Presentation to LIM College on Start-Ups

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A presentation on how to prepare a business plan for a Venture Backed Start-Up.

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  • Innovation Capital
  • Presentation to LIM College on Start-Ups

    1. 1. Launching A New Venture: Successful Elements of a Business Plan By David J. Freschman Adjunct Professor – MBA program LIM College, NYC Managing Principal of Innovation Capital Advisors, LLC. MNGT 702 – Launching New Ventures Textbook – New Venture Creation: Entrepreneurship for the 21 st Century/ 8 th Edition By: Jeffry A. Timmons and Stephen Spinelli
    2. 2. Elements of a Venture Backed Business Plan <ul><li>Executive Summary </li></ul><ul><li>The Industry and the Company </li></ul><ul><li>Product(s) or service(s) Offered </li></ul><ul><li>Market Research </li></ul><ul><li>The Economics of the Business </li></ul><ul><li>Marketing and Distribution Strategy </li></ul><ul><li>Product & Service Development </li></ul><ul><li>Manufacturing and Operations Plan </li></ul><ul><li>Management Team </li></ul><ul><li>The Financial Plan </li></ul><ul><li>The Company Offering </li></ul><ul><li>Appendices </li></ul>Innovation Capital Advisors, LLC. | David J. Freschman
    3. 3. Executive Summary <ul><li>Grab the investors attention by describing a compelling business opportunity </li></ul><ul><li>Identify a need or opportunity being addressed in a large and growing market </li></ul><ul><li>Present a business that will solve a problem, or take advantage of that opportunity </li></ul><ul><li>Demonstrate that you have the know-how and the team to start and grow a company successfully. </li></ul><ul><li>Example of a Executive Summary Layout </li></ul><ul><ul><li>Description of the Business Concept and the Business </li></ul></ul><ul><ul><li>Opportunity </li></ul></ul><ul><ul><li>Target Market </li></ul></ul><ul><ul><li>Competitive Advantages and Value Proposition </li></ul></ul><ul><ul><li>Projections </li></ul></ul><ul><ul><li>Economic, Profitability, and Exit Opportunity </li></ul></ul><ul><ul><li>Management Team </li></ul></ul><ul><ul><li>The Deal </li></ul></ul>Innovation Capital Advisors, LLC. | David J. Freschman
    4. 4. The Industry and the Company <ul><li>Explain the type of industry you are entering </li></ul><ul><li>Identify if the industry is a mature, growing or declining </li></ul><ul><li>Describe the company and the business model </li></ul>Innovation Capital Advisors, LLC. | David J. Freschman
    5. 5. Product(s) or Service(s) Offered <ul><li>Describe the company’s product(s) or servicing offerings </li></ul><ul><li>Describe the feature and benefits </li></ul>Innovation Capital Advisors, LLC. | David J. Freschman
    6. 6. Market Research and Analysis <ul><li>Identify customer profile. Determine why the customer will purchase your product or service, how much they will buy at what price. </li></ul><ul><ul><li>Include list of existing customers, if any </li></ul></ul><ul><li>Cleary define the Market Size and Trends </li></ul><ul><li>Discuss Competition, Value Proposition and why the customer will buy your product or service versus the competition </li></ul>Innovation Capital Advisors, LLC. | David J. Freschman
    7. 7. The Economics of the Business <ul><li>What is the company’s Gross and Operating Margins </li></ul><ul><li>Identify Profit Potential and Sustainability </li></ul><ul><li>Identify what are your Fixed, Variable, Semi-variable Costs </li></ul><ul><li>Calculate how many months to breakeven </li></ul><ul><li>Calculate how many months to reach positive cash flow </li></ul>Innovation Capital Advisors, LLC. | David J. Freschman
    8. 8. Marketing & Distribution Strategy <ul><li>Define overall marketing and distribution strategy. How will the company increase brand awareness of their product and service, and how will they company convey their benefits? </li></ul><ul><ul><li>Pricing </li></ul></ul><ul><ul><li>Sales Tactics </li></ul></ul><ul><ul><li>Service and Warranty Policies </li></ul></ul><ul><ul><li>Advertising and Promotion </li></ul></ul><ul><ul><li>Distribution </li></ul></ul><ul><ul><li>Sales Force </li></ul></ul>Innovation Capital Advisors, LLC. | David J. Freschman
    9. 9. Product & Service Development <ul><li>Development Timeline and Task List </li></ul><ul><li>Identify potential risk and challenges </li></ul><ul><li>Product Improvement and New Products </li></ul><ul><li>Expenses </li></ul><ul><li>Proprietary Concerns </li></ul>Innovation Capital Advisors, LLC. | David J. Freschman
    10. 10. Manufacturing and Operations Plan <ul><li>Operating Plan </li></ul><ul><li>Geographical Location </li></ul><ul><li>Facilities and Maintenance </li></ul><ul><li>Strategy and Plans </li></ul><ul><li>Regulatory and Legal Issues </li></ul>Innovation Capital Advisors, LLC. | David J. Freschman
    11. 11. Management Team <ul><li>Discuss what relevant experience each person brings to the business and be specific. </li></ul><ul><li>Outline the type of key managerial experience you want and how you plan to recruit that person. </li></ul><ul><li>Key management and compensation layout: </li></ul><ul><ul><li>Key Management Personnel (CEO, CTO etc.) </li></ul></ul><ul><ul><li>Management Compensation and Ownership </li></ul></ul><ul><ul><li>Other Investors </li></ul></ul><ul><ul><li>Employment and Other Agreements and Stock Option and Bonus Plans </li></ul></ul><ul><ul><li>Board of Directors </li></ul></ul><ul><ul><li>Other Shareholders, Rights, and Restrictions </li></ul></ul><ul><ul><li>Supporting Professional Advisors and Services </li></ul></ul>Innovation Capital Advisors, LLC. | David J. Freschman
    12. 12. The Financial Plan <ul><li>Actual Income Statements and Balance Sheet </li></ul><ul><li>Projected Income Statements </li></ul><ul><li>Projected Balance Sheets </li></ul><ul><li>Projected Cash Flow Analysis </li></ul><ul><li>Breakeven Chart and Calculation </li></ul><ul><li>Cost Control </li></ul>Innovation Capital Advisors, LLC. | David J. Freschman
    13. 13. Proposed Company Offering <ul><li>Desired Financing </li></ul><ul><li>Offering </li></ul><ul><li>Capitalization </li></ul><ul><li>Use of Funds </li></ul><ul><li>Investor’s Return </li></ul>Innovation Capital Advisors, LLC. | David J. Freschman
    14. 14. Appendices <ul><li>Purpose </li></ul><ul><ul><li>Supporting documents used to enhance your business proposal. </li></ul></ul><ul><li>Includes </li></ul><ul><ul><li>Photographs of product, equipment, facilities, etc. </li></ul></ul><ul><ul><li>Copyright/Trademark Documents </li></ul></ul><ul><ul><li>Legal Agreements </li></ul></ul><ul><ul><li>Marketing Materials </li></ul></ul><ul><ul><li>Research and or Studies </li></ul></ul><ul><ul><li>Operation Schedules </li></ul></ul><ul><ul><li>Organizational Charts </li></ul></ul><ul><ul><li>Job Descriptions </li></ul></ul><ul><ul><li>Resumes </li></ul></ul><ul><ul><li>Additional Financial Documentation </li></ul></ul>Innovation Capital Advisors, LLC. | David J. Freschman

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