The Startup Guide - Create a Business Plan

7/30/2019 The Startup Guide - Create a Business Plan

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CEO of Connect.com

Startup Guide RYAN ALLIS

Building a Better World Through Entrepreneurship

With Ellen Daly

The

2013 Edition

More slides at www.s


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CreateA plan

ENTREPRENEURSHIP


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THIS presentation IS PART OF A LARGER slide DECK on

building a better world through entrepreneursh

Startupguide.com

ABOUT THIS PRESENTATION

For more slides & CONTENT visit:


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SHOULD YOU CREATE A PLAN BEFORE A PROTOTYPE?

SOME ENTREPRENEURS

choose not to create a plan at all

And just start working

Minimum viable product

On a prototype or

cREATE A PLAN


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WHY A LITTLE BIT OF PLANNING IS HELPFUL

I find that its helpful to at least

create a short slide deck or exec summa

To ensure you know what youre buildin

& What problem youre Solving

before you start building

cREATE A PLAN


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Many Business PLANS ARE created as sLIDE DECKS WHICH INCLUDE:

1.TEAM2.PROBLEM3.

PRODUCT & TECHNOLOGY

4.MARKET & COMPETITION5.revenue model6.FINANCIAL PROJECTIONS

YOUR COMPANY PITCHDECKcREATE A PLAN


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In your plan, CLEARLY ILLUSTRATE

THE PROBLEM YOU ARE SOLVING

HOW YOU ARE SOLVING IT

AND FOR WHOM

the problemcREATE A PLAN


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SHOW PICTURES OF A PROTOTYPE

OR WIREFRAMES & MOCKUPS

And MAKE YOUR SPECIFIC SOLUTION

EASILY VISUALIZED

the productcREATE A PLAN


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SHARE YOUR PRODUCTION TIMELINE

AND KEY MILESTONES TOWARD

INITIAL PRODUCT DELIVERY

AND DISCUSS FUTURE PRODUCTS

AND SERVICES

the productcREATE A PLAN


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ADDRESS THE FOLLOWING ABOUT YOUR MARKET

SUPPLIERSBARRIERS TO ENTRY

INTELLECTUAL PROPERTY

MARKET SIZE

MARKET TIMING

DIRECT COMPETITORS

POTENTIAL PARTNERS

the marketcREATE A PLAN

o


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ADDRESS THE FOLLOWING IN YOUR REVENUE SECTION

B2B or B2cDISTRIBUTION CHANNELS

WHOLESALE VS. RETAIL REVENUE

ONE TIME VS. SUBSCRIPTION REVENUE

USER & CUSTOMER GROWTH ASSUMPTIONS

UNIT COSTS AT SCALE

UNIT REVENUE AT SCALE

revenue modelcREATE A PLAN

Financials SECTIONcREATE A PLAN


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ADDRESS THE FOLLOWING IN YOUR FINANCIAL PROJECTIONS

REVENUE ASSUMPTIONSCOST ASSUMPTIONS

Revenue by Month

COST BY MONTH BY CATEGORYNET INCOME BY MONTH BY CATEGORY

TIME TO BREAKEVEN

FUNDS NEEDED TO REACH NEXT MILESTONETOTAL EXPECTED FUNDS NEEDED

Financials SECTIONcREATE A PLAN

Financials PROJECTIONScREATE A PLAN


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EXAMPLE 60 Month PRO FORMA P&L PROJECTIONS

($2,500,000)

($2,000,000)

($1,500,000)

($1,000,000)

($500,000)

$0

$500,000

$1,000,000

$1,500,000

0 6 12 18 24 30 36 42 48 54

Revenue Expenses Aggregate Net Income


Aggregat

breakeve

MONTHLY

breakeven



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Heres a REALLY BASIC Example financial PROJECTION


2015% 2016% 2017% 2018% 2

Revenue% 18,127% 50,984% 143,401% 403,340% 1,134

Expenses% 103,408% 118,539% 139,017% 287,553% 640

Net%Profit%


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MAKE SURE YOUR DECK ANSWERS ALL THESE QUESTIONS

!Whos on your team?!What is their background?!WHAT IS THE NEED FOR THE PRODUCT?!HOW WILL THE PRODUCT BE PRICED?!WHAT IS THE SIZE OF THE MARKET?!IS THE MARKET READY FOR THE PRoDUCT?!WHAT WILL IT COST TO PRODUCE THE PRODUCT?!WHAT IS THE TOTAL START-up COST?

SLIDE DECK checklistcREATE A PLAN



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MAKE SURE YOUR DECK ANSWERS ALL THESE QUESTIONS

!HOW MUCH IS NEEDED TO REACH BREAKEVEN?!WILL YOU NEED TO ACQUIRE ANY IP?!WHO IS YOUR TARGET CUSTOMER?!WHAT ROLES WILL YOU FILL IN THE FUTURE?!WHAT ARE YOUR FUTURE PRODUCTS?!WHAT ARE YOUR ANNUAL Revenue PROJECTIONS?!WHAT ARE YOUR ANNUAL COST PROJECTIONS?!WHAT ARE YOUR ANNUAL PROFIT PROJECTIONS?


incorporatecREATE A PLAN


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NOW THAT YOU HAVE YOUR PLAN

Its time to become official

AND INCORPORATE




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MUCH LOWER TAXES (only pay taxes on proLIABILITY PROTECTIONBEING TAKEN SERIOUSLY

ABILITY TO OPEN A BANK ACCOUNTABILITY TO HIRE EMPLOYEESABILITY TO RAISE INVESTMENT

ABILITY TO GAIN CORPORATE CREDIT

THE BENEFITS OF INCORPORATING




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TO INCORPORATE YOURSELF

YOU JUST NEED TO KNOW

THE NAME OF THE COMPANyTHE STATE YOU WISH TO INCORPORATE IN

THE NUMBER OF SHARES TO CREATE

THE INITIAL OWNERSHIP OF THOSE SHARES




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YOU CAN INCORPORATE VIA

LEGALZOOM.com

INCORPORATE.COm

OR VIA ANY CORPORATE LAW FIRM


cREATE A PLAN incorporate


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IN THE U.S. you can start a

S Corp

C CorpLLC

BENEFIT CORP

Most firms that plan on raising

c apital are De law are CCorporations

cREATE A PLAN incorporate



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IN CHOOSING A LAW FIRM LOOK AT

REPUTATION & REFERENCES

START-up EXPERIENCE

INTRODUCTION TO INVESTORS

IPO EXPERIENCE

PARTNER CHEMISTRY




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ONCE INCORPORATED YOUll

RECEIVE YOUR

ARTICLES OF INCORPORATIONSET OF BYLAWS

SET OF STOCK CERTIFICATES




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THEN if in the U.S. YOU CAN GET ANEMPLOYER IDENTIFICATION NUMBER

FROM THE IRS (YIPEE!)

AND OPEN A BANK ACCOUNT


What matters is executioncREATE A PLAN


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Dont spend too long on plannin

BUSINESS IDEAS ARE A DIME A DOZE

WHAT REALLY MATTERS ISTHE OPERATIONAL EXECUTION

AND THE QUALITY OF the team.

What matters is executioncREATE A PLAN


26/26

CEO of Connect.com

Startup Guide RYAN ALLIS

Building a Better World Through Entrepreneurship

With Ellen Daly

The

2013 Edition

More slides at www.s

The Startup Guide - Create a Business Plan

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