Business Plan What? Overview & reflection of the business and its 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 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 its 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 Whats 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 1 st 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