The Roles of Business Planning

in
Successful Business Growth

Jack Derby
Professor of the Practice, Tufts University
Head Coach, Derby Management
Venture Partner, Converge Ventures
 Class 3…
• Writing The Winning Business Plan

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 Jack Derby
– 25 year successful track record of coaching over 400 companies.
– 17 year successful track record in medical devices as Executive Vice
President of Becton Dickinson Medical Systems, CEO of Datamedix
Corporation and President of Litton Medical Systems.
– 3 years as President of CB Sports
– Co-founded 14 companies
– Raised over $840 million in venture and private equity
– Current Director: AIM, Aviant Healthcare, Brainshark, Rome
Snowboards, Loci, and Reiser
– Professor, Tufts University, Marketing, (Teacher of the Year in 2015)
– Activities…
• Partner, Converge Venture Partners
• Past Chair, Common Angels
• Past Chair, Association of Corporate Growth
• Past Chair, MIT Enterprise Forum- Distinguished Service Award
• Past Vice Chair, SBANE- Pro Bono Publico Award
• Past United States Peace Corps volunteer
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 Availability…

• Call or email anytime

1. Class
2. New company creation
3. Finding the Best Job

– Cell 617-504-4222
– Email jack@derbymanagement.com

• Face to Face Time

– Before class or breakfast at 7:30 at the University Club of
Boston…
– …but it needs to be scheduled

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 So, just what is “Business Planning”?

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 Just 1 little word…

…why?

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 The Five Stages of Growth…

Success
Growth • Positive cash flow
• “A” level managers hired
Stability
• Strategies locked down
Survival • Tactical plans in place
Concept –Product Plans
• Engineering Plans
• Sales Processes
• Marketing Plans
What this really means is…
• Product Portfolios
• There must be metrics at every stage
• Products and the business must reach Stability at a minimum
• In order to succeed every business, every product MUST grow
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 GROWTH
A Way to Think About Every Company

Your Business Plan

A Way to show that Growth

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 A Business Planning Architecture

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 Business Plan Architecture

Did You Read..

Writing the Winning Business Plan?

Just email me for a copy

…jack@derbymanagement.com

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 You’re Building a Very Expensive House

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 You Must Tell Me
…at least these

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 You Must Tell Me-1

1. Target customers.
– Whom do you serve?
– Ideal customer: industry, location, size, type and so on
– Create personas of your target customer
– Craft messages that will resonate with them.
– Resonate and differentiate.

2. Need/business problem.
– What needs and business problems do you address?
– How do you help?

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 You Must Tell Me-2
3. Impact of solving need.
– What are the rational & emotional benefits of solving the
need
– The major factor in whether or not you resonate.
– How are you going to Market, Sell & Solve that need?
4. Your offerings.
– What’s your product and service approach?
– How do you solve problems and work with customers?
– Notice that company and offerings are # 4 here.
• Think “buying” first “Why does your Customer buy?”
• Selling is second
• Frame your offerings within the context of Needs &
Value
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 You Must Tell Me-3

5. Proof of concept.
– Demonstrate your approach has worked
– Define similar solutions for similar problems for others
– How do you substantiate your claims?

6. Differentiation
– Why is your offering preferable to other options?
– What’s special?
– What differentiated?
– WHAT IS THE VALUE PROPOSITION?

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 Elevator Speech

What’s included? Executive Summary

• 7-9 Sections… Presentation Pitch

The Business Plan

1. Executive Summary
2. Introduction to the business
3. Definition of products & services
4. Overview of markets
5. Overview of sales & marketing plans
6. Overview of products and roadmap
7. Summary of manufacturing & operations
8. Management team bios
9. Four pages of financials

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