Business plan outline f 1-8-04

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Business plan outline f 1-8-04

  1. 1. Business Plans For The Real World Barry Williams Delaware SBDC
  2. 2. Why a Business Plan?  Strategic  Lenders  Investors Guide
  3. 3. Strategic Guide  Where Do You Want To Go?  How Are You Going to Get There?  What Market Niches?  How Much is it Going to Cost?  Greatest Profit Opportunity?
  4. 4. Lender Expectations  Good Business Track Record  Ability to Repay  Staying Power  Collateral
  5. 5. Investor Expectations  Competitive Advantage  Huge Market  Strong Management Team  Strong Marketing and Sales Plan  Some Skin in the Game  Obscene Return  Exit Strategy
  6. 6. Entrepreneurs Start Businesses:  To Capitalize on an Invention  To Pursue a Passion  To Be Their Own Boss  To Get Rich ---All Need an Exit Strategy
  7. 7. Exit Strategies  Selling the Business  Transferring the Business to a Family Member  Taking the Company Public  Being Acquired by a Larger Company
  8. 8. Funding Sources:  Savings  Friends and Family  Financial Institutions / Banks  Angel Investors  Venture Capital
  9. 9. Business Plan Content  Executive Summary  Company Description  Product/Services Description  Industry Overview  Market Analysis  Competitors
  10. 10. Business Plan Content  Customers  Marketing and Sales Plans  Development  Operations  Management
  11. 11. Business Plan Content  Personnel  Financial Summary  Financials  Offering  Appendices
  12. 12. Executive Summary A mini-business plan in one or two pages  Highlights the most important points of your business plan  It is NOT an introduction to the plan  It must grab your reader, and entice him/her to read further
  13. 13. Executive Summary  Identify the company, its background, structure and location  Describe what the company does, and the market it serves  Describe the market potential for the company’s products and services, market trends, etc.
  14. 14. Executive Summary  Outline the backgrounds and experience of the top management team  Describe the funding required, the purposes for which it will be used, the collateral available (if for a lender), and the expected outcomes
  15. 15. Company Overview  Brief Company Introduction – Mission statement – Location, size, history – Market and products – Overview of company capabilities – Objectives
  16. 16. Products/Services  Products / Services – What does it do? – Uniqueness – Competitive Advantage  Technology – Brief description – Applications  Commercialization – Brief overview Status
  17. 17. Industry Overview  Set The Stage  Industry Definition and Description – Major players within the industry – Factors driving dynamics – New products and developments and Policies Driving the Industry  Historical and Future Trends  Legislation
  18. 18. Market Analysis  Market Definition – Primary Market – Secondary Markets  Market Size and Trends – Current total revenues – Predicted annual growth rate
  19. 19. Competitors  Direct Competitors – Who are they? – Size and product breadth – Revenues and profitability – Strengths and weaknesses – Market shares  Indirect Competitors
  20. 20. Customers  Customer Characteristics – Who are they? – Why do they buy? – Need satisfied by the product/service – How is the need currently filled? – What are the alternatives? – Who makes the decision to buy? – How frequently do they purchase?
  21. 21. Marketing and Sales Plans  Statement of Opportunity  Marketing and Sales Objectives  Existing Customers  Potential Customers – Prospects targeted – How prospects will be targeted and qualified
  22. 22. Marketing Strategies  Product/Service  Pricing Strategy Strategy  Distribution Strategy  Advertising and Promotion Strategy  Sales Strategy  Marketing and Sales Forecasts
  23. 23. Marketing and Sales Plans  Marketing – – – – – – Programs Direct Mail Trade Shows Advertising Internet Publicity/Public Relations Marketing Budget  Pricing – Basis for targeted price point – Margins and profitability by volume levels
  24. 24. Marketing and Sales Plans  Sales Plan – Sales force structure – (direct or reps) – Sales expectations/quotas – Margins given to intermediaries – Service and warranties – Sales Budget – Organizational chart indicating planned growth
  25. 25. Development R & D Plan – Objectives – Milestones and current status – Difficulties and risks – Staffing – R & D Budget and assumptions
  26. 26. Operations  Manufacturing/Production Plan – Objectives – Facilities – Staffing – Subcontractors – Quality Control – Budget / Operating Expenses
  27. 27. Management  Company Organization  Management Team  Administrative Expenses
  28. 28. Management Team  President  VP Finance  VP Sales  VP Marketing  VP Manufacturing  Board of Advisors
  29. 29. Personnel  Human Resource Plan – Staffing Objectives – Organizational Structure – 3-5 year growth plan – Budget
  30. 30. Summary of Financials  Financial Objectives – Time to Cash Flow Positive – Time to profitability  Financial Assumptions  Capital Requirements  Exit Scenario
  31. 31. Financials  Pro-forma Cash Flow Projections  Pro-forma Profit & Loss Statements  Pro-forma Balance Sheet
  32. 32. Offering  Investment Requirements  Pro-forma Valuation of Business  Offer
  33. 33. Appendices  Resumes of Key Management  Patent Information  Customer List  Testimonials  Supplemental Financial Spreadsheets  References
  34. 34. Investment Climate
  35. 35. Questions?

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