Identification Of Opportunities And Preparation Of Business Plan 1
Business Plan Preparation
description
Transcript of Business Plan Preparation
Business Plan Preparation
Frank MoyesLeeds College of Business
University of ColoradoBoulder, Colorado
Publishing the Plan & Investor Presentations
Today’s Agenda Matt Emmi, founder OneButton Publishing your plan Investor presentations Executive Summary Team meetings – review financial projections Hand-in
Management Plan Financial Plan (4 statements)
Income Statement Balance Sheet Cash Flow Assumptions
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End of Semester Schedule I Practice Presentations Workshop
1 hour Dec 6 & 7 S127
Dec 8 (Monday) 12:00 noon email Exec Summary in Word.doc to Frank
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End of Semester Schedule II Dec 10 (Wednesday) Cut Round all
teams for grade Morning session begins at 8:30am Evening session begins at 6:30pm
Presentations in S127 15 minute presentation 15 minute Q & A
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End of Semester Schedule III Hand in
2 copies of Plan 1 copy Financial model – all worksheets 1 copy of slide presentation
Select 4 teams for finals Grading Criteria are on the website Attendance required to do FCQ’s & peer
evaluations Business casual
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End of Semester Schedule IV Jan 12 (Monday) four finalists submit 6
copies to Deming Entrepreneurship Center before 12:00 noon
Jan 14 Finals Competition Reception at 5:30 Competition in at 6:00 in ? (video) Invite friends and family
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Publish Your Plan I Length
Plan: 20 pages max
Appendices: 10 pages max 5 year IS, BS and CF in Appendix with detailed assumptions Customer survey: summary results and how conducted Resumes Development Gantt timeline Drawings, specifications, layout Capital expenditure detail Other import information that investors would need to
understand the plan
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Publish Your Plan II Font size 12 point Use tables and graphs (sources) Show sources of info in parentheses or
footnotes Spiral binding, white paper Cover sheet with team member names
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Publish Your Plan III Financial info in Plan
Financial Summary with key assumptions Offering & Valuation Sources & Uses 5 year IS, BS and CF in Appendix with detailed
assumptions
Financial projection from the model with all assumption worksheets in separate binding
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Publish Your Plan IV Less is better White space Make it interesting to read
Make it real Use photos Use color if it is appropriate
No weasel words
Proof read and spelling
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Business Plan Elements
Executive Summary Company Overview Product or Service Description Market & Industry Analysis Marketing Plan Operations Plan Development Plan Management Plan Competitive Advantage Financial Plan Funding
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One Page Executive Summary
Opportunity Product/Service Marketing Strategy Competitive Advantage Management Financial Funding
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Executive Summary Opportunity
Product/Service Marketing Strategy Competitive Advan Management Financial Funding
= Size, trends & solves a problem
= Differentiation
= Key elements
= Sustainable
= Critical
= Revenue, profitability
= Cash required, offering
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Presenting Your Plan 15 minutes Make it real - tell a story Focus on 3 or 4 points you want judges to
remember Introduce points Repeat in Summary
Show prototypes, exhibits, short videos Test slides for clarity in your class room before
presentation Practice transitions between presenters
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Presentation Slides 12 to 15 Slides Back-up slides to help in answering likely
questions Each slide conveys one point
Everything on the slide must support the point 3 bullets
Use simple graphics to convey point
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Questions & Answers 15 minutes Answer 30 seconds or less Decide beforehand who will answer what
questions Unless team member is in trouble, only one
answer If don’t like your answer, they will ask again
If you don’t know the answer, say so
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Killer Slide Presentation Overview (3 key points) The Problem Opportunity The Solution Target Customer Competition Sustainable Competitive
Advantage
Go To Market Strategies Management Financial summary Funding Risks Funding & Offering Conclusion (3 key points)
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How to Make an Effective Investor Presentation Sources
Jim Linfield, Cooley Godward Deloitte & Touche accelerator
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Title Slide Name of your firm Date Name of investor firm Optional: How much money is being
sought for this round? Appropriate graphics (logo, etc.)
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Overview Elevator speech (not on slide) Value proposition (not on slide) Introduce team 3 key points want investors to remember Get their attention
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The Problem What problem are you solving? Must be easily understood &
communicable Validate by referring
Customer research Interviews – use quotes
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Opportunity Size & growth Trends Focus on your segment
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The Solution Describe what you do Key features Benefits to target customer (could be a 2nd
slide) Future products/services
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Target Customer Validation - use your customer research Consumer
Demographics & psychographics How make buying decisions
Business Type of companies How make buying decisions
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Competition Identify your competitors
Current & future Direct & indirect
Strength & weaknesses Barriers to entry that you face
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Sustainable Competitive Advantage How are you different than your competitors
Perceptual maps?
Barriers to entry that you can create Resources and capabilities
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Go to Market Strategy(could be 2-3 slides) High Level description Target market Distribution - channel Positioning Sales strategies Communications Pricing strategy Roll out plan Partnerships
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Go To Market Strategy
F1000
MID-MARKET
$4B Market
INDIRECT SALES
18%
DIRECT SALES
82%
Distributors6 US 10 European 2 Asian
Strategic PartnersIBM
Today
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DistributorsSirriusAvNetSupport Net
F1000
MID-MARKET
$4B Market
INDIRECT SALES
50%
Strategic PartnersIBMISS
SymantecTripwire
Independent Software VendorsJD EdwardsSAP Infinium
Tomorrow
DIRECT SALES
50%
Go To Market Strategy
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Management Key officers
Backgrounds Accomplishments
Who is missing? Interim management
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Year 1 Year 2 Year 3 Year 4 Year 5Revenues($000) $1,000 $2,500 $5,000 $15,000 $25,000Gross Profit 25% 35% 36% 36% 37%Operating Expenses 35% 40% 30% 25% 20%Net Income -10% -5% 6% 11% 17%Cash Flow ($000) (500) (1,000) 200 1,000 3,000Investment ($000) 500 1,000Debt ($000) 500Customers 200 600 1,100 4000 6000Headcount 4 15 40 60 90
Financial Summary
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Risks 2 or 3 that are unique to you venture What can go wrong & what must go right? How will you mitigate
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Funding & Offering Sources & Uses Different rounds
Amount being raised % of Company Return on Investment
See Hecho en Case & Chalk2Me Debt
Repayment terms Interest rate
Exit
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Hecho en CasaSources & Uses Statement
Financing Amount Ownership
Uses of Funds
Round A (June 2005)
$315,000 41.0% Salaries $221,800Inventories $ 60,100Working Capital $ 16,400Capex $ 15,000Other $ 1,700
Round B (Oct. 2006)
$310,000 15.5% Salaries $197,100Inventories $ 79,200Capex $ 30,000Other $ 3,700
Round C (Q3 2007) $170,000 4.0% Salaries $122,000Inventories $ 41,700Capex $ 6,300
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Conclusion Summarize 3 key points Good investment Questions
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Backup Slides Revenue Model Customer research summary Operations Key benchmarks Key financial assumptions
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Be Ready to Talk About Your Critical Assumptions Margins Comp’s Key assumptions Break-even Major expenditures Working Capital Burn rate
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Suggestions Use your customer surveys to support Tell a story Don’t be boring Use charts, graphs, simple tables
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