BUSINESS PLAN

PRESENTATION FORMAT
 Order of Presentation
 Introduction
 Problem
 Market, Customers
 Competitive landscape
 Solution
 Business and Revenue Models
 Financial Projections Funding
 Management Team
 Execution plan
 Summary

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 Introduction
 Briefly introduce yourself and your
background , partners in the
presentation .

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 Introduction
The presentation must be clear, concise and
compelling to:
– Generate investor’s interest and build confidence
– Lead to additional investor meetings.

Use simple Charts, graphics, pictures and

verbiage (no “eye tests”)

Each slide should have between 3 and 6 bullets

that are succinct (no paragraphs, uncluttered)

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 Introduction--continued

 Brief overview of the plan (elevator

pitch)
 What exactly the market problem is
 What is the USP of the BP.

 What products or services are offered

 How problem is being solved, and

 Why these products or services are compelling,

e.g., “…the only product that enables [solution] to

[the problem]…”

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 The Problem/Opportunity/Need
 Define the estimated market potential &
growth.
 Describe how significant or prevalent the
problem are .
 Explain business environment macro and
micro factors.
 Provide a “problem” scenario that
provides a basis for your business
solution.

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 The Solution

 Provide an understandable, practical

implemental but innovative solution

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 The Solution
 Clearly describe the company’s product or service
that will address the problem
 Illustrate the company’s solution with graphics,
pictures or videos as necessary (keep this very
simple)
 Provide brief list of features, benefits and
advantages
• What is the value proposition for the customer (How well
will the product or service solve the problem)?
 Cost savings, convenience, reliability, etc. (be specific)

 Describe “barriers to entry” created by your product

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 Financial Projections
 Provide 3 year financial projections for the
company
 Include financial projections to show year-to-year
growth (show a basic income statement

• Is the company overstating or understating market

share and/or growth?
• Can the company scale its operations as it grows?

 List major facts and assumptions

• Are the assumptions believable and achievable?

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 Financial Projections:
Income Statement Summary
 
2008 2009 2010 2011 2012
Revenue 500 5,207 12,203 25,565 51,894

COGS 402 3,270 7,179 14,395 29,145

Gross Profit 102 1,937 5,024 11,170 22,749

Oper Exp 4,318 3,572 4,229 8,165 16,445

Net Income (4,216) (1,635)    795 3,005   6,304

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 Financial Projections:
Break Even Analyis
1200

1000
Break-Even
800 TR = TC Fixed Cost
Revenue

600 Total Cost

400 } Variable Cost Total Revenue

200

0
Units Sold
0 20 40 60 80 100

[ Total Fixed Cost

B/E(Quantity) = Price per Unit – Var. Cost per Unit ]
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 Funding
 What funding has the company received to date?
• Amounts and sources
 How will the company be financed?
 How much money is the company currently seeking
from Investors?
• How will the funds be used? (use tabular format—see next
slide for an example)
• What key value-building milestones will be achieved with
funds (market test, market expansion, etc.)
 Anticipated future funding needs
 What are the exit strategies for the company?
(when?)
 What is the expected ROI for investors

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 Startup Budget/Use of Proceeds
First year Budget Cost
Salaries 510,000
Repairs & maintenance 8,400
Local Advertising 5,000
Marketing 51,400
Accounting and legal 5,000
Rent 17,798
Internet & Telephone 5,940
Equipment 48,000
Domain Name 10
Total $651,548

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 Use of Proceeds Breakdown
Use of Funding Proceeds

3% 0%
Salaries (includes payroll taxes)
0%
7% 0% Repairs & maintenance
1%
1% Local Advertising
8%
Marketing
1% Accounting and legal
Rent
1%
Internet & Telephone
Taxes (Real estate, etc.)
Depreciation
Equipment
78% Domain Name
Miscellaneous expenses

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 The Market
 Describe market size, growth, trends and
maturity
• Industry and market segment data (see sample,
next slide)
 Market challenges
 What market segment(s) are served by the
company?
 What is the company’s potential in the
market?
• Estimated Revenue Growth in graphic or tabular
form (see next slides, for examples)
• Market share projections are optional

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 MRKETING PLAN

Features Benefits
 Customers
 Describe the company’s current and
potential customers
• Profile of the optimal customer
• Value proposition to customer
• Validation of Customer Acceptance
 Customer Feedback, Survey Data, Testimonials
 Purchases, Letters of Intent

 Partners

• Example of customer

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 Competition and Advantage
Competition
 Describe the direct (competing product or service)
and indirect competition (alternative solution) for
your company and its product or service.
 Describe specific strengths, weaknesses, and
opportunities related to competition.
 Describe how your product, technology or service
differentiates itself from the competition? [very
important]

Competitive Advantage
 What is the company’s competitive advantage?

• Why will customers buy your product or service over the

competition?
• Show a competitive matrix to illustrate differentiation (see
next slide)

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 Competitive Comparison
(see next slide for optional approach)

Product Advantages Disadvantages

Product A
~$12/100
units
Product B
~$30/100
units
Product C
~$17/100
units

My Company
Product
~$9/100 units

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 Competitive Matrix
Product Feature A Feature B Feature C Feature D Feature E

MY PRODUCT ● ● ● ● ●

Product 1 ● ●
Product 2 ● ● ●
Product 3 ● ● ●
Product 4 ● ● ●
Product 5 ● ● ●
Product 6 ● ●

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 Competitive Positioning

Yikes Your Company, Inc.

Flexibility

Zowie

Gizmo

Gadget.com Thingamabob

Yippee

Functionality

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 Marketing Plan

 Describe the Marketing Plan

 What is the go-to -market strategy?

• What is the pricing model? Gross margin?
• How will you access customers? (including
advert. and promo.)
• How will your product or service be distributed?
• What customer support will be needed?

 Note any commitments from partners,

distributors, granting agencies, etc.
regarding benefits of your product
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 Regulatory Issues

 Include pertinent info regarding FDA,

POLLUTION or other pertinent
government agency

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 Management Team, Advisors

 List the company’s leadership team

• Include name, position, experience
(abbrev.)
• These are credentialed experts
 List of company Directors and
Advisors
• Include name, summary of experience

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 Timeline
 Use a Gantt Chart for key milestones
or use the preferred model shown on
the next slide.

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 Timeline of Milestones

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Idea

Primary
Research

Feasibility
Analysis

Relationships
Secured

Business Plan

Prototype
Install (Fall
Gardens)

Funds Raised

Neighborhoo
d Mkt.

Initial
Contracts
Value-Added Milestones Timeline (Sample)

2nd Financing
1 Financing
st
$1Million
$660K
2007 2008

Development Break-even
Milestone 1 Product 1 Milestone Sales Milestone
December First Sales July December

Beta Test Product 1 2nd Product

Milestone Partnered* Development
Milestone
Sept.

* Company retains co-dev./co-promotion rights

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 Summary
 What do you want your audience to
remember about the company?
• Unique and Sizeable Opportunity
• Unique product or service
• Competitive Advantage, Strengths
• Marketing Approach, Customers, Sales Pipeline
• Intellectual property
• Management team
• Other…

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