Excel Management Systems, Inc. * Dale S. Richards * 801 299 ...

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Excel Management Systems, Inc. * Dale S. Richards * 801 299 ...

  1. 1. Fund Raising Fundamentals & Business Plan Fundamentals Excel Management Systems, Inc. Dale S. Richards 801-299-9902, 801-573-6041 Cell
  2. 2. Fund Raising Food Chain <ul><ul><li>1. Own Money and Resources </li></ul></ul><ul><ul><li>2. Family and Friends </li></ul></ul><ul><ul><li>3. Known Wealthy Individuals </li></ul></ul><ul><ul><li>4. Wealthy “Angel” Investors: </li></ul></ul><ul><ul><li>Doctors, Lawyers, Business Executives </li></ul></ul><ul><ul><li>5. Institutional Early Investors: SBIC, UTFC, etc. </li></ul></ul><ul><ul><li>6. Venture Capital Investors </li></ul></ul><ul><ul><li>7. Investment Bankers </li></ul></ul><ul><ul><li>8. Local and Regional Banks </li></ul></ul>
  3. 3. Institutional Borrowing <ul><li>5 C’s of a Banker </li></ul><ul><li>C - Character : Trust & history </li></ul><ul><li>C- Capacity : Financial Strength </li></ul><ul><li>C- Capital : Own investment vs. needs </li></ul><ul><li>C- Collateral : Income & asset support </li></ul><ul><li>C- Conditions : Economy impact/conditions </li></ul>
  4. 4. Investor/VC/Fund Raising <ul><li>Product status and protection </li></ul><ul><li>Market Potential </li></ul><ul><li>Barriers to Entry </li></ul><ul><li>Competition </li></ul><ul><li>Marketing Distribution Plan </li></ul><ul><li>Management capability </li></ul><ul><li>Financial Return--Investment Opportunity </li></ul>
  5. 5. Business Plan Rules of Thumb <ul><ul><li>The Expanded Executive Summary is written last. (10-20 pages long) </li></ul></ul><ul><ul><li>A one page FACT sheet is used for introductions. </li></ul></ul><ul><ul><li>An expanded Analysts Appendix will be added later </li></ul></ul><ul><ul><li>The appendix provides analyst: financial detailed spreadsheets, contracts, full resumes, patents & marketing info. </li></ul></ul>
  6. 6. Business Plan Rules of Thumb <ul><ul><li>Financial data presented as follows: </li></ul></ul><ul><ul><ul><li>1) Expanded Executive Summary : Annual Income Statements Summary (9 line) for 5 years - assumptions listed below financial table. </li></ul></ul></ul><ul><ul><ul><li>2) FACT Sheet : Two lines (Sales & Net Income) for five years </li></ul></ul></ul><ul><ul><ul><li>3) Appendix : Full month by month full detailed financial for two years with all assumptions. Years 3-5 with quarterly summaries </li></ul></ul></ul>
  7. 7. Business Plan Rules of Thumb <ul><li>No paragraph longer than 6 or 7 lines </li></ul><ul><li>Double space after sentence end </li></ul><ul><li>Present key subjects in a table, chart or graph </li></ul><ul><li>Do not use “we”, “our” or “I” but use only the company name or initials </li></ul><ul><li>Write each Section with summary first then follow with supporting detail (this is opposite of Univ. writing) </li></ul><ul><li>Simple subject – verb- adjective 8-12 grade writing </li></ul>
  8. 8. Business Plan Sections <ul><ul><li>A. One Page FACT Sheet-Ex. Sum: </li></ul></ul><ul><ul><ul><li>Business Description: </li></ul></ul></ul><ul><ul><ul><li>Technology Description: </li></ul></ul></ul><ul><ul><ul><li>Proprietary Description: </li></ul></ul></ul><ul><ul><ul><li>Regulatory Issues: </li></ul></ul></ul><ul><ul><ul><li>Market Size: </li></ul></ul></ul><ul><ul><ul><li>Sales & Profit Projections: </li></ul></ul></ul><ul><ul><ul><li>Customers: </li></ul></ul></ul><ul><ul><ul><li>Funding: </li></ul></ul></ul><ul><ul><ul><li>Next Major Milestones: </li></ul></ul></ul><ul><ul><ul><li>Management Team: </li></ul></ul></ul>
  9. 10. Business Plan Sections <ul><ul><li>B. Company History, Mission & Goals: </li></ul></ul><ul><ul><ul><li>What business </li></ul></ul></ul><ul><ul><ul><li>Quality, customer service & excellence </li></ul></ul></ul><ul><ul><ul><li>Technology </li></ul></ul></ul><ul><ul><ul><li>Employees </li></ul></ul></ul><ul><ul><ul><li>Sales goals </li></ul></ul></ul><ul><ul><ul><li>Research & development </li></ul></ul></ul><ul><ul><ul><li>Overview of management, organization & product </li></ul></ul></ul><ul><ul><ul><li>Industry & market trends </li></ul></ul></ul><ul><ul><ul><li>Milestones accomplished </li></ul></ul></ul>
  10. 11. Business Plan Sections <ul><ul><li>C. Technology, Products & Processes: </li></ul></ul><ul><ul><ul><li>Product purpose & samples </li></ul></ul></ul><ul><ul><ul><li>Product features, design & pricing </li></ul></ul></ul><ul><ul><ul><li>Product protection & life cycle </li></ul></ul></ul><ul><ul><ul><li>Actual market experience, beta tests, etc. </li></ul></ul></ul><ul><ul><ul><li>R&D plans </li></ul></ul></ul><ul><ul><ul><li>New Product applications, budget & timelines </li></ul></ul></ul>
  11. 12. Business Plan Sections <ul><ul><li>D. Market Analysis: </li></ul></ul><ul><ul><ul><li>Target market size, segments & geography </li></ul></ul></ul><ul><ul><ul><li>Customer profiles </li></ul></ul></ul><ul><ul><ul><li>History of market & expected growth </li></ul></ul></ul>
  12. 13. Business Plan Sections <ul><ul><li>E. Competition Analysis: </li></ul></ul><ul><ul><ul><li>Types, classes, segments </li></ul></ul></ul><ul><ul><ul><li>Market share </li></ul></ul></ul><ul><ul><ul><li>Product comparison & substitutes </li></ul></ul></ul><ul><ul><ul><li>Pricing & service </li></ul></ul></ul><ul><ul><ul><li>Ad & promotion analysis </li></ul></ul></ul><ul><ul><ul><li>Expected impact, reaction & risks </li></ul></ul></ul>
  13. 14. Business Plan Sections <ul><ul><li>F. Marketing Strategy: </li></ul></ul><ul><ul><ul><li>Segment differentiation </li></ul></ul></ul><ul><ul><ul><li>Features and Pricing </li></ul></ul></ul><ul><ul><ul><li>Roll-out plan </li></ul></ul></ul><ul><ul><ul><li>Ads & promotions </li></ul></ul></ul><ul><ul><ul><li>Packaging Shipping & Distribution </li></ul></ul></ul><ul><ul><ul><li>Credit Policies/warranty/returns </li></ul></ul></ul>
  14. 15. Business Plan Sections <ul><ul><li>G. New Product Applications: </li></ul></ul><ul><ul><ul><li>Vertical integration options </li></ul></ul></ul><ul><ul><ul><li>Features & new product development analysis </li></ul></ul></ul><ul><ul><ul><li>Budget, resources & timelines </li></ul></ul></ul>
  15. 16. Business Plan Sections <ul><ul><li>H. Management: </li></ul></ul><ul><ul><ul><li>Key management, Board of Directors & advisors </li></ul></ul></ul><ul><ul><ul><li>Ownership & structure </li></ul></ul></ul><ul><ul><ul><li>Policies & performance </li></ul></ul></ul>
  16. 17. Business Plan Sections <ul><ul><li>H. Management: </li></ul></ul><ul><ul><ul><li>Key management, Board of Directors & advisors </li></ul></ul></ul><ul><ul><ul><li>Ownership & structure </li></ul></ul></ul><ul><ul><ul><li>Policies & performance </li></ul></ul></ul>
  17. 18. Business Plan Sections <ul><ul><li>I. Financial Projections: </li></ul></ul><ul><ul><ul><li>Current financial controls & reporting </li></ul></ul></ul><ul><ul><ul><li>Two scenario Income Statement projections </li></ul></ul></ul><ul><ul><ul><li>Cash flow analysis </li></ul></ul></ul><ul><ul><ul><li>Break-even analysis </li></ul></ul></ul>
  18. 19. Business Plan Sections <ul><ul><li>J. Investment Opportunities: </li></ul></ul><ul><ul><ul><li>Capital injection history </li></ul></ul></ul><ul><ul><ul><li>Additional investment options and milestones </li></ul></ul></ul><ul><ul><ul><li>Private Offering Documents </li></ul></ul></ul>
  19. 20. Business Plan Sections <ul><ul><li>K. Appendix: </li></ul></ul><ul><ul><ul><li>Product Samples </li></ul></ul></ul><ul><ul><ul><li>Full Resumes </li></ul></ul></ul><ul><ul><ul><li>Price List </li></ul></ul></ul><ul><ul><ul><li>Customer Letters </li></ul></ul></ul><ul><ul><ul><li>Brochures, promo literature & ads </li></ul></ul></ul><ul><ul><ul><li>Contracts/Patents/Licenses </li></ul></ul></ul><ul><ul><ul><li>Organization Charts </li></ul></ul></ul><ul><ul><ul><li>Private Offering Documents </li></ul></ul></ul>

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