How to Write the Business Plan by heatherrhunt


									Entrepreneur Funding Event

    How to Write the Business Plan

             Central Texas Angel Network
Executive Summary/Business Plan
    Customer Problem
    Management Team
    Product/Services
    Target Market
    Sales/Marketing Strategy
    Competition & Competitive Advantage
    Customers
    Business Model
    Financials
    Funds Sought and Use of Funds
                      Central Texas Angel Network
Customer Problem
  Be specific
  Use numbers

  Must be large problem

  Describe a customer use case—tell a story

                   Central Texas Angel Network
Management Team
  CEO  must have experience
  Need two other people based on business needs
      Operations
      Sales/Marketing
      Technical
  Show years of experience within industry
  Use Advisory Board to fill in gaps

                         Central Texas Angel Network
  State   what you do
      Example—”We make radiation-hardened memories”
  Focus on core product/service
  Describe benefits without giving away “secret

                     Central Texas Angel Network
Target Market
  Show AvailableMarket (Billions of $)
  Show Serviceable Market (Millions of $)

  Show Beachhead Market (first industry segment)

  Explain why you chose those segments

                    Central Texas Angel Network
Sales/Marketing Strategy
  Describe    Sales Strategy
      Direct, Indirect, OEM, Franchise, License, other?
      Why?
  Show  how you will generate leads
  Show how many leads generate how many sales

  Explain why you chose that path

                        Central Texas Angel Network
Competition & Competitive
  List competitors with strengths/weaknesses
  Show specific competitive advantages of your
  Use numbers to show market share, your
   economic benefit, etc.

                  Central Texas Angel Network
  List customers you have closed
  List customers in the pipeline

  Show their results from using your product/

                   Central Texas Angel Network
Business Model
  Show  revenue from customer
  Show cost of acquiring the customer

  Show profit from above

  Discuss scalability issues

                   Central Texas Angel Network
  Show   Income Statement
     Include both actual and forecast (show 5 years)
  Show   Cash Flow Statement
     Discuss critical points
  Show   Sales Forecast
     Describe assumptions – ASP, Unit Growth
     Split out major product lines and revenue streams

                       Central Texas Angel Network
Funds Sought and Use of Funds
  Show  Funds Sought
  Break down the Use of Funds

  Discuss Exit Strategy

                  Central Texas Angel Network
Avoid these Statements
  Our financial projections are conservative
  We need only 1% of market share to . . .

  We have no competition

  No one else does what we do

  We are serving a billion dollar market

                   Central Texas Angel Network
How to Manage Consultants
  Determine   Objectives -- Be Specific
  Make Contract Specific & Time Bounded

  If giving equity, then vest the shares over time and
   make the contract cancellable by either party at
   any time.

                    Central Texas Angel Network

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