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Business Plans

For The Real World

Barry Williams

Delaware SBDC

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Why a Business Plan?

Strategic Guide

Investors

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Strategic Guide

Where Do You Want To Go?

How Are You Going to Get There?

What Market Niches?

How Much is it Going to Cost?

Greatest Profit Opportunity?

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Lender Expectations

Good Business Track Record

Ability to Repay

Staying Power

Collateral

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Investor Expectations

Competitive Advantage

Huge Market

Strong Management Team

Strong Marketing and Sales Plan

Some Skin in the Game

Obscene Return Exit Strategy

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Entrepreneurs Start Businesses:

To Capitalize on an Invention

To Pursue a Passion

To Be Their Own Boss

To Get Rich

---All Need an Exit Strategy

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Exit Strategies

Taking the Company Public

Being Acquired by a Larger Company

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Funding Sources:

Savings

Friends and Family

Financial Institutions / Banks

Angel Investors

Venture Capital

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Business Plan Content

Executive Summary

Company Description

Product/Services Description

Industry Overview

Market Analysis

Competitors

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Business Plan Content

Customers

Marketing and Sales Plans

Development

Operations

Management

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Business Plan Content

Personnel

Financial Summary

Financials

Offering

Appendices

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Executive Summary

A mini-business plan in one or two pages

Highlights the most important points of yourbusiness plan

It is NOT an introduction to the plan

It must grab your reader, and entice him/her to

read further

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Executive Summary

Identify the company, its background, structure

and location

Describe what the company does, and the marketit serves

Describe the market potential for the companys

products and services, market trends, etc.

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Executive Summary

Outline the backgrounds and experience of the top

management team

Describe the funding required, the purposes for

which it will be used, the collateral available (if

for a lender), and the expected outcomes

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Company Overview

Brief Company Introduction

Mission statement

Location, size, history

Market and products

Overview of company capabilities

Objectives

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Products/Services

Products / Services

What does it do?

Uniqueness Competitive Advantage

Technology

Brief description

Applications Commercialization Status

Brief overview

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Industry Overview

Set The Stage

Industry Definition and Description

Major players within the industry Factors driving dynamics

New products and developments

Legislation and Policies Driving the Industry Historical and Future Trends

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Market Analysis

Market Definition

Primary Market

Secondary Markets

Market Size and Trends

Current total revenues Predicted annual growth rate

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Competitors

Direct Competitors

Who are they?

Size and product breadth Revenues and profitability

Strengths and weaknesses

Market shares

Indirect Competitors

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Customers

Customer Characteristics

Who are they?

Why do they buy?Need satisfied by the product/service

How is the need currently filled?

What are the alternatives?

Who makes the decision to buy?

How frequently do they purchase?

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Marketing and Sales Plans

Statement of Opportunity

Marketing and Sales Objectives

Existing Customers

Potential Customers

Prospects targeted

How prospects will be targeted and qualified

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Marketing Strategies

Product/Service Strategy

Pricing Strategy

Distribution Strategy

Advertising and Promotion Strategy

Sales Strategy

Marketing and Sales Forecasts

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Marketing and Sales Plans

Marketing Programs

Direct Mail

Trade Shows

Advertising

Internet

Publicity/Public Relations

Marketing Budget

Pricing

Basis for targeted price point

Margins and profitability by volume levels

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Marketing and Sales Plans

Sales Plan

Sales force structure(direct or reps)

Sales expectations/quotas Margins given to intermediaries

Service and warranties

Sales Budget

Organizational chart indicating planned growth

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Development

R & D Plan

Objectives

Milestones and current status Difficulties and risks

Staffing

R & D Budget and assumptions

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Operations

Manufacturing/Production Plan

Objectives

Facilities Staffing

Subcontractors

Quality Control

Budget / Operating Expenses

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Management

Company Organization

Management Team

Administrative Expenses

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Management Team

President

VP Finance

VP Sales VP Marketing

VP Manufacturing

Board of Advisors

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Personnel

Human Resource Plan

Staffing Objectives

Organizational Structure 3-5 year growth plan

Budget

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Summary of Financials

Financial Objectives

Time to Cash Flow Positive

Time to profitability Financial Assumptions

Capital Requirements

Exit Scenario

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Financials

Pro-forma Cash Flow Projections

Pro-forma Profit & Loss Statements Pro-forma Balance Sheet

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Offering

Investment Requirements

Pro-forma Valuation of Business Offer

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Appendices

Resumes of Key Management

Patent Information

Customer List Testimonials

Supplemental Financial Spreadsheets

References

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Investment Climate

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Questions?