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Developing A Business Plan

Developing A Business Plan. Understand the Audience Functions of a Business Plan What Do Investors Look For? Tell A Story The Bottom Line Topics A Business Plan Should Not: Gaffs to Avoid Remember:. Understand the Audience. Managing Other People’s Money Pension Funds

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Developing A Business Plan

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  1. Developing A Business Plan • Understand the Audience • Functions of a Business Plan • What Do Investors Look For? • Tell A Story • The Bottom Line • Topics • A Business Plan Should Not: • Gaffs to Avoid • Remember: F. Haney

  2. Understand the Audience • Managing Other People’s Money • Pension Funds • Private Individuals • Buried Under Business Plans • 50-100 Per Month or More • Sitting on 10 Boards • Risk Adverse • Managing Time Very Carefully F. Haney

  3. Functions of a Business Plan • Pique the Investor’s Interest • Open the Door for a Meeting • Provide Clues About Management • Thought Process • Strategic Skills • Realism • Ability to Address Issues • Describe the Opportunity Clearly F. Haney

  4. What Do Investors Look For? • Strong Management • Relevant Experience • Unique Technology & Products • Proprietary • Strong Market Demand • Defensible Forecast for Served Market • Products that solve real problems • Economic Justification • Competitive Positioning • Sustainable Competitive Advantage F. Haney

  5. Tell A Story • Start with Executive Summary • Tell a Story • Logical, Realistic • Coherent • Quantify, Schedule, Predict • Justify • Estimate Resource Needs • Risks and Strategies F. Haney

  6. The Bottom Line REVENUE COST EXPENSE PROFIT ROI = INVESTMENT CASHNEEDS F. Haney

  7. Industry/Market Opportunity Perspective Products/Technology Uniqueness Business Strategy/Model Source of Profits Competition/Positioning Basis for Competitive Advantage Management Relevance of Experience Marketing Strategy Distribution Manufacturing Special Needs Financial Projections Pro Forma Topics F. Haney

  8. A Business Plan Should Not: • Exaggerate or Overstate • Seek Financial Precision • Underestimate or Ignore Risk • Assume that the Advantages will be Obvious • Be Too Detailed • Be Too Technical • Assume that “Big is Beautiful” F. Haney

  9. Gaffs to Avoid • “No Competition” • “2% of a $10 Billion Market” • Uninvolved Luminaries • “The Advantages are Obvious” • “ABC VC Firm says they will invest” • Under-estimate Capital Needs • Over-estimate Valuation • “Can you state clearly what your company does?” F. Haney

  10. Remember: It’s Better to be Roughly Right than Precisely Wrong F. Haney

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