4 Feb 2016 Business Plans 1 SCIENTIFIC & TECHNICAL

Transcript:4 Feb 2016 Business Plans 1 SCIENTIFIC & TECHNICAL:
4 Feb 2016 Business Plans 1 SCIENTIFIC & TECHNICAL WRITING Business Plans Edith BOXMAN MBA, financial consultant & editor Communicating Science: 6 E.S. Boxman, 11/2013, 2/2016 6 Nov 2013 - USYD Business Plans 2 “BUSINESS” - Why? You think that an idea or result of your research has commercial potential Professional satisfaction in being part of its practical implementation. Lure of financial success While most ventures ultimately fail, some of the few start-ups which do succeed are legendary 6 Nov 2013 - USYD Business Plans 3 BUSINESS PLAN Basically a proposal to establish a business activity. Similar to research proposal: In structure and In objective (to raise funds) Different from research proposal Expected return is financial rather than advancement of science. 6 Nov 2013 - USYD Business Plans 4 BUSINESS PLAN OBJECTIVES Convince someone else to put $$ or other resources into your company Individual – partners, friends & family, “angels” Venture fund Government – e.g. small business agency corporation Banks (loans) – usually after venture capital investment 6 Nov 2013 - USYD Business Plans 5 BUSINESS PLAN OBJECTIVES Convince yourself that you have a viable proposition and addressed all the key issues Provides a structured framework to keep your business on course – a “roadmap” 6 Nov 2013 - USYD Business Plans 6 BUSINESS PLAN AUDIENCE Typically, potential investors who: are primarily interested in making money (and/or have a social agenda) are very busy tend to skim submitted business plans look for projects that interest them and meet their criteria may be technologically “savvy” but very unlikely to be experts in your field may use consultants versed in technology 6 Nov 2013 - USYD Business Plans 7 WHAT DOES THE INVESTOR WANT TO KNOW? “Bang for buck” How much investment is needed? How long will it take to recoup the initial investment (Payback) What is the expected return on investment? Is there potential for dramatic growth? 6 Nov 2013 - USYD Business Plans 8 WHAT DOES THE INVESTOR WANT TO KNOW? Probability of Success Commercial Feasibility Unique idea that can command a price well in excess of development, production & marketing costs? Market large enough for potential sales to generate an adequate profit? Barriers to entry of competitors (unique competitive advantage; importance of patent or at least patent application filed) . 6 Nov 2013 - USYD Business Plans 9 WHAT DOES THE INVESTOR WANT TO KNOW? Probability of Success