The Small Business administration is our federal funding partner. The Wyoming Business Council is our state funding partner and our program is administered through a partnership with the University of Wyoming. In a nutshell , the SBDC provides free, confidential business consulting to anyone in Wyoming that owns or would like to own a small business.
Founder and Chief Executive Officer of Innovative Product Technologies, Inc. (IPT, Inc.). which is a product and technology based market commercialization corporation A business plan is the first step you take toward turning your invention into a marketable reality. Potential investors may understand a business proposal much better than they understand the technology of an invention. Investors will look at the profit-and-loss possibilities
Mark Ellwood, past United Inventors Association Board of Directors recommends that you first learn all you can about running a business and then write your business plan.
And an investor has been noted as saying not only is a business plan important for any business looking for funding but its even more important for ventures involving innovations. He also reminds innovators that the plan is not just for other people, developing the plan gives you the opportunity to really learn the nitty-gritty information about what you want to do.
Summary-for bankers, first timers, feasibility testing, small businesses. Full-comprehensive plan with a good amount of detail Operational-describes how your business operates, handles challenges, plans growth, very strategic We can also have business cases, but not covered today.
Answers 3 major questions: How will we operate, Who are our customers and how will we reach them, and Will we be profitable doing this. Summarize 3 sections into one paragraph each, create executive summary, add supporting documents. Show how banker reads a business plan.
If you don’t get their attention here, they won’t read further.
A value proposition is a clear statement of the tangible results a customer gets from using your products or services. The more specific your value proposition is, the better. Strong value propositions deliver tangible results like: Increased revenues Faster time to market Decreased costs Improved operational efficiency Increased market share Decreased employee turnover Improved customer retention levels First Sentence: For (target customer) who (statement of the need or opportunity), the (product/service name) is a (product/service category) that (statement of benefit). Second Sentence: Unlike (primary competitive alternative), our product (statement of primary differentiation).
If you have a brand-new, paradigm shifting model, explain it in terms of existing models. Be complete. For your reader, this is where your idea becomes a business.
Make sure that you correctly articulate how your Intellectual Property is protected. Contact the RPC for more information.
Target markets. Don’t be afraid of leaving someone out. You can’t sell to everyone. Do your market research, market size, psychographics, talk about MRC, GroBiz Marketing Strategy- it needs to work without breaking the bank. Start-ups usually don’t buy SuperBowl spots Where will you spend money on marketing? Use a supplementary budget when crafting your plan. Tell about pet-peeve of $100/month What are the key leverage points in your Marketing Strategy? How many contacts must be made, close rate, etc. Make sure that you tell the reader that you understand the importance of having a good strategy.
No one is burying money in the back yard waiting for your product to hit the market. Make sure that your readers know that you understand the industry and external environment. Be thorough! Too much is better than too little Don’t be dismissive. GE is not, “Too big and slow.” They are, “Well capitalized and market savvy.” Tell your readers why your product is good, not why the competition is bad.
One paragraph on each person will do. Not a resume. It’s okay for start-ups to have unproven managers. Describe what skills they bring to the business. Put your management team together first. If you need help putting together a Board, talk to your local Economic Development professionals If you already have major investors, tell everyone.
If you need examples, we have worksheets and spreadsheets, or look on the internet. Project for at least 3 years, possibly 5. Your numbers need to be “defendable.” Make sure that your projections jive with what you’ve said earlier in your plan. Explain your underlying assumptions in terms that the reader can understand, like # of customers, market share, hits on your web page Anything else can be brought in later. Cap tables, etc.
It’s easy to update this last section as your business develops rapidly Shows your readers that there is action behind this plan
10 slides, 20 minutes, 30 point font These are the slides you will need.
WSSI Inventor&apos;s Resources What If the SBIR Program Is Not Appropriate For My Innovation? In General:United Inventors Association (UIA)UIA Inventor&apos;s Ten CommandmentsUnited States Patent and Trademark Office In Wyoming:Wyoming Inventors&apos; GroupWyoming State Library Patent and Trademark Depository LibraryWyoming Research Product CenterManufacturing-WorksWyoming Small Business Development CenterRocky Mountain Inventors Association Some Innovation Evaluation Services:Wisconsin Innovation Service CenterWashington State University Innovation Assessment CenterUS Department of Energy Industrial Technology ProgramI² Innovation Institute
Components ofa business plan
Components of a
Strengthen Wyoming businesses and create
economic growth by providing excellent
management assistance, educational
programs and helpful resources for
Wyoming small businesses and
Region I: Bill Ellis
Toll Free in WY 800-348-5205
Sublette, Lincoln, Uinta, and Sweetwater
Region IV: Arlene Soto
Toll Free in WY 800-348-5208
Serving Goshen, Laramie, Albany, and
Region II: Robbi Welch
Toll Free in WY 800-383-0371
Fax: (307) 754-0368
Serving Park, Big Horn, Washakie, Hot
Springs, Fremont, and Teton counties.
Region IV Satellite Office: Bill Schepeler
Region V: Jill Kline
Toll Free in WY 888-956-6060
Serving Sheridan, Johnson, Campbell,
Crook, and Weston counties.
Fremont County Office: Margie Rowell
Toll Free in Wyoming 800-969-8639
Region III: Leonard Holler
Toll Free in WY 800-348-5207
Serving Converse, Natrona,
Niobrara, and Platte counties.
Why develop a
“All the work you do in thinking up your
idea, testing it, studying it, and producing
it, has been for nothing if you can’t sell it.
Whether you start you own business to
produce and sell your invention,
subcontract out the manufacturing part, or
sell your rights in return for a percentage of
the proceeds, you need a business plan.”
- Pamela Riddle Bird, PhD, Inventing For Dummies
CEO, Innovative Product Technologies, Inc.
Why develop a
“You've just come up with an idea. What to
do next? There is no exact order of what
you should be doing. But we like to
suggest two broad areas for inventors to
embark on. First, learn all you can about
running a business, even if you hope to
license your idea. Second, write a
business plan. Even if you hope to license
your idea, (and that's actually a rarity
among the successful inventors we've met)
you'll still need to have a plan.”
- Mark Ellwood, Past UIA Board of Directors
Why develop a
“A business plan is vital for enterprises
needing investment, grant funding or
significant borrowing; more so for
innovation ventures, as the greater number
of ‘unknowns’ makes it even harder to
attract backing. But don’t make the
mistake of thinking that only other people
need your business plan. It’s primarily a
tool to reveal possibly awkward truths
about your business to you.”
- a Creative Investor
Three Types of Plans
• Summary Plan
– 10 pages, 3 important points
• Comprehensive Plan
– 10-40 pages, seeking capital or alliances
• Operational Plan
– 40+ pages, for going concerns, part of an
The Summary Plan
• The Business
– Legal Structure, Products or Services,
Management, Personnel, Record Keeping
– Target Market, Competition, Advertising
– Summary of Needs, Use of Funds, 3 Year
Cash Flow Projections, Income Projections
The Comprehensive Plan
4. Business Model
6. Marketing and
• Define problem, solution, business model,
and why your solution is better
• Write it last
• Grab readers attention
• No more than 2 pages!
• Most important part of your plan and
usually written last
• What problem are you solving?
• Describe how the “state of the art” is
• Get your reader to agree that the current
situation isn’t optimal
• If there isn’t a problem, take your idea
back to the drawing board
• How do we solve the “Problem”?
• Explain what you sell
• State your value proposition
• First Sentence:
– For (target customer)
– who (statement of the need or opportunity),
– the (product/service name) is a (product/service
– that (statement of benefit).
• Second Sentence:
– Unlike (primary competitive alternative),
– our product (statement of primary differentiation).
• Explain how you make money
– Who pays you?
– How do you collect?
– What are your channels of distribution?
– How do you integrate suppliers?
• Use examples if necessary
• Be complete
• Describe your technology, process
• Use charts, diagrams, schematics, as
much as possible
• Understand your Intellectual Property
Marketing and Sales
• Define your primary, secondary, and other
• Show some numbers
• How will you find, sell, and retain
• Advertising and promotion budget
• Identify your leverage points
• Everyone has competitors!
• Provide a complete view of the competitive
• Direct and indirect competitors
• Current and anticipated competitors
• Competitor strengths and weaknesses
• Your competitive advantages
• Describe your key players
– Management Team
– Board of Directors
– Board of Advisors
– Major Investors
• Who are you missing?
• Describe your major milestones and tasks
– Customer Development, etc.
• Where are you now?
• Brag about your accomplishments
• Talk about the next steps
Investor Pitch Slides
Marketing and Sales
• Crossing the Chasm – Geoffrey Moore
• The Art of the Start – Guy Kawasaki
• Inventing For Dummies – Pamela Riddle Bird
WSSI Inventor Resources Page http://uwadmnweb.uwyo.edu/SBIR/inventorresources.html
Innovative Products Technologies, Inc. http://www14.inetba.com/inventonecom/
Business Plan Development Tools (online) –
Sample Plans –
Jill Kline, Region V Director
and Weston counties.