Writing A Winning Business Plan
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Writing A Winning Business Plan

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A presentation I gave at the University of California Irvine on the components to winning business plan.

A presentation I gave at the University of California Irvine on the components to winning business plan.

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    Writing A Winning Business Plan Writing A Winning Business Plan Presentation Transcript

    • Writing a Winning Business Plan
      1
      University of California-Irvine
      February 1, 2011
    • 2
      Marshel Sheperd
      One “A”
      One “L”
      Two “H”s
      Three “E”s
    • My Business Background
      3
    • 4
    • 5
    • 6
    • 7
      My Goal for Today
      Exec Summary
      BusinessPlan
      “A overview to get you excited…”
      “Details that will get you hooked.”
    • Articulate Vision & Reasoning
      How To Turn $ to $
      Intro of Management Team
      Outline Known Risks & Challenges
      8
      Purpose of Both
    • 9
      Goal of Overall Plan
      Investment Consideration
      Position Against Difficult & Critical Issues
      Attract Talent
      Create Credibility
      Memorable Milestone Roadmap
    • Pleading a Case
      Anecdotes & Trends
      Timeliness--Why Now?
      How World Is Changed With You
      Unlock Big Time Value
      10
      Tone of the Plan
    • You Won’t Think of It All—But Try—Work In Progress
      People, Markets, Competitors, Customers May Change
      Revenue Model Might Change if Incentives Aren’t Right
      End Game Mission Should Remain Sturdy
      11
      What You Should Know
      Creativity +
      Adaptation
    • 12
      An Example: Our Story
      100,000,000 Known Cases Annually
      1. Poor methods of diagnosis—Dissatisfaction
      2. Growing Market—Importance
    • Version 1.0
      Direct to Consumers (No Eye Dr. Needed)
      Too Risky & Complicated
      Version 2.0
      Direct to Optometrist & Ophthalmologists
      Little Incentive to Switch
      Version 3.0
      Win Over Eye Drop Solution Companies
      Partner For Better Solutions
      Version 3.1
      Preventative Care
      Win Over Insurance Companies
      13
    • 14
      Where Are We Today
      • Timing—Market Needs to Mature a Bit Before We Make Sense
      • Building Relationships & Credibility with Science World
      • Simplifying Our Market Entry Pathway
      • Many Challenges to a Product Business
    • The Business Plan
      15
    • Exec Summary
      Company Description
      Market Evidence
      Product or Service
      How You Make $
      Customer Analysis
      Marketing Plan
      Financial Plan
      Management Team
      Competition (Existing & Entrants)
      Operating & Milestone Risks
      Exit Strategy
      16
      Plan Components
    • This is a 1-Pager (aka Tear Sheet)
      What Is The BIG DEAL?
      What Are You Solving? How Bad Is It…
      Why Should Investors Care? How Big Is It…
      Who Needs It Solved? How Many Are There…
      Why Do They Care? How Important Is It…
      Who Pays You? How/Who Pays, Can They…
      What Stage Is This? How Far From Payback…
      Goal Is To Get the Reader To the Plan
      17
      Executive Summary
    • What Defines Your Market?
      Segmented Attributes?
      How Big Is The Market?
      What Market Conditions Create The Problem You Solve?
      Is there another way to solve it that dominates your solution?
      Aspirin vs. Pain Killer
      Goal is to Give Undeniable Evidence That Market Is There & Ready
      18
      Market Overview
    • What Does It Do?
      How Does It Do It?
      Key Defining Attributes? From the Customer…
      Are Differences WOW or Eh?
      Do Customers Need to Switch…Will They? Why?
      What Position Will It Take In The Market?
      Is it Defensible? Is it Scalable?
      Goal is to prove the solution is believable, warranted, and superior.
      19
      Product or Service
    • 20
      Product or Service
    • What Key Assumptions Need To Be Proven?
      Small & Large, Investors Want to See Them All
      Don’t All Need to Be Large—Smaller Steps Shows Momentum
      Goal is to Show Grasp of Knowledge to Get to Market
      21
      Product Milestones
    • 22
      Marketing
      • Demand—How Bad Do They Want It?
      • Distribution—How Will You Reach Your Market?
      • Purchase Consideration & Behaviors—Know Your Customers and What Makes Them Excited
      • Goal Is to Layout Your Market Domination Strategy—Pricing, Quality, Geography, Mobility
    • Why Will They Give You Money?
      Do They Have Money To Afford It At Your Cost Structure?
      What Are Their Expectations of Quality?
      23
      Potential Customer Base
    • Who Does What? Qualifications?
      Who Else Do You Need?
      How Will You Get Them?
      Management Is Critical—Don’t Overlook This!
      Goal Is to Show Why You Are The Right Team, If Not Complete—Who Do You Need
      24
      Management Team
    • Who is Paying? Who is Using?
      How Often Are They Buying?
      How Valuable Is It To Them?
      Razor / Razorblade?
      Think Incentives& Natural Flow
      25
      Business Model
    • Who Are Your Competitors
      Answer better not be “None”
      What Are Your & Their Advantages & Disadvantages
      What Are The Gaps? Does Closing Them Matter?
      Who Else Can Enter this Space if it Proves to Be Lucrative? How Will Slow Them?
      26
      Competition
    • Great Businesses Will Attract Copy Cats…What Will Stop/Slow Them?
      Intellectual Property
      Economies of Scale
      Critical Relationships
      Capital Requirements
      Goal Is to Show How Each of These Matter To Your Model
      27
      Barriers to Entry
    • Income Statement (3 to 5 years)
      Balance Sheet (3 to 5 years)
      When Funds Are Required & Uses
      Key Assumptions
      Financial Model—What Are the Economic Drivers?
      Goal is to Present a Cogent Plan that Aligns with the Rest—Does It Make Sense?
      28
      Financial Plans
    • IPO
      Operate & Grow It
      Seek Corporate Buyout
      Goal is to Show Investors (including you & your team) When They Will Get their Money Back + Rate of Return
      FYI…A Business “Made to Operate” is What Corporate Acquirers Want to See
      29
      Exit Strategy
    • Investors, Customers, Partners, Employees, and Success is ULTIMATELYthe Result of the People Involved
      Advice: Fall In Love with You + Your Idea
      Don’t Do It Alone…You Will Not Think of Everything
      Build Trust In Each Other—It Will Be Rough & Rocky…
      Know Exactly What You Want and When You Want It—Ask For The Money
      30
      Other Things to Consider
    • How Much Money Would You Put On The Line?
      Did You Put Money On the Line?
      This is Not a Solid Argument for Investors
      How Committed & Passionate Are You To the Idea?
      Are Your Teammates Equally Committed & Passionate?
      Remember…Goal of Plan Is To Get You To a Meeting
      31
      Other Things to Consider
    • Don’t Need to Solve the World’s Biggest Problems from Day 1
      Plan Needs to Be Believable & Achievable
      Textbooks Won’t Have the Answer.
      Critical & Creative ThinkingWill
      Know Your Pain Tolerance
      Minimum Living Expenses to Survive
      32
      Other Things to Consider
    • Think Critically and On Your Feet
      Be Creative
      Have Fun
      Take Criticism, But Don’t Let It Stop You
      Nobody Loves Your Vision As Much As You Do!
      Good Luck
      33
      Parting Words
    • Thank You
      34
    • Questions?
      35
      Marshel Sheperd
      marshelsheperd@gmail.com
      (203) 979-6047