Business Plan Preparation
Your First Business Plan, 3rd Edition, Joseph Covello and Brian Hagelgren
Start Up, 5th Edition, William J. Stolze
Source of Angel Investors, Wall Street Journal
Lulu Takamatsu – Acorn Campus
SCORE – Service of Corps of Retired Executives
Business Plan - Mission Statement (less than 50 words), USA – Unique Selling
OnVest Financial Services, Inc.
Investors will look at
1) Management Team
2) Current and Projected Financial Statements
3) Product and Service
4) Marketing Plan
Management Team – Balance skills in Management, Marketing, Finance and Operation
Current and Projected Financial Statement
1) Determine cash needs – Cash Flow Analysis
2) Balance Sheet
3) Profit / Loss Statement
4) 2 years of monthly report and annual projection for year 3-5
Product and Services
1) Distinct Advantage
2) Customer Reaction
3) How will satisfy customer’s needs and wants
4) Unique Value added characteristics of the product and services
5) Product / Service life cycle
6) Customer life cycle
7) Effect of economic cycles (stock market cycles)
8) Case Study
9) Product Cycle
Introductory Growth Stage Maturity Decline Stage
I) Next Generation of Products
1) Product Feature - How many competitors share the market
2) Life style of targeted customer - Distribution of shares
3) Geographic location - Market growing at a rapid rate?
4) Cyclical factors - What is the major trend?
- Summarize your viewpoint on trend
1) Actual Performance - Weakness in the products?
2) Quality and Reliability - How to address it?
3) Production Efficiency - Product appeal to a large market?
7) Public image or reputation
8) Business relation or reference
Strategy – Capture the critical mass
Lead Generation Sales Process Lead Conversion Customer Relation Building
This Business Plan is confidential and is proprietary property of OnVest Financial
Service, Inc. No reproduction of any sort, or release this content is permissible without
prior written consent of OnVest Financial Service, Inc.
Executive Summary – 2-5 typed pages – crystallization of the Business Plan
1) Mission Statement
2) Its Unique Selling Advantage
3) Projection of the future (sales, costs and profits)
4) Your needs (Inventory, land, building, equipment, working capital, other
5) Procedure and time table for repaying investors
6) The capital you are requesting
1) Patent, Copy Rights, Trade Marks, etc.
2) Preserving business secrets
3) Key Man Contingency Plan
Current Market Environment
1) Undergoing changes in Technology, demographics, competition, customer,
2) Present stage of you industry – Infancy, Intermediate, Matured?
3) Growth or Decline of your product
4) Product life cycle
5) Pricing and Profiting of your supplier, is their pricing increasing, decreasing?
6) How to get customers use your products?
7) Management team
Current Company Financial Resources
1) Cash Available:
2) Current Ratio:
3) Current Quick Ratio: (Cash + Account Receivable) / Current Liability
Product / Services
1) Identify all competition
2) How do your competitor promote their products?
3) What is your competitor’s strength and weakness?
4) What is your strategy to take advantage of their weakness?
5) How much market share does each of your competitors have?
6) How long have they been in business?
7) What are their marketing strategies that seem to be working?
8) What is the diversity of their marketing mix?
9) What is the diversity of their product/service mix?
4) Market Research
5) Targeted Audience – Inclination, Its needs, its deposition
7) Monitor the response to marketing campaign
8) Test one approach to another
1) Incentive – salary and bonus or Commission based
3) Pricing (Tier Pricing)
USA – Unique Selling Advantage
1) Will it make their life more comfortable
2) Will it save time or money? How?
3) Does it offer more customer service?
4) Will customer life style be different with the product?
1) Sponsored b reputable brokerage
2) Partnership with reputable brokerage
1) Branding Awareness
2) Generate high quality leads for the sales force
3) To improve morale for the direct sales force
4) To increase sales by X% over a certain period of time
1) Radio Show at 9-9:15 AM EST, pre-market alerts
2) Find out the costs for seminar
3) Contribute to newspaper editorial
4) Press Release
6) Free Speech to other organizations
Outline of Business Plan
Purpose of this plan (amount of funding, uses)
Business opportunity, business model, market, product / service, technology, management
Summary of five-year income statement, profit, head count and capital requirement
Customer Need and Business Opportunity
Product / service idea and technology description, end users and customers
Business Strategy and Key Milestones
Plane to out-maneuver the competition
Show each milestone with cumulative cash need and head count
Basic need and company solution
Ideal customer and value proposition
Market segmentation and size of the markets
Channel of distribution
Business model, branding plan
Sales strategy and plans
Five-year sales forecast
Competition, positioning, and unfair advantage
Web site plan
Manufacturing / outsourcing plan
Facilities and administration plan
Management and Key Personnel
Staffing plan and head count projections
Detailed resumes of leadership
Incentive compensation program
Company culture plan
Overview and key assumptions
Cash flow statement
Source: Saratoga Venture Finance