Download - 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