1. INTRODUCTION TO BUSINESS PLANS Business Basics

2. Business Plans Who is it for?  Investors  You The three questions  Where are we now?  Where do we want to be?  How are we going to get there?

3. Business Plans What goes in a business plan?  Executive Summary  Description of the Company  Products/Services  Management Team  The Market & Competition  Financials  Exit Strategy (if appropriate)

4. The Executive Summary The ‘Trailer’ A summary of what you do and how you’re doing it Short, punchy, attractive Make the investor think:  Feel the pain!  Wow – what a solution!  Isn’t this market HUGE?!  Would you look at the size of that profit!

5. Business Plan Bottom Line You’re presenting this to an audience:  Can they understand it easily?  What questions will they ask?  Will they want to know more?  Will they want to invest in it? There is no formal structure for business plans – lead with whatever is the most important factor

6. Critical elements In the order of the most important to your venture The Market  Market analysis – size/competitors/scale of opportunity The Return on Investment (ROI) – and Exit Strategy  Financial forecast – when will they make their money back and with what multiplier?

7. Critical Elements The Team  Skills  Previous experience  Commitment The Product/Service  Unique Selling Point (USP)  Business & Sales development strategy

8. Typical Mistakes Lack of firm orders & endorsements from real customers IP not protected Lack of credible market research Failure to identify USP Failure to identify exit routes Lack of history – poor evidence of trading history Lack of detailed finances – costs, margins, break- even Lack of evidence about the team’s experience

9. “Learn by Walking”

10. Good books ‘The Definitive Business Plan’ – Richard Stutely ‘The New Business Road Test’ – John Mullins ‘The Beermat Entrepreneur’ – Mike Southon

11. Useful websites www.businesslink.gov.uk www.businessbasecamp.co.uk www.nesta.org.uk www.swain.org.uk