ENTREPRENEURSHIP II Babs Bailey Carryer spring 2002 Business plan overview First steps for the new venture

1/23/022 Who needs a business plan? Majority of Inc 500 companies had business plans This is not your father’s family business Forces you to express the essence of the value proposition, the deal, the opportunity…

1/23/023 Business plans Difference between business plan and vosg: –More detail –Blueprint for action and implementation –Vosg is go-nogo predecessor of business plan

1/23/024 What they should cover Creating or adding value to customer or end user Solving significant market problem Robust market and money-making characteristics Good fit with founders and management team

1/23/025 Challenges Obsolete as soon as they are written Selling documents Flexible and adaptable to changing market conditions Balance need for positive spin with legal considerations and regulations Numbers don’t matter, but economics do

1/23/026 Logisitics Hire an outside professional –Dos and don’ts Segment the sections: –Industry, competition, marketing strategy, finances, management, deal Heart and soul of business and plan is: –analysis of market opportunity –competitive analysis –strategies that result, –so start here

1/23/027 Audience Funders: some rules with VCs –Get to no quickly –Be vague about what other vcs you are talking to –Don’t ever meet with an associate or junior member twice without a partner –Never say no to an offer price –Don’t stop sellling till the money is in the bank –Never lie

1/23/028 Business plan outline Executive summary Description of business Industry and market Competition Strategy R&D, technical development Management Finances and the deal