Startup Guide2013 EditionThe SHARE FREELYBuilding a Better World Through Entrepreneurship RYAN ALLIS With Ellen Daly CEO of Connect.comMore slides at www.startupguide.comENTREPRENEURSHIPCreate A planSTARTUPGUIDE.COM 440ABOUT THIS PRESENTATIONTHIS presentation IS PART OF A LARGER slide DECK on building a better world through entrepreneurshipFor more slides & CONTENT visit:Startupguide.comSTARTUPGUIDE.COM 441cREATE A PLAN SHOULD YOU CREATE A PLAN BEFORE A PROTOTYPE?SOME ENTREPRENEURS choose not to create a plan at all And just start workingOn a prototype or Minimum viable productSTARTUPGUIDE.COM 442cREATE A PLAN WHY A LITTLE BIT OF PLANNING IS HELPFULI find that it's helpful to at least create a short slide deck or exec summary To ensure you know what you're building & What problem you're Solving before you start buildingSTARTUPGUIDE.COM 443cREATE A PLAN YOUR COMPANY PITCHDECK Many `Business PLANS' ARE created as sLIDE DECKS WHICH INCLUDE:1.TEAM 2.PROBLEM 3.PRODUCT & TECHNOLOGY 4.MARKET & COMPETITION 5.revenue model 6.FINANCIAL PROJECTIONSSTARTUPGUIDE.COM 444cREATE A PLAN the problemIn your plan, CLEARLY ILLUSTRATE THE PROBLEM YOU ARE SOLVING HOW YOU ARE SOLVING ITAND FOR WHOMSTARTUPGUIDE.COM 445cREATE A PLAN the productSHOW PICTURES OF A PROTOTYPE OR WIREFRAMES & MOCKUPS And MAKE YOUR SPECIFIC SOLUTIONEASILY VISUALIZEDSTARTUPGUIDE.COM 446cREATE A PLAN the productSHARE YOUR PRODUCTION TIMELINE AND KEY MILESTONES TOWARD INITIAL PRODUCT DELIVERY AND DISCUSS FUTURE PRODUCTS AND SERVICESSTARTUPGUIDE.COM 447cREATE A PLAN the marketADDRESS THE FOLLOWING ABOUT YOUR MARKETSUPPLIERS BARRIERS TO ENTRY INTELLECTUAL PROPERTY MARKET SIZE MARKET TIMING DIRECT COMPETITORS POTENTIAL PARTNERSSTARTUPGUIDE.COM 448cREATE A PLAN revenue modelADDRESS THE FOLLOWING IN YOUR REVENUE SECTIONB2B or B2c DISTRIBUTION CHANNELS WHOLESALE VS. RETAIL REVENUE ONE TIME VS. SUBSCRIPTION REVENUE USER & CUSTOMER GROWTH ASSUMPTIONS UNIT COSTS AT SCALE UNIT REVENUE AT SCALESTARTUPGUIDE.COM 449cREATE A PLAN Financials SECTIONADDRESS THE FOLLOWING IN YOUR FINANCIAL PROJECTIONS REVENUE ASSUMPTIONS COST ASSUMPTIONS Revenue by Month COST BY MONTH BY CATEGORY NET INCOME BY MONTH BY CATEGORY TIME TO BREAKEVEN FUNDS NEEDED TO REACH NEXT MILESTONE TOTAL EXPECTED FUNDS NEEDEDSTARTUPGUIDE.COM 450cREATE A PLAN Financials PROJECTIONSEXAMPLE 60 Month PRO FORMA P&L PROJECTIONS$1,500,000 $1,000,000 $500,000 $0 ($500,000) ($1,000,000) ($1,500,000) ($2,000,000) ($2,500,000) 0 6 12 18 24 30 36 42 48 54 60MONTHLY breakeven Aggregate breakevenRevenueSTARTUPGUIDE.COMExpensesAggregate Net Income451cREATE A PLAN Financials PROJECTIONSHere's a REALLY BASIC Example financial PROJECTIONRevenue% Expenses% Net%Prot% 2015% 18,127% 103,408%