This document summarizes an agenda for a business planning session hosted by the Wharton Small Business Development Center. The agenda includes reviewing homework from the previous session, finalizing the business plan, finding expert advisory boards, and accessing additional resources from the SBDC. Participants will work on bringing all parts of their business plan together and discuss next steps for completing and using their plan.

1. Welcome! Session 4 – July 27, 2004 Instructor - Kevin Hawley [email_address]

5. Analyzing Your Numbers… Total amount of money needed/raised Angel investor’s expected 5-year ROI Pro forma 5-year EBITDA estimate Valuation (comparable) multiple Projected 5-year value of company Ownership percentage required by Angel Investors at 5-year exit horizon Current (pre-money) valuation of company $_______ - Cash Flow Projections $__________ (30X) – Roughly 100% ROI per year $_______ - Income Statement ___ times earnings - Industry research $__________ - multiply __% - Projected 5-year value of the company divided by the AI’s expected 5-year return amount $____________ - Amount of money raised divided by the AI’s required ownership percentage

7. Reviewing the Business Plan Model Cost Projections Sales Projections Pro Forma Financial Statements Operating Plan Marketing Plan Financial Plan What will it cost to produce your product or service? What will it cost to sell any given amount of your product or service? How will your business make money? How much? For how long? Risks? Industry, Buyer & Competitor Analyses Opportunity Product/Service Why this business? Why now? Why you? What are you going to provide and who wants to buy it?

11. Business Planning is an Iterative Process… Tell the story… (Draft your narrative sections) Run the numbers… (Develop your Financial Plan) Verify the story… (Examine the narrative sections) 1 2 3

14. Milestone Driven Planning (MDP)

15. - 10 Minute Break -

21. Group Questions and Answers Q & A