The Business Plan
Janis Machala, Paladin Partners
Don Ferrel, SeaTec
Cofounders of BigScreen
About Us
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Janis
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•

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•

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Managing Partner,
Paladin Partners
Serial entrepreneur,
business advisory
services
...
About Our Company - BigScreen
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Simplified computing and
Internet for older adults

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Extends social and caregiving netw...
Purpose of a Business Plan
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Alignment of team(s)
Operating plan
Communication across company,
division, depar...
How to Use a Business Plan
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Executive summary
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Mini business plan
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Solicit interest
Screen for investor ca...
What Investors Look For
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How does the team think?
How detail oriented is the team?
How big is this market?
Is...
Financial Projections
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Build 5 years
Detail near years, extrapolate out
years
Build from single unit economic...
10 Must Answer Questions
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How large is your addressable market?
How fast is the market growing?
Who’s ...
Creating Your Company’s Strategy
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Building a strategy is harder work
than building your product
Think about





...
Competitive Analysis
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You always have competitors
Dig deep, be detailed, be honest
Compare features and benef...
Sustainable Competitive Advantage
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Create barriers to entry
Continually add value for your
customers (and your inve...
Business Plan Format
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Pages: 10 to 30
Kinko’s white bond
is good enough
Simple binding
Examples
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Handout – a...
User Friendly B-Plan is Key
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Investors receive hundreds of these
Most plans don’t get fully read
Reasons why:
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...
Nuts and Bolts
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12 point type
Use a clean font
Don’t use bold or italics too much
Make sure your visuals...
Due Diligence
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Market assessment is initial focus
Customer market validation next
Team references and resumes crit...
Resources
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Reading list
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Guy Kawasaki
Geoffrey Moore
Business 2.0
HBS Case Studies

Workshops
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CIE...
Questions and Discussion
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Machala ferrel - Business Plan

  1. 1. The Business Plan Janis Machala, Paladin Partners Don Ferrel, SeaTec Cofounders of BigScreen
  2. 2. About Us  Janis • • • •     Managing Partner, Paladin Partners Serial entrepreneur, business advisory services Wang, Sun, Microsoft, IT Start-ups BA Psychology, MBA, University of Iowa Long time active player in West Coast venture and angel scenes NWEN, Alliance of Angels, Seraph Done lots of deals Don • • • •    President/CEO, SeaTec Consulting Serial entrepreneur, business development, large scale IT systems integration Scitor, Rockwell International BA Math, BS Physics, Washington State Strong technical acumen Excellent execution and team building skills Fiscally conservative
  3. 3. About Our Company - BigScreen  Simplified computing and Internet for older adults  Extends social and caregiving networks Trusted source for valueadded services 
  4. 4. Purpose of a Business Plan       Alignment of team(s) Operating plan Communication across company, division, department, business partners Investment capital Expansion capital (banks, leases) Merger/acquisition process
  5. 5. How to Use a Business Plan  Executive summary    Mini business plan    Solicit interest Screen for investor candidates Banking/leasing document Potential acquirers Full business plan   Team planning process Due diligence
  6. 6. What Investors Look For       How does the team think? How detail oriented is the team? How big is this market? Is there sustainable competitive advantage? What’s the growth plan? What does the technology roadmap look like, short term or long term play
  7. 7. Financial Projections       Build 5 years Detail near years, extrapolate out years Build from single unit economics Document assumptions Compare against top down Validate with market comparables
  8. 8. 10 Must Answer Questions           How large is your addressable market? How fast is the market growing? Who’s make up your management team? What’s your “secret sauce?” What are the barriers to entry/competitive advantage? What do your 5 year financials look like? What’s your path to profitability? Why is this a company versus a product/service? Who’s your competition and how do you beat them? Why can’t Microsoft do this? (or name any big, established company…)
  9. 9. Creating Your Company’s Strategy   Building a strategy is harder work than building your product Think about      What do you want your business to be when it grows up Looking back from 5 years in future Perspectives of all stakeholders Anything that could go wrong Hope is not a strategy
  10. 10. Competitive Analysis       You always have competitors Dig deep, be detailed, be honest Compare features and benefits Technology comparison Whole product offering (pricing, support, etc.) Channels, funding, customers…
  11. 11. Sustainable Competitive Advantage    Create barriers to entry Continually add value for your customers (and your investors) Anticipate competition and make plans for dealing with it   Better widget, price erosion, market share, different business model….. Avoid the trap of believing that your main competitor is your exit strategy
  12. 12. Business Plan Format     Pages: 10 to 30 Kinko’s white bond is good enough Simple binding Examples   Handout – a good example B Plan Discuss examples of bad ones Typical Outline Executive Summary Introduction and Business Premise Market Analysis and Customer Needs Product Overview Value Proposition Business Model Business Operations Plan Marketing and Sales Market Entry Transition to Revenue Service Competitive Assessment Partnership Strategy Management Team and Advisors Financial Projections Key Business Metrics Capital Structure/Financing Plans Exit Strategy Risk Analysis Summary
  13. 13. User Friendly B-Plan is Key    Investors receive hundreds of these Most plans don’t get fully read Reasons why:     Logic is difficult to follow The business is not obvious Too much extraneous information or fluff Use the same techniques to write your plan that you would use to write a play, a song, software…..
  14. 14. Nuts and Bolts          12 point type Use a clean font Don’t use bold or italics too much Make sure your visuals are readable No typos, proof-read thoroughly (including the visual!) Remember: not everyone has same printer Check for grammar Style consistency If you can’t write, hire someone
  15. 15. Due Diligence     Market assessment is initial focus Customer market validation next Team references and resumes critical Secondary:    Financials and assumptions Corporate structure and legal docs Patent applications
  16. 16. Resources  Reading list      Guy Kawasaki Geoffrey Moore Business 2.0 HBS Case Studies Workshops      CIE Program NWEN WTC SBA Archive    Venture blogs Kauffman Foundation Consultants    Domain experts Funding experts Teambuilding experts
  17. 17. Questions and Discussion

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