Business Plan Preparation Frank Moyes Leeds College of
Business Plan Preparation Frank Moyes Leeds College of Business University of Colorado Boulder, Colorado Publishing the Plan & Investor Presentations
Tonight’s Agenda n n n Publishing your plan Investor presentations Executive Summary Team meetings – review financial projections Hand-in n n Management Plan Financial Plan (4 statements) n n Income Statement Balance Sheet Cash Flow Assumptions Publishing the Plan & Investor Presentations
End of Semester Schedule I n Practice Presentations Workshop n n n 45 minutes Dec 8 8: 45 am to 11: 45 Dec 9 12: 00 pm to 5: 15 pm Room 330 Voluntary Dec 10 (Monday) 12: 00 noon email Exec Summary in Word doc to Frank Publishing the Plan & Investor Presentations
End of Semester Schedule II n Dec 13 (Wednesday) Cut Round 11 teams for grade n n Hand in 2 copies of Plan 1 copy Financial model – all worksheets 1 copy of slide presentation Presentations in Rooms room S 110 & S 127 n n n 15 minute presentation 15 minute Q & A Select 4 teams for finals Grading Criteria are on the website Attendance required to do FCQ’s & peer evaluations Business attire Publishing the Plan & Investor Presentations
End of Semester Schedule III Jan 18 (Friday) four finalists submit 6 copies to Entrepreneurship Center before 12: 00 noon n Jan 24 Undergraduate Business Plan Competition n n Reception at 6: 00 Competition in Room 210 at 6: 30 Invite friends and family Publishing the Plan & Investor Presentations
End of Semester Schedule III Dec 7 (Friday) four finalists submit 6 copies to Entrepreneurship Center before 12: 00 noon n Dec 12 Undergraduate Business Plan Competition n n Reception at 5: 30 Competition in Room 210 at 6: 00 Invite friends and family Publishing the Plan & Investor Presentations
Publish Your Plan I n Length n n Plan: 20 pages max Appendices: 10 pages max n n n n 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 Publishing the Plan & Investor Presentations
Publish Your Plan II Font size 12 point n Use tables and graphs (sources) n Show sources of info in parentheses or footnotes n Spiral binding, white paper n Cover sheet with team member names n Publishing the Plan & Investor Presentations
Publish Your Plan III n Financial info in Plan n n 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 Publishing the Plan & Investor Presentations
Publish Your Plan IV Less is better n White space n Make it interesting to read n n n Make it real Use photos Use color if it is appropriate Proof read and spelling Publishing the Plan & Investor Presentations
Business Plan Elements n n n Executive Summary Company Overview Product or Service Description Market & Industry Analysis Marketing Plan Operations Plan Development Plan Management Plan Competitive Advantage Financial Plan Funding Publishing the Plan & Investor Presentations
Executive Summary Opportunity n Product/Service n Marketing Strategy n Competitive Advantage n Management n Financial n Funding n Publishing the Plan & Investor Presentations
Executive Summary n n n n Opportunity = Compelling & solves a problem Product/Service Marketing Strategy = Differentiation = Key elements Competitive Advantage = Sustainable Management = Critical Financial = Revenue, profitability Funding = Cash required, offering Publishing the Plan & Investor Presentations
Presenting Your Plan n 15 minutes Make it real - tell a story Focus on 3 or 4 points you want judges to remember n n n Introduce points Repeat in Summary Show prototypes, exhibits, short videos Test slides for clarity in your class room before presentation Practice transitions between presenters Publishing the Plan & Investor Presentations
Presentation Slides 12 to 15 Slides n Back-up slides to help in answering likely questions n Each slide conveys one point n n Everything on the slide must support the point 3 bullets Use simple graphics to convey point Publishing the Plan & Investor Presentations
Questions & Answers n n 15 minutes Answer 30 seconds or less Decide beforehand who will answer what questions Unless team member is in trouble, only one answer n n If don’t like your answer, they will ask again If you don’t know the answer, say so Publishing the Plan & Investor Presentations
Killer Slide Presentation n n n Overview (3 key points) The Problem Opportunity The Solution Target Market Competition Sustainable Competitive Advantage Publishing the Plan & Investor Presentations n n n n Go To Market Strategies Management Financial summary Funding Risks Funding & Offering Conclusion (3 key points)
How to Make an Effective Investor Presentation n Sources n n n Jim Linfield, Cooley Godward Deloitte & Touche accelerator Publishing the Plan & Investor Presentations
Title Slide Name of your firm n Date n Name of investor firm n Optional: How much money is being sought for this round? n Appropriate graphics (logo, etc. ) n Publishing the Plan & Investor Presentations
Overview Elevator speech (not on slide) n Value proposition (not on slide) n Introduce team n 3 key points want investors to remember n Get their attention n Publishing the Plan & Investor Presentations
The Problem What problem are you solving? n Must be easily understood & communicable n Validate by referring n n n Customer research Interviews – use quotes Publishing the Plan & Investor Presentations
Opportunity Size & growth n Trends n Focus on your segment n Publishing the Plan & Investor Presentations
The Solution Describe what you do n Key features n Benefits to target customer (could be a 2 nd slide) n Future products/services n Publishing the Plan & Investor Presentations
Target Market Validation - use your market research n Consumer n n Demographics & psychographics How make buying decisions Business n n Types of companies How make buying decisions Publishing the Plan & Investor Presentations
Competition n Identify your competitors n n Current & future Direct & indirect Strength & weaknesses n Barriers to entry that you face n Publishing the Plan & Investor Presentations
Sustainable Competitive Advantage n How are you different than your competitors n Perceptual maps Barriers to entry that you can create n Resources and capabilities n Publishing the Plan & Investor Presentations
Go to Market Strategy (could be 2 -3 slides) n n n n n High Level description Target market Distribution - channel Positioning Sales strategies Communications Pricing strategy Roll out plan Partnerships Publishing the Plan & Investor Presentations
Go To Market Strategy Today Distributors INDIRECT SALES 18% 6 US 10 European 2 Asian MIDMARKET Strategic Partners IBM 82% F 1000 DIRECT SALES Publishing the Plan & Investor Presentations $4 B Market
Go To Market Strategy Tomorrow INDIRECT SALES 50% Distributors Sirrius Av. Net Support Net Strategic Partners IBM ISS Symantec Tripwire MIDMARKET Independent Software Vendors JD Edwards SAP Infinium 50% F 1000 DIRECT SALES Publishing the Plan & Investor Presentations $4 B Market
Management n Key officers n n n Backgrounds Accomplishments Who is missing? n Interim management Publishing the Plan & Investor Presentations
Financial Summary Publishing the Plan & Investor Presentations
Risks 2 or 3 that are unique to you venture n What can go wrong? n What must go right? n How will you mitigate n Publishing the Plan & Investor Presentations
Funding & Offering n n Sources & Uses Different rounds n n Debt n n n Amount being raised % of Company Return on Investment Repayment terms Interest rate Exit Publishing the Plan & Investor Presentations
Hecho en Casa Sources & Uses Statement Financing Amount Ownership Uses of Funds Round A (June 2005) $315, 000 41. 0% Salaries Inventories Working Capital Capex Other $221, 800 $ 60, 100 $ 16, 400 $ 15, 000 $ 1, 700 Round B (Oct. 2006) $310, 000 15. 5% Salaries Inventories Capex Other $197, 100 $ 79, 200 $ 30, 000 $ 3, 700 Round C (Q 3 2007) $170, 000 4. 0% Salaries Inventories Capex $122, 000 $ 41, 700 $ 6, 300 Publishing the Plan & Investor Presentations
Conclusion Summarize 3 key points n Good investment n Questions n Publishing the Plan & Investor Presentations
Revenue Model Revenue forecast n Key elements of revenue model n n n n Market size Market share Growth rate Number of customers, units, etc. Pricing strategy Channel discount Etc n Publishing the Plan & Investor Presentations
Be Ready to Talk About Your Critical Assumptions Margins n Comp’s n Key assumptions n Break-even n Major expenditures n Working Capital n Burn rate n Publishing the Plan & Investor Presentations
Operations How add value n Describe process n Major expenditures n Publishing the Plan & Investor Presentations
Benchmarks 3 to 5 events critical to success of venture n Timeline n Publishing the Plan & Investor Presentations
Suggestions Use your customer surveys to support n Tell a story n Don’t be boring n Use charts, graphs, simple tables n Publishing the Plan & Investor Presentations
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