1. Tel: 905-731-8255 phillipson@nexterra.com Preparing a Business Plan Workshop for McMaster University Campus Incubator Business Plan Challenge September 29, 2001 JAMES E. PHILLIPSON, C.A.

2. WHY ARE YOU DOING THIS? A few key questions: A.To raise financing B.To use as an operating tool C.To placate an existing investor D.To assess priorities E.To allocate resources F.Determine action steps G.…

3.  MISSION  STRATEGIES TO ACHIEVE MISSION  STRENGTHS  WEAKNESSES  OPPORTUNITIES  THREATS  PRIORITIES  LIMITATIONS  RESOURCES REQUIRED  FOCUS  DETAILED BUDGETS  MECHANICS OVERVIEW

4. No rules!! CONTENT

5. Cover  Contact information  Date  Disclaimer  Logo  Slogan CONTENT

6. Index  Page numbers CONTENT

7. Executive Summary  Purpose  May be all someone reads!  Exit strategy CONTENT

8. Mission statement CONTENT

9. The business  Describe products or services  Where are we today?  Market opportunity  Vision  Business strategies  Business philosophies, e.g. environmental issues CONTENT

10. The business (cont’d)…  Goals  What is unique?  Competitive advantage  Barriers to entry  Revenue model(s)  Certification – independent verification e.g. ISO 2000  Service levels, security, etc.  Success drivers CONTENT

11. Customers  Existing vs. potential  Nature of agreement (verbal, LOI, contract, P.O.)  Sales cycle  Sales funnel CONTENT

12. Financing  Requirements & timing  Previous rounds  Use of proceeds  Equity (valuation!)  Debt  Leasing  Guarantees CONTENT

13. Company  History  Board of directors  Advisory board  Organization chart  Ownership/capital structure  Offices, Bankers, Lawyers, Accountants CONTENT

14. Industry information Market analysis CONTENT

15. Target market(s)  Who, where & how many  How – marketing plan  Pricing  Sales channels  Public relations CONTENT

16. Management Strategic alliances  Nature  Exclusivity CONTENT

17. Stakeholders  Public sector  Private sector Competition  I don’t believe you! CONTENT

18. Research & Development  Strategy  Technical barriers  Grants CONTENT

19. Intellectual Property  Patent or trademark  Registered  Status  Strategy CONTENT

20. Risk factors and limiting factors CONTENT

21. Resources  Human Head count growth Who, when & how much  Premises/Land & buildings  Equipment CONTENT

22. Supply chain  Suppliers Outsourcing  Manufacturing/assembly  Warehousing & Distribution  Delivery  Returns CONTENT

23. Financial forecast  Put it in words  Summary  Income statement  Balance sheet  Cash flow  Assumptions  Analysis CONTENT

24.  Financial forecast - detail  Industry surveys  Press releases  Press coverage  Technical data/specifications  Financial statements - historical  Glossary  Key agreements/contracts  Resumes  Advertisements  Show & tell – product sample APPENDICES

25.  Audience  Impression  Presentation  Words  Length  Fonts  Financials  Cover page  Budget  Binding  Tabs  Executive summary  Editing  Colour  Printing  Arena MECHANICS

26. Tel: 905-731-8255 phillipson@nexterra.com Preparing a Business Plan Workshop for McMaster University Campus Incubator Business Plan Challenge September 29, 2001 JAMES E. PHILLIPSON, C.A.