Business Plan & Pitching Deck

1. Business Plan & Pitching Deck Minder Chen, Ph.D. Professor of Management Information Systems Martin V. Smith School of Business and Economics California State University Channel Islands Camarillo, CA 93012 Minder.chen@csuci.edu minderchen@gmail.com

2. What Is a Business Plan? http://reimargroup.com/wp-content/uploads/2015/12/Business-plan-1.jpg

3. Resources • ** Project Plan Template for Group Project (link) – Use it as the template for the group project. • *How To Write a Winning Business Plan • https://hbr.org/1985/05/how-to-write-a-winning-business-plan • Business Plans: A Step-by-Step Guide • https://www.entrepreneur.com/article/247574 • Write a Winning Business Plan With These 8 Key Elements • https://www.entrepreneur.com/article/235054 • *How Do I Build a Business Plan? (Infographic) • https://www.entrepreneur.com/article/231525 • Create Business Plan - FormSwift • https://formswift.com/business-plan • https://formswift.com/sample-business-plans • Example: https://formswift.com/bakery-business-plan • SBA Tool • https://www.sba.gov/starting-managing-business

4. Purposes • The business plan admits the entrepreneur to the investment process. Without a plan furnished in advance, many investor groups won’t even grant an interview. And the plan must be outstanding if it is to win investment funds. • Too many entrepreneurs, though, continue to believe that if they build a better mousetrap, the world will beat a path to their door. A good mousetrap is important, but it’s only part of meeting the challenge. Also important is satisfying the needs of marketers and investors. Marketers want to see evidence of customer interest and a viable market. Investors want to know when they can cash out and how good the financial projections are.  ** https://hbr.org/1985/05/how-to-write-a-winning-business-plan http://webalumno.iese.edu/clubs/entrepreneurs/files/How_to_write_a_winning_biz_plan.pdf

5. Business Plan - the viewpoints of three constituencies We have found that the most important one is the accurate reflection of the viewpoints of three constituencies: • The market, including both existing and prospective clients, customers, and users of the planned product or service. • The investors, whether of financial or other resources. • The producer, whether the entrepreneur or the inventor. ** https://hbr.org/1985/05/how-to-write-a-winning-business-plan

6. Wining Formula • Emphasize the Market • Show the user’s benefit • Find out the market’s interest • Document your claims / tractions • Address Investors’ Needs • Cashing out (Exit strategies) • Making sound projections • The development stage – reduce the risk • The price ** https://hbr.org/1985/05/how-to-write-a-winning-business-plan

7. Packaging Is Important • Appearance • Length; < 40 pages • The Cover and Title Page • The Executive Summary: The two pages immediately following the title page should concisely explain the company’s current status, its products or services, the benefits to customers, the financial forecasts, the venture’s objectives in three to seven years, the amount of financing needed, and how investors will benefit. • The Table of Contents ** https://hbr.org/1985/05/how-to-write-a-winning-business-plan

8. Essential Elements of a Business Plan • Business Plan Executive Summary: Your executive summary is a snapshot of your business plan as a whole and touches on your company profile and goals. • Market Analysis: Before launching your business, it is essential for you to research your business industry, market and competitors. • Company Description: Your company description provides information on what you do, what differentiates your business from others, and the markets your business serves.  • Organization & Management: Every business is structured differently. Find out the best organization and management structure for your business. • Marketing & Sales: How do you plan to market your business? What is your sales strategy? • Service or Product Line: What do you sell? How does it benefit your customers? What is the product lifecycle? Tell the story about your product or service. • Funding Request: If you are seeking funding for your business, include necessary information in your plan. • Financial Projections: If you need funding, providing financial projections to back up your request is critical. • Appendix: An appendix is optional, but a useful place to include information such as resumes, permits and leases. https://www.sba.gov/tools/business-plan/1?interiorpage2015

9. Essential Elements of a Business Plan

10. https://www.entrepreneur.com/article/231525

17. Action Plans & Financial Statements Income Statement (Profit & Loss) Action Plan https://www.slideshare.net/olivierwitmeur/entrepreneurship-course-session-10

18. The Core Elements to Building a Successful Business Plan • Cover Sheet • Business Logo • Company name, address, phone number • Name of people creating plan • Date of plan's creation • Sum up in a paragraph the two main objectives for the business • Mission Statement • Sum up in a paragraph or two the main objectives of the business. • It should be concise and answer the following: Why does your business exist? What special services, skills or approaches make you stand out from your competitors? What will your business' public image be? What do you want for your customers? • Marketing Overview • Describe target market (group of customers you sell to) • Illustrate present or future competition • Relate what edge your product has in the existing market

19. The Core Elements to Building a Successful Business Plan • Business Summary • Include essential background information and structure of business. • Description of Business’ Legal Entity • Descriptive overview of products or services offered • Overview of business assets and future projections • Any specifications in regards to the business location • Other miscellaneous facets of business: • record-keeping, security, insurance • Marketing Strategy • Describe the marketing campaign that will be undertaken. • Include market entry plan (if a new company) • Role of location in marketing methods • Pricing strategy • Plan for distributing products/services. • Provide a summary of industry trends and advanced planning through a SWOT analysis.

20. The Core Elements to Building a Successful Business Plan • Management Structure • Description of how the company is organized • What are the job titles? • What are the responsibilities of each position? • The people chosen for relevant positions (if applicable) • Financial Overview • Sum up your business' financial requirements. • Provide a statement describing your funding sources and how you intend to apply said funds. • Describe your budget. • Provide a three-year income projection and a break-even analysis graph. • Provide statements reflecting past performance. • Provide a balance sheet with a summary conclusion section Sample Business Plan https://formswift.com/sample-business-plans

21. SBA Tool for Business Planning • https://www.sba.gov/starting-managing-business • https://www.sba.gov/tools/business-plan/1?interiorpage2015

22. 12 Slides of a Pitch Deck https://pitchdeck.improvepresentation.com/what-is-a-pitch-deck

23. Pitch Deck Do's https://pitchdeck.improvepresentation.com/what-is-a-pitch-deck

24. Pitch Outline • Product/Service What you product/service is for？What is the job to be done by your customer using your product/service？ • What the problem do you try to solve?What is the problem do you try to solve? Is it a problem without a existing solution? Is there a strong market need for it? • What is your solution? How is you product or service going to solve the problem? • Product and service detailHow is your product/service to be used or consumed？Give a usage scenario. • Market SizeIs the market size big enough? Can investors gain 10 times return on their investments? • http://www.inside.com.tw/2014/12/02/microsoft-ventures-pitch-skills

25. Pitch Outline • Business Model/ProfitabilityHow to you make money? How do you become profitable in the future? • Analysis of Competitor or Competing Products/ServiceWho are your competitors? Present a SWOT analysis. What is your core competence and/or unique advantages? • TeamEarly investors invent in “team”. Do you have team members with expertise in the industry or business domain. Is your team uniquely position to solve the problem? • Financial forecasting and funding planHow much money do you need? How are you going to spend the money? How much funding you are looking for and for what purpose?

26. Pitch Deck Example • What is a Pitch Deck • https://pitchdeck.improvepresentation.com/what-is-a-pitch-deck • Investor Pitch Deck Template Kit—Free Download • http://www.bplans.com/downloads/free-download-investor-pitch-templates/ • AirBnB Pitch Deck • http://www.slideshare.net/PitchDeckCoach/airbnb-first-pitch-deck-editable • Buzzfeed Seires A investor deck 2008 • http://www.slideshare.net/ChrisEllis6/buzzfeed-investor-deck-2008-37911918 • Linkedin Series B Pitch Deck (The Key is the Network) • http://www.slideshare.net/webjoe/linkedin-deck-27367069

27. http://masonmyers.com/built-to-last-or-built-to-flip/ & https://www.fastcompany.com/38659/built-flip