Enterprise level tools for

innovations, business plan

 Innovations and entrepreneurship

 Innovation and entrepreneurship are considerer

in European Union as increasing economics
vector, competitiveness and rural development.

 The successful entrepreneurial is usually based on

a significant innovation.

 Innovation activities are one of the important

reactions to the challenges.
 The situation regarding innovation
an entrepreneurship

 Innovation system presents actors, institutions

and their relations and interactions which are
involved in the innovations.

 Innovation process:
- new idea;
- interest;
- evaluation;
- implementation/adaptation.
 Innovation behavior of the
enterprise

 External factors
- market environment characteristics
- regional institutional characteristics
- policy institutions

 Internal factors
- organizational
- personal
- financial, etc
 macro-level
governance structural extension services,
system change consultancy
Information exchange

micro- labour forest-

resources enterprise costumers/
level knowledge consumers
product-, process-,
finance innovation

information
research & exchange markets/
education competitors
 Entrepreneurship development

 Entrepreneurship can be defined as the process of

using private initiative to transform a business concept
into a new venture or to grow and diversify an existing
venture or enterprise with high growth potential.

 Entrepreneurs identify an innovation to seize an

opportunity, mobilize money and management skills,
and take calculated risks to open markets for new
products, processes and services.
 Innovation idea

Analyzemarket,
Analyze market,
customersand
customers and
environment;
environment;
Analyzeyour
Analyze your
existingbusiness
existing business

Sourcesfor
Sources for Evaluation Implementation
Evaluation Implementation Results
Results
innovative
innovative level
level
idea
idea

Checkyour
Check youridea;
idea;
Checkyourself
Check yourself
 Tools for innovations
processes

 Idea generation – brainstorming, macro

screening, micro screening, SWOT analysis

 Feasibility

 Capability

 Launch & Rollout

 Idea generation &
brainstorming

 Brainstorming is a dynamic tool, where quantities

of ideas are offered with no criticism.
 It can help people solve problems, develop new
products or services and increase productivity.
 The brainstorming is a good initial one for the
Business Plan to generate and select ideas of
products/services business.
 Brainstorming

 All members of the group must participate. Be

creative. The more ideas, the better.
 No idea should be blocked.
 All ideas will be respected and not evaluated. Do
not criticise or judge. All ideas are equally valid at
this point.
 Ideas already mentioned must be avoided.
 The ideas should not be detailed. Keep ideas
brief, do not tell stories
 Macro screening

 The Macro Screening is a very important step

positioned between the project idea generation
and the final decision about the most promising
business idea.
 Macro Screening helps to do a first selection; it’s
like pouring all these ideas into a funnel.
 Micro screening

 The Micro Screening links the macro screening

with the SWOT Analysis (strengths, weaknesses,
opportunities, threats), hence being the crucial
nexus between these two.
 It adds quality to the selection process by adding
different parameters related to economic
judgements (market, skill availability, technology,
etc.).
 Micro Screening Table

PROJECT Solvent Availabilit Availabilit Availabilit TOTAL Competit Corrected Critical

good or service demand y of y of y of raw ors TOTAL success
qualified technolog material factors
personnel y/
equipmen
t
(+) (+) (+) (+) (=) (-) (=)

Scoring system: 5 – extremely high ; 4 –high ; 3 – average ; 2 – fair; 1 – poor; 0 – absent

Critical success factors: write text
 SWOT analysis

 The SWOT Analysis (strengths, weaknesses,

opportunities, threats) is based on these concrete
project ideas.
 It is quite a simple but very powerful tool which
enables the participants to do a proper
comparison of the last three projects remaining
after the micro screening process.
 Innovation Life Cycle Process

 Ideation

 Concept development

 Evaluation (business and technical)

 Commercialization

 Improvement innovation
Business plan based on

Entrepreneurship
The business idea
Business areas
 What is outline of your
business plan?

Please divided in the working groups and find the

standard outline of a business plan – 5 min.
For preparing a Business Plan we must answer a
following questions:

1. WHAT is a Business Plan?

2. WHO needs a Business Plan?
3. HOW to prepare a Business Plan?
 1. What is a business plan?
 Business planning is about results.
 A business plan is any plan that works for a
business to look ahead, allocate resources, focus
on key points, and prepare for problems and
opportunities.
 Businesses need plans to optimize growth and
development according to priorities.
 A business plan is like a map and a compass for a
business.
 Business plan

working prezentation
mini-plan
plan plan
 The Different Types of Business Plans

Business plans are also called:

- strategic plans
- investment plans
- expansion plans
- operational plans
- annual plans
- internal plans
- growth plans
- product plans
- feasibility plans and many other names.
 2. Who needs a business
plan?

 You need a business plan if you’re running a

business;
 You need a business plan if you’re applying for a
business loan;
 You need a business plan if you’re looking for
business investment, new products or new services;
 You need a business plan to communicate with a
management team.
3. How prepare a business plan?
 Is There a Standard
Business Plan?

 A normal business plan, includes a standard set of

element. Plan formats and outlines vary, but
generally a plan will include components such as
descriptions of the company, product or service,
market, forecasts, management team, and
financial analysis.

 Your plan will depend on your specific situation.

 Outline of a business plan
Executive summary - condensed information
Business description: on each
products and services offered of-the
type chapters bellow
of business;
- products
- operations and services
plan;
Market strategies offered;
- management
- market and targetteam.
market;
Competitive analysis - -ownership
demand of the
for the product
business
- capital requirements and
and positioning -and itsorlegal
competition structure;
service;
sources; analysis;
-- profitability
promotion;
- -identification
balance sheet;of
Operations and consideration.
-break-even
dissemination
-competitive and
strenght
analysis;
management plan
- income delivery;
position.
statement;
- pricing
- cash flow strategy.
projection.
Financial components
 Annex

 Business aspects advise: adresses for financing

advise,legal advice, marketing advice
 Figures
 Tables
 Graphs
 Other sectors advice: research institutes,
interests groups, administration, other key
innovation areas.
Planning is a Process, Not
Just a Plan
 Successful implementation starts
with a good plan

 Is the plan simple?

 Is the plan specific? specific budgets?
 Is the plan realistic?
 Is the plan complete?.
 Preparing a business plan

 Define and fix objectives, and programs to

achieve those objectives.
 Create regular business review and course
correction.
 Define a new business.
 Support a loan application.
 Define agreements between partners.
 Set a value on a business for sale or legal
purposes.
 Evaluate a new product line, promotion, or
expansion.
 Keys to Better Business
Plans

 Use a business plan to set concrete goals,

responsibilities, and deadlines to guide your
business.
 A good business plan assigns tasks to people or
departments and sets milestones and deadlines
for tracking implementation.
 As part of the implementation of a business plan,
it should provide a forum for regular review and
course corrections.
 Good business plans are practical.
Individual GANTT Chart Table (example)
Months
2/99 3/99 4/99 5/99 6/99 7/99 8/99 9/99 10/99 11/99 12/99 1/00
Activities
Seek legal advice

Choose land and buy

Plan plant layout

Finalise loan

Register

Order machines ++++ ++++ ++++

+ + +
Prepare plant

Advertise ++++ ++++ ++++ ++++

+ + + +
Recruit personnel

Install machines

Trial production

Open business
 Business Plan "Don'ts"

 Don't use a business plan to show how much you

know about your business.

 Nobody reads a long-winded business plan: not

bankers, bosses, nor venture capitalists. Years
ago, people were favorably impressed by long
plans. Today, nobody is interested in a business
plan more than 50 pages long.
 How Long Should a
Business Plan Be?

 Page count is not a good way to measure length.

 A 20-page plan with dense text and no graphics is much
longer than a 35-page plan broken up into readable
bullet points, useful illustrations of locations or
products, and business charts to illustrate important
projections.
 A good business plan should leave a reader a good
general idea of its main contents even after only a quick
skimming, browsing the main points, in 15 minutes.
 Format, headings, white space, and illustrations make a
big difference. Summaries are very important. Main
points should show up in a business plan as quickly as
they do in a business presentation.
 The right length of the plan depends on the
nature and purpose of the plan

 Will it include descriptions of the company and

management team for outsiders to read;
 Does it need an executive summary good enough
to stand alone;
 Does it include detailed research, plans, drawings,
and blueprints;
 Is it worded to withstand legal scrutiny as part of
an investment proposal.
BUSINESS PLAN

Standard Outline
 EXECUTIVE SUMMARY

 Brief Description of the Project

 Brief Profile of the Entrepreneur
 Project's Contributions to the Economy

 Write this last. It's just a page or two of

highlights.
 Section 1MARKETING PLAN

 Description of the Product

 Comparison of the Product with Its Competitors'
 Location
 Market Area
 Main Customers
 Total Demand
 Market Share
 Selling Price
 Sales Forecast
 Promotional Measures
 Marketing Strategy
 Marketing Budget
 Section 2 PRODUCTION PLAN

 Production Process (fixed capital, life of fixed

capital)
 Planned Capacity - Future Capacity
 Terms and Conditions of Purchase of Equipment
 Factory Location and Layout
 Raw Materials Needed - Cost of Raw Materials -
Raw Materials Availability
 Labour
 Cost of Labour
 Labour Availability - Labour Productivity
 Factory Overhead Expenses
 Production Cost
 Section 3 ORGANIZATION &
MANAGEMENT PLAN

 Form of Business
 Organisational Structure
 Business Experience and Qualifications of the
Entrepreneur
 Pre-Operating Activities
 Pre-Operating Expenses
 Office Equipment
 Administrative Expenses
 Section 4 FINANCIAL PLAN

 Project Cost
 Financing Plan and Loan Requirement
 Security for Loan
 Profit and Loss Statement
 Cash Flow Statement
 Balance Sheet
 Loan Repayment Schedule
 Break-even Point (BEP)
 Return on Investment (ROI)
 Financial Analysis
 When a business plan is being worked out, there
are too many big questions, the answers of which
only the entrepreneur can know, that are far too
important to be left to someone else who claims
that he can spare the entrepreneur the trouble of
preparing his own business plan - no one can do it
better than you!
 Summary

 A proper business plan serves as a map.

 Use it to establish the points along the route,
indicating why each is important and how it can
best be reached.
 The plan builds from mission and value to
justification, strategies, tactics, actions and
expected results.
 Comprehensive business planning increases the
likelihood of the venture’s success.
Every business need an innovation engine to
generate the great ideas that will propel the
business forward into the future.

Thank you for attention!