1. What? • Overview & reflection of the business and it’s owner – thorough explanation of a business idea and how it will be executed • Story of what the business is and will be • Overview of risks and assessment of success • Research tool for improvement • Includes – marketing, financials, management, earnings, returns, etc., etc., etc. Business Plan

2. Why? • Company guide/Map – operational guide • Strategy definition • Attracts investors and lenders – key to raising capital • Improves success • Saves time and money Business Plan

3. For investors • Cover Page • Table of Contents • Executive Summary • The Opportunity • Problem • Solution • The Company & Strategy • Brief History (if applicable) • Business Model – how are you going to make $$ • Industry/Market Analysis Sections of the Plan

4. For Investors • Marketing Plan • Competition • Marketing • Management & Operations • Financial Plan • Financial analysis and projections • The “ask” • Exit opportunities/strategy • Appendices Sections of the Plan

5. Cover Page • Name of Business • Contact (normally founder or CEO) • Address • Phone • E-mail • Graphics if applicable • Keep it simple • Table of Contents (really!) Business Plan

6. Executive Summary • More details on this later but… • It should be: • Clear • Concise • Comprehensive (enough) • Compelling • Leave them wanting more information! Business Plan Sections

7. Executive Summary (cont) • Brief overview of the full plan including • Name of business with contact information • Problem • Overview of Solution • Market – total & relevant • How you are going to reach your customer and make money – business model • Competition • Management team – listed with 2 or 3 lines on each • Brief Financials – include sources & uses of funds • The “ask”

8. The Opportunity • Problem statement • What hole, niche, or problem are you going to address with your business? • Why are you starting this business? • Begin hinting at the market you are focused on and it’s size • Begin hinting at your product/service Business Plan Sections

9. The Opportunity (cont) • Solution statement • What are you doing to solve the above stated problem • Describe your Product/Service • Briefly discuss uniqueness and differentiation • Briefly discuss feasibility analysis (why this business will succeed) • Any additional add-on or future products/services Business Plan Sections

10. The Company • If already established… • When started • Why • Overview of track record • Experience to date with reaching the customer • Competitors reaction • Some customer feedback • If start-up… • Brief background story • What has been accomplished so far Business Plan Sections

11. The Company (cont) • Business Model • Key… how are you going to make money? • Discuss your customers • Who they are? • Where they are? • What makes them “tick”? • How are you going to reach them? • Revenue drivers • How will you get paid? • How much will you get paid? Business Plan Sections

12. Market/Industry • Industry • Brief History • How big? Is it growing? • What are the current trends? Operational? Sales? • Outlook? • Governmental impact? • Demographics • Psychographics

13. Market/Industry (cont) • Market • History of the market and any recent trends • State the total market briefly then define the relevant market • Market growth – cite research • Discuss barriers to entry • Success Factors • What’s your market position? Quality, price, speed to market • Customer – who? how many? • Location (if applicable) – customers there? Business Plan Sections

14. Marketing Plan • Competition • This section needs to be very strong – many investors/bankers will say “No” based on competition • List the competitors • Who they are • Who they might be • What are/will you do to “beat” them – if you have to • Why are you different from all the other products/services out there today? SWOT analysis • Detailed differentiation • How will you manage competitive threats? • If you have any IP surrounding your product/service note it here Business Plan Sections

15. Marketing Plan (cont) • Marketing mix analysis • Sales Channels • Channels of Distribution • Marketing discussion included here – what media? • PR • On-line • Print • Etc… • Some specifics are needed Business Plan Sections

16. Management/Operations • Management • Current: Not full resumes! But, give details about each persons’ background –max one page per person, their role & experience • Future: what, who & when • Board: Board of Directors & Advisory Board • Operations • Location & unique raw materials and/or build-out requirements • Working capital management Business Plan Sections

17. Financial Plan • Financials • Provide a more detailed set of financial statements including • Historical (if applicable) • Income Statement • Balance Sheet • Cash Flow • Forecast using the “best” scenario (at least three years) – include risks & assumptions • Income Statement – including cash balance by year • Balance Sheet • Cash Flow Business Plan Sections

18. Financial Plan (cont) • Sources & Uses of Funds • The “Ask” – very important!!! • How much • Type of financing • Exit • How will the investor/banker get their money back? • Bankers like “repay” as an answer, investors to not! • An IPO is a rare event • Discuss potential acquirers, their prior acquisitions & why your company fits their goals Business Plan Sections

19. Appendices • Financial Statements – detailed • Historical • Forecasts • Good/Better/Best in overview form • Market research • Surveys • Customer feedback • Resumes • Anything else beneficial Business Plan Sections

20. Other specifics • Put your contact information on the cover page, top of executive summary and the end • Name of company as header on each page • Number the pages • Use spell check and have someone else read • Use a large enough font that all can easily read • Keep the margins at 1” unless you have a chart or graph that needs more space • Show you have “skin in the game” • Select a “voice” and stick to it – but preferably not 1st person… Business Plan

21. There may be other items that are needed to convey your business – include them Business Plan

22. Preparation Tips • Spell/grammar check is good – use it! • Confirm that financials “tick & tie” • Use graphics (including charts) when applicable – visual representations • Always include financials and cash requirements • Answer the questions you would ask if you were reading it • Make it easy to read and to the point • Always…tell the truth Business Plan