What is a Business Plan?A document to that articulates1)What you are going to do2)How do you plan to do it3)How will you make money from itA plan for your businessDo it for yourself… not just for investors
What’s the process of working on abusiness plan?o Start with a ‘story’ - ‘See the film in your mind’o Work out rough milestones and goalso Think deeply of how you will implement ito Work out the ‘structure’ of an excel sheet – with formulaeo Start working in the excel sheet – assumptions are criticalo Work on multiple ‘scenarios’o Finally, articulate it into the ‘presentations’ It’s a little bit like planning a journey
Investors look for CAP Clarity Ability Profitability – business case
Key decision making points for investors Will this team deliver Is the need /opportunity real Is the market size large and can this venture scale Is there a Sustainable Competitive Advantage Are the assumptions practical
Startup NameOne line business description:e.g. “We are an online music release platform for artistes to well orshare their music’City:Stage: i.e. concept, post-pilot stage, growth stageContact Person:E-mail id:Mobile:
Overview of your business•What is your service/product/concept? i.e. what do you do? i.e.Concept•Whom is this service targeted at? i.e. yourcustomers/consumers? i.e Who will pay•What is the pain point you are addressing or what is theopportunity you are targeting? i.e. the need/value proposition
Team• Brief description of each team member with key points on what he/she brings to the team [e.g. someone could lead technology, someone could lead marketing, etc.]
Product / Service Differentiator• Highlight the uniqueness of your offering i.e. why would your users be excited about your offering?
Business model e.g. how do you plan to makemoney?Should answer the questions “Who will pay how much, towhom and for what”Types of business models • Free for users – advertisers pay • SAAS – pay only for service / rental • Pay per use • Pay up front • Annual / periodic payments • Pay in installments • B2B2C
Business model e.g. how do you plan to makemoney?Example of a business model“We have a B2B2C model. We will charge parents Rs.250 per child permonth. This will be collected by the school from parents who subscribeto our service and will be paid to us at the beginning of every quarter.Students will be pre-registered but subscription is not compulsory andparents can choose to opt out.School will keep 20% of total revenues, which we will give them at theend of the year on achieving a pre-agreed minimum revenuecommitment.”
What is the size of the opportunity• Potential• What markets are you addressing e.g. India, global, etc. – be specific for the 18 – 24 months horizon
Implementation planHow do you intend to implement this concept?•Operations: procurement/supply chain/logistics/fulfillment, etc.•Marketing Strategy: how will you reach your customers•Sales strategy: How will you sell to those you reach•Org chart: What team do you envisage to deliver this•Mention your key assumptions, and highlight if different thangenerally accepted numbers
Your goals• In the next 3 – 6 months• In the next 12 – 18 months or 24 months• In the next 5 years• Indicate when you become profitableCurrent achievements / status:
Competitive landscape• Who will you compete with? [current or in future]• Why would someone choose you over them?• Why do you have a chance to be a dominant player?
Funding objective• How much do you need• What do you need the money for i.e. what will you achieve with this money, when do you see profitabilityAlso mention any fund raising history, if any