This Business Plan Deck is a PowerPoint presentation that can be used to pitch a business plan to potential investors. A Business Plan Deck is different than a business plan by summarizing the important factors and pitch-worthy characteristics of a business plan. Follow the examples and explanations provided, and you can create a custom Business Plan Deck to attract investors to your business. This presentation is ideal for small businesses that are starting up and need more capital to open, run, manage, and operate a small business.
© Copyright 2013 Docstoc Inc 1 CREATING THE PLAN DECK Keep It Remember the KISS Principle: Simple Stupid The Goal of the Plan Deck is: To clearly communicate the company story To generate excitement about the company To get a second meeting with the investor(s) The Presentation: Should be around ten minutes Appearance matters. Use large fonts for easy readability Don’t use slide animations or sound bites unless they add real value Practice your presentation. You should be comfortable giving the presentation © Copyright 2013 Docstoc Inc 2 This is only the suggested order of the slides. You should present in the order you believe presents your business and business opportunity in the best light. Slide 1 – Company Introduction/Company Purpose Slide 2 – The Problem Slide 3 – The Solution Slide 4 – Business Model Slide 5 – Product Slide 6 – Market Slide 7 – Competition Slide 8 – Competitive Advantage Slide 9 – Go To Market Strategy Slide 10 – Team Slide 11 – Financials Slide 12 – Use of Funds Slide 13 - Summary © Copyright 2013 Docstoc Inc 3 This slide will just be a title page with your organization name, your name and title and your contact info. You will speak to these points in a 60 second elevator pitch. It is key as everything else flows from it! ABC CORP, Inc. John Smith 123 Rodeo Dr., Chief Executive Officer Suite 300 Email: email@example.com Beverly Hills, CA 90210 Tel: (310) 555-5555 x555 Fax: (310) 555-5554 The presenter must cover: Who you are – experience/team’s experience Define the company and business in a single declarative sentence What markets you compete in Significant milestones to date Size of the investment required This all needs to be accomplished in one minute without additional slides. © Copyright 2013 Docstoc Inc 4 This slide introduces investors to the customer that you will sell to. The goal is to get everyone in the room nodding in agreement and buying in. Describe the Problem in the Marketplace Describe and what the problem is Quantify the problem concisely. How much does the problem cost? Address where the demand came from Outline how the customer currently addresses the problem © Copyright 2013 Docstoc Inc 5 This slide shows the company’s value proposition, how it makes the customer’s life better and solves “the problem” showing the company as a must have, not a nice to have! Develop a compelling presentation of your solution – use of graphics, illustrations, or pictures are recommended Relate to the problem slide – focus on how the problem is solved! List the key points that will ensure that the audience clearly understands what you sell and your value proposition Explain what your solution is, what it does but NOT how it does it – no tech talk! What happens if it is implemented? How much will it save? What will it allow your customer to do that couldn’t be done before? Why is paying for the solution worth it – the benefit to them – i.e. cost savings? Elimination of a bottleneck? Increased market share or revenues for them, etc. Make sure you address who your ideal customer is who will pay for the solution. Present your solution as “the pain killer/must have” rather than “the vitamin/nice to have” © Copyright 2013 Docstoc Inc 6 This slide allows you to address how you will sustainably deliver value to your customers Cutting to the chase – How will you make money? Who are your ideal customers? Describe your Sales/Distribution Model - From whom do they buy? (Direct, sell through channels) What are your channels of distribution? Describe your Pricing model – how are you going to make money? Discuss gross margins and cost of goods. Describe your Revenue Model – how will your business scale? Are customer acquisition costs scalable? Any economies of scale with higher volumes, more customers? This is a good time to drop names of organizations that already use your service or products and bring up customer pipeline (if appropriate) © Copyright 2013 Docstoc Inc 7 The slide describes your product line-up (form, functionality, features, benefits) Describe your product/technology Assume audience does not know the technological field you are in (Give a compelling description without abbreviations or “techy” terms) Always relate your product to customer derived benefits and the Basis of Competition Highlight the “underlying magic/secret sauce” less text, more diagrams, schematics and flow charts XYZ Product © Copyright 2013 Docstoc Inc 8 This Slide demonstrates your strong knowledge of the market and show a significant market opportunity. How big is the problem? Identify and profile the customer – who they are and where they are Use graphs to show market size and growth Calculate Total Available Market (TAM) and Served Available Market (SAM). The SAM is the segment of the market that is reachable for you. Explain how you reach these customers Show how your solution is positioned in the market and how uniquely it fits © Copyright 2013 Docstoc Inc 9 TAM and SAM Examples: You are selling a Massively Multiplayer Online Role Playing Game focused on zombies Total amount of video games sold: $20B (Total Available Market – TAM) Total amount of Massively Multiplayer Online Games sold: $10B Total amount of Massively Multiplayer Online Role Playing Game sold: $7B Total amount of Massively Multiplayer Online Role Playing Game focused on zombies : $1B (Served Available Market –SAM). You could say that the $20B TAM is eventually your market but…The SAM is the smallest segment for credible penetration for you to focus on – investors like to see focus! © Copyright 2013 Docstoc Inc 10 In this slide you discuss the competition. Don’t dismiss your competitors. Discuss why you are good, not why they are bad. Competition is good – it validates the market! Competitive Landscape Basis of Competition List your competitors What is the criteria by which your customer will make Explain competitors key strengths and their decision when comparing your product with weaknesses company XYZ? Address any large companies response to your List all of the criteria in order or importance to the entry into market Honestly list your own strengths and weaknesses. customer, not you! Be quantitative if you can. Discuss how you meet and exceed the customers COMPANY STRENGTHS WEAKNESSES Basis of Competition. Some examples could be: Quality (define) Corp Inc. broad line slow to respond Innovation financially strong old technology Breadth of Line XYZ Corp large sales force quality issues Accuracy (quantify) Specificity (quantify) Our company ??? ?????? Price (less than what?) Tech support (perhaps turnaround time) Address how you are different, how you stand out Highlight the Basis of Competition - How you meet Brand name recognition these requirements Distribution channels © Copyright 2013 Docstoc Inc 11 This slide lists your key sustainable competitive advantages. It may borrow some from the previous slide re: competition. List your competitive advantages relating them to customer’s Basis of Competition. What are features the differentiate your product from the competition and attract the consumers? How long will you have a competitive advantage in the market? How are you going to protect your advantage (patents, copy rights, trade secrets)? Talk about your IP strategy and the status of your filings. © Copyright 2013 Docstoc Inc 12 This slide highlights any third party validation The Marketing Plan . Briefly address how and what: Market segments will be pursued Marketing strategies will be used? Customers will be reached Target Demographic Types of marketing (i.e. PR, Media, SEO, Ads)? Customers will be acquired? The Distribution Plan . Briefly address: What is your channel of distribution (direct vs. indirect channels, partners, etc.)? How does this compare to industry as a whole? Why will it be successful? Customer Acquisition Cost vs. Customer Derived Revenue . Briefly Discuss. © Copyright 2013 Docstoc Inc 13 This slide shows that the company has traction and understands that investors really invest in people. ABC CORP, Inc. Team (this could be your greatest strength) Briefly discuss each founding member and mention their key strengths John Smith, CEO and achievements Board of Directors and/or Managers If any members have Jane Doe, VP Steve Stone, VP recognition in the industry Sales and Marketing Production Mention important milestones achieved Meg Fox, Mike Joe Miller, Jill Ryan, Manager Scott, Manager Manager Manager © Copyright 2013 Docstoc Inc 14 This slide describes the financial forecast. Make sure the audience understands the underlying assumptions of your forecast. The elements that make up each category are in next slide. Revenue 2013 2014 2015 2016 Sales (000) $500 $650 $720 $850 Cost of Goods Sold $200 $250 $250 $295 Gross Profit $300 $400 $470 $555 Gross Margin % 60% 62% 65% 65% Operating Expenses Selling $76 $88 $98 $113 General/Administrative $45 $52 $57 $67 Total Operating $121 $140 $155 $180 Expenses Net Income Before $179 $260 $315 $375 Taxes © Copyright 2013 Docstoc Inc 15 Financial Backup Information What is included in Operating Expenses: Selling Expenses: Salaries and wages, Commissions, MarCom (i.e advertising), and any other realistic selling expenses. General/Administrative (G&A) Expenses: Salaries and wages, Benefits, Payroll taxes, Insurance, Rent, Utilities, Office supplies, Travel and entertainment, Furniture and equipment You can do a 3-5 year forecast as long as you are realistic Everyone knows that this is an estimate but still need to know how realistic your financials are You can also include number of customers and conversion rates © Copyright 2013 Docstoc Inc 16 This Slide shows how the investment will be used. Investors prefer to see funds used for marketing and sales. Reiterate how much you are seeking Show the use of funds (Pie graphs work nicely) How long will the funds last? Will you need another cash infusion or is this all the financing you will need? © Copyright 2013 Docstoc Inc 17 This slide should be used to close the presentation. Use this slide to convince investors that they need to act now and invest. Describe the current status of the company. Accomplishments to date Timeline List unique company Strengths Finish with 3-5 points you want the audience to remember when they leave the room Share the details of your positive momentum If an excited audience member can describe your business and business opportunity to a colleague in one minute you have succeeded! © Copyright 2013 Docstoc Inc 18 Always be prepared with back up slides… You may be asked to describe risks and your assumptions as well as Exit Strategy Have a back up slide prepared regarding Assumptions and Risks. List critical Describe negative Describe what you are assumptions (in impact doing to mitigate or decreasing order of “de-risk” likelihood) Start with ones that may affect revenue/profit Timeline issues © Copyright 2013 Docstoc Inc 19 Always be prepared with back up slides… Have a back up slide prepared regarding Exit Strategies. Acquisition Could be By Supplier By Competitor By Strategic Partner In all cases try to name Names if possible Recent Acquisitions XYZ acquired Acme in 2013 at X multiple of Sales At the end of year 3 we will have sales of $Y Initial Public Offering (IPO) examples if companies in this sector have recently completed one © Copyright 2013 Docstoc Inc 20 Notes on Communicating the Pitch Investors respond to your story – not how the product works. Talk about how well the business is going. Traction is the thing – tell your story of momentum building through quantified evidence… See upcoming slide. De-Risk before it is brought up. Address that you can build it, people will use it, people will pay for it, and then more people will use it (growth) … See upcoming slide. Try to be concrete and quantifiable – don’t use fluff! Honestly address your weaknesses. Keep pitching – the more you pitch the more you will get a sense of what resonates with investors. © Copyright 2013 Docstoc Inc 21 Note: Gaining Traction as a Startup For a venture capital backed business, “traction” is defined as evidence of momentum. The most obvious proof of this would be evidence of sales. Since most start ups are not yet selling, investors are looking for you to provide them with defendable evidence that the business is moving in the right direction The “Build it and they will come” mentality is typically a deal breaker so never approach your pitch this way. Be decisive in your overall marketing strategy and sales strategy. © Copyright 2013 Docstoc Inc 22 De-Risking your Business It is important to keep in mind that investors are looking for the risky reasons to say no to investing in you, not yes! De-Risking is the process of removing risk factors (decreasing your exposure to risk) from your business to make it more attractive for outside investment This could be: Personnel related issues Product related issues Market related issues Go To Market related issues You need to make your pitch and business opportunity bullet -proof! © Copyright 2013 Docstoc Inc 23
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