March 10th 2010
Join us on Facebook & Meetup
Invited to Dragon’s Den
Co-founder of MosaStore Inc.
Business Plan Expert – also winner of
largest business plan competition of Canada
Master of Business Administration &
Bachelor of Engineering
Why you need a business plan?
– Marketing document
– Foot-in-the-door philosophy – e.g. Hotmail
– Organize your ideas
– Market Research
– Potential employees
– Suppliers / customers
What should a business plan
Sell the team of entrepreneurs!
– Thought process
Sell the opportunity
– Market and profit potential
Sell a deal?
– No! Negotiations come later!
– How much money you need
– Executive summary (1-3 pages)
– Customer and market analysis (3-4 pages)
– Business model and competitive strategy (3-4
– Competitor analysis (2-3 pages)
– Implementation plan (2-4 pages)
– Risk section (1-2 pages)
– Financials Highlights and Assumptions (1-2 pages)
– Founder Résumés
Purpose: To convince the reader to read on
Length: Short! Less than 1000 words
Contents: All key elements in your business plan
– Company Name
– Positioning Statement
– Product/service description (uniqueness)
– Market size (data on size, growth & competition)
– Brief Business model and strategy
– The management team's qualifications
– financial summary, required amount, use of funds and
Style: Clear, dynamic, positive and exciting
Sentence #1: Segmentation
For (target customer)
who (statement of the need or opportunity),
the (product/service name)
that (statement of benefit)
Sentence #2: Differentiation
Unlike (primary competitive alternative),
our product (statement of primary
www.20minMBAs.com Developed by Geoff Moore, The Chasm Group
(Product/Service) High performance, low cost and
flexible software storage solution (for) small to mid-
size companies and educational institutes (who) are
facing storage challenges in the midst of electronic
(Unlike) costly solutions, (our) product efficiently
utilizes the existing storage and network resources to
provide effortless expandability, and in turn, lowering
capital and operational IT expenditures.
Customer and market analysis
Clearly articulate the customer need
– Explain importance of customer need
– Is there a willingness/ability to pay?
Provide secondary market research
– Estimate size and growth potential of your market
– Provide relevant market segmentation
Provide primary evidence of market needs
– Customer (and competitor) testimonials
– Survey evidence, focus groups
Always lead the analysis with facts and
Number Uninsured and Uninsured Rate: 1987 to 2006
Number in millions , rates in percentage
1985 1990 1995 2000 2005 2010
Source: U.S. Census Bureau, Current Population Survey, 1988 to 2007 Annual Social and Economic Supplements
www.20minMBAs.com Bureau, Current Population Survey, 2005 to 2007
Source: U.S. Census
Never belittle the competition
– Worst possible statement: “There is no competition”
– Second worst possible statement: “Criticize competition for their
– Never hide what you know
MOSAIC OF STORAGE SPACE
Business model and strategy
Statementof business model
– Discuss basic business logic
– Define scope of business
– Discuss revenue model
– Provide graphical analysis only if
business model complex
Marketing and Sales
– What channels? What sales force? Etc.
– What advertising? What image? Etc.
– How do you plan to build the company?
– What resources do you need?
– What kind of employees? Corporate culture?
– What compensation structures?
– What are our concrete targets?
– When do you plan to get there?
Why should I disclose my risks?
– Either you identify and frame risks yourself…
– …or other people will do that for you!
Candidly identify all major risks
Explain your mitigation strategy
What level of detail?
– Show awareness, not paranoia
– Risk section ≠ legal risk disclosure
Clearly present highlights of financials
– Key assumptions, revenues, earnings, margins, funding
needs, exit strategy… depends on business
Explain your main assumptions
Financials focus on Profit and Loss (Income statement)
Need Cash Flow statement for funding requirement
Balance sheet rarely matters
Frequency depends on type of business
– Most investors want five year projections
– Broad-brush: first two years quarterly, then yearly
– Fine-comb: first two years monthly, then quarterly
– Many other variations… you can’t win
Cash Flow/Net Income
Highlight and explain relevance not only the
quality of your résumé, but also its
relevance for the business opportunity at
Also discuss role of founders and future
management as part of the plan!
Join us on Facebook & Meetup