Earthenterprise Tool Kit - International Institute for Sustainable ...

EarthEnterprise Tool Kit
TOOL
These perceptions by both sides, whether or not they are compatible with
reality, are an obstacle to placing and obtaining capital.
Leaping perceptual barriers requires an appreciation of investor interests. This
enables the entrepreneur to markedly improve any presentations made to
capital markets and enhances the likelihood of success.
Business Planning for Sustainable Enterprises
While much of the advice in this section is applicable to all businesses, the
innovative nature of sustainable enterprises makes paying attention to the
basics even more important.
An integrated financial strategy and product/service commercialization targets
are required business planning. Among the “musts”are:
• A clear, tightly written statement of purpose;
• A well-defined sense of where the company should be in one, two and five
years;
• Defining features of the business;
• A thorough description of the market, including necessary market research
and analysis.This will also involve an evaluation of competitors in the same
and related markets;
• Details of the production, distribution and sales systems;
• Development plans for a management team which fills all the roles needed
to convert the business opportunity identified into a commercial success;
• Precise costing and pricing, including source costing, internal budgeting
and pricing for the market place;
• Detailed cash flow and financial projections over a three- to five-year
period;
• A description of planned financing vehicles and the structure of the
investment offering.
The entrepreneur will also need to attract various advisors (board members and
experts) and enter into a range of agreements with individuals and other
organizations (e.g., suppliers, sales agents, brokers etc.) that round out the
firm’s capacity to seek capital and achieve the enterprise’s business plan.
The sustainable enterprise that does not adhere to the tried and true rules of
business planning will find it nearly impossible to obtain funds from capital
markets.
RAISING MONEY FOR SUSTAINABLE ENTERPRISES
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