Components Of A Marketable Business Plan The Investor’s Perspective By Tony Osime

Topics Ice Breaker What is a business plan? Structure Writing tips Design tips The Investor

Ice Breaker

What is a business plan?

Structure

Writing tips

Design tips

The Investor

Ice Breaker

Standing Out From The Crowd How many business plans are circulating right now? How will yours stand out?

Model on Success Look for a business plan in your industry that was successful– Use that as your benchmark

What is a Business Plan? Purpose Clarify Strategy Raise Financing Attract Collaboration Focus on your purpose Content & style will differ

Clarify Strategy

Raise Financing

Attract Collaboration

What is a Business Plan? Form Document Sample Slides Film Demonstration Use different forms for best effect

Document

Sample

Slides

Film

Demonstration

Key Drivers What are the key success factors? Top 5 Only Use the perspective of each stakeholder What is most important to them Make sure your plan focuses on these drivers

Structure Introduction Table of contents Fact Sheet Executive Summary Business Concept Market Operations Financials Organization *Legal SWOT Appendix Thousands of structures on the internet i.e. www.deloitte.com * Added

Introduction

Table of contents

Fact Sheet

Executive Summary

Business Concept

Market

Operations

Financials

Organization

*Legal

SWOT

Appendix

Structure… Introduction What is this document? Who is it for? Why should they read it? Who wrote it? When was it written? What should be done with it after reading? Confidential?

Introduction

What is this document?

Who is it for?

Why should they read it?

Who wrote it?

When was it written?

What should be done with it after reading?

Confidential?

Structure… List the contents and the respective page numbers Topic 1……………. 4 Topic 2……………. 7 Topic 3…………….12 Topic 4…………….15 Topic 5…………….16 Topic 6……...……..24 Table Of Contents

Structure… Fact Sheet (A list of key facts) Name of company Legal structure Location Size Investment amount Return on investment Promoter Auditor Etc. A table One line per fact Only important facts Can be long > 50 35% ROI N3m Investment N2m Size Lagos Location Ltd Legal form XYZ Name

Fact Sheet (A list of key facts)

Name of company

Legal structure

Location

Size

Investment amount

Return on investment

Promoter

Auditor

Etc.

Structure… Executive Summary Summary of each section of the plan Brief – 1-2 pages

Executive Summary

Summary of each section of the plan

Brief – 1-2 pages

Structure… Business Concept USP – Unique Selling Proposition Basic idea of the business What makes this project different What opportunities are captured Vision Mission Objectives

Business Concept

USP – Unique Selling Proposition

Basic idea of the business

What makes this project different

What opportunities are captured

Structure… Market Customers Competition Distribution Promotion

Market

Customers

Competition

Distribution

Promotion

Structure… Operations Production process Input Process Output Special Technology

Operations

Production process

Input

Process

Output

Special Technology

Structure… Financials (5 years?) (Historic + Projected) Income statement Balance Sheet Cash Flow Ratios

Financials (5 years?) (Historic + Projected)

Income statement

Balance Sheet

Cash Flow

Ratios

Structure… Organization Ownership Directors Key staff (Do a chart) Position Education Experience Past Success Future Potential

Organization

Ownership

Directors

Key staff (Do a chart)

Position

Education

Experience

Past Success

Future Potential

Structure… Legal Agreements Certification Licenses Government Policies Regulations Compliance

Legal

Agreements

Certification

Licenses

Government

Policies

Regulations

Compliance

Structure… SWOT Strengths Weaknesses Opportunities Threats

SWOT

Strengths

Weaknesses

Opportunities

Threats

Structure… Appendix Diagrams Pictures Charts Research papers Etc.

Appendix

Diagrams

Pictures

Charts

Research papers

Etc.

Writing Tips - Clarity What do you understand by clarity? Easy to understand One meaning Obtained quickly

Easy to understand

One meaning

Obtained quickly

Writing Tips - Concise What do you understand by conciseness? Using the minimum number of words Not just short But efficient (ideas/words)

Using the minimum number of words

Not just short

But efficient (ideas/words)

Writing Tips - Organization What do you understand by well organized? Clear purpose Only relevant facts & ideas Coherent grouping of content Minimal repetition

Clear purpose

Only relevant facts & ideas

Coherent grouping of content

Minimal repetition

Writing Tips - Layout What do you understand by well laid out? Attractive Easy to understand Good use of graphics

Attractive

Easy to understand

Good use of graphics

Writing Tips - Natural What do you understand by natural? Simple shorter words arranged in a conversational way

Writing Tip - Positive What do you understand by being positive? Only using words which make the reader feel good – or at least feel neutral Negative Neutral Positive

Writing Tips - Relevance Why should we provide all relevant facts - not just those suitable for your purpose? Helps the reader make the best decision Improves our good will

Helps the reader make the best decision

Improves our good will

Writing Tips - Interpret Why should we interpret the facts for our readers? Helps the reader make the best decision Demonstrates our knowledge and skill

Helps the reader make the best decision

Demonstrates our knowledge and skill

Writing Tips - Conclusions What happens when we jump to conclusions? What is jumping to conclusions? Making statements not supported by facts Could loose good will

Writing Tips – Both Sides Why should we provide both the pros and the cons of each option? Helps the reader make the best decision Improves our good will

Helps the reader make the best decision

Improves our good will

Writing Tips – Facts v Opinions What is the difference between a fact and an opinion? Why should we differentiate between a fact and an opinion? Facts are objective & supported by reality People may interpret our opinions as facts

Facts are objective & supported by reality

People may interpret our opinions as facts

Writing Tips – Sources of information Why should we state our sources of information? Shows our objectivity Shows the quality of our information

Shows our objectivity

Shows the quality of our information

Writing Tips - Sentences Word Choice Sentence Length What is a good length for a sentence? Maximum 15 – 20 words Depending on the number of syllables. “ Keep sentences simple – one idea per sentence”

Writing Tips - Style What do you understand by write the way you speak? Write what you would say to your reader if they were in front of you. Use this as your first draft Write the way you speak! Style & Tone Write the way you speak

Design Tips Bind Neatly

Design Tips Use lots of pictures & diagrams

Design Tips Use lots of white space

Business Plan Tips Have it professionally re– written Do not copy another plan Make sure it is perfect No typos No spelling errors No grammatical errors No stains Have it proof read 5+ times by 5+ people

Have it professionally re– written

Do not copy another plan

Make sure it is perfect

No typos

No spelling errors

No grammatical errors

No stains

Have it proof read 5+ times by 5+ people

The Investor’s Perspective Why Should I give you my money?

The Promoter’s Perspective Why Should I give you my money? Because I have a great idea? Because I am a nice person? Because I am honest? Because I work hard?

The Investor’s Perspective Because I will grow your money Why Should I give you my money?

The Investor’s perspective How do I know you will grow my money? Because I have a great idea? Because I am a nice person? Because I am honest? Because I work hard?

The Investor’s perspective Because I have done it before! Directly or indirectly How do I know you will grow my money?

The Promoter’s Perspective Only when I cannot show past success do I rely on the usual arguments… Because I have a great idea? Because I am a nice person? Because I am honest? Because I work hard?

Success Stepping Stones Remember your past successes These are your stepping stones…

Good Luck! The End