Business Plan

What?◦Overview & reflection of the business and it’s

owner – thorough explanation of a business idea and how it will be executed

◦Story of what the business is and will be◦Overview of risks and assessment of success◦Research tool for improvement◦Includes – marketing, financials, management,

earnings, returns, etc., etc., etc.

Business Plan

Why?◦Company guide/Map – operational guide◦Strategy definition◦Attracts investors and lenders – key to raising

capital◦Improves success ◦Saves time and money

Sections of the Plan

For investors◦Cover Page◦Table of Contents◦Executive Summary◦The Opportunity

Problem Solution

◦The Company & Strategy Brief History (if applicable) Business Model – how are you going to make $$

◦Industry/Market Analysis

Sections of the Plan

For Investors◦Marketing Plan

Competition Marketing

◦Management & Operations◦Financial Plan

Financial analysis and projections The “ask” Exit opportunities/strategy

◦Appendices

Business Plan

Cover Page◦Name of Business◦Contact (normally founder or CEO)◦Address◦Phone◦E-mail◦Graphics if applicable◦Keep it simple

Table of Contents (really!)

Business Plan Sections

Executive Summary◦More details on this later but…◦It should be:

Clear Concise Comprehensive (enough) Compelling

◦Leave them wanting more information!

Executive Summary (cont)◦Brief overview of the full plan including

Name of business with contact information Problem Overview of Solution Market – total & relevant How you are going to reach your customer and make

money – business model Competition Management team – listed with 2 or 3 lines on each Brief Financials – include sources & uses of funds The “ask”

Business Plan Sections

The Opportunity◦Problem statement

What hole, niche, or problem are you going to address with your business?

Why are you starting this business? Begin hinting at the market you are focused on

and it’s size Begin hinting at your product/service

Business Plan Sections

The Opportunity (cont)◦Solution statement

What are you doing to solve the above stated problem

Describe your Product/Service Briefly discuss uniqueness and differentiation Briefly discuss feasibility analysis (why this

business will succeed) Any additional add-on or future products/services

Business Plan Sections

The Company◦If already established…

When started Why Overview of track record

◦Experience to date with reaching the customer◦Competitors reaction◦Some customer feedback

◦If start-up… Brief background story What has been accomplished so far

Business Plan Sections

The Company (cont)◦Business Model

Key… how are you going to make money? Discuss your customers

◦Who they are?◦Where they are?◦What makes them “tick”?◦How are you going to reach them?

Revenue drivers◦How will you get paid? ◦How much will you get paid?

Market/Industry◦Industry

Brief History How big? Is it growing? What are the current trends? Operational? Sales? Outlook? Governmental impact? Demographics Psychographics

Business Plan Sections

Market/Industry (cont)◦Market

History of the market and any recent trends State the total market briefly then define the relevant

market Market growth – cite research Discuss barriers to entry Success Factors What’s your market position? Quality, price, speed to

market Customer – who? how many? Location (if applicable) – customers there?

Business Plan Sections

Marketing Plan ◦Competition

This section needs to be very strong – many investors/bankers will say “No” based on competition

List the competitors◦Who they are ◦Who they might be◦What are/will you do to “beat” them – if you have to

Why are you different from all the other products/services out there today? SWOT analysis

Detailed differentiation How will you manage competitive threats? If you have any IP surrounding your product/service

note it here

Business Plan Sections

Marketing Plan (cont)◦Marketing mix analysis◦Sales Channels◦Channels of Distribution◦Marketing discussion included here – what

media? PR On-line Print Etc… Some specifics are needed

Business Plan Sections

Management/Operations◦Management

Current: Not full resumes! But, give details about each persons’ background –max one page per person, their role & experience

Future: what, who & when Board: Board of Directors & Advisory Board

◦Operations Location & unique raw materials and/or build-out

requirements Working capital management

Business Plan Sections

Financial Plan◦Financials

Provide a more detailed set of financial statements including◦Historical (if applicable)

Income Statement Balance Sheet Cash Flow

◦Forecast using the “best” scenario (at least three years) – include risks & assumptions Income Statement – including cash balance by year Balance Sheet Cash Flow

Business Plan Sections

Financial Plan (cont)◦Sources & Uses of Funds◦The “Ask” – very important!!!

How much Type of financing

◦Exit How will the investor/banker get their money

back?◦Bankers like “repay” as an answer, investors to not!

An IPO is a rare event Discuss potential acquirers, their prior acquisitions

& why your company fits their goals

Business Plan Sections

Appendices◦Financial Statements – detailed

Historical Forecasts

◦Good/Better/Best in overview form

◦Market research Surveys Customer feedback

◦Resumes◦Anything else beneficial

Business Plan

Other specifics◦Put your contact information on the cover page,

top of executive summary and the end◦Name of company as header on each page◦Number the pages◦Use spell check and have someone else read◦Use a large enough font that all can easily read◦Keep the margins at 1” unless you have a chart

or graph that needs more space◦Show you have “skin in the game”◦Select a “voice” and stick to it – but preferably

not 1st person…

Business Plan

There may be other items that are needed to convey your business – include them

Business Plan

Preparation Tips◦Spell/grammar check is good – use it!◦Confirm that financials “tick & tie”◦Use graphics (including charts) when applicable

– visual representations◦Always include financials and cash

requirements◦Answer the questions you would ask if you

were reading it◦Make it easy to read and to the point◦Always…tell the truth