Business plan presentation format

10/14/2210/14/22 11

Business Plan Business Plan Presentation Format Presentation Format

The investor presentation must be The investor presentation must be clear, concise and compelling to:clear, concise and compelling to:– Generate investor interest and build Generate investor interest and build confidenceconfidence

– Lead to additional investor meetingsLead to additional investor meetingsShould be 20-30 minutes in length Should be 20-30 minutes in length Charts, graphics, pictures and Charts, graphics, pictures and verbiage should be simple and easily verbiage should be simple and easily read (no “eye tests”)read (no “eye tests”)Each slide should have between 3 and Each slide should have between 3 and 6 bullets that are succinct (no 6 bullets that are succinct (no paragraphs, uncluttered)paragraphs, uncluttered)Presentation format may vary Presentation format may vary depending on the company but the depending on the company but the following format provides a following format provides a reasonable order and flow –it is but reasonable order and flow –it is but one approach to making investor one approach to making investor presentations. presentations.

10/14/2210/14/22 22

Order of PresentationOrder of PresentationIntroductionIntroductionProblemProblemSolutionSolutionMarket, CustomersMarket, CustomersCompetitive landscapeCompetitive landscapeBusiness and Revenue ModelsBusiness and Revenue ModelsManagement TeamManagement TeamFinancial Projections Funding Financial Projections Funding TimelineTimelineSummarySummary

10/14/2210/14/22 33

IntroductionIntroduction

Briefly introduce yourself and your Briefly introduce yourself and your companycompany– Company name and company logoCompany name and company logo– Presenters names (give titles if pertinent)Presenters names (give titles if pertinent)

Slide time: approximately 30 Slide time: approximately 30 secondsseconds

10/14/2210/14/22 44

Introduction--continuedIntroduction--continued [this is a very important slide that requires [this is a very important slide that requires lots of time to create because it must be lots of time to create because it must be succinct, comprehensive and COMPELLING]succinct, comprehensive and COMPELLING]

BriefBrief overviewoverview of company (elevator of company (elevator pitch)pitch)

What exactly the company does (stated succinctly)What exactly the company does (stated succinctly)What products or services are offeredWhat products or services are offeredWhat problem is being solved, and What problem is being solved, and Why these products or services are compelling, Why these products or services are compelling, e.g., “…the only product that enables [solution] e.g., “…the only product that enables [solution] to [the problem]…”to [the problem]…”

Slide time: approximately 1 Slide time: approximately 1 minuteminute

10/14/2210/14/22 55

The The Problem/Opportunity/NeedProblem/Opportunity/NeedDefine the problem or need in the marketDefine the problem or need in the marketDescribe how significant or prevalent Describe how significant or prevalent the problem may be the problem may be If appropriate, describe why now is the If appropriate, describe why now is the right time for a solution right time for a solution Provide a “problem” scenario that Provide a “problem” scenario that provides a basis for your company’s provides a basis for your company’s product or service product or service

Slide time: 60 to 90 secondsSlide time: 60 to 90 seconds

10/14/2210/14/22 66

The SolutionThe Solution(1 to 2 slides)(1 to 2 slides)

Clearly and succinctly describe the company’s Clearly and succinctly describe the company’s product or service that will address the problemproduct or service that will address the problemIllustrate the company’s solution with graphics, Illustrate the company’s solution with graphics, pictures or videos as necessary (keep this very pictures or videos as necessary (keep this very simple)simple)Provide brief list of features, Provide brief list of features, benefitsbenefits and and advantagesadvantages– What is the value proposition for the customer (How well What is the value proposition for the customer (How well will the product or service solve the problem)?will the product or service solve the problem)?

Cost savings, convenience, reliability, etc. (be specific)Cost savings, convenience, reliability, etc. (be specific)

Describe “barriers to entry” created by your Describe “barriers to entry” created by your product (e.g., patents)product (e.g., patents)

Slide Time: Approximately 01:30 (May require more Slide Time: Approximately 01:30 (May require more than one slide)than one slide)

The SolutionThe SolutionProvide an understandable, Provide an understandable, practicle example of how your practicle example of how your product/service works or what product/service works or what it does.it does.

10/14/2210/14/22 77

10/14/2210/14/22 88

Sample Feature-Benefits Sample Feature-Benefits TableTable

FeaturesFeatures BenefitsBenefits

Slide Time: Approximately 60 secondsSlide Time: Approximately 60 seconds

10/14/2210/14/22 99

Company Status/ProgressCompany Status/Progress

Build investor confidence in your companyBuild investor confidence in your company– Domain expertise of management and staffDomain expertise of management and staff– Customers and contracts established (letters Customers and contracts established (letters of intent)of intent)

– Strategic partnerships establishedStrategic partnerships established– Product development status—describe Product development status—describe milestones achieved to reduce risk (e.g., milestones achieved to reduce risk (e.g., alpha or beta testing)alpha or beta testing)

– Other significant information to validate or Other significant information to validate or reduce riskreduce risk

Slide Time: Approximately 60 secondsSlide Time: Approximately 60 seconds

10/14/2210/14/22 1010

The MarketThe Market(2 to 5 slides)(2 to 5 slides)

Describe market size, growth, trends and Describe market size, growth, trends and maturitymaturity– Industry and market segment data (see sample, next Industry and market segment data (see sample, next slide)slide)

Market challengesMarket challengesWhat market segment(s) are served by the What market segment(s) are served by the company?company?What is the company’s potential in the market?What is the company’s potential in the market?– Estimated Revenue Growth in graphic or tabular form Estimated Revenue Growth in graphic or tabular form (see next slides, for examples)(see next slides, for examples)

– Market share projections are optionalMarket share projections are optional

Slide Time: Approximately 90 secondsSlide Time: Approximately 90 seconds(More than one slide may be required)(More than one slide may be required)

10/14/2210/14/22 1111

Global Market for [your Global Market for [your product]product]

RegionRegion Demand (US $ Demand (US $ MM)MM)

% Globe% Globe

AsiaAsia 17001700 3232EuropeEurope 15001500 3030North North

AmericaAmerica13001300 2525

Latin Latin AmericaAmerica

415415 88

AfricaAfrica 200200 44OthersOthers 6464 11Slide Time: Approximately 60 secondsSlide Time: Approximately 60 seconds

10/14/2210/14/22 1212

US Market with key US Market with key segmentssegments

CityCity World World RankRank

US $ MMUS $ MM % Country% Country % World% World

New YorkNew York 11 865865 22.822.8 5.35.3Los Los

AngelesAngeles33 300300 8.38.3 1.91.9

ChicagoChicago 44 285285 88 1.81.8DallasDallas 2121 105105 2.82.8 0.640.64San JoseSan Jose 2222 104104 2.82.8 0.630.63

San San FranciscoFrancisco

2323 103103 2.72.7 0.620.62

San DiegoSan Diego 2626 100100 2.62.6 0.610.61Slide Time: Approximately 60 secondsSlide Time: Approximately 60 seconds

10/14/2210/14/22 1313

CustomersCustomersDescribe the company’s current and Describe the company’s current and potential customerspotential customers– Profile of the optimal customerProfile of the optimal customer– Value proposition to customerValue proposition to customer– Validation of Customer AcceptanceValidation of Customer Acceptance

Customer Feedback, Survey Data, Customer Feedback, Survey Data, TestimonialsTestimonialsPurchases, Letters of IntentPurchases, Letters of IntentPartnersPartners

– Example of customerExample of customer

10/14/2210/14/22 1414

Competition and Competition and AdvantageAdvantage(2 TO 3 SLIDES)(2 TO 3 SLIDES)CompetitionCompetition

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

Competitive AdvantageCompetitive AdvantageWhat is the company’s competitive advantage?What is the company’s competitive advantage?– Why will customers buy your product or service over the Why will customers buy your product or service over the competition?competition?

– Show a competitive matrix to illustrate differentiation Show a competitive matrix to illustrate differentiation (see next slide)(see next slide)

Subject Time: Approximately 2 minutes (more than 1 Subject Time: Approximately 2 minutes (more than 1 slide)slide)

10/14/2210/14/22 1515

Competitive Comparison Competitive Comparison (see next slide for optional approach)(see next slide for optional approach)

ProductProduct AdvantagesAdvantages DisadvantagesDisadvantagesProduct AProduct A~$12/100 ~$12/100 unitsunitsProduct BProduct B~$30/100 ~$30/100 unitsunitsProduct CProduct C~$17/100 ~$17/100 unitsunits

My Company My Company ProductProduct~$9/100 ~$9/100 unitsunits

10/14/2210/14/22 1616

Competitive MatrixCompetitive MatrixProduct Feature A Feature B Feature C Feature

DFeatur

e EMY PRODUCT ● ● ● ● ●

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

10/14/2210/14/22 1717

Competitive PositioningCompetitive Positioning

Your Company, Inc.

Gizmo

Gadget.com

Yippee

Flex

ibil

ity

Functionality

Yikes

Zowie

Thingamabob

End First SectionEnd First Section

10/14/2210/14/22 1818

10/14/2210/14/22 1919

Business Model and Marketing Business Model and Marketing PlanPlan

(2 TO 5 SLIDES)(2 TO 5 SLIDES)Describe the company’s business and revenue modelDescribe the company’s business and revenue model– What is the overall business strategy?What is the overall business strategy?– How will you sell your product or service (distributors, How will you sell your product or service (distributors, internet)?internet)?

– How will the company generate revenue for its product or How will the company generate revenue for its product or service? service?

– Describe the sales cycle for the company’s product or Describe the sales cycle for the company’s product or serviceservice

Describe the Marketing Plan (if appropriate)Describe the Marketing Plan (if appropriate)– What is the go-to -market strategy?What is the go-to -market strategy?– What is the pricing model? Gross margin? What is the pricing model? Gross margin? – How will you access customers? (including advert. and How will you access customers? (including advert. and promo.)promo.)

– How will your product or service be distributed?How will your product or service be distributed?– What customer support will be needed?What customer support will be needed?Note any commitments from partners, distributors, Note any commitments from partners, distributors, granting agencies, etc. regarding benefits of your granting agencies, etc. regarding benefits of your productproduct

Slide Time: Approximately 90 seconds Slide Time: Approximately 90 seconds

10/14/2210/14/22 2020

Regulatory IssuesRegulatory Issues(not necessarily included in all (not necessarily included in all

investor presentations)investor presentations)Include pertinent info Include pertinent info regarding FDA, FTC, or other regarding FDA, FTC, or other pertinent government agencypertinent government agency

10/14/2210/14/22 2121

Management Team, AdvisorsManagement Team, Advisors

Build investor confidence with teamBuild investor confidence with team– Credentials, proven track record, domain Credentials, proven track record, domain experience (do experience (do notnot include weak include weak credentials )credentials )

– Describe skill and experience gaps to be Describe skill and experience gaps to be filled filled

List the company’s leadership teamList the company’s leadership team– Include name, position, experience Include name, position, experience (abbrev.)(abbrev.)

– These are credentialed expertsThese are credentialed expertsList of company Directors and AdvisorsList of company Directors and Advisors– Include name, summary of experienceInclude name, summary of experience

10/14/2210/14/22 2222

Financial ProjectionsFinancial ProjectionsProvide 3-5 year financial projections Provide 3-5 year financial projections for the company (for the company (abbreviatedabbreviated chart or chart or graph—see next slide)graph—see next slide)– Include financial projections to show year-Include financial projections to show year-to-year growth (show a basic income statement to-year growth (show a basic income statement table—see next slide for an example)table—see next slide for an example)

– Is the company overstating or understating Is the company overstating or understating market share and/or growth? market share and/or growth?

– Can the company scale its operations as it Can the company scale its operations as it grows?grows?

List major facts and assumptionsList major facts and assumptions– Are the assumptions believable and Are the assumptions believable and achievable?achievable?

Slide Time: Approximately 90 secondsSlide Time: Approximately 90 seconds

10/14/2210/14/22 2323

Financial Projections: Financial Projections:

Income Statement SummaryIncome Statement Summary  2008 2009 2010 2011 2012Revenue 500 5,207 12,20

325,565 51,894

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

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

10/14/2210/14/22 2424

Financial Projections:Financial Projections:Break Even AnalyisBreak Even Analyis

B/E(Quantity) =B/E(Quantity) =Total Fixed CostTotal Fixed Cost

Price per Unit – Var. Cost Price per Unit – Var. Cost per Unitper Unit

0

200

400

600

800

1000

1200

0 20 40 60 80 100

Fixed CostTotal CostTotal Revenue

Break-EvenBreak-EvenTR = TCTR = TC

Units Sold

Revenu

e

[ ]

}Variable Cost

10/14/2210/14/22 2525

FundingFundingWhat funding has the company received to date?What funding has the company received to date?– Amounts and sourcesAmounts and sourcesHow will the company be financed?How will the company be financed?How much money is the company currently How much money is the company currently seeking from Investors?seeking from Investors?– How will the funds be used? (use tabular format—see How will the funds be used? (use tabular format—see next slide for an example)next slide for an example)

– What key value-building milestones will be achieved What key value-building milestones will be achieved with funds (market test, market expansion, etc.)with funds (market test, market expansion, etc.)

Anticipated future funding needsAnticipated future funding needsWhat are the exit strategies for the company? What are the exit strategies for the company? (when?)(when?)What is the expected ROI for investors What is the expected ROI for investors

Slide Time: Approximately 2 minutes (this Slide Time: Approximately 2 minutes (this section is more than one slide)section is more than one slide)

10/14/2210/14/22 2626

Startup Budget/Use of Startup Budget/Use of ProceedsProceeds

First year Budget CostSalaries 510,000Repairs & maintenance 8,400Local Advertising 5,000Marketing 51,400Accounting and legal 5,000Rent 17,798Internet & Telephone 5,940Equipment 48,000Domain Name 10

Total $651,548

10/14/2210/14/22 2727

Use of Proceeds Use of Proceeds BreakdownBreakdownUse of Funding Proceeds

78%

1%

1% 1% 7% 0%0%

0%

1%

8%

3%

0%Salaries (includes payroll taxes)Repairs & m aintenanceLocal AdvertisingM arketingAccounting and legalRentInternet & TelephoneTaxes (Real estate, etc.)DepreciationEquipm entDom ain Nam eM iscellaneous expenses

10/14/2210/14/22 2828

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

Timeline of MilestonesTimeline 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

Neighborhood Mkt.

Initial Contracts

10/14/2210/14/22 3030

2007 2008

Beta TestMilestone

Break-evenMilestone

July

DevelopmentMilestone 1December

2nd ProductDevelopmentMilestone

Sept.

Sales MilestoneDecember

Value-Added Milestones Timeline (Sample)

Product 1Partnered*

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

Product 1First Sales

1st Financing $660K

2nd Financing $1Million

10/14/2210/14/22 3131

SummarySummaryWhat do you want your audience to What do you want your audience to remember about the company?remember about the company?– Unique and Sizeable OpportunityUnique and Sizeable Opportunity– Unique product or serviceUnique product or service– Competitive Advantage, StrengthsCompetitive Advantage, Strengths– Marketing Approach, Customers, Sales Marketing Approach, Customers, Sales PipelinePipeline

– Intellectual propertyIntellectual property– Management teamManagement team– Other…Other…