Andrea Paraboschi
Is this a business plan?
“What are we going to
do tonight, Brain?”	

!
“The same thing we do
every night...
A business plan is a PLAN
IDEA ACTION
A business plan is a PLAN
IDEA PLAN ACTION
Without a business plan,
you have great chances to fail What a business plan is?
What a business plan is?
• A document about your business future
What a business plan is?
• A document about your business...
What a business plan is?
• A document about your business future
• Something inherently strategic
• An itinery description...
What a business plan is NOT? What a business plan is NOT?
• A 3 minutes long pitch of your business idea
What a business plan is NOT?
• A 3 minutes long pitch of your business idea
• Bureaucracy stuff in order to get money from...
What a business plan is NOT?
• A 3 minutes long pitch of your business idea
• Bureaucracy stuff in order to get money from...
What a business plan is NOT?
Business Plan
Business
Model
What a business plan is NOT?
Business Plan
Business
Model
A possible definition
Pinson, Linda. (2004). Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Se...
A possible definition
Pinson, Linda. (2004). Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Se...
A possible definition
Pinson, Linda. (2004). Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Se...
Why do you need a
Business Plan?
• It’s a tool designed mainly for YOU, in order to let
you understand how your business i...
Why do you need a
Business Plan?
• It’s a tool designed mainly for YOU, in order to let
you understand how your business i...
Content of a Business Plan
No fixed rules
!
The content and format of the business plan 	

is determined by the goals and a...
1- Executive summary 1- Executive summary
• Explains to the reader what you want to build
1- Executive summary
• Explains to the reader what you want to build
• It has to be concise: max 1 page
1- Executive summa...
1- Executive summary
• Explains to the reader what you want to build
• It has to be concise: max 1 page
• It’s the LAST th...
2 - Business description
• Tell the reader about the industry your company will
operate in
2 - Business description
• Tell...
2 - Business description
• Tell the reader about the industry your company will
operate in
• Describe the current scenario...
2 - Business description
• Tell the reader about the industry your company will
operate in
• Describe the current scenario...
3 - Market strategies
• Define the total market. How much is it worth?
3 - Market strategies
• Define the total market. How ...
3 - Market strategies
• Define the total market. How much is it worth?
• Identify your segment and your feasible target
• T...
3 - Market strategies
• Define the total market. How much is it worth?
• Identify your segment and your feasible target
• T...
4 - Competitive analysis 4 - Competitive analysis
• Identify your competitors and how they are positioned in
the market
4 - Competitive analysis
• Identify your competitors and how they are positioned in
the market
• Look for your competitors...
5 - The team 5 - The team
• Focus on strengths, team member’s competences and
needs
5 - The team
• Focus on strengths, team member’s competences and
needs
• Explain how each person in the team can fit into t...
6 - Financials 6 - Financials
• Create a 3-5 years financial summary (Cash flow,
EBITDA, Profits/Loss)
6 - Financials
• Create a 3-5 years financial summary (Cash flow,
EBITDA, Profits/Loss)
• Drill down and show your business c...
7 - Needs 7 - Needs
• Tell the reader how much money you need to start the
business and why
7 - Needs
• Tell the reader how much money you need to start the
business and why
• Needs aren’t just finance-related ! Wha...
Make it simple!
!
- Keep it short	

- Use simple language and short sentences
- Polish the overall look & feel
Business
Pl...
How to present a
Business Plan?
!
- You can present your BP using a 10-15 slides
deck	

- It has to be something simple to...
Presenting a BP to investors	

1) What does your company do?
Presenting a BP to investors	

1) What does your company do?
...
Presenting a BP to investors	

1) What does your company do?
- ONE SENTENCE. If you need 5 slides to
introduce your busine...
Presenting a BP to investors	

1) What does your company do?
- ONE SENTENCE. If you need 5 slides to
introduce your busine...
Presenting a BP to investors	

2) What problem are you solving?
Presenting a BP to investors	

2) What problem are you sol...
Presenting a BP to investors	

2) What problem are you solving?
- Tell the audience what is the customer’s pain, how
you’r...
Presenting a BP to investors	

2) What problem are you solving?
- Tell the audience what is the customer’s pain, how
you’r...
Presenting a BP to investors	

2) What problem are you solving?
- Tell the audience what is the customer’s pain, how
you’r...
Presenting a BP to investors	

3) What is your solution?
Presenting a BP to investors	

3) What is your solution?
- If pos...
Presenting a BP to investors	

3) What is your solution?
- If possible, show a DEMO. Investors want to
touch your solution...
Presenting a BP to investors	

3) What is your solution?
- If possible, show a DEMO. Investors want to
touch your solution...
Presenting a BP to investors	

4) How big is the market 	

for your idea?
Presenting a BP to investors	

4) How big is the...
Presenting a BP to investors	

4) How big is the market 	

for your idea?
- The market is often too small for a venture id...
Presenting a BP to investors	

4) How big is the market 	

for your idea?
- The market is often too small for a venture id...
Presenting a BP to investors	

5) Why now?
Presenting a BP to investors	

5) Why now?
Presenting a BP to investors	

5) Why now?
- Being too early or too late == being wrong
Presenting a BP to investors	

5) ...
Presenting a BP to investors	

5) Why now?
- Being too early or too late == being wrong
- What driving forces are at work ...
Presenting a BP to investors	

6) Competition
- Look for your competitors.There are always
competitors, in every market. N...
Presenting a BP to investors	

7) Technology
TTadvisor
venture	
  partners
contents by
Presenting a BP to investors	

7) T...
Presenting a BP to investors	

7) Technology
- Competing Technologies: How many competing technologies exist?
Do they belo...
Presenting a BP to investors	

7) Technology
- Competing Technologies: How many competing technologies exist?
Do they belo...
Presenting a BP to investors	

7) Technology
TTadvisor
venture	
  partners
contents by
- Lab & Equipments: Is the company ...
Presenting a BP to investors	

7) Technology
TTadvisor
venture	
  partners
contents by
- Lab & Equipments: Is the company ...
Presenting a BP to investors	

8) Business Model
Presenting a BP to investors	

8) Business Model
- Spend time here.This i...
Presenting a BP to investors	

8) Business Model
- Spend time here.This is like the problem statement.
You have to sell yo...
Presenting a BP to investors	

8) Business Model
- Spend time here.This is like the problem statement.
You have to sell yo...
Presenting a BP to investors	

8) Business Model
- Spend time here.This is like the problem statement.
You have to sell yo...
Presenting a BP to investors	

8) Business Model
- Spend time here.This is like the problem statement.
You have to sell yo...
Presenting a BP to investors	

9) Show your team
Presenting a BP to investors	

9) Show your team
- In some cases, a compa...
Presenting a BP to investors	

9) Show your team
- In some cases, a company is bought for the team,
not for the BM (Glance...
Presenting a BP to investors	

9) Show your team
- In some cases, a company is bought for the team,
not for the BM (Glance...
Presenting a BP to investors	

9) Show your team
- In some cases, a company is bought for the team,
not for the BM (Glance...
Presenting a BP to investors	

10) Financial Model
Presenting a BP to investors	

10) Financial Model
- Include simplified ...
Presenting a BP to investors	

10) Financial Model
- Include simplified financial statements (P&L, balance
sheet, cash flow)
...
Presenting a BP to investors	

10) Financial Model
- Include simplified financial statements (P&L, balance
sheet, cash flow)
...
Presenting a BP to investors	

Tips & Tricks
TTadvisor
venture	
  partners
contents by
•1, max 2 pages
•Market description...
Presenting a BP to investors	

Tips & Tricks
TTadvisor
venture	
  partners
contents by
Presenting a BP to investors	

Tips...
Presenting a BP to investors	

Be ready to do an elevator pitch
TTadvisor
venture	
  partners
contents by
Presenting a BP ...
APPENDIX	

Funding your start-up
Do all start-ups need a lot of money to start?
life-­‐style	
  business	
  
shop,	
  smal...
Funding your start-up	

Investors: a necessary evil
Development Expansion MaturityStartup
Cash	
  	
  	
  	
  	
  (	
  	
 ...
Funding your start-up	

Banks vsVCs
TTadvisor
venture	
  partners
contents by
!
!
!
!
!
!
!
!
!
!
!
!
!
BANKS	
  FINANCING...
Funding your start-up	

Pick the right investors
TTadvisor
venture	
  partners
contents by
Development Expansion MaturityS...
Funding your start-up	

Pick the right investors
TTadvisor
venture	
  partners
contents by
Development Expansion MaturityS...
Funding your start-up	

Pick the right investors
TTadvisor
venture	
  partners
contents by
Development Expansion MaturityS...
Funding your start-up	

Pick the right investors
TTadvisor
venture	
  partners
contents by
Development Expansion MaturityS...
References and useful
examples on:
• http://www.bplans.com/	

• http://www.entrepreneur.com	

• Harvard Business School Pr...
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how to write a business plan

  1. 1. Andrea Paraboschi Is this a business plan? “What are we going to do tonight, Brain?” ! “The same thing we do every night, Pinky... Tonight we will take over the world” Pinky and The Brain
  2. 2. A business plan is a PLAN IDEA ACTION A business plan is a PLAN IDEA PLAN ACTION
  3. 3. Without a business plan, you have great chances to fail What a business plan is?
  4. 4. What a business plan is? • A document about your business future What a business plan is? • A document about your business future • Something inherently strategic
  5. 5. What a business plan is? • A document about your business future • Something inherently strategic • An itinery description on how to get from A to B, where A is now and B is a point in the future (usually 3 to 5 years) What a business plan is? • A document about your business future • Something inherently strategic • An itinery description on how to get from A to B, where A is now and B is a point in the future (usually 3 to 5 years) • The only way you have to understand what you’re doing and to commit other people (investors, employees, customers...)
  6. 6. What a business plan is NOT? What a business plan is NOT? • A 3 minutes long pitch of your business idea
  7. 7. What a business plan is NOT? • A 3 minutes long pitch of your business idea • Bureaucracy stuff in order to get money from investors What a business plan is NOT? • A 3 minutes long pitch of your business idea • Bureaucracy stuff in order to get money from investors • Something optional, requested but not so important in order to be founded
  8. 8. What a business plan is NOT? • A 3 minutes long pitch of your business idea • Bureaucracy stuff in order to get money from investors • Something optional, requested but not so important in order to be founded • A business model What a business plan is NOT? Business Plan
  9. 9. What a business plan is NOT? Business Plan Business Model What a business plan is NOT? Business Plan Business Model
  10. 10. A possible definition Pinson, Linda. (2004). Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company’s Future (6th Edition). Page 20. Dearborn Trade: Chicago, USA. A possible definition Pinson, Linda. (2004). Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company’s Future (6th Edition). Page 20. Dearborn Trade: Chicago, USA. A business plan is a formal statement of a set of business goals, the reasons they are believed attainable, and the plan for reaching those goals.
  11. 11. A possible definition Pinson, Linda. (2004). Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company’s Future (6th Edition). Page 20. Dearborn Trade: Chicago, USA. A business plan is a formal statement of a set of business goals, the reasons they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organisation or team attempting to reach those goals. A possible definition Pinson, Linda. (2004). Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company’s Future (6th Edition). Page 20. Dearborn Trade: Chicago, USA. A business plan is a formal statement of a set of business goals, the reasons they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organisation or team attempting to reach those goals. Business plans may also target changes in perception and branding by the customer, client, taxpayer, or larger community.
  12. 12. A possible definition Pinson, Linda. (2004). Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company’s Future (6th Edition). Page 20. Dearborn Trade: Chicago, USA. A business plan is a formal statement of a set of business goals, the reasons they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organisation or team attempting to reach those goals. Business plans may also target changes in perception and branding by the customer, client, taxpayer, or larger community. When the existing business is to assume a major change or when planning a new venture, a 3 to 5 year business plan is required, since investors will look for their annual return in that timeframe. Why do you need a Business Plan?
  13. 13. Why do you need a Business Plan? • It’s a tool designed mainly for YOU, in order to let you understand how your business is put together Why do you need a Business Plan? • It’s a tool designed mainly for YOU, in order to let you understand how your business is put together • It’s an exercise you NEED in order to find mistakes and to better tune your business
  14. 14. Why do you need a Business Plan? • It’s a tool designed mainly for YOU, in order to let you understand how your business is put together • It’s an exercise you NEED in order to find mistakes and to better tune your business • It’s the only way you can MONITOR your progresses Why do you need a Business Plan? • It’s a tool designed mainly for YOU, in order to let you understand how your business is put together • It’s an exercise you NEED in order to find mistakes and to better tune your business • It’s the only way you can MONITOR your progresses • It’s a good way to attract smart people to work for you!
  15. 15. Content of a Business Plan No fixed rules ! The content and format of the business plan is determined by the goals and audience Basic bricks of a Business Plan • Executive summary • Business description • Market strategies • Competitive analysis • The team • Financials • Company needs
  16. 16. 1- Executive summary 1- Executive summary • Explains to the reader what you want to build
  17. 17. 1- Executive summary • Explains to the reader what you want to build • It has to be concise: max 1 page 1- Executive summary • Explains to the reader what you want to build • It has to be concise: max 1 page • It’s the LAST thing you have to write in the BP
  18. 18. 1- Executive summary • Explains to the reader what you want to build • It has to be concise: max 1 page • It’s the LAST thing you have to write in the BP Concept Finance Team & Company structure Market Needs Major achievements 2 - Business description
  19. 19. 2 - Business description • Tell the reader about the industry your company will operate in 2 - Business description • Tell the reader about the industry your company will operate in • Describe the current scenario and how it could evolve in the future (including regulations)
  20. 20. 2 - Business description • Tell the reader about the industry your company will operate in • Describe the current scenario and how it could evolve in the future (including regulations) • What problem is your product/service trying to solve? 2 - Business description • Tell the reader about the industry your company will operate in • Describe the current scenario and how it could evolve in the future (including regulations) • What problem is your product/service trying to solve? • Describe your business (what are you offering, value proposition, marketing strategy, support, product technologies) and how you’re going to make money
  21. 21. 2 - Business description • Tell the reader about the industry your company will operate in • Describe the current scenario and how it could evolve in the future (including regulations) • What problem is your product/service trying to solve? • Describe your business (what are you offering, value proposition, marketing strategy, support, product technologies) and how you’re going to make money • Focus on differentiation 3 - Market strategies
  22. 22. 3 - Market strategies • Define the total market. How much is it worth? 3 - Market strategies • Define the total market. How much is it worth? • Identify your segment and your feasible target
  23. 23. 3 - Market strategies • Define the total market. How much is it worth? • Identify your segment and your feasible target • Try to project your market share along time axis 3 - Market strategies • Define the total market. How much is it worth? • Identify your segment and your feasible target • Try to project your market share along time axis • Explain your pricing strategy
  24. 24. 3 - Market strategies • Define the total market. How much is it worth? • Identify your segment and your feasible target • Try to project your market share along time axis • Explain your pricing strategy • Focus on the supply and distribution chain and identify key suppliers and strategic partners 3 - Market strategies • Define the total market. How much is it worth? • Identify your segment and your feasible target • Try to project your market share along time axis • Explain your pricing strategy • Focus on the supply and distribution chain and identify key suppliers and strategic partners • Show your distribution, advertising and sales plans
  25. 25. 4 - Competitive analysis 4 - Competitive analysis • Identify your competitors and how they are positioned in the market
  26. 26. 4 - Competitive analysis • Identify your competitors and how they are positioned in the market • Look for your competitors success factors and weaknesses 4 - Competitive analysis • Identify your competitors and how they are positioned in the market • Look for your competitors success factors and weaknesses • Define your distinctive competitive advantages (and barriers you can build in order to tackle competition)
  27. 27. 5 - The team 5 - The team • Focus on strengths, team member’s competences and needs
  28. 28. 5 - The team • Focus on strengths, team member’s competences and needs • Explain how each person in the team can fit into the company 5 - The team • Focus on strengths, team member’s competences and needs • Explain how each person in the team can fit into the company • Write together the business plan! It’s impossible to cover all the topics in depth (need of multi-disciplinar competences)
  29. 29. 6 - Financials 6 - Financials • Create a 3-5 years financial summary (Cash flow, EBITDA, Profits/Loss)
  30. 30. 6 - Financials • Create a 3-5 years financial summary (Cash flow, EBITDA, Profits/Loss) • Drill down and show your business case in detail (how many units you will sell, profitability, cost structure, break-even point...) 6 - Financials • Create a 3-5 years financial summary (Cash flow, EBITDA, Profits/Loss) • Drill down and show your business case in detail (how many units you will sell, profitability, cost structure, break-even point...) • Use charts and tables!
  31. 31. 7 - Needs 7 - Needs • Tell the reader how much money you need to start the business and why
  32. 32. 7 - Needs • Tell the reader how much money you need to start the business and why • Needs aren’t just finance-related ! What competences do you need in your company? Who you need to hire to start? Are you ok with the distribution or do you need to access some premium channels? What about your image and product design? Start from your core assets and fill the gaps 7 - Needs • Tell the reader how much money you need to start the business and why • Needs aren’t just finance-related ! What competences do you need in your company? Who you need to hire to start? Are you ok with the distribution or do you need to access some premium channels? What about your image and product design? Start from your core assets and fill the gaps • Be honest!
  33. 33. Make it simple! ! - Keep it short - Use simple language and short sentences - Polish the overall look & feel Business Plan Make it simple! ! - Keep it short - Use simple language and short sentences - Polish the overall look & feel Business Plan Presentation for a Seed investor Presentation for your friends Presentation for a business angel
  34. 34. How to present a Business Plan? ! - You can present your BP using a 10-15 slides deck - It has to be something simple to be understood, clear, concise, direct Presenting a BP to investors 1) What does your company do?
  35. 35. Presenting a BP to investors 1) What does your company do? Presenting a BP to investors 1) What does your company do? - ONE SENTENCE. If you need 5 slides to introduce your business to the audience, you have a problem
  36. 36. Presenting a BP to investors 1) What does your company do? - ONE SENTENCE. If you need 5 slides to introduce your business to the audience, you have a problem - Examples: Presenting a BP to investors 1) What does your company do? - ONE SENTENCE. If you need 5 slides to introduce your business to the audience, you have a problem - Examples: Twitter:“We instantly connect people everywhere to what’s most important to them”
  37. 37. Presenting a BP to investors 1) What does your company do? - ONE SENTENCE. If you need 5 slides to introduce your business to the audience, you have a problem - Examples: Twitter:“We instantly connect people everywhere to what’s most important to them” Napcabs:“We provide comfort and privacy for passengers inside airport terminals” Presenting a BP to investors 1) What does your company do? - ONE SENTENCE. If you need 5 slides to introduce your business to the audience, you have a problem - Examples: Twitter:“We instantly connect people everywhere to what’s most important to them” Napcabs:“We provide comfort and privacy for passengers inside airport terminals” - If you already have traction (customers or revenues), tell theVCs now! The rest will be storytelling…
  38. 38. Presenting a BP to investors 2) What problem are you solving? Presenting a BP to investors 2) What problem are you solving?
  39. 39. Presenting a BP to investors 2) What problem are you solving? - Tell the audience what is the customer’s pain, how you’re addressing it and how BIG it is Presenting a BP to investors 2) What problem are you solving? - Tell the audience what is the customer’s pain, how you’re addressing it and how BIG it is - What are people doing today to work around this issue, trying to solve the pain?
  40. 40. Presenting a BP to investors 2) What problem are you solving? - Tell the audience what is the customer’s pain, how you’re addressing it and how BIG it is - What are people doing today to work around this issue, trying to solve the pain? - How much better is your solution? Presenting a BP to investors 2) What problem are you solving? - Tell the audience what is the customer’s pain, how you’re addressing it and how BIG it is - What are people doing today to work around this issue, trying to solve the pain? - How much better is your solution?
  41. 41. Presenting a BP to investors 2) What problem are you solving? - Tell the audience what is the customer’s pain, how you’re addressing it and how BIG it is - What are people doing today to work around this issue, trying to solve the pain? - How much better is your solution? - SELL the pain to the audience! Look at their faces! If they don’t feel the same problem, you are losing your time.Take a step back and explain. Let them get the point! (do you remember Steve Jobs’ keynotes?) Presenting a BP to investors 3) What is your solution?
  42. 42. Presenting a BP to investors 3) What is your solution? Presenting a BP to investors 3) What is your solution? - If possible, show a DEMO. Investors want to touch your solution. Make it feel as much real as possible
  43. 43. Presenting a BP to investors 3) What is your solution? - If possible, show a DEMO. Investors want to touch your solution. Make it feel as much real as possible - How does it solve the problem? Does it address the customer’s pain without causing another one? Presenting a BP to investors 3) What is your solution? - If possible, show a DEMO. Investors want to touch your solution. Make it feel as much real as possible - How does it solve the problem? Does it address the customer’s pain without causing another one? - Is there a product-market fit or it’s just an “Engineer-gone-wild” solution?
  44. 44. Presenting a BP to investors 3) What is your solution? - If possible, show a DEMO. Investors want to touch your solution. Make it feel as much real as possible - How does it solve the problem? Does it address the customer’s pain without causing another one? - Is there a product-market fit or it’s just an “Engineer-gone-wild” solution? - What are the first customers saying about it? Surveys may help. Presenting a BP to investors 4) How big is the market for your idea?
  45. 45. Presenting a BP to investors 4) How big is the market for your idea? Presenting a BP to investors 4) How big is the market for your idea? - The market is often too small for a venture idea
  46. 46. Presenting a BP to investors 4) How big is the market for your idea? - The market is often too small for a venture idea - Size the market, be honest Presenting a BP to investors 4) How big is the market for your idea? - The market is often too small for a venture idea - Size the market, be honest - What is the profile of your target customer?
  47. 47. Presenting a BP to investors 4) How big is the market for your idea? - The market is often too small for a venture idea - Size the market, be honest - What is the profile of your target customer? - How much will customers pay for your product? Test that! Presenting a BP to investors 4) How big is the market for your idea? - The market is often too small for a venture idea - Size the market, be honest - What is the profile of your target customer? - How much will customers pay for your product? Test that! - Use theVC words, their ideas. Do some preliminary research about the markets your audience is interested in
  48. 48. Presenting a BP to investors 5) Why now? Presenting a BP to investors 5) Why now?
  49. 49. Presenting a BP to investors 5) Why now? - Being too early or too late == being wrong Presenting a BP to investors 5) Why now? - Being too early or too late == being wrong - What driving forces are at work to make the right timing for your company?
  50. 50. Presenting a BP to investors 5) Why now? - Being too early or too late == being wrong - What driving forces are at work to make the right timing for your company? - What is changing, what are the key external trends? Presenting a BP to investors 6) Competition
  51. 51. Presenting a BP to investors 6) Competition - Look for your competitors.There are always competitors, in every market. No competitors?You may have a problem. - List the competitors and point out your competitive advantages - Why will you win? (better patented technology, disruptive business model, better access to channels,…) - Don’t put some logos on a white slide! Knowing your competitors is extremely important: it shows your market knowledge to the investors Presenting a BP to investors 7) Technology TTadvisor venture  partners contents by
  52. 52. Presenting a BP to investors 7) Technology TTadvisor venture  partners contents by Presenting a BP to investors 7) Technology - Competing Technologies: How many competing technologies exist? Do they belong to leading competitors? Are they already in the market? Are they going to reach the market before the proposed technology? TTadvisor venture  partners contents by
  53. 53. Presenting a BP to investors 7) Technology - Competing Technologies: How many competing technologies exist? Do they belong to leading competitors? Are they already in the market? Are they going to reach the market before the proposed technology? - Patenting: Is the proposed techology patented? Is the patenting process going smoothly? Is the IP strategy covering all key technology assets Are there any risk of infringing someone else patents? TTadvisor venture  partners contents by Presenting a BP to investors 7) Technology - Competing Technologies: How many competing technologies exist? Do they belong to leading competitors? Are they already in the market? Are they going to reach the market before the proposed technology? - Patenting: Is the proposed techology patented? Is the patenting process going smoothly? Is the IP strategy covering all key technology assets Are there any risk of infringing someone else patents? - Suppliers: Is this technology critically linked to specific suppliers? Are there partnership agreements with critical suppliers? Are partnership agreements exclusive? What is the % of technology in suppliers' hands? TTadvisor venture  partners contents by
  54. 54. Presenting a BP to investors 7) Technology - Competing Technologies: How many competing technologies exist? Do they belong to leading competitors? Are they already in the market? Are they going to reach the market before the proposed technology? - Patenting: Is the proposed techology patented? Is the patenting process going smoothly? Is the IP strategy covering all key technology assets Are there any risk of infringing someone else patents? - Suppliers: Is this technology critically linked to specific suppliers? Are there partnership agreements with critical suppliers? Are partnership agreements exclusive? What is the % of technology in suppliers' hands? - Legal & Norms: Does this technology comply current norms? Do we foreseen changes in norms effecting our technology? Will our technology benefit for changes in norms? Does the entrepreneur have link with norm setting bodies? TTadvisor venture  partners contents by Presenting a BP to investors 7) Technology TTadvisor venture  partners contents by
  55. 55. Presenting a BP to investors 7) Technology TTadvisor venture  partners contents by - Lab & Equipments: Is the company fully equipped with required labs? What % of test and development has to be performed with external labs? Are critical suppliers equipped with appropriate labs? Are development partners equipped with appropriate labs? Is the company linked with properly equipped institutions? Are needed (and not available) equipments easy to be sourced? Does the company have appropriate legal protection while using external labs? Is there a risk of poor IP protection while performing external tests? - Proof of Concept: Do we have scientific, peer-reviewed evidence of findings? Are there lab results, with clearly indicated testing methodology? Is there a working prototype? Is there a pilot manufacturing unit? Has the product passed all reliability test? Has the entrepreneur provided a consistent FMEA document? Presenting a BP to investors 7) Technology TTadvisor venture  partners contents by - Lab & Equipments: Is the company fully equipped with required labs? What % of test and development has to be performed with external labs? Are critical suppliers equipped with appropriate labs? Are development partners equipped with appropriate labs? Is the company linked with properly equipped institutions? Are needed (and not available) equipments easy to be sourced? Does the company have appropriate legal protection while using external labs? Is there a risk of poor IP protection while performing external tests? - Proof of Concept: Do we have scientific, peer-reviewed evidence of findings? Are there lab results, with clearly indicated testing methodology? Is there a working prototype? Is there a pilot manufacturing unit? Has the product passed all reliability test? Has the entrepreneur provided a consistent FMEA document? - R&D Timeframe: Are we in base research, applied research, prototyping, industrialisation or launch phase? How long will we take before reaching the market launch phase? Do we expect competing technologies/product to enter the market before us? Do we expect changes in the market before launch?
  56. 56. Presenting a BP to investors 7) Technology TTadvisor venture  partners contents by - Lab & Equipments: Is the company fully equipped with required labs? What % of test and development has to be performed with external labs? Are critical suppliers equipped with appropriate labs? Are development partners equipped with appropriate labs? Is the company linked with properly equipped institutions? Are needed (and not available) equipments easy to be sourced? Does the company have appropriate legal protection while using external labs? Is there a risk of poor IP protection while performing external tests? - Proof of Concept: Do we have scientific, peer-reviewed evidence of findings? Are there lab results, with clearly indicated testing methodology? Is there a working prototype? Is there a pilot manufacturing unit? Has the product passed all reliability test? Has the entrepreneur provided a consistent FMEA document? - R&D Timeframe: Are we in base research, applied research, prototyping, industrialisation or launch phase? How long will we take before reaching the market launch phase? Do we expect competing technologies/product to enter the market before us? Do we expect changes in the market before launch? Presenting a BP to investors 8) Business Model
  57. 57. Presenting a BP to investors 8) Business Model Presenting a BP to investors 8) Business Model - Spend time here.This is like the problem statement. You have to sell your BM to the investors.
  58. 58. Presenting a BP to investors 8) Business Model - Spend time here.This is like the problem statement. You have to sell your BM to the investors. - Make use of simple schemes, the canvass can help! Presenting a BP to investors 8) Business Model - Spend time here.This is like the problem statement. You have to sell your BM to the investors. - Make use of simple schemes, the canvass can help! How will you acquire your customers?
  59. 59. Presenting a BP to investors 8) Business Model - Spend time here.This is like the problem statement. You have to sell your BM to the investors. - Make use of simple schemes, the canvass can help! How will you acquire your customers? What are the acquisition costs? Presenting a BP to investors 8) Business Model - Spend time here.This is like the problem statement. You have to sell your BM to the investors. - Make use of simple schemes, the canvass can help! How will you acquire your customers? What are the acquisition costs? What is the pricing strategy?
  60. 60. Presenting a BP to investors 8) Business Model - Spend time here.This is like the problem statement. You have to sell your BM to the investors. - Make use of simple schemes, the canvass can help! How will you acquire your customers? What are the acquisition costs? What is the pricing strategy? What is the average customer value? Presenting a BP to investors 8) Business Model - Spend time here.This is like the problem statement. You have to sell your BM to the investors. - Make use of simple schemes, the canvass can help! How will you acquire your customers? What are the acquisition costs? What is the pricing strategy? What is the average customer value? What is the revenue model?
  61. 61. Presenting a BP to investors 8) Business Model - Spend time here.This is like the problem statement. You have to sell your BM to the investors. - Make use of simple schemes, the canvass can help! How will you acquire your customers? What are the acquisition costs? What is the pricing strategy? What is the average customer value? What is the revenue model? How do you get big? Presenting a BP to investors 9) Show your team
  62. 62. Presenting a BP to investors 9) Show your team Presenting a BP to investors 9) Show your team - In some cases, a company is bought for the team, not for the BM (Glancee…)
  63. 63. Presenting a BP to investors 9) Show your team - In some cases, a company is bought for the team, not for the BM (Glancee…) - A company is NOT a person Presenting a BP to investors 9) Show your team - In some cases, a company is bought for the team, not for the BM (Glancee…) - A company is NOT a person - Include the background of founders and senior management (advisors and board members)
  64. 64. Presenting a BP to investors 9) Show your team - In some cases, a company is bought for the team, not for the BM (Glancee…) - A company is NOT a person - Include the background of founders and senior management (advisors and board members) - Why are they relevant to the team? Presenting a BP to investors 9) Show your team - In some cases, a company is bought for the team, not for the BM (Glancee…) - A company is NOT a person - Include the background of founders and senior management (advisors and board members) - Why are they relevant to the team? - Who do you need to hire? When?
  65. 65. Presenting a BP to investors 9) Show your team - In some cases, a company is bought for the team, not for the BM (Glancee…) - A company is NOT a person - Include the background of founders and senior management (advisors and board members) - Why are they relevant to the team? - Who do you need to hire? When? - Recruit a board of directors before the investor does! Presenting a BP to investors 10) Financial Model
  66. 66. Presenting a BP to investors 10) Financial Model Presenting a BP to investors 10) Financial Model - Include simplified financial statements (P&L, balance sheet, cash flow)
  67. 67. Presenting a BP to investors 10) Financial Model - Include simplified financial statements (P&L, balance sheet, cash flow) - Forecast up to 3-5 years (max 5 years). Show your assumptions and how they may change Presenting a BP to investors 10) Financial Model - Include simplified financial statements (P&L, balance sheet, cash flow) - Forecast up to 3-5 years (max 5 years). Show your assumptions and how they may change - What you can really control are the expenses. Be precise here.
  68. 68. Presenting a BP to investors 10) Financial Model - Include simplified financial statements (P&L, balance sheet, cash flow) - Forecast up to 3-5 years (max 5 years). Show your assumptions and how they may change - What you can really control are the expenses. Be precise here. - VCs want to be sure that the money they may give to you are enough to let the company grow from A to B, before another round of funding. Presenting a BP to investors 10) Financial Model - Include simplified financial statements (P&L, balance sheet, cash flow) - Forecast up to 3-5 years (max 5 years). Show your assumptions and how they may change - What you can really control are the expenses. Be precise here. - VCs want to be sure that the money they may give to you are enough to let the company grow from A to B, before another round of funding. - Be sure that numbers fit and are simple, otherwise you will be challenged by the audience
  69. 69. Presenting a BP to investors Tips & Tricks TTadvisor venture  partners contents by •1, max 2 pages •Market description, potential and growth •Unmet market needs •USP: unique selling proposition •Presence of IP •Competitors •Team •Project milestones •Funds needs and use •Cash forecasts •10/15 slides max •Market description, potential and growth •Unmet market needs •USP: unique selling proposition •IP and technology brief description •Competitors •Team •Project milestones •Expected market share and price positioning •Funds needs and use •Cash forecasts •SWOT •30/60 pages •Executive summary •Team – full cvs •Full market description •Unmet needs in details •USP: unique selling proposition and stakeholders advantages •Detailed technological description and IP •Competitors and possible reactions •Detailed development plan •Marketing plan •Resource needs •Cash needs and detailed use •Provisional P&L, BS and CF Executive summary Pitch Full business plan Send via mail (no spam, focused mailing) Upon first meeting or request for further information After further interest is shown and NDA is signed Presenting a BP to investors Tips & Tricks TTadvisor venture  partners contents by
  70. 70. Presenting a BP to investors Tips & Tricks TTadvisor venture  partners contents by Presenting a BP to investors Tips & Tricks TTadvisor venture  partners contents by
  71. 71. Presenting a BP to investors Be ready to do an elevator pitch TTadvisor venture  partners contents by Presenting a BP to investors Be ready to do an elevator pitch TTadvisor venture  partners contents by
  72. 72. APPENDIX Funding your start-up Do all start-ups need a lot of money to start? life-­‐style  business   shop,  small  company,  etc. Capital  need Innovation know-­‐how  business   Consulting  and  specialty   professionals Tech  startups   Highly  technological  new   ventures Industry   Large  production  plants  in   mature  segments TTadvisor venture  partners contents by Funding your start-up What do you want? Do  you  want  to….  ? VS Own  your  dream  company       Make  money                                                                                                   Research  and  prototype       Sell  Products                                                                                                         Gain  people  respect         Be  successful                                                                                                                     Be  independent       Grow  together                                                                                                                                       Exercise  power       Embrace  mediation                                                                                                                                         Sorry,  but… …  it  is  highly  unlikely  that  you  will  find  someone   that  will  risk  his/her  own  money  to  fulfill  your   dreams! Mmmmm… …   it   is   indeed   somehow   possible   that   you   will   find  someone  willing  to  risk  his/her  money  in  a   venture  like  this TTadvisor venture  partners contents by
  73. 73. Funding your start-up Investors: a necessary evil Development Expansion MaturityStartup Cash          (                    ) Sales        (                    ) Enterprise  life-­‐cycle R&D and   investments High  growth   starting  from  first   sale Slowing  growth  to   stabilization Steady  sales  with   diminishing  returns Cash  needed  today Cash  available   tomorrow TTadvisor venture  partners contents by Funding your start-up Banks vsVCs TTadvisor venture  partners contents by
  74. 74. Funding your start-up Banks vsVCs TTadvisor venture  partners contents by ! ! ! ! ! ! ! ! ! ! ! ! ! BANKS  FINANCING Funding your start-up Banks vsVCs TTadvisor venture  partners contents by ! ! ! ! ! ! ! ! ! ! ! ! ! BANKS  FINANCING RISK  CAPITAL   INVESTORS   FINANCING
  75. 75. Funding your start-up Pick the right investors TTadvisor venture  partners contents by Development Expansion MaturityStartup Cash          (                    ) Sales        (                    ) Enterprise  life-­‐cycle R&D and   investments High  growth   starting  from  first   sale Slowing  growth  to   stabilization Steady  sales  with   diminishing  returns Funding your start-up Pick the right investors TTadvisor venture  partners contents by Development Expansion MaturityStartup Cash          (                    ) Sales        (                    ) Enterprise  life-­‐cycle R&D and   investments High  growth   starting  from  first   sale Slowing  growth  to   stabilization Steady  sales  with   diminishing  returns 3F 20k$Financial:
  76. 76. Funding your start-up Pick the right investors TTadvisor venture  partners contents by Development Expansion MaturityStartup Cash          (                    ) Sales        (                    ) Enterprise  life-­‐cycle R&D and   investments High  growth   starting  from  first   sale Slowing  growth  to   stabilization Steady  sales  with   diminishing  returns 3F Angels 20k$ 200k$ Financial: Funding your start-up Pick the right investors TTadvisor venture  partners contents by Development Expansion MaturityStartup Cash          (                    ) Sales        (                    ) Enterprise  life-­‐cycle R&D and   investments High  growth   starting  from  first   sale Slowing  growth  to   stabilization Steady  sales  with   diminishing  returns 3F Angels Seed  Fund 20k$ 200k$ 500k$ Financial:
  77. 77. Funding your start-up Pick the right investors TTadvisor venture  partners contents by Development Expansion MaturityStartup Cash          (                    ) Sales        (                    ) Enterprise  life-­‐cycle R&D and   investments High  growth   starting  from  first   sale Slowing  growth  to   stabilization Steady  sales  with   diminishing  returns 3F Angels Seed  Fund 20k$ 200k$ 500k$ VC  Fund 10M$ Financial: Funding your start-up Pick the right investors TTadvisor venture  partners contents by Development Expansion MaturityStartup Cash          (                    ) Sales        (                    ) Enterprise  life-­‐cycle R&D and   investments High  growth   starting  from  first   sale Slowing  growth  to   stabilization Steady  sales  with   diminishing  returns 3F Angels Seed  Fund 20k$ 200k$ 500k$ VC  Fund 10M$ Co-­‐dev 200k$ Financial: Industrial:
  78. 78. Funding your start-up Pick the right investors TTadvisor venture  partners contents by Development Expansion MaturityStartup Cash          (                    ) Sales        (                    ) Enterprise  life-­‐cycle R&D and   investments High  growth   starting  from  first   sale Slowing  growth  to   stabilization Steady  sales  with   diminishing  returns 3F Angels Seed  Fund 20k$ 200k$ 500k$ VC  Fund 10M$ Co-­‐dev 200k$ Licensing variable Financial: Industrial: Funding your start-up What are your IP assets? TTadvisor venture  partners contents by None Alternative solution Improvement Patents Technology/ Product concepts Master Patents NoneTechnical skills Technical Expertise InformalIP Formal IP High-tech product based spin-out opportunities Consulting or Technology development spin-outs IPR Licensing Technical services IPR based Technology - transfer ‘Proprietary Know-how’ Know-how based Technology - transfer
  79. 79. References and useful examples on: • http://www.bplans.com/ • http://www.entrepreneur.com • Harvard Business School Press-Pocket Mentor, "Creating a Business Plan”! • How to write a business plan by UCBerkeley HAAS Business School - https://www.youtube.com/ watch?v=QwlClWaR7DI! • Khan Academy videos - https://www.youtube.com/ channel/UC4a-Gbdw7vOaccHmFo40b9g

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