1. Your Business Plan UC Santa Cruz September 23, 2000 Steve Mushero GLOBALTECH www.globaltech.comwww.globaltech.com - mushero@globaltech.com

2. Copyright 2000 GLOBALTECH 2 Why do a plan ?  To raise money  To see if you want to raise money  To plan your startup  To reduce the risks – financial, market, technology, team

3. Copyright 2000 GLOBALTECH 3 3 C’s  Compelling Tell a gripping story  Concise Short, powerful, to the point  Complete All NECESSARY information Not everything you can think of

4. Copyright 2000 GLOBALTECH 4 Plan Components  Executive Summary  The Plan  Financials  Cover Letters / Emails

5. Copyright 2000 GLOBALTECH 5 Who reads what  Executive Summary is critical You will mail this out Investors will start here Goal: Next step  Business Plan Rarely read, maybe in diligence You must know it cold  Financials Perhaps read You must know it colder

6. Copyright 2000 GLOBALTECH 6 Executive Summary  Purpose – Next Step  Structure – 2-3 pages  Format – Short & Clean  Main concepts Unfair monopoly Great idea Great interest/market Great execution planned Great people Great financials

7. Copyright 2000 GLOBALTECH 7 Exec Summary Outline  Summary Very concise, strongest messages Make them keep reading “MyCompany.com will create world peace using patented technology that makes everyone happy. The market is the world GNP, or $100 trillion dollars, the founders are all ex-presidents of western countries and customers are all lined up.”

8. Copyright 2000 GLOBALTECH 8 Problem  What extremely painful problem are you solving ?  Describe in concrete terms, Be as familiar as possible, connect with reader  Hit hot buttons Costly, time consuming, paper intensive, fragmented, chaos

9. Copyright 2000 GLOBALTECH 9 Solution  What is your solution  Value proposition (why will someone buy it)  How does it work (briefly)  Why is it better  Pricing and acceptance “People will pay $100/month for this.”  Future products / revenue  Keep it short

10. Copyright 2000 GLOBALTECH 10 Market / Need  Who are the customers and how many are there  Use ADDRESSABLE market, not market size How much you can get ! If you help rent apartments, the market is not the world-wide rental market.  Pricing – plan, power  Barriers to entry  Cite external sources

11. Copyright 2000 GLOBALTECH 11 Execution  Critical – show you can manage this  Customers / Revenue today  Technology status and plan  Marketing plan and cost  Sales strategy  Partners, existing and planned

12. Copyright 2000 GLOBALTECH 12 Competition  Be honest, more or less  List of firms and products  Why you are better What if you are late to market Don’t be “me-too” or have a few extra features  Barriers to entry

13. Copyright 2000 GLOBALTECH 13 People  Impressive bios Management Advisors  Accomplishments  Startup experience  Working as a team

14. Copyright 2000 GLOBALTECH 14 Money  How much you need  How long it will last  How it will be used  Some milestones for reference  Financials – one page summary

15. Copyright 2000 GLOBALTECH 15 Business Plan  Executive Summary, plus more  More in depth  More execution  More market and need analysis  Back up everything you say in appendices

16. Copyright 2000 GLOBALTECH 16 Business Plan Extras  Solution Product details, flow Technology specs (high level) Follow on products  Market Marketing methods / plan Who the customers are Market segments Future directions/growth Pricing options Sales methods, cycle Partners and your value to them

17. Copyright 2000 GLOBALTECH 17 Business Plan Extras  Execution Staffing and office plans International strategy PR strategy

18. Copyright 2000 GLOBALTECH 18 Financials  Sophisticated is good, but simple is okay  Do three years  Multi-sheet Excel People / Payroll, loaded Capital expenditures Expenses Revenue Cash flow

19. Copyright 2000 GLOBALTECH 19 Resources  GLOBALTECH www.globaltech.com  Artemis Ventures www.artemis.ventures.com/resources.html  Other VC Sites

20. Copyright 2000 GLOBALTECH 20 Thanks ! Steve Mushero Mushero@globaltech.com www.globaltech.com 888-564-8004