Entrepreneur Ing Karachi Vers11

8/2/2019 Entrepreneur Ing Karachi Vers11

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Entrepreneurship

Prof. Dr. Dietger MainzSeite # 14.03.2012

ISeminar for

IncomingEntrepreneurs


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The new Idea

Market

The

economic

concept

Liquidity +

financial.

situation

The

functional

and legal

organi-

zation.

1

The personality

of the

entrepreneuer Equilibrium

Business plan (bp)

Realitybp is the bridge to reality


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Entrepreneur

/ Founder

Banker /

Venture Capitalist /

Investors

Business plan

as an importantlink

Idea

Impression

of the entrepreneur /

founder

Personality

Experience

Motivation

Personality

Experience

Motivation

Plausibility

bp is the bridge to your

supporters


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The business model describes the structure of your business idea this is the first check of your chances and risks as an entrepreneurand a precondition for your business plan

(In Anlehnung an: Osterwlder+Pigneur, Business Model Generation. 2011)

Management + Organisation ?

Customer relations ?

Channels ?

CustomerSegments ?

Key activities ?

Key ressources ?

Key Partner ?

Cost structure + stream ? Revenue structure + stream ?

Value Proposition

Strategic Customer

Product- u. service-features

Stakeholder (=>Shareholder)


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time

Predecision

phase

Venture preparationsphase

Startphase

Businessmodell

Business plan

StartphaseControlling Venture concept

Draft of Contracts

Startnegotiation

Equity mobilisation

-

Plan-Development

Development in reality

Venture consulting ?!

Decision

for the venture Start of the

venture

+

-

Legal

declarations /

permission/

Approbation

precondition

precondition


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Business plan

The personality of the entrepreneur

(Psychological, social, cognitiveattitudes, experiences and abilities)

The two basic factors of success: the personality and the business plan without any

compensation between them!

Retention, strong goal orientation,

creativity, risk taking (Risk = challenge not

a game), organisational skills, optimistic disposition,

leadership orientation an overall responsibility,

ability to communicate and motivate in all situation?

+


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Is the central tool to convict and

to answer our

Partner

Bank, Investor,

Supplier,

Customer etc.

Is it affordable and successful to

support this venture=> What risk we have to take?

Should we go ahead with the

entrepreneur?

Is there a prosperous perspective

Business plan=road map to success or to stop

The function of the business plan

Last checkthe point of no return

=> Can we realise our idea with acceptable risk?

=> How we have to act, to be successful?


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Business Plan

- Ducoment -

Executive summary

Verbale Describtion

und AnalysisPersonality of the founder

product- /service features

market analysis

marketing plan

Venture accountingA record over the

time of the development

about the financability

, profitability, liquidity

under the condition of

the sales, production,

investment, employment plans


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It is necessary to understand that our venture / company can only appropriate be

analysed as a network of multiple linked and dependent influences. Unfortunately

we could be faced with unstable feedback.

Worker

capabilty

RevenueSales

Price

Cost per item

Utilization

Wages

Income

Job satisfaction

Costs of quality

+

+

+

-

+-

+

+

-

+

+ +

-

Product

quality

+

+


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Price

Sales

Driver

-

Conflictingopposite

effect

Simultaneuoseffect

Outcome

Advertising

Production volume

++

Network basics

Driver

Driver

Outcome


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Partial network

finance

Partial network

market

Partia lnetwork

goverment

Partial network

company

It is easier to create four different

partial networks than in one step

the whole net. When you finisjhed

the partial nets than you haveto link them together.

Before you start with the

venture accounting

create your nets!


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15 %

10% current acount

Standard

capltal structure

Borrowed Capital

Current account

Equity given by

other parties

Own equity

50 % long and medium credits

40 % Equity

We find normally a specific capital structure in successfull ventures (A big thumb rule)


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The system of venture accounting

Balance account

Definig the

operational fixed and

running

Assets

Financial account

Capital structure

(repayment, interest)

Profit and loss aacountg

ProfitabilityCash Flow Accountg

Liquidity

Processofiteration

of cash

for operations


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Principles

ofventure accounting

Earnings=

Min !

Expenses=

Max !


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Ascertain-met

of cost

Using in the

venture

accounting

110 %

Ascertain-

ment

ofrevenues

Using in the

ventureaccounting

= 90 %

Principles of venture accounting = Principle of caution


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The excel sheetsintegrated in a work book- of the venture accounting

Personel

planInvest

plan

Sales /revenue

planProduction

plan

Balance sheetP&L Fin.AccoutingRunning CF

Accouting

Depreciation

planCost plan

Tax

projection

Outcome-plans

Driver-plans


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time

Beginning of the venture

Business creation

First phase =

monthly or quarterlySecond phase =

quarterly or half-yearly

Third phase =

half-yearly or yearly

End of the plan

= sustainable profitability and liquidity

max 4 years

Planning horizon

Line of inaccuracy

Error propagation =>

e (t) = f (e (t-1)) + De

The disadvantage ob our business plan is that we are faced with error propagation,

the consequence is that we have to renew our calculation to adapt to realised numbers


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Balance sheetP&L Fin.AccoutingRunning CF

Accouting

Outcome-plans

Profit and loss

Time period p1 P1+1 P1+2

Earnings

Revenue

Expenditure

Pers. Cost

Depreciation

Interest

..

Result

CF Statement

Time period p1 P1+1 P1+2

CF operation result

depreciation

D payables

D receivables

CF financing repayment

new loan

CF Invest. ..

CF

Finance

plan


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Finance plan

Time t1 t1+1 t1+2

Loan 1 Amount

Interest

Repayment

Loan 2 Amount

Interest

Repayment

.. ..

S New Loan

S Interest ..

S Repayment

CF Accounting

P &L Accounting

CF Accounting

Balance sheet accounting

Time t1 t1+1 t1+2

Assets Machinery

Raw material

Receivables

Cash

Liabilities Equity

Provisions

Loans

Payables

P&L accounting

P&L + CF accounting

CF accounting


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Estimation of cash for operations

1. Iteration

Raw material

Other inventory

Other payments

for operation

Proprietors savings

SCash or cashequivalents

Time of circulation * savings per month for living

Time of circulation * used raw material in productionduring this time * price

Time of circulation * used other inventory duringthis time * price

Time of circulation * monthly payments for employees,Interest, repayment, taxes, telecommunication, rent,leasing etc.during this time


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time

Start of the ventureRevenue plan Cash-inflow

Cash requirement

The time of circulation is the time from the startpoint to the point where the cash inflow is

equal the cash requirement of operations

Time of circulationthroughput time

(normally in months)


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It is not efficient to read all the books you find about business plansas to do in reality so let us start!

The profit of learning lays not in speaking about business plansbut in doing / creating a bp

A very very simple thumb rule of learning


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Reading assigment before you will start with the business plan:

Entrepreneurship (Hisrich et al) 6th Edition pages 184294

Use the bp-planning tool in the game to create your bp!

Entrepreneur Ing Karachi Vers11

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