Business Plan Pitches

Business Plan & Pitchesthe Fundamentals

Marc Diaz & Eric MathewsMercury Technology Labs

www.mercurytechlabs.com

purpose:

to discuss the importance of business plans & pitches,

what they should include and how to deliver them with the

greatest impact

Upcoming EventsMarch 5-7    48Hour launch                                                  (LaunchMemphis.com)

March 18      FastTrac (TECWorks.org) April 3           Business Plan Bootcamp - the                         Bootstrapping Version                                       (LaunchMemphis.com)

April 8 Baker Donelson Boot Camp In Depth Legal, HR, Accounting

Why Bother?

"Business plans don't get funded, investors fund visionary  entrepreneurs"

"Investors don't even read business plans"

"Our product is too great - we don't need to write a business plan - just show it to them"

Use of Business Plan

• It's the Planning, not the Plan• Operating tool - roadmap• It lives and breathes - revisit and update

every six months• Communicate your opportunity to others• Hire the management team• Secure financing for the business• Cannot outsource!!!

Business Plan

Elements

• Executive summary • Management and organization• Product and service plan• Marketing plan• Financial plan• Growth plan• Appendix

Executive Summary

• Description of venture• Market• Money needs• Financing• History/Background

Executive Summary

Pitfalls• Failure to identify different or unique features• Providing too much superficial data• Using long sentences and phrases• Failure to specify management goals• Failure to identify money needs,

how funds will be obtained & spent• Trick !!

Management and Organization

• Management Teamo Who will be the "business" gal? o Who will be the sales guy?

• Board of Directors/Advisors• Infrastructure • Organizational Chart

Management and Organization

Pitfalls:• Not making a case for the Management Team• Leaving out the Board of Directors• Forgetting about your infrastructure:

o Lawyers, accountants, bankerso Marketing consultantso Advertising/public relations agencieso Governmental agencieso Business consultants

Product / Service

• What does it do? • Unique features • Stages of development • Future research and development • Patents, trademarks, copyrights, • licenses, royalties

Product / Service

Pitfalls:• Failure to do your research 

o "Oh isn't that what xyz does? How are you different?"

• Failure to find your niche• Forgetting to protect your workTrick:    Pitch to someone and have them repeat back to you

Market Analysis

• Industry Overview• Trends• Competition Profile• Target Market• Customer Profile

o Who in the company will buy from you?• Marketing Strategy• What is a sales call like?

Market Analysis

Pitfalls• Failure to do your research• Assuming you know your customer• Assuming you know your competition• Thinking everyone is a potential customer• No competition • Approaching marketing haphazardly

 Don't underestimate marketing!!

Market Research Sources

• Library• Government agencies• Trade associations• Trade conventions • Magazines• Computer searches• Competitors• Competitor's customers• Suppliers

Target Marketing

• Identify potential target markets• Size of target markets: customers and

dollar volume• Prioritize target markets• Cost of penetration• THINK LIKE THE CUSTOMER!

Pricing and Profitability Analysis

 It's true - it's always MORE • Pricing• Start-up Costs• Income Projections• Break-Even Analysis

Pricing and Profitability Analysis

Pitfalls• Not understanding your costs• Undervaluing your time• Being unrealistic with your sales

projections• Ignoring sales cycles• Starting the business with insufficient cash

reserve

Growth Plan

• New offerings to market• Capital requirements• Personnel requirements• Scaling metrics • Exit strategy

Format and Writing tips

• 35-65 pages• Cover page• Table of contents• Use subtitles• Use page numbers • Use charts, graphs, and bullets• Check math• Check spelling• Support documents in appendix

Appendix• Detailed descriptions of high-tech products• Resumes of management team• Patent, trademark, and copyright documents• Business agreements, employee contracts,

stock option plans• Product and service brochures and

advertising samples

Appendix

• Company logos• Reference letters, recommendations,

endorsements or testimonials• Research documentation• Product and location photos• Operating and control systems• Customers’ letters of intent

Pitching

• Time for Making a Pitch• Full versus Complete• Living Artifact• Compelling and Clear 

MercuryTechLabs.com/blog has detailed notes.  

4 Parts of the Pitch

1) Context

2) Soluton

3) Business Model

4) Ask

Part 1: Context

Point 1: What is the Company and its Core                 Value?

Point 2: What is the Pain/Problem that you                 seek to solve?

Point 3: How Big is the Pain/Problem?

Part 2: Solution

Point 4: What is Your Solution?

Point 5: What is the Benefit(s) or Value that                 your Solution provides?

Point 6: Who else provides a solution and                 why is yours better?

Part 3: Business ModelPoint 7: How will you get your solution to the              Market?

Point 8: If you can get your solution to                         market, how will you make money?

Point 9: Assuming you can get it to market &              make money, how much will you                     make?

Part 4: Ask

Point 10: What will be needed to succeed                     and how will you and others                             measure progress?

Point 11: Why you? Why now?

Building Toward the AskSlide 1: (Title Slide) What is your company and its core                     value?Slide 2: What is the Pain/Problem that you seek to solve?Slide 3: How big is the pain/problem?Slide 4: What is your solution?Slide 5: What are the benefits that your solution provides?Slide 6: Who else provides a solution ad why is yours                         better?Slide 7: How will you get to market?Slide 8: How will you make money?Slide 9: How much money will you make?Slide 10: What do you need to succeed? How will it be                     measured?Slide 11: Why you? Why now?