Simple rules to follow when creating the business plan

Why do I need a business plan? “When managers put down on paper the data necessary to create a business plan, they are forced to organize and structure their business ideas. The business begins to take shape. A written plan reveals complex aspects of future work or work in progress”

Typical structure for a business plan for a start up venture Executive Summary1 Company Overview2 Technological Analysis3 Market Analysis4 Execution Plan5 Financials6 Some sample questions to help you…

1.Executive Summary The executive summary summarizes the key points of the business plan. It should define the decision to be made and the reasons for approval. 1.Company Profile  Briefly description of the Team 2.Technology  Summary of Technology: keycharacteristics and strenghts 3.Intellectual Property  What is or can be patented? 4.Market  Describe in three lines market, segment, size and trends 5.Business Plan  Expected financial performances of company in next 3 to 5 years 6.Exit Strategy  What are the most probable exits (trade sale to….IPO)

2.Company Overview The management team is one of the key elements to a business plan. The plan must convey the past experience and talents of the management team and its ability to deliver on the goals set by the plan. 1.The Team and the Facility  Set out the skills and track record of the company managers. You may also offer details about key employees, pointing out qualifications, experience or outstanding skills, those qualities which will add a competitive edge to the image of the business. (Include resumes of key people) 2.The Strategy  How the company expects to grow and compete on its market

3.Technological Analysis 1.Technology description 2.Competing technologies:  How many competing technologies exist? Do they belong to leaders competitors? Are they already in the market? 3.Patenting  Is the proposed technology patentable? Are there any risk of infringing someone else patents? 4.Suppliers  Is this technology critically linked to specific suppliers? 5.Legal & Norms  Does this technology comply current norms? Do we forseen changes in norms? 6.Proof of Concept  Do we have scientific, peer reviewed evidence of findings? 7.R&D timeframe  How long will we take before reaching the market launch phase?

4.Market Analysis 1.Introduction 2.Market opportunity  How big is the pain/cost of not having a solution? Those who have the problem, are they aware that they have the problem?  Is there a clear definition and well defined profile of the target user and customer? Who pays for it? Who uses it?  Is the target market stable or growing? When is the market window open?  Is there a clear vision and mission statement in place that targets the opportunity? 3.Product/Solution  What is the product description and differentiations? What needs are addressed?  What exactly will be sold?  Do those who have the problem agree that the solution is a good one?  Has everything that requires the solution to work been considered?

5.Execution Plan  What is the strategic plan for increasing company’s value and accumulating intangible assets, regardless of immediate financial gains?  And what tactical moves are planned for achieving that?  Is there a clear marketing plan to reach the target users and customers and is it executable?  Has the company correctly assessed the customers’ buying criteria?  What are customers’ sources of Information?  Are the go-to-market and penetration strategies defined and realistic?  Are all R&D phases clearly identified and planned?  Are key phase deliverables identified?  Are resources aligned with competencies required?  Are the customer acquisition methods, the main sales and distribution channel defined?  Are major sales channels open to the company?  Are there any quality control processes in place?  Can the product/service be developed in a reasonable time?  Are the cost estimates and cycle times realistic for production?

6.Financials 1.Income Statement 2.Balance Sheet 3.Statement of Cash Flow 4.Debt