The winning business plan

THE WINNING BUSINESS PLAN

April 2014

RICHARD WEISZ

CRITERIA

• Management • Compelling technology, product,

service or market position • Sustainable differentiation • Addressable market size • Exit strategy • Investment structure and terms • Compatible co-investors/ Cap Table

DOCUMENTS REQUIRED TO RAISE FUNDS

• Executive summary

• Investor deck

• Pitch deck

• Detailed financials

OBJECTIVE

• Do your homework

• Compelling story

• It takes time

• Documents evolve

BIZ PLAN

• 20-25 pages/slides

• 12+ pt. Font

• Stand alone document

GRAB INTEREST QUICKLY!

1. HEADER

• Company name

• Company location / contact info

• Tag line

2. COMPANY OVERVIEW

• Most important section

• What does company do

• Unique, clear, crisp value proposition

3. TEAM

• Team that can develop the company

• Deep rooted expertise in intended market

• Team that exudes confidence

• Why would I trust you with my $$$

4. OPPORTUNITY

• Addressable market

• Clear market need / way to take advantage of that need

• Aha! moment

5. SOLUTION

• Technology, product, service

• Proof of concept / MVP

• Milestones / current status

6. GO TO MARKET STRATEGY

• Marketing strategy

• Sales distribution channels

• Specifically targeted customers

• Core competency

7. COMPETITIVE ADVANTAGE

• Competition

• Sustainable competitive advantage

• Barriers to entry

8. BUSINESS MODEL

• How do you make money

• Who are your paying customers

• How do you know they will buy

• Risks clearly identified

9. FINANCIAL PROJECTIONS

• Historical (if any) plus 3-5 years

• Top line (Revenue, COGS, G&A, S&W, M&S, NOI)

• Cash flow estimates 3-5 years

10. FUNDING

• $$$ hard cash invested & by who

• $$$ you need now and later

• Use of proceeds

• How and when will you return $$$

TIPS

• Use clear concise language

• Do not use industry acronyms

• Be creative with your idea

• Be creative in the formatting

• Don’t be creative with plan structure

• Include all required sections

MYTHS

My idea is so obvious that…

• I don’t have to include a marketing and sales strategy

• I don’t have to include financials

• I don’t need management

• I need to be creative and not follow convention

SAMPLE FINANCIALS 2012

Actual 2013

Actual 2014 Est 2015 2016 2017 2018

Revenue

COGS

Net Rev.

G&A

M&S

S&B

Total Exp.

NOI

REMEMBER

• Have a good story to tell

• Tell a good story

• It is a competition

GOOD LUCK!

RICARDO WEISZ [email protected]