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@nuvem9_startups
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Welcome!
[email protected] [email protected]
Business Plans, Financial Projections
& Pitch Decks Workshop
@Nuvem9_Finance
#Nuvem9Workshops
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Nuvem9 Introduction
Background:
• Chartered Accountants
• Started and Exited Businesses
• Investor and Investee Experience
• Experience in raising Equity, Debt including
Alternative Funders and Crowdfunding
Finance
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Nuvem9 Services
We offer a wide range of services including:
• Business Plans
• Financial Projections
• Pitch Decks
• Cloud Accounting Integration
• Grant and Investment Support
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Nuvem9 ClientsWe work with:
• StartUps seeking to take on funding and
scale
• Early Stage seeking to utilise secured
funding and deploy business plan
• Mature companies seeking assistance to
take next step upwards
Our clients vary in industry including:
• Food production
• SaaS & IaaS
• Service Businesses
• E-Commerce Platforms
• Online Retailers
• Lifestyle Businesses
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Workshop Agenda
1. Business Plans:
• Presentation & discussion/Q&A
session
2. Financial Projections:
• Presentation & discussion/Q&A
session
3. Pitch Decks:
• Presentation & discussion/Q&A
session
4. Wrap Up & One to One Q&A
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
1. Business Plans
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Purpose of the Business Plan
• What is the BP for?
• What is it meant to do?
• Why is it required?
• Is it important?
• Who looks for a Business Plan?
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Contents/Sections
The sections will vary from company to company but as
a guide the following areas needs to be covered:
• Executive Summary
• Company & Background
• The Team
• Progress to Date
• Market Analysis
• Competitor Analysis & USP
• Marketing & Growth Strategy
• Future Developments
• Financials (Any Revenue to date & Projections)
• Investment Proposition
Every BP should be bespoke to the company, it’s needs and to
whom it is being delivered. emplate BPs do not work and only
make you generic! Stand out!
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Content
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
• Introduce the Company
• Overview of the Company
• Background to the Company
• Overview of the product
Company & Background
YOUR LOGO
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
• Who are the people that are going to lead this
company to success
• Overview of the senior executive team
• Overview of current employees
• Freelancers or outsourced team members
• Key mentors or advisors
The Team
CEO
SALES
CTO
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Whatever stage you are at you will have made
some level of progress.
• Any previous investment & source
• State any milestones reached
• Achievements
• Customers/sales to date and the pipeline
• Tech/product development to date
Progress to Date
£2krevenue
COMPETITORS LOGO
20%monthly growth
200users
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
• Identify the problem
• Discuss your solution
• Overview of the Market
• Identify your target market
• Geographical Breakdown
• Any Market Validation
This is your opportunity to explain the market, giving
strong insight and convincing the reader why it is an
upcoming & developing market
Market Analysis
USAEurope
UK
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
• Do not, under any circumstances, proclaim
to have no competitors!!!
• No competitors indicates no market demand
• It’s good to have competitors. They provide:
• Validation of demand
• Benchmarks
• Consider market saturation
Competition gives you opportunity to outline
what they do, and why you do it better!
Competitor Analysis
COMPETITOR LOGO
COMPETITOR LOGO
COMPETITOR LOGO
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
This presents an opportunity to articulate what
makes you different from your competitors.
• Keep the message clear and succinct
• Incorporate a comparison table
• Ensure the audience fully understands what
makes you different
Don’t leave the audience unable to separate you
from the competition
You Competition
Your USP
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
“Build it and they will come” is NOT a sales
strategy.
• How will you sell your product?
• How will you build your team?
• How many sales will you make in year 1, 2 ..
• Breakdown the geography of the sales e.g. UK,
EU...
• The price structure for your product
• Future developments
Marketing & Growth Strategy
£10per month
£50per month
£25per month
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Include the following for your 3/5 year projections:
• Revenue totals
• Gross Profit
• Total Expenses
• Net Profit (figures and %)
Detailed Profit & Loss and Cashflow should be
included in the appendices.
Financials
2015 2017
Revenue 200,000 500,000
Gross Profit 20,000 60,000
Overheads 250,000 350,000
Net Profit -50,000 150,000
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
• How much investment are you looking for
• Type of proposition
• Pre-Money Valuation (if applicable)
• Overview of what it will be used for
• Pop in some visuals outlining the area of
spend and the breakdown
Include a detailed Cap Table in your
appendices showing the current and post
investment capital structure.
Investment Proposition
Marketing
ProductDevelopment
Sales
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
This is the first section an investor will see ....
Make sure it is intriguing enough to make them
turn the pages!!
• Brief overview of all the Previous Sections
• Make sure the Details Match
• Make it intriguing
• Use the Headliner Material
Executive Summary
@nuvem9_startups
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@nuvem9_finance
• NO!!!!!!!
• Unrealistic and annoying in reality
• VCs will not sign an NDA for a business plan
• Use for “Secret Sauce” revelations later in
process
“If you're asking for an NDA to merely present your idea you're
clueless. No one who would sign one just to hear your idea is an
investor you'd want”
- Guy Kawasaki
Non-Disclosure Agreement
@nuvem9_startups
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Style
@nuvem9_startups
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Delivery Style & Length
Is the business plan .....
• An investment proposition to an investor
• For INI/Government body for grant review
• For a potential business partner/reseller
Depending on who it is for, will depend what style
you need to write it in.
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Delivery Style & Length
There is no right or wrong answer when it comes
to length. Our advice would be:
• Keep it Succinct
• Keep it below 40 pages if you can (50 with
appendices)
• Make sure the Executive Summary is intriguing
enough to make the reader want to read further
• Do not include excessive amounts of
appendices
• Allow for a bit of personality
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Questions?
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
2. Financial Projections
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Purpose of the Projections
• What are these for?
• How long should they be for?
• What should they cover?
• Are they Important?
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Before you Start
• The preceding sections form your business
model
• Defined Business & Sales model
• Defined Growth Strategy
• Scientific Foundations
• Realistic Projections
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Our Recommended Approach
• 3 year minimum and 5 year maximum time span
• Month by Month schedules for Profit & Loss,
Balance Sheet and Cashflow
• One summary Annual Schedule (showing cash
position at year end)
• Use of Funds Schedule
• Bottom up approach
• Detailed Revenue and Overhead Analyses
• Clear Assumptions Schedule
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Assumptions
• What rate are you going to grow at?
• How are you going to grow?
• What is the uptake in the market?
• How big is the market?
• How many new customers will you get per month?
• Will your sales be through a website or multi
channels?
• Will you need a sales team?
• Team on the ground, on the phone, or online?
• How many sales would one sales person to make?
• Are sales recurring on a monthly basis?
• Licences?
• Opportunity to white label?
• Etc.
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Number Crunching
Use the assumptions to start to build up your
model – From the Bottom UP!!
Bottom Up Revenue Modelling: (a SaaS
example)
• Recurring sales
• One off Sales
• Licences
• White Label Potential
• Web Sales
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Number Crunching Continued
Costs:
• Cost of Sales (varies significantly dependent on
business type)
• Wastage
• Development
• Salaries
• Travel
• IT Costs including hosting costs, subscriptions
• FX costs
• Office space
• Consultancy
• Marketing & PR
• Investment fees
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Profit & Loss
REVENUES
less
COST OF SALES
equals GROSS MARGIN
Less
OPERATING EXPENSES
equals EBITDA:
Less
NON OPERATING EXPENSES
equals NET PROFIT / (LOSS)
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Balance Sheet
Not totally essential for all readers of your business plan
but we recommend it is prepared for request.
ASSETS
FIXED ASSETS
CURRENT ASSETS
Less
CURRENT LIABILITIES
Equal
NOMINAL VALUE OF SHARES
SHARE PREMIUM
PROFIT/(LOSS) CARRIED FORWARD
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Cashflow
The cashflow forecast determines how much
cash is needed to support the business
strategy.
Differences between Cashflow and the Profit
& Loss:
• Timing
• Includes items from the P&L and Balance
Sheet
A cashflow forecast will be your single
most important financial document in the
business
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
What to Present
In the Main Report ....
Don’t present every page of a 50 sheet
spreadsheet
Do show a table outlining:
• Revenues
• Gross Margin
• Operating Expenses
• EBITDA
• Cash at Bank at year end
Accompany these with:
• Bulleted assumptions
• How the investment money will be used
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
What to Present continued
In the Appendices ....
Include:
• Month by month 5 year Profit & Loss
• Month by Month 5 year Cashflow
• Balance Sheet at end of each year
• Detailed Assumptions
All other sheets should be retained for due
diligence stage
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Questions?
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
3. Pitch Decks
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Purpose of the Pitch Deck
• What are these for?
• What length should they be?
• How long should you present for?
• What should they cover?
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
The 10:20:30 Rule
A pitch should be a maximum length of 10
slides;
You should aim to complete your pitch within
20 minutes (NEVER go over an allocated
time slot. I can’t stress how important this is!
Please take this advice and don’t try to find
out for yourself!); and
If you intend for your audience to read your
slides then use a minimum of size 30 font!
10 slides
30pt font
20minutes
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Nine Slides to Include
1. Introduction
2. The Team
3. Progress to Date
4. The Market
5. The Competition
6. Your USP
7. Who is the Customer
8. Financials
9. Investment Proposition
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
Questions?
@nuvem9_startups
www.nuvem9.co.uk
www.nuvem9.co.uk
@nuvem9_finance
[email protected]@nuvem9_finance
THANKS!
For further assistance with your business plans,
financial projections or pitch decks speak to us
afterwards or contact us via the Council
