This document provides a guide for writing a solid business plan in 4 steps: 1. Research important questions about commercial viability, uniqueness, and resources. 2. Develop strategies and operational plans including business models, objectives, and resource requirements. 3. Create financial models projecting profits, costs, cash flow, and return on investment. 4. Determine financing needs, investment options, and ownership structure. The business plan should clearly explain the business, strategies, financial projections, risks, and annexes to obtain funding.

1. Jan Kees Mons
20 December 2010
E-mail: Jankees.mons@gmail.com
Webpage: www.jkmconsultancy.com
www.MaxSpiration.com
How to prepare a solid business plan 22-3-2013

2. How to prepare a solid business plan 22-3-2013

3. Important Planning, re- Writing the
questions search, analysis business plan
 Important questions
 Tick the boxes!
 Is the idea COMMERCIALLY VIABLE?
 Has it BEEN DONE BEFORE?
 What is the UNIQUE SELLING POINT?
 Do you have the PROPER RESOURCES?
 What ROADBLOCKS to expect?
 Is the idea REALISTIC!?!
How to prepare a solid business plan 22-3-2013

4. Important Planning, re- Writing the
questions search, analysis business plan
 Step 1: Research and Analysis
 Target market
 Market Size
 Market dynamics: growth, demographics etc
 Competition
 Hurdles and “break-in” potential
If conclusion is “YES” continue the process, if “NO” come
up with a new idea
How to prepare a solid business plan 22-3-2013

5. Important Planning, re- Writing the
questions search, analysis business plan
 Step 2: Strategy and operational plans
 Business model
 Objectives
 Targeted market share
 Assumptions made: be REALISTIC!
 Manpower and resources required
 Assets required
How to prepare a solid business plan 22-3-2013

6. Important Planning, re- Writing the
questions search, analysis business plan
 Step 3: Financial modeling and forecasting
 Profit and loss account:
 Detailed sales projections – realistically derived?
 Realistic cost projections: headcount, office, transportation,
legal costs, outsourcing costs etc
 Cash flow statement and balance sheet
 Ratio analysis
Question: can I make a decent Return on Investment (ROI)?
If “YES” continue. If “NO” come up with a new idea
How to prepare a solid business plan 22-3-2013

7. Important Planning, re- Writing the
questions search, analysis business plan
 Step 4: Financing requirements
 What are financing needs?
 Initial investments
 Working Capital requirements
 Should cover the period in which company generates negative
cash flow
 Investment of partners vs investment third parties
 Do you want to invest money yourself?
 What do you have on offer for the 3rd party? It should be a
money making proposition!
 Majority vs minority interest
How to prepare a solid business plan 22-3-2013

8. How to prepare a solid business plan 22-3-2013

9. Important Planning, re- Writing the
questions search, analysis business plan
 Writing the business plan
 What is your target audience?
 Investors, venture capitalists, business angels
 Bankers
 Consultants, lawyers, suppliers etc
 Guidelines
 Be concise and use proper business language
 Proper grammar, correct typing
 Always detail your assumptions
 Length should not exceed 40 pages
 Appearance should not be sloppy – show professionalism
How to prepare a solid business plan 22-3-2013

10. Preliminary Executive Current External
Contents
details summary situation environment
Strategy and Financial Risk
Annexes
plans analysis Analysis
 Front page and contents
 Cover and title page should include:
 Name of company
 Address and phone number
 Month and year in which plan is issued
Table of Contents
 List each section and subsection and mark pages
How to prepare a solid business plan 22-3-2013

11. Preliminary Executive Current External
Contents
details summary situation environment
Strategy and Financial Risk
Annexes
plans analysis Analysis
 Preliminary details
 Associates and contact details
 Management and competencies are extremely important to
investors!
Jan Kees Mons
Jan Kees Mons (1961) has primarily been active in investment banking, where he worked as an equity analyst for Carnegie
International, Wesselius and UBS Warburg advising institutional clients on investment ideas both in London and Amsterdam.
During the last 6 years Jan Kees was Head of Research Benelux/director and member of the European management team of
Cheuvreux, a leading European equity brokerage and subsidiary of Calyon.
In 2008 he resigned in order to start-up a consultancy, combining it with studying International Sports Management. His key
expertise can be found in company analysis and valuation, strategic analysis, business consulting, monitoring and financial and
investment management.
Being a lateral thinker Jan Kees’ main mission can be found in the initiation of further growth and development through analysis,
cooperation and awareness. Jan Kees has degrees in Business Administration (BBA Nijenrode) and International Business
(MIB, University of South Carolina, USA) and currently is trying to obtain a Master in International Sports Management Degree
in Amsterdam
Contact details:
Jan Kees Mons
jan-kees.mons@planet.nl
+31652692550
22-3-2013 How to prepare a solid business plan

12. Preliminary Executive Current External
Contents
details summary situation environment
Strategy and Financial Risk
Annexes
plans analysis Analysis
 Executive summary
 Activities, products and services
 Strategy and USP’s
 Resources and competitive strengths
 Financial background and funding requirements
22-3-2013 How to prepare a solid business plan

13. Preliminary Executive Current External
Contents
details summary situation environment
Strategy and Financial Risk
Annexes
plans analysis Analysis
 Current situation
 Basic corporate information – short description of the
business model, target group etc
 Vision, mission and values
 Business organization
 Products and suppliers
 Customers
 Core competencies,
experience
22-3-2013 How to prepare a solid business plan

14. Preliminary Executive Current External
Contents
details summary situation environment
Strategy and Financial Risk
Annexes
plans analysis Analysis
 External environment
 The economy
 Market analysis
 Competitor analysis
 Competitive advantages
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15. Preliminary Executive Current External
Contents
details summary situation environment
Strategy and Financial Risk
Annexes
plans analysis Analysis
 Strategy and plans
 Objectives
 Business strategy
 Operating plan
22-3-2013 How to prepare a solid business plan

16. Preliminary Executive Current External
Contents
details summary situation environment
Strategy and Financial Risk
Annexes
plans analysis Analysis
 Financial analysis
 Profit and loss account
 Detailed sales projections
 Operating costs
 Profitability and sensitivities
 Balance sheet
 Cash flow statement and funding requirements
Note that balance sheet, P/L and Cash Flow should balance!
22-3-2013 How to prepare a solid business plan

17. 140,000
120,000
100,000
80,000
Investment in personnel
60,000
40,000
20,000
0
2009 2010E 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E
-20,000
-40,000
-60,000
Net profit
How to prepare a solid business plan 22-3-2013

18. 10,000
0
-10,000
-20,000
-30,000
-40,000
-50,000
-60,000
-70,000
-80,000
-90,000
Q3-09E Q4-09E Q1-10E Q2-10E Q3-10E Q4-10E Q1-11E Q2-11E Q3-11E Q4-11E
Quarterly cash generation Cash requirement
Cash Requirements:
 Cross over point in Q3-2011
 Maximum Cash requirement EUR 77,000
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19. Preliminary Executive Current External
Contents
details summary situation environment
Strategy and Financial Risk
Annexes
plans analysis Analysis
 Risk analysis
 Overview
 SWOT
 Critical success factors and alternative scenarios
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20. Risk analysis:
 Financial risk
 Economic risk
 Managerial risk
 Reputational risk
 Conflict of interest
Critical success factors
 Attracting top talent
 How to be different, creating an edge
 Relationship with end clients
How to prepare a solid business plan 22-3-2013

21. Preliminary Executive Current External
Contents
details summary situation environment
Strategy and Financial Risk
Annexes
plans analysis Analysis
 Annexes
 Profit and loss account
 Balance sheet
 Cash flow statement
 Financial ratios
 Valuation
 Quarterly profit and loss, balance sheet and cash flow
statement (2 years forward)
 CV’s partners
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22. Ratios 2009 2010E 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E
Margins:
Gross profit/Net turnover 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
EBITDA /Net turnover -199.0% -37.5% 2.0% 7.5% 19.7% 20.6% 17.9% 26.9% 27.6% 28.4%
EBITA /Net turnover -204.6% -41.6% -1.2% 4.4% 17.3% 18.3% 16.0% 25.2% 25.9% 26.8%
EBITA / Added Value -204.6% -41.6% -1.2% 4.4% 17.3% 18.3% 16.0% 25.2% 25.9% 26.8%
FCF/Net Turnover -167.0% -51.6% -4.2% 5.6% 15.5% 17.8% 15.7% 23.5% 25.2% 26.1%
Efficiency:
Number of FTE's 1 1 1.5 2 2 2.5 3 3 3.5 4
Sales / Employee (000) 23,000 91,600 109,667 107,250 133,931 129,519 128,651 151,689 151,999 154,430
Added Value / Empl (000) 23,000 91,600 109,667 107,250 133,931 129,519 128,651 151,689 151,999 154,430
Staff Costs / Employee (000) (68,775) (125,974) (107,443) (99,165) (107,559) (102,855) (105,655) (110,830) (110,027) (110,554)
Cost of sales % Sales 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Depreciation % of sales 5.6% 4.0% 3.2% 3.1% 2.4% 2.3% 1.9% 1.8% 1.7% 1.6%
Capital intensity:
Ave FAssets / Sales 28.2% 8.1% 4.6% 3.4% 2.6% 2.2% 1.9% 1.8% 1.7% 1.6%
Ave NWC / Sales -20.9% -5.9% 0.8% 1.4% 1.6% 2.3% 2.2% 2.6% 3.2% 3.3%
Ave NCE / Sales 7.3% 2.1% 5.5% 4.7% 4.2% 4.5% 4.1% 4.4% 4.9% 4.9%
Working capital control:
Ave inventories/Sales 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
YE Receivables/Sales 28.3% 14.6% 14.0% 12.5% 12.5% 12.5% 12.5% 12.5% 12.5% 12.5%
Ave days debtors outstanding 103 53 51 46 46 46 46 46 46 46
Ave payables/Total operating costs 12% 12% 10% 11% 12% 11% 11% 12% 12% 12%
YE payables/Total operating costs -23% -12% -12% -13% -13% -13% -13% -13% -13% -13%
Ave days payables outstanding 86 42 43 46 46 46 46 46 46 46
Gearing:
Net Debt/Equity -105% -60% -21% -64% -81% -87% -90% -91% -92% -93%
Interest / Ave Net debt 1.2% 6.5% 12.1% 3.6% 1.7% 1.6% 1.7% 1.5% 1.7% 1.7%
EBITDA Interest cover 70.4 x 54.6 x (8.8) (28.9) (52.7) (39.7) (27.6) (35.0) (26.7) (22.5)
EBITA interest cover 72.4 x 60.4 x 5.1 x (17.0) (46.3) (35.3) (24.7) (32.7) (25.1) (21.2)
Capex:
Capex % Sales 9.8% 4.9% 3.0% 2.8% 2.5% 2.3% 2.1% 1.9% 1.8% 1.7%
Capex % Depreciation 176% 122% 94% 91% 103% 100% 110% 110% 110% 110%
Depreciation % Ave FA 19.8% 50.0% 69.3% 92.5% 92.6% 103.0% 98.5% 98.5% 98.5% 98.5%
Returns:
ROE -86.6% -231.6% -10.8% 40.9% 65.7% 38.7% 28.9% 34.7% 29.7% 26.4%
ROCE 1771.5% -583.4% -17.1% 106.8% 338.5% 384.7% 375.2% 478.9% 496.3% 512.6%
How to prepare a solid business plan 22-3-2013