3 espire_interim business plan

8/8/2019 3 Espire_Interim Business Plan

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Espire Final Presentation

ESPIRE Group ID:


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Characteristics of a good plan

Authoring & Validation

Written by management team (support of experts)

Validated & run through with knowledgeable advisors

References to quality research (primary & secondary)

Structural

Crisp (16-20 slides)

Logically sequenced and de-jargonized


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Characteristics of a good plan contd..

Approach

Relevance to audience (pointedly address key concerns & avoidanalysis paralysis syndrome)

Simple business orientation (not too techie)

Realistic projections; promise the moon only if you can deliver it Financial prudence; high sensitivity towards cash burn

Maturity & self-awareness (competition, returns, risk & gapsassessment)

Fair valuation expectation

Content

Deliver a 360 degree perspective; dont tell only part of relevant story

Fact-based; avoid fluffy adjectives

Industry insights Vs industry information (domain expertise)

Demonstration of excellent ability to execute per operating plan

Exit opportunities if audience is investor; understand VC perspectiveon fund level returns


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Structure

Elevator Pitch

Vision and Mission Statement

Market and Industry Environment

Value Proposition, Key Products/Services and Differentiation

Competitive Scenario and Entry Barriers

Business Model and Sales/Marketing Strategy

Market Traction

Management Team

Organization

Financials

Exit

Capital

Risks and Gaps


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Elevator Pitch

What does the Company do?

What new benefits do you provide and/or what pain points are addressed?

How are you differentiated from competitors on a sustainable basis?


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Vision and Mission Statement

Powerful and realistic enough to rally all stakeholders

Should reveal core focus area of the company

Avoid verbose and very generic statements

No jargon

True well thought through guiding principle for the company

Investors back current and potential market leaders


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Market and Industry Environment

Details about target segment and industry such as

Market definition

Key segments (size and growth rates)

Market trends (challenges & opportunities)

Critical success factors

Visual illustration of eco-system

Competition

Vendors Distributors

Customers


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Value Proposition, Key Products/Services

and Differentiation

Convince the audience that very large number of customers will pay good

amount of money for your offering on a regular basis

List of key products and services being offered & future roadmap; one-trick

ponies can be a challenge

Target customer profile; try to please all and you may please none

Importantly do not kid yourself about differentiation; competition is global


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Competitive Scenario and Entry Barriers

No competition is almost never a reality; acknowledge potential

competition if no head-to-head player exists

Existence of some competition can serve for crucial market validation

Audience is sure to do its own competitive analysis; you might as well

assist the process with matrix of

Competitor name

Business line

Geography

Relative key strengths and weakness of each

Entry barriers for the new entrants are critical


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Business Model and Sales/Marketing

Strategy

Revenue drivers

Cost drivers

Sales/marketing strategy including

Overall product/brand positioning

Sales & distribution strategy

Key business development alliances & partnerships

Pricing approach


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Market Traction

A key clincher slide

Provide information on customer wins and historical traction with key

accounts Include applicable metrics such as

Key accounts

Repeat business

Customers won over from competition

Number of unique users

Distribution partners

Average revenue per account/user


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Management Team

A very crucial clincher slide- good teams rarer than good plans

Provide information about management team including factors such as

Ex-employer/venture names Past role descriptions and timelines

Key strengths

Achievements

Roles & high level responsibilities in this Company

Audience will look for indication of

Integrity

Domain expertise

Proven chemistry amongst core team

Established credibility in industry especially in case of large cos

Perseverance especially in case of start-ups


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Organization

Ability to attract good talent across organization is also credible validation

of company prospects

High level on BoD and BoA if applicable

Give a sense for the structure and size of the company ex.

Business division break-up and approach used

Human resource structure

No of employees in various functions/departments

Locations


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Financials

Audited annual high level Profit and Loss & Cash Flow statement for the

last three years (if applicable)

High level Profit &

Loss & Cash

Flow projections for the following three

years

List key underlying assumptions for the top & bottom line projections

Breakdown the revenue per lines of business

Important hygiene factor: mention & maintain consistency in currency &

denomination


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Exit

Investors have definite intention of exit

Understand perspective on fund level return expectation

Think through and share specific exit scenarios ex.

Time frame and revenue scale forIPO or

Potential acquirers and specific reasons for their potential interest

Research & provide information on relevant & recent exit/valuation

events in the market


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Capital

If raising money specify how much & timelines for same

Provide breakdown of capital allocation

Calculate by when you will burn money being raised (if applicable)

If further rounds of funding are required then specify the plan

Raising too much is as dangerous as raising too little

Specify current capital shareholding structure

Share history of earlier funding (if any)

Dates of such transactions

Amounts raised Pre-money valuations

Equity stake allotted


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Risks and Gaps

Excellent opportunity to demonstrate maturity of management team

Mention specific risks that your venture and market/industry face

What are the likely reasons that would cause your Company to under-

achieve its targets?

What steps are being taken to mitigate these risks?

Current gaps can pan for ex.

Strategy

Business model

Customer traction

Talent

Technology

Operations

What are the priorities & consequent plan around filling in these gaps?


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Thank-you

3 espire_interim business plan

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