Business plan presentation_format

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Business Plan Business Plan Presentation Format Presentation Format

The investor presentation must be clear, concise The investor presentation must be clear, concise and compelling to:and compelling to:– Generate investor interest and build confidenceGenerate investor interest and build confidence– 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 verbiage should Charts, graphics, pictures and verbiage should be simple and easily read (no “eye tests”)be simple and easily read (no “eye tests”)Each slide should have between 3 and 6 bullets Each slide should have between 3 and 6 bullets that are succinct (no paragraphs, uncluttered)that are succinct (no paragraphs, uncluttered)Presentation format may vary depending on the Presentation format may vary depending on the company but the following format provides a company but the following format provides a reasonable order and flow –it is but one reasonable order and flow –it is but one approach to making investor presentations. approach to making investor presentations.

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Order of PresentationOrder of Presentation

IntroductionIntroductionProblemProblemSolutionSolutionMarket, CustomersMarket, CustomersCompetitive landscapeCompetitive landscapeBusiness and Revenue ModelsBusiness and Revenue ModelsManagement TeamManagement TeamFinancial Projections Funding Financial Projections Funding TimelineTimelineSummarySummary

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IntroductionIntroduction

Briefly introduce yourself and your companyBriefly introduce yourself and your company– 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 secondsSlide time: approximately 30 seconds

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Introduction--continuedIntroduction--continued [this is a very important slide that requires lots of [this is a very important slide that requires lots of

time to create because it must be succinct, time to create because it must be succinct, comprehensive and COMPELLING]comprehensive and COMPELLING]

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

What problem is being solved, and What problem is being solved, and

Why these products or services are compelling, e.g., “…Why these products or services are compelling, e.g., “…the only product that enables [solution] to [the problem]the only product that enables [solution] to [the problem]…”…”

Slide time: approximately 1 minuteSlide time: approximately 1 minute

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The Problem/Opportunity/NeedThe Problem/Opportunity/Need

Define the problem or need in the marketDefine the problem or need in the market

Describe how significant or prevalent the Describe how significant or prevalent the problem may be problem may be

If appropriate, describe why now is the right time If appropriate, describe why now is the right time for a solution for a solution

Provide a “problem” scenario that provides a Provide a “problem” scenario that provides a basis for your company’s product or service basis for your company’s product or service

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

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

Clearly and succinctly describe the company’s product or Clearly and succinctly describe the company’s product or service that will address the problemservice that will address the problemIllustrate the company’s solution with graphics, pictures or Illustrate the company’s solution with graphics, pictures or videos as necessary (keep this very simple)videos as necessary (keep this very 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 will the What is the value proposition for the customer (How well will the

product or service solve the problem)?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 product (e.g., Describe “barriers to entry” created by your product (e.g., patents)patents)

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

The SolutionThe Solution

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

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Sample Feature-Benefits TableSample Feature-Benefits Table

FeaturesFeatures BenefitsBenefits

Slide Time: Approximately 60 secondsSlide Time: Approximately 60 seconds

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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 of Customers and contracts established (letters of

intent)intent)– Strategic partnerships establishedStrategic partnerships established– Product development status—describe milestones Product development status—describe milestones

achieved to reduce risk (e.g., alpha or beta testing)achieved to reduce risk (e.g., alpha or beta testing)– Other significant information to validate or reduce riskOther significant information to validate or reduce risk

Slide Time: Approximately 60 secondsSlide Time: Approximately 60 seconds

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

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

Market challengesMarket challengesWhat market segment(s) are served by the company?What market segment(s) are served by the 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 (see next Estimated Revenue Growth in graphic or tabular form (see next

slides, for examples)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)

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

RegionRegion Demand (US $ MM)Demand (US $ MM) % Globe% Globe

AsiaAsia 17001700 3232

EuropeEurope 15001500 3030

North AmericaNorth America 13001300 2525

Latin AmericaLatin America 415415 88

AfricaAfrica 200200 44

OthersOthers 6464 11

Slide Time: Approximately 60 secondsSlide Time: Approximately 60 seconds

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US Market with key segmentsUS Market with key segments

CityCity World World RankRank

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

New YorkNew York 11 865865 22.822.8 5.35.3

Los AngelesLos Angeles 33 300300 8.38.3 1.91.9

ChicagoChicago 44 285285 88 1.81.8

DallasDallas 2121 105105 2.82.8 0.640.64

San 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 0.610.61

Slide Time: Approximately 60 secondsSlide Time: Approximately 60 seconds

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CustomersCustomers

Describe 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, TestimonialsCustomer Feedback, Survey Data, Testimonials

Purchases, Letters of IntentPurchases, Letters of Intent

PartnersPartners

– Example of customerExample of customer

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Competition and AdvantageCompetition and Advantage(2 TO 3 SLIDES)(2 TO 3 SLIDES)

CompetitionCompetitionDescribe the direct (competing product or service) and Describe the direct (competing product or service) and indirect competition (alternative solution) for your indirect competition (alternative solution) for your company and its product or service.company and its product or 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 important]differentiates itself from the competition? [very 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 (see next Show a competitive matrix to illustrate differentiation (see next

slide)slide)

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

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

ProductProduct AdvantagesAdvantages DisadvantagesDisadvantages

Product AProduct A

~$12/100 units~$12/100 units

Product BProduct B

~$30/100 units~$30/100 units

Product CProduct C

~$17/100 units~$17/100 units

My Company My Company ProductProduct

~$9/100 units~$9/100 units

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Competitive MatrixCompetitive Matrix

Product Feature A Feature B Feature C Feature D Feature E

MY PRODUCT ● ● ● ● ●

Product 1 ● ●

Product 2 ● ● ●

Product 3 ● ● ●

Product 4 ● ● ●

Product 5 ● ● ●

Product 6 ● ●

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Competitive PositioningCompetitive Positioning

Your Company, Inc.

Gizmo

Gadget.com

Yippee

Fle

xib

ilit

y

Functionality

Yikes

Zowie

Thingamabob

End First SectionEnd First Section

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Business Model and Marketing PlanBusiness Model and Marketing Plan(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, internet)?How will you sell your product or service (distributors, 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 serviceDescribe the sales cycle for the company’s product or service

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 promo.)How will you access customers? (including advert. and 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 productgranting agencies, etc. regarding benefits of your product

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

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

presentations)presentations)

Include pertinent info regarding FDA, FTC, Include pertinent info regarding FDA, FTC, or other pertinent government agencyor other pertinent government agency

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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 credentials ) include weak credentials )– Describe skill and experience gaps to be filled Describe skill and experience gaps to be filled

List the company’s leadership teamList the company’s leadership team– Include name, position, experience (abbrev.)Include name, position, experience (abbrev.)– These are credentialed expertsThese are credentialed experts

List of company Directors and AdvisorsList of company Directors and Advisors– Include name, summary of experienceInclude name, summary of experience

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Financial ProjectionsFinancial Projections

Provide 3-5 year financial projections for the Provide 3-5 year financial projections for the company (company (abbreviatedabbreviated chart or graph—see next chart or graph—see next slide)slide)– Include financial projections to show year-to-year Include financial projections to show year-to-year

growth (show a basic income statement table—see growth (show a basic income statement table—see next slide for an example)next slide for an example)

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

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

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

Slide Time: Approximately 90 secondsSlide Time: Approximately 90 seconds

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Financial Projections: Financial Projections: Income Statement SummaryIncome Statement Summary

  2008 2009 2010 2011 2012

Revenue 500 5,207 12,203 25,565 51,894

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

Gross ProfitGross Profit 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

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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 per UnitPrice per Unit – Var. Cost per Unit

0

200

400

600

800

1000

1200

0 20 40 60 80 100

Fixed Cost

Total Cost

Total Revenue

Break-EvenBreak-Even

TR = TCTR = TC

Units Sold

Rev

enue

[ ]

} Variable Cost

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FundingFunding

What funding has the company received to date?What funding has the company received to date?– Amounts and sourcesAmounts and sources

How will the company be financed?How will the company be financed?How much money is the company currently seeking from How much money is the company currently seeking from Investors?Investors?– How will the funds be used? (use tabular format—see next slide How will the funds be used? (use tabular format—see next slide

for an example)for an example)– What key value-building milestones will be achieved with funds What key value-building milestones will be achieved with funds

(market test, market expansion, etc.)(market test, market expansion, etc.)

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

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

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Startup Budget/Use of ProceedsStartup Budget/Use of Proceeds

First year Budget CostSalaries 510,000

Repairs & maintenance 8,400

Local Advertising 5,000

Marketing 51,400

Accounting and legal 5,000

Rent 17,798

Internet & Telephone 5,940

Equipment 48,000

Domain Name 10

Total $651,548

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Use of Proceeds BreakdownUse of Proceeds BreakdownUse of Funding Proceeds

78%

1%

1%1%

7% 0%0%

0%

1%

8%

3%

0%

Salaries (includes payroll taxes)

Repairs & maintenance

Local Advertising

Marketing

Accounting and legal

Rent

Internet & Telephone

Taxes (Real estate, etc.)

Depreciation

Equipment

Domain Name

Miscellaneous expenses

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TimelineTimeline

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

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2007 2008

Beta TestMilestone

Break-evenMilestone

July

DevelopmentMilestone 1December

2nd ProductDevelopment

MilestoneSept.

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

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SummarySummary

What do you want your audience to remember What do you want your audience to remember about the company?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 PipelineMarketing Approach, Customers, Sales Pipeline– Intellectual propertyIntellectual property– Management teamManagement team– Other…Other…