How to Write the Business Plan

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 years of experience within industry   Use Advisory Board to fill in gaps   Show Central Texas Angel Network Product/Services   State   what you do Example—”We make radiation-hardened memories” on core product/service   Describe benefits without giving away “secret sauce”   Focus Central Texas Angel Network Target Market   Show Available Market (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 Advantage   List competitors with strengths/weaknesses   Show specific competitive advantages of your solution   Use numbers to show market share, your economic benefit, etc. Central Texas Angel Network Customers   List customers you have closed   List customers in the pipeline   Show their results from using your product/ service 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 Financials   Show   Income Statement Cash Flow Statement Sales Forecast Include both actual and forecast (show 5 years) Discuss critical points Describe assumptions – ASP, Unit Growth Split out major product lines and revenue streams   Show     Show     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