision and action plans
Delta P
Organizational Infrastructure
Systems Structure
Style
Shared Values
The way managers collectively behave with respect to use of time, attention, and symbolic actions
The organization chart and accompanying baggage that show who reports to whom and how tasks are both divided up and integrated
Skills
the individuals.
Some companies
perform extraordinary
feats with ordinary people
Strategy
how to write a business plan
missions, goals, principles and philosophies of over 900 companies. Jefferson, N.C: McFarland. ISBN 0-7864-0342-
8
Considerations of the Mission Statement (from Wikipedia)
• Purpose and values of the organization • Which business the organization wants to be in (products or services, market) or who are the organization's primary "clients" (stakeholders) • What are the responsibilities of the organization towards these "clients" • What are the main objectives that support the company in accomplishing its mission
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Product and Services
• Product and Service Description e.g. special features and functions, technology, materials used and sourcing of products and services • Any patent, copyright, license needed or acquired • Future development of products or services
如何撰写商业策划书中英文
如何撰写商业策划书中英文Every business (startup, existing business, non-profit) should have a business plan�C and, in fact, even individuals should have abusiness model & a planfor themselves. The reason I say that is because (1) writing it down makes your idea concrete, and(2) it is the first step to business success. I am a big fan of the framework, tools and templates (the US small business administration) on how to write a business plan.每个商业领域（刚创立的公司，已存在的业务，非营利性的业务）都应有一份商业计划书----实际上，甚至是个体经营户们也应该为自己建立一个商业模型&计划。
我这样说的原因是因为（1）写下计划书会让你的想法更加具体化，（2）这是助你成功的第一步。
我在（美国商业管理）上是对于如何书写一份商业计划书的整体框架结构，所用工具和模板的忠实爱好者。
Today, I thought it might be worthwhile to highlight some key elements of a business plan:今天，我认为强调出商业计划书中最关键的几个元素是非常有价值的：1.Target Audience:Who is the customer? Is this customer new or different from your existing customer?1.明确目标：客户群体是谁？这位客户是新客户还是在你已存在的客户中，他有什么不同？2.ValueProposition:Why should the customer care about your product? What customer need/want does your product satisfy?2.价值定位：为什么客户要注意你的产品？客户需要什么/想要什么，你的产品能让他满意吗？3.Customer Experience:Does the product meet the customer experience promise? Does this customer experience help build/maintain your brand?3.客户体验：这个产品达到了客户想要达到的体验值的要求了吗？客户体验能帮助建立/维护你们的商标吗？4.Product Description:How will you describe the product to the customer? Is it a service, solution, resource or something else?4.产品描述：你将如何向客户展示你的产品？提供服务，解决方案，有用资源还是其他的`什么？5.Target Market:What is the overall market size and growth rate? What are analysts saying about the target market?5.目标市场：总体市场大小和增长率是什么？分析家们对目标市场的评论是什么？petition:How is your product different from the competitor? How will you describe this difference to the customer?6.竞争对手：你的产品与竞争对手之间存在着怎样的不同？你将如何向客户描述你的产品与其他公司产品的不同？7.Pricing &RevenueModel:What price will the customer pay? What do your revenue projections look like over 6 months, and up to a 5-year period?7.价格&收入预计：客户将会花多少钱购买？超过六个月你的整体收入会看起来如何？增加到五年呢？8.Sales:Who is selling the product? How are they selling it? How are they getting compensated to sell it?8.推销员：谁来销售这个产品？他们如何销售？他们卖出产品后会得到多少佣金？9.Marketing:Who will market your product? What tactics (traditional or new) will they use? How will they work with your sales team?9.市场部分：谁来引导你的产品？他们会使用什么样的战术（传统战术或新战术）？他们如何同你的销售员合作？10. Customer Service & Operations:Who will make sure customers are getting the support? Who will make sure that underlying infrastructure supports the end-to-end customer experience?10.客户服务&运作：谁来确保客户们得到支持？谁又来确保下层基础设施来支持最终客户的经历？If you have written a business plan, you know writing one is both is an art and a science. I say art because writing a simple andclear business plan takes time and clarity,and science because you need the data/numbers to support your claims. If you already have a product, service or a solution, then don’t fall into the trap of “we will build it and they will come” �C answer these 10 question areastoday,andcreate your roadmap by writing down your plans.如果你曾写过商业计划书，你应知道它不仅要有艺术感还要有科学依据。
如何成为一个好的商人英语作文
如何成为一个好的商人英语作文Becoming a Successful Businessman.The journey to becoming a successful businessman is not one that is easily traversed. It requires a blend of hard work, smart decisions, and an unwavering commitment to personal and professional growth. In this article, we will explore the key attributes and strategies that areessential for anyone aiming to establish themselves as a respected and successful businessman.1. Develop a Solid Work Ethic.The foundation of any successful business career is a strong work ethic. This means committing oneself to excellence, setting high standards, and consistently meeting or exceeding those standards. A good businessman knows that success does not happen overnight and is willing to put in the hours necessary to achieve their goals. This involves being disciplined, organized, and focused on thetasks that need to be completed.2. Acquire Relevant Knowledge and Skills.In the fast-paced world of business, it is crucial to stay informed and up-to-date on industry trends, market conditions, and the latest business practices. A successful businessman is always learning, whether through formal education, networking, or on-the-job experience. They invest in their professional development, seeking out opportunities to acquire new knowledge and skills that will help them stay ahead of the competition.3. Build a Reputation of Integrity.Integrity is a cornerstone of any successful business. Customers, clients, and business partners want to deal with people they can trust, and a reputation for honesty and fairness is invaluable. A good businessman understands that their reputation is their most important asset and strives to maintain it at all times. They are transparent in their dealings, uphold their promises, and are accountable fortheir actions.4. Foster Relationships and Networks.Business is often about who you know as much as what you know. A successful businessman understands the importance of cultivating relationships and building strong networks. They actively seek out opportunities to meet and engage with other professionals, sharing ideas, offering support, and seeking mutual benefits. By building bridges and fostering trust, they create a web of connections that can provide valuable resources, information, and partnership opportunities.5. Innovate and Adapt.In a rapidly changing business environment, the ability to innovate and adapt is crucial. A successful businessman is always looking for new ways to improve their products or services, to stay ahead of the competition, and to capitalize on new opportunities. They are willing to experiment, take risks, and learn from failure. They arealso agile in their approach, able to pivot quickly when faced with changes in the market or industry.6. Embrace Leadership.Leadership is an essential part of being a successful businessman. Whether leading a team, managing a project, or guiding a company, effective leadership is about inspiring and motivating others, fostering collaboration, and making sound decisions. A good businessman knows how to delegate, empowers their team, and creates an environment where everyone can thrive and contribute to the success of the business.7. Maintain a Healthy Work-Life Balance.Finally, a successful businessman knows that success does not come at the cost of their personal well-being. They prioritize their health and happiness, taking time for themselves, their families, and their hobbies. They understand that a balanced life leads to a more fulfilling and productive career and are committed to maintaining thisbalance even as their business grows and demands increase.In conclusion, becoming a successful businessman is a journey that requires dedication, hard work, and a commitment to personal and professional growth. It involves developing a strong work ethic, acquiring relevant knowledge and skills, fostering relationships and networks, innovating and adapting, embracing leadership, and maintaining a healthy work-life balance. By committing to these principles and strategies, anyone can establish themselves as a respected and successful businessman in their field.。
麦肯锡英文版
The power of pricingTransaction pricing is the key to surviving the current downturn—and to flourishing when conditions improve. February 2003 • Michael V. Marn, Eric V. Roegner, and Craig C. ZawadaAt few moments since the end of World War II has downward pressure on prices been so great. Some of it stems from cyclical factors—such as sluggish economic growth in the Western economies and Japan—that have reined in consumer spending. There are newer sources as well: the vastly increased purchasing power of retailers, such as Wal-Mart, which can therefore pressure suppliers; the Internet, which adds to the transparency of markets by making it easier to compare prices; and the role of China and other burgeoning industrial powers whose low labor costs have driven down prices for manufactured goods. The one-two punch of cyclical and newer factors has eroded corporate pricing power and forced frustrated managers to look in every direction for ways to hold the line.In such an environment, managers might think it mad to talk about raising prices. Yet nothing could be further from the truth. We are not talking about raising prices across the board; quite often, the most effective path is to get prices right for one customer, one transaction at a time, and to capture more of the price that you already, in theory, charge. In this sense, there is room for price increases or at least price stability even in today's difficult markets.Such an approach to pricing—transaction pricing, one of the three levels of price management (see sidebar "Pricing at three levels")—was first described ten years ago.1 The idea was to figure out the real price you charged customers after accounting for a host of discounts, allowances, rebates, and other deductions. Only then could you determine how much money, if any, you were making and whether you were charging the right price for each customer and transaction.A simple but powerful tool—the pocket price waterfall, which shows how much revenue companies really keep from each of their transactions—helps them diagnose and capture opportunities in transaction pricing. In this article, we revisit that toolto see how it has held up through dramatic changes in the way businesses work and in the broader economy. Our experience serving hundreds of companies on pricing issues shows that the pocket price waterfall still effectively helps identify transaction-pricing opportunities. Nevertheless, in view of evolving business practice, we have greatly expanded the tool's application. The increase in the number of companies selling customized products and solutions or bundling service packages with each sale, for instance, means that assessing the profitability of transactions has become much more complex. The pocket price waterfall has evolved over time to take account of this transition.Today, it is more critical than ever for managers to focus on transaction pricing; they can no longer rely on the double-digit annual sales growth and rich margins of the 1990s to overshadow pricing shortfalls. Moreover, at many companies, littlecost-cutting juice can easily be extracted from operations. Pricing is therefore one of the few untapped levers to boost earnings, and companies that start now will be in a good position to profit fully from the next upturn.Advancing one percentage point at a timePricing right is the fastest and most effective way for managers to increase profits. Consider the average income statement of an S&P 1500 company: a price rise of 1 percent, if volumes remained stable, would generate an 8 percent increase in operating profits (Exhibit 1)—an impact nearly 50 percent greater than that of a 1 percent fall in variable costs such as materials and direct labor and more than three times greater than the impact of a 1 percent increase in volume.Unfortunately, the sword of pricing cuts both ways. A decrease of 1 percent in average prices has the opposite effect, bringing down operating profits by that same 8 percent if other factors remain steady. Managers may hope that higher volumes will compensate for revenues lost from lower prices and thereby raise profits, but this rarely happens; to continue our examination of typical S&P 1500 economics, volumes would have to rise by 18.7 percent just to offset the profit impact of a 5 percent price cut. Such demand sensitivity to price cuts is extremely rare. A strategy based on cutting prices to increase volumes and, as a result, to raise profits is generally doomed to failure in almost every market and industry.Following the pocket price waterfallMany companies can find an additional 1 percent or more in prices by carefully looking at what part of the list price of a product or service is actually pocketed from each transaction. Right pricing is a more subtle game than setting list prices or even tracking invoice prices. Significant amounts of money can leak away from list or base prices as customers receive discounts, incentives, promotions, and other giveaways to seal contracts and maintain volumes (see sidebar "A hole in your pocket").The experience of a global lighting supplier shows how the pocket price—what remains after all discounts and other incentives have been tallied—is usually much lower than the list or invoice price. This company made incandescent lightbulbs and fluorescent lights sold to distributors that then resold them for use in offices, factories, stores, and other commercial buildings. Every lightbulb had a standard list price, but a series of discounts that were itemized on each invoice pushed average invoice prices 32.8 percent lower than the standard list prices. These on-invoice deductions included the standard discounts given to most distributors as well as special discounts for selected ones, discounts for large-volume customers, and discounts offered during promotions.Managers who oversee pricing often focus on invoice prices, which are readily available, but the real pricing story goes much further. Revenue leaks beyond invoice prices aren't detailed on invoices. The many off-invoice leakages at the lighting company included cash discounts for prompt payment, the cost of carrying accounts receivable, cooperative advertising allowances, rebates based on a distributor's total annual volume, off-invoice promotional programs, and freight expenses. In the end, the company's average pocket price—including 16.3 percentage points in revenue reductions that didn't appear on invoices—was about half of the standard list price (Exhibit 2a). Over the past decade, companies have tried to entice buyerswith a growing number of discounts, including discounts for on-line orders as well as the increasingly popular performance penalties that require companies to provide a discount if they fail to meet specific performance commitments such as on-time delivery and order fill rates.By consciously and assiduously managing all elements of the pocket price waterfall, companies can often find and capture an additional 1 percent or more in their realized prices. Indeed, an adjustment of any discount or element along the waterfall—either on- or off-invoice—is capable of improving prices on a transaction-by-transaction basis.Embracing a wide bandThe pocket price waterfall is often first created as an average of all transactions. But the amount and type of the discounts offered may differ from customer to customer and even order to order, so pocket prices can vary a good deal. We call the distribution of sales volumes over this range of variation the pocket price band.At the lighting company, some bulbs were sold at a pocket price of less than 30 percent of the standard list price, others at 90 percent or more—three times higher than those of the lowest-priced transactions (Exhibit 2b). This range may seem spectacular, but it is not very unusual. In our work, we have seen pocket price bands in which the highest pocket price was five or six times greater than the lowest.A wide band shows that certain customers generate much higher pocket prices than do othersIt would be a mistake, though, to assume that wide pocket price bands are necessarily bad. A wide band shows that neither all customers nor all competitive situations are the same—that for a whole host of reasons, some customers generate much higher pocket prices than do others. When a band is wide, small changes in its shape can readily move the average price a percentage point or more higher. If a manager can increase sales slightly at the high end of the band while improving or even dropping transactions at the low end, such an increase comes within reach. But when the price band is narrow, the manager has less room to maneuver; changing its shape becomes more difficult; and any move has less impact on average prices.Although the lighting company was surprised by the width of its pocket price band, it had a quick explanation: the range resulted from a conscious effort to reward high-volume customers with deeper discounts, which in theory were justified notonly by the desire to court such customers but also by a lower cost to serve them. A closer examination showed that this explanation was actually wide of the mark (Exhibit 3): many large customers received relatively modest discounts, resulting in high pocket prices, while a lot of small buyers got much greater discounts and lower pocket prices than their size would warrant. A few smaller customers received large discounts in special circumstances—unusually competitive or depressed markets, for instance—but most just had long-standing ties to the company and knew which employees to call for extra discounts, additional time to pay, or more promotional money. These experienced customers were working the pocket price waterfall to their advantage.The lighting company attacked the problem from three directions. First, it instructed its sales force to bring into line—or drop—the smaller distributors getting unacceptably high discounts. Within 12 months, 85 percent of these accounts were being priced and serviced in a more appropriate way, and new accounts had replaced most of the remainder. Second, the company launched an intensive program to stimulate sales at larger accounts for which higher pocket prices had been realized. Finally, it controlled transaction prices by initiating stricter rules on discounting and by installing IT systems that could track pocket prices more effectively. In the first year thereafter, the average pocket price rose by 3.6 percent and operating profits by 51 percent.In addition to these immediate fixes, the lighting company took longer-term measures to change the relationship between pocket prices and the characteristics of its accounts. New and explicit pocket price targets were based on the size, type, and segment of each account, and whenever a customer's prices were renegotiated or a new customer was signed, that target guided the negotiations.Pocket margins become more relevantFor companies that not only sell standard products and services but also experience little variation in the cost of selling and delivering them to different customers, pocket prices are an adequate measure of price performance. Today, however, as companies seek to differentiate themselves amid growing competition, many are offering customized products, bundling product and service packages with each sale, offering unique solutions packages, or providing unique forms of logistical andtechnical support. Pocket prices don't capture these different product costs or the cost to serve specific customers. For such companies, another level of analysis—the pocket margin—is needed to reflect the varying costs associated with each order. The pocket margin for a transaction is calculated by subtracting from the pocket price any direct product costs and costs incurred specifically to serve an individual account.One North American company, which manufactures tempered glass for heavy trucks and for farm and construction machinery, sharply increased its profits by understanding and actively managing its pocket margins. Each piece of the company's glass was custom-designed for a specific customer, so costs varied transaction by transaction. Other costs differed from customer to customer as well. The company's glass, for example, was frequently shipped in special containers that were designed to be compatible with the customers' assembly machines. The costs of retooling and other customer-specific services varied widely from case to case but averaged no less than 17 percent of the target base price (Exhibit 4a).A fuller picture emerges when a company examines each account and creates a pocket margin bandAs with pocket prices, a fuller picture emerges when a company examines each account and creates a pocket margin band. The glass company's pocket margins ranged from more than 60 percent of base prices to a loss of more than 15 percent of base prices (Exhibit 4b). When fixed costs were allocated, the company found that it required a pocket margin of at least 12 percent just to break even at the current operating level. More than a quarter of the company's sales fell below this threshold.Traditionally, the pricing policies of the glass company had focused on invoice prices and standard product costs; it paid little attention to off-invoice discounts or extra costs to serve specific customers. The pocket margin band helped it identify which individual customers were more profitable and which should be approached more aggressively even at the risk of losing their business. The company also uncovered narrowly defined customer segments (for example, medium-volume buyers of flat or single-bend door glass) that were concentrated at the high end of the margin band. In addition, it evaluated its policies for some of the more standard waterfall elements to ensure that it had clear objectives, accountability, and controls for each of them—for instance, it decided to base volume bonuses on stretch performance targets and to charge for last-minute technical support. By focusing on and increasing sales in profitable subsegments, pruning less attractive accounts, and making selective policy changes across the waterfall elements, the company pushed up its average pocket margin by 4 percent and its operating profits by 60 percent within a year.Taming transactionsThe game of transaction pricing is won or lost in hundreds, sometimes thousands, of individual decisions each day. Standard and discretionary discounts allow percentage points of revenue to drop from the table one transaction at a time. Companies are often poorly equipped to track these losses, especially for off-invoice items; after all, the volumes and complexity of transactions can be overwhelming, and many items, such as cooperative advertising or freight allowances, are accounted for after the fact or on a company-wide basis. Even if managers wanted to track transaction pricing, it has often been impossible to get the data for specific customers or transactions. But some recent technical advances have helped remove this obstacle; enterprise-management-information systems and off-the-shelf custom-pricing software have made it easier to keep tabs on transaction pricing. Managers can no longer hide behind the excuse that gathering the data is too difficult.Current price pressures should go a long way toward removing two other obstacles: will and skill. In the booming economy of the 1990s, robust demand and cost-cutting programs, which drove up corporate earnings, made too many managers pay too little attention to pricing. But now that a global economic downturn has slowed growth and the easiest cost cutting has already occurred, the shortfall in pricing capabilities has been exposed. A large number of companies still don't understand the untapped opportunity that superior transaction pricing represents. For many companies, getting it right may be one of the keys to surviving the current downturn and to flourishing when the upturn arrives. It has never been more crucial—ormore possible—to learn and apply the skills needed to execute superior transaction-price management.Pricing at three levelsTransaction pricing is one of three levels of price management. Although distinct, each level is related to the others, and action at any one level could easily affect the others as well. Businesses trying to obtain a price advantage—that is, to make superior pricing a source of distinctive performance—must master all three of these levels.Industry price level. The broadest view of pricing comes at the industry price level, where managers must understand how supply, demand, costs, regulations, and other high-level factors interact and affect overall prices. Companies that excel at this level avoid unnecessary downward pressure on prices and often emerge as industry price leaders.Product/market strategy level. The primary issue at this second level is pricing a product or service relative to the competition. To do so, companies must understand how customers perceive all offerings on the market and, most particularly, which attributes—product as well as service and intangible attributes—drive purchase decisions. With this knowledge, companies can set visible list prices that accurately reflect the competitive strengths (or weaknesses) of their offerings.Transaction level. The focus of transaction pricing is to decide the exact price for each transaction—starting with the list price and determining which discounts, allowances, payment terms, bonuses, and other incentives should be applied. For a majority of companies, the management of transaction pricing is the most detailed, time-consuming, systems-intensive, andenergy-intensive task involved in gaining a price advantage.A hole in your pocketMany on- and off-invoice items can easily lead to price and margin leaks. Here we provide a nonexhaustive list:Annual volume bonus: an end-of-year bonus paid to customers if preset purchase volume targets are met.Cash discount: a deduction from the invoice price if payment for an order is made quickly, often within 15 days. Consignment cost: the cost of funds when a supplier provides consigned inventory to a wholesaler or retailer.Cooperative advertising: an allowance paid to support local advertising of the manufacturer’s brand by a retailer or wholesaler.End-customer discount: a rebate paid to a retailer for selling a product to a specific customer—often a large or national one—at a discount.Freight: the cost to the company of transporting goods to the customer.Market-development funds: a discount to promote sales growth in specific segments of a market.Off-invoice promotions: a marketing incentive that would, for example, pay retailers a rebate on sales during a specific promotional period.On-line order discount: a discount offered to customers ordering over the Internet or an intranet.Performance penalties: a discount that sellers agree to give buyers if performance targets, such as quality levels or delivery times, are missed.Receivables carrying cost: the cost of funds from the moment an invoice is sent until payment is received.Slotting allowance: an allowance paid to retailers to secure a set amount of shelf space.Stocking allowance: a discount paid to wholesalers or retailers to make large purchases into inventory, often before a seasonal increase in demand.The challenges ahead for supply chains: McKinsey Global Survey resultsSenior executives say their companies manage key trade-offs well, yet see barriers to better performance: rising risk, lack of collaboration, and low CEO involvement.As economies around the world step back from the financial brink and begin adjusting to a new normal, companies face a different set of supply chain challenges than they did at the height of the downturn—among them are rising pressure from global competition, consumer expectations, and increasingly complex patterns of customer demand. Executives in this McKinsey survey1are divided on their companies’ preparedness to meet those challenges, and fully two-thirds expect supply chain risk to increase. What’s more, the survey highlights troubling signs of struggle associated with key, underlying supply chain processes and capabilities, including the ability of different functions to collaborate, the role of CEOs in supply chain planning, and the extent to which companies gather and use information.Emerging from the downturnAs companies have managed their supply chains over the past three years, the challenges they faced and the goals they set have reflected a single-minded focus on weathering the financial crisis. The most frequently cited challenge of the past three years is the increasing volatility of customer demand (Exhibit 1). This is no doubt a result of the sharp drop in consumer spending that has reverberated throughout all sectors across the globe. Looking at challenges over the next five years, though, the focus shifts: respondents most frequently cite increasing pressure from global competition. Some issues that receive a lot of public attention, such as climate change and natural-resource use, have remained a low priority since our 2008 survey.2 Still, the share that identify environmental concerns as a top challenge in the next five years nearly doubled, to 21 percent, over the proportion saying it was a top challenge during the past three years. This suggests that companies anticipate returning to a new normal,3 wherein they can focus on issues other than cost at least some of the time.With regard to goals for supply chain management, the results show a similar shift between past and future, perhaps another indicator that companies are focusing on pursuing growth in addition to cost containment (Exhibit 2). Of course, executives are not ignoring supply chain costs altogether; after weathering a downturn, they know their companies can manage and control future expenses, now that this issue has been on their radar consistently. Indeed, reducing operating costs remains the most frequently chosen goal over the next five years—as it was over the past three—followed by customer service. In a 2008 survey, 43 percent of respondents said improving service was one of their companies’ top two goals for supply chain management, and though it fell as a priority during the crisis, it is now number two for the next five years.Executives also indicate that many of their companies have met past goals, with supply chain performance improving in both efficiency and effectiveness as they come out of the downturn. For example, nearly half say th eir companies’ service levels are higher now than they were three years ago, 39 percent say costs as a percentage of sales are lower, and 45 percent have cut inventories.What hasn’t changed much, though, is the amount of supply chain risk that executives foresee (Exhibit 3). More thantwo-thirds say risk increased in the past three years, and nearly the same share see risk continuing to rise. Respondents in developed Asian countries report more concern than those in any other region: 82 percent say their c ompanies’ supply chain risk will increase in the next five years.4Managing challenges and trade-offsThough the strategic goals executives are setting suggest a hope that more predictable business conditions will prevail over the next five years, respondents are divided over how well their companies can manage the challenges (Exhibit 4). This finding holds true for large and small companies alike and among executives in different functions.The good news is that on the three challenges cited most frequently (global competition, rising consumer expectations, and complex patterns of customer demand), the highest shares of executives say their companies are prepared to meet those challenges. The bad news is that the shares saying their companies are well prepared are still below half.Most executives recognize the importance of managing the functional trade-offs related to these challenges and think that their companies are effective at doing so. Among trade-offs, the highest share of respondents—85 percent—say balancing cost to serve and customer service is important to their companies’ supply chain strategy. The lowest share (59 percent) say balancing centralized production against proximity to customers is important. Respondents also report that the managers who make decisions about supply chain trade-offs are well informed.Yet the cross-functional discussions that companies need if they are to make informed decisions are not happening often. For each of the six trade-offs the survey explored, regular cross-functional meetings are cited as the most common process for making decisions, but between 31 and 40 percent of respondents say their operations teams never or rarely meet with salesand marketing to discuss supply chain tensions. Furthermore, respondents across functions say sales/marketing has the most difficulty collaborating with other functions, with 23 percent citing a problem between that group and manufacturing, and 21 percent between it and planning. Additionally, one-third of respondents say the biggest barrier to collaborating when managing trade-offs is that functional areas don’t understand their impact on others.This disconnection is likely exacerbated by the relatively low levels of CEO involvement reported: the vast majority of CEOs do not actively develop supply chain strategy or work hands-on to execute it (Exhibit 5). Respondents do, however, expect more CEO involvement over the next five years—a hopeful sign for companies aspiring to mend key cross-functional disconnections.Knowledge is powerThe results show a similar disconnection between data and decision making: companies seem to collect and use much less detailed information than our experience suggests is prudent in making astute supply chain decisions (Exhibit 6). For example, customer service is becoming a higher priority, and executives say their companies balance service and cost to serve effectively, yet companies are most likely to take a one-size-fits-all approach when defining and managing service-level targets. Half of the executives say their companies have limited or no quantitative information about incremental costs for raw materials, manufacturing capacity, and personnel, and 41 percent do not track per-customer supply chain costs at any useful level of detail.Many of the future supply chain challenges will require companies to keep better information on individual costs and customers. Yet only about a quarter of respondents expect their companies will invest in IT systems over the next five years, and only 10 percent of respondents say their companies currently use social media to identify customers’ service needs.Looking ahead∙In our experience, senior-executive involvement, including hands-on attention from the CEO, is pivotal in managing the cross-functional trade-offs that underpin many supply chain decisions. Yet the role of CEOs at many companies we surveyed is limited or nonexistent. Companies that can bridge the functional divides that thwart collaboration will have an edge in creating competitive supply chains capable of fulfilling business strategy requirements.∙Addressing the challenges companies have identified—improving service and responding to new expectations and patterns of customer demand—requires more and better information, regardless of the geographical scope or the length of supply chains.As the marketplace becomes increasingly fragmented, keeping better track of customer information and costs, which can inform and support interpersonal, cross-functional discussions, will help companies prepare for the supply chainuncertainties that lie ahead.∙Despite the importance of volatile commodity prices as a supply chain challenge, just 28 percent of respondents say their companies are prepared to manage that volatility. One way to cope with this uncertainty: view supply chain assets as a hedge.By considering investment in production resources that aren’t necessarily lowest-cost today (but soon could be), companies can position themselves for greater flexibility in the future.∙Executives expect environmental concerns to be a more significant issue for supply chains in the years ahead, yet relatively few consider it a priority today. Given that up to 60 percent of a company’s carbon footprint can reside upstr eam in its supply chain,5 companies would be wise to pursue economically attractive opportunities that address environmental impact in the near term and prepare to respond quickly to any sudden shifts in environmental expectations and requirements.A new idea in banking for the poorBy teaming up with retail outlets in low-income, often hard-to-reach areas, financial institutions can create value both for themselves and their new customers.November 2010 • Alberto Chaia, Robert Schiff, and Esteban Silva。
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Key questions – 1. Executive Summary
Business concept Draft business plan ‘Final’ business plan
• What is your business idea? • • • • • • •
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Characteristics of a successful Business Plan
Clear • Well structured • Standalone Your calling card
Objective • Accurate • Positive and critical
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Contents
• Business start-up process • Writing the Business Plan • Constructing the team
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Contents
• Business start-up process • Writing the Business Plan • Constructing the team
The key to success is satisfied customers, not a great product
CLEAR CUSTOMER VALUE
MARKET OF ADEQUATE SIZE
Successful ideas demonstrate how big the market is, the target customers and how the product differs from the competition
The document the reader will remember you by Consistent • Style • Analytical depth Simple • Plain English • Non-technical terms
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Elements of a Business Plan
Business coቤተ መጻሕፍቲ ባይዱcept Draft business plan
Focus of this phase Part of this phase
‘Final’ business plan
1. Executive summary 2. Product or service 3. Management team
Exit of initial investors
Financing decision
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5 key factors for success of innovative start-ups
Ideas • Degree of innovation • Scope • Patent
$$$
Capital recovery
•
• Young, growing
companies
• IPO (Initial Public •
Offering) Sale of stake to third parties
5–8 years post Start-up
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Ideas should be feasible with realistic time and resource plans
FEASIBILITY AND PROFITABILITY
SUFFICIENT DEGREE OF INNOVATION
Create a new product or a new way of delivering an existing product – do both and create a new industry
Business system
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Role of traditional service providers
Long term success Market researchers Tax consultants TAX PATENTS MARKET RESEARCH
In what way does it fulfil 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 (high level estimation)? What long term goals have you set?
Contents
• Business start-up process • Writing the Business Plan • Constructing the team
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“Writing a Business Plan forces you into disciplined thinking, if you do an intellectually honest job. An idea may sound great, but when you put down all the details and numbers, it may fall apart” Eugene Kleiner, Venture Capitalist
People • Inventors • Entrepreneurs • Team members
Network & exchange • Coaching • Networking • Matchmaking • Innovative service provider – Venture capitalists – Headhunters – Business angels – Start-up consultants Capital • Availability/amount • Needs/responsibilities • Exists for investors
“There is nothing in the world as powerful than an idea whose time has come” Victor Hugo
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Innovation classification scheme
New product Innovation • Microsoft
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How to Write a Business Plan
Innovation Challenge Innovations Foundation Toronto, Canada 2001
This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.
Importance
4. Market and competition 5. Marketing and sales 6. Business system and organisation 7. Implementation schedule 8. Opportunities and risks 9. Financial planning and financing
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