business plan preparation

Business Plan Preparation

Frank MoyesLeeds College of Business

University of ColoradoBoulder, Colorado

Publishing the Plan & Investor Presentations

Today’s Agenda Matt Emmi, founder OneButton Publishing your plan Investor presentations Executive Summary Team meetings – review financial projections Hand-in

Management Plan Financial Plan (4 statements)

Income Statement Balance Sheet Cash Flow Assumptions


End of Semester Schedule I Practice Presentations Workshop

1 hour Dec 6 & 7 S127

Dec 8 (Monday) 12:00 noon email Exec Summary in Word.doc to Frank


End of Semester Schedule II Dec 10 (Wednesday) Cut Round all

teams for grade Morning session begins at 8:30am Evening session begins at 6:30pm

Presentations in S127 15 minute presentation 15 minute Q & A


End of Semester Schedule III Hand in

2 copies of Plan 1 copy Financial model – all worksheets 1 copy of slide presentation

Select 4 teams for finals Grading Criteria are on the website Attendance required to do FCQ’s & peer

evaluations Business casual


End of Semester Schedule IV Jan 12 (Monday) four finalists submit 6

copies to Deming Entrepreneurship Center before 12:00 noon

Jan 14 Finals Competition Reception at 5:30 Competition in at 6:00 in ? (video) Invite friends and family


Publish Your Plan I Length

Plan: 20 pages max

Appendices: 10 pages max 5 year IS, BS and CF in Appendix with detailed assumptions Customer survey: summary results and how conducted Resumes Development Gantt timeline Drawings, specifications, layout Capital expenditure detail Other import information that investors would need to

understand the plan


Publish Your Plan II Font size 12 point Use tables and graphs (sources) Show sources of info in parentheses or

footnotes Spiral binding, white paper Cover sheet with team member names


Publish Your Plan III Financial info in Plan

Financial Summary with key assumptions Offering & Valuation Sources & Uses 5 year IS, BS and CF in Appendix with detailed

assumptions

Financial projection from the model with all assumption worksheets in separate binding


Publish Your Plan IV Less is better White space Make it interesting to read

Make it real Use photos Use color if it is appropriate

No weasel words

Proof read and spelling


Business Plan Elements

Executive Summary Company Overview Product or Service Description Market & Industry Analysis Marketing Plan Operations Plan Development Plan Management Plan Competitive Advantage Financial Plan Funding


One Page Executive Summary

Opportunity Product/Service Marketing Strategy Competitive Advantage Management Financial Funding


Executive Summary Opportunity

Product/Service Marketing Strategy Competitive Advan Management Financial Funding

= Size, trends & solves a problem

= Differentiation

= Key elements

= Sustainable

= Critical

= Revenue, profitability

= Cash required, offering


Presenting Your Plan 15 minutes Make it real - tell a story Focus on 3 or 4 points you want judges to

remember Introduce points Repeat in Summary

Show prototypes, exhibits, short videos Test slides for clarity in your class room before

presentation Practice transitions between presenters


Presentation Slides 12 to 15 Slides Back-up slides to help in answering likely

questions Each slide conveys one point

Everything on the slide must support the point 3 bullets

Use simple graphics to convey point


Questions & Answers 15 minutes Answer 30 seconds or less Decide beforehand who will answer what

questions Unless team member is in trouble, only one

answer If don’t like your answer, they will ask again

If you don’t know the answer, say so


Killer Slide Presentation Overview (3 key points) The Problem Opportunity The Solution Target Customer Competition Sustainable Competitive

Advantage

Go To Market Strategies Management Financial summary Funding Risks Funding & Offering Conclusion (3 key points)


How to Make an Effective Investor Presentation Sources

Jim Linfield, Cooley Godward Deloitte & Touche accelerator


Title Slide Name of your firm Date Name of investor firm Optional: How much money is being

sought for this round? Appropriate graphics (logo, etc.)


Overview Elevator speech (not on slide) Value proposition (not on slide) Introduce team 3 key points want investors to remember Get their attention


The Problem What problem are you solving? Must be easily understood &

communicable Validate by referring

Customer research Interviews – use quotes


Opportunity Size & growth Trends Focus on your segment


The Solution Describe what you do Key features Benefits to target customer (could be a 2nd

slide) Future products/services


Target Customer Validation - use your customer research Consumer

Demographics & psychographics How make buying decisions

Business Type of companies How make buying decisions


Competition Identify your competitors

Current & future Direct & indirect

Strength & weaknesses Barriers to entry that you face


Sustainable Competitive Advantage How are you different than your competitors

Perceptual maps?

Barriers to entry that you can create Resources and capabilities


Go to Market Strategy(could be 2-3 slides) High Level description Target market Distribution - channel Positioning Sales strategies Communications Pricing strategy Roll out plan Partnerships


Go To Market Strategy

F1000

MID-MARKET

$4B Market

INDIRECT SALES

18%

DIRECT SALES

82%

Distributors6 US 10 European 2 Asian

Strategic PartnersIBM

Today


DistributorsSirriusAvNetSupport Net

F1000

MID-MARKET

$4B Market

INDIRECT SALES

50%

Strategic PartnersIBMISS

SymantecTripwire

Independent Software VendorsJD EdwardsSAP Infinium

Tomorrow

DIRECT SALES

50%

Go To Market Strategy


Management Key officers

Backgrounds Accomplishments

Who is missing? Interim management


Year 1 Year 2 Year 3 Year 4 Year 5Revenues($000) $1,000 $2,500 $5,000 $15,000 $25,000Gross Profit 25% 35% 36% 36% 37%Operating Expenses 35% 40% 30% 25% 20%Net Income -10% -5% 6% 11% 17%Cash Flow ($000) (500) (1,000) 200 1,000 3,000Investment ($000) 500 1,000Debt ($000) 500Customers 200 600 1,100 4000 6000Headcount 4 15 40 60 90

Financial Summary


Risks 2 or 3 that are unique to you venture What can go wrong & what must go right? How will you mitigate


Funding & Offering Sources & Uses Different rounds

Amount being raised % of Company Return on Investment

See Hecho en Case & Chalk2Me Debt

Repayment terms Interest rate

Exit


Hecho en CasaSources & Uses Statement

Financing Amount Ownership

Uses of Funds

Round A (June 2005)

$315,000 41.0% Salaries $221,800Inventories $ 60,100Working Capital $ 16,400Capex $ 15,000Other $ 1,700

Round B (Oct. 2006)

$310,000 15.5% Salaries $197,100Inventories $ 79,200Capex $ 30,000Other $ 3,700

Round C (Q3 2007) $170,000 4.0% Salaries $122,000Inventories $ 41,700Capex $ 6,300


Conclusion Summarize 3 key points Good investment Questions


Backup Slides Revenue Model Customer research summary Operations Key benchmarks Key financial assumptions


Be Ready to Talk About Your Critical Assumptions Margins Comp’s Key assumptions Break-even Major expenditures Working Capital Burn rate


Suggestions Use your customer surveys to support Tell a story Don’t be boring Use charts, graphs, simple tables


business plan preparation

Documents