Business Plan Deck

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									© Copyright 2013 Docstoc Inc   1
                           CREATING THE PLAN DECK
                               Remember the KISS Principle:                Simple
    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:
    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
   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
    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

© 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

    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
    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
        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
        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
        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

       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
        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
             If any members have                              Jane Doe, VP             Steve Stone, VP
              recognition in the industry                        Sales and

          Mention important milestones
           achieved                                       Meg Fox,        Mike     Joe Miller,     Jill Ryan,
                                                          Manager         Scott,    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
Net Income Before                   $179      $260              $315               $375

     © 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
    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
           Will you need another
            cash infusion or is this
            all the financing you will

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    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

© 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”
           Start with ones that
           may affect
           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

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                               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

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                               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

© Copyright 2013 Docstoc Inc                                              23
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