Practical Ideas for a Winning Business Plan Mitchell London Presented to University of Washington MBA Business Plan Competition 2003

"In theory, there is no difference between theory and practice. But, in practice, there is." - Jan L.A. van de Snepscheut

Recognize the utility of having a high quality plan. But also understand the weaknesses and limitations. Plan to maintain and update the document.

Simply Stated... Make your points clearly and crisply.

Style counts… Use bulleted or enumerated points whenever possible. Leave a wide margin. Try to utilize meaningful graphs and diagrams throughout the entire plan .

Use bulleted or enumerated points whenever possible.

Leave a wide margin.

Try to utilize meaningful graphs and diagrams throughout the entire plan .

Basic Structure Executive Summary The Market The Product The Team The Strategy The Forecasts Appendices

Executive Summary

The Market

The Product

The Team

The Strategy

The Forecasts

Appendices

Market Analysis It should be as useful for you as it is for the investor. Situation Analysis Market Opportunity Competitive Factors Technical Feasibility Risk/Reward Assessment

It should be as useful for you as it is for the investor.

Situation Analysis

Market Opportunity

Competitive Factors

Technical Feasibility

Risk/Reward Assessment

The Product Know when “less is more” Readability geared for layman Deep technical points can be reserved for an appendix “ Market Driven Engineering”

Know when “less is more”

Readability geared for layman

Deep technical points can be reserved for an appendix

“ Market Driven Engineering”

The Team OK to have “holes” in management team Present competencies 1 st ; academic or career credentials 2 nd Build a strong Advisory Board ASAP (and really use it)

OK to have “holes” in management team

Present competencies 1 st ; academic or career credentials 2 nd

Build a strong Advisory Board ASAP (and really use it)

The Strategy Must be coherent and straightforward Make sure to address all competitive issues

Must be coherent and straightforward

Make sure to address all competitive issues

The Forecasts Let’s be realistic! 4 year model Monthly detail only in years #1 and #2 Drive data from “unit model” Use ordinal numbers for months Understand your DCF

Let’s be realistic!

4 year model

Monthly detail only in years #1 and #2

Drive data from “unit model”

Use ordinal numbers for months

Understand your DCF

Executive Summary This may be the only document that gets read; distill the most important points Write it after the rest of the document, but put it 1 st Use same terminology, wording, and images Provide your sense of valuation and likely deal structure

This may be the only document that gets read; distill the most important points

Write it after the rest of the document, but put it 1 st

Use same terminology, wording, and images

Provide your sense of valuation and likely deal structure

Appendices Stuff you wanted to put in the plan Technical white-paper(s) More detailed financial analysis, DCF, etc. Additional competitive data Additional market data/published reports Articles about the company, product, market, team, etc…

Stuff you wanted to put in the plan

Technical white-paper(s)

More detailed financial analysis, DCF, etc.

Additional competitive data

Additional market data/published reports

Articles about the company, product, market, team, etc…

Pictures really do say more than a thousand words.

For example: MovieMachine “ Blockbuster-in-a-box” Vast inventory DVD video rentals To be situated in grocery stores and other retail ATM-like interface Logical evolution toward VoD

“ Blockbuster-in-a-box”

Vast inventory DVD video rentals

To be situated in grocery stores and other retail

ATM-like interface

Logical evolution toward VoD

Show The Capitalization Strategy

State your goals Expected accomplishments with current funding round

Expected accomplishments with current funding round

Concluding Remarks Impress the reader with the thoroughness of your understanding of the market. Make it understandable. Value white-space. Develop realistic, flexible financial forecasts

Impress the reader with the thoroughness of your understanding of the market.

Make it understandable.

Value white-space.

Develop realistic, flexible financial forecasts