Presentation by Blanche M. Johnson, Ph.D. February 2004 That First Lasting Impression A Business Plan is often the first contact entrepreneurs have with a funding source. Funding sources, e.g., VCs, “angels”, bankers, all review Business Plans.
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Blanche M. Johnson, Ph.D.
•Due diligence performed by a funding source starts with the Business Plan.
•A powerful, first class Business Plan
leads to a meeting with a funding source.
#1 Who will be reading the Plan? Who is my audience?
• Financial Investors are your audience IF…
you have expertise to develop/market your product BUT need money for employees and equipment
• Business Partners are your audience IF…
you need technical expertise to develop your product or marketing/distribution to reach customers
#2 What do I want to accomplish with this Business Plan?
•Capture the interest of the audience with the unusual opportunity presented.
•Provide sufficient data to convince the audience your business is worthwhile.
•Show realistic economic returns justifying the requested funding/partnership.
#3 How can I write this Business Plan to accomplish these objectives?
Address these core elements:
•Present an overview of the niche markets your product serves, show how you will market your product, compare your product to competitive products, show revenue/profit/cash flow.
•Present the amount and types of funds needed and what is the financial return to the investor or partner for funds/partnering.
•Present a concise Summary of the key points from each Section of the Business Plan.
e.g., individuals, businesses, government, overseas? Where are customers located?
Purpose: To convey to your audience a stable company (or your plan to set up a stable company) run by experienced and committed managers.
•Provide a description of your company – how long established, where located, number of employees, revenue generated (if any).
•Present description of each of the key managers responsible for the business; provide information about their direct and relevant experience, education/training and ownership interest (if any).
•Summarize the operating plan that supports how the company is organized to meet product/service projections.
Purpose: to support information presented in the Business Plan
•Full Financial Statements
•Photos/drawings of product, brochures
•Industry Comparables for Investors’ Exit:
Show how others have made $$$$$ whose performance is similar to your business model
Goal: get a first meeting w/ funding source
•Description of plans for a business
Goal: put in writing your plans for the business
•Road map for employees and Board
Goal: restate plans for an ongoing business
•Hopkins Homewood Campus library
•TEDCO; www.myownbusiness.org, incubators