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Abillama Competition Workshop 21 February 2015
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What to expect from a business plan competition Unique opportunity to validate your idea, and if you are chosen get start-up capital The real prize is the preparation you need to do and the feedback you will receive Not being selected does not mean your idea has no merit, it just means another idea fit the criteria for the prize better Use the opportunity to work well with a team, align your expectations with each others, have the difficult conversations to be best prepared BE detailed focus, make sure formatting is perfect and don’t include anything you cannot defend or justify! Above all…. ENJOY the experience!
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What criteria will you be judged on? Eco-Friendly - Does your idea pollute or improve the environment? Entrepreneurship - How innovative is your idea? - Will it give you a long-term competitive advantage? Feasibility -Can the business be a profitable and self sustaining? - Can it create wealth and value for shareholders? Scalability -Can the business be scaled efficiently? - Is it capital intensive or efficient? Knowledge about the project -Have you research the project well? - Can you defend your assumptions convincingly? Presentation -Does the team present well and with confidence? -Is there a clear action plan and good explanation? Team -Is there the right chemistry among team members? -Is it a coherent team or a team that will disintegrate?
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Presentation Slides Order Five slides, to present in five minutes followed by 5 minutes Q&A 1.What the project is, What problem/issue it is solving 2.How big is the market opportunity 3.Who the team is 4.Who the competition is/What does the competitive landscape look like 5.Financials
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What the project is, What problem/issue it is solving Describe what the challenge is and how your idea solves the problem Explain how it does that Use an example to make it more tangible and interesting What it the environmental benefit and impact
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How big is the market opportunity What is the market size Quantify the market size Share the assumptions you are making Don't just think for Lebanon but regionally and globally as well
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Who the team is Who is the core team? Pictures and Bios Explain why experience is relevant Explain the right complementarities in the team
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Who the competition is/What does the competitive landscape look like Who is the competition? Everyone has competition! What are the other options available to users? What is the gap that we are filling? How will you compete effectively and carve out your market
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Financials 3 to 5 year projections What are the revenue assumptions and the cost assumptions made Have a clear P&L, and know what is in each line item How much capital you will need Use of proceeds: How you will use the $20k
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Projections P&L Line ItemsExplanation RevenuesSales, commissions, fees, all money coming in Cost of Goods Sold (COGS)All direct cost related to manufacturing the product or service Gross ProfitRevenues – COGS Sales, General and Administrative Expenses (SG&A) All other costs related to the operation: marketing, sales office expenses, distribution Earning Before Interest, Tax, Depreciation and Amortization (EBITDA) Gross Profit – SG&A Depreciation and Amortization Net InterestInterest expense – Interest Income TaxesAll corporate taxes Net ProfitEBITDA – D&A – Net interest - Taxes
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