Business Plan Writing A Roadmap to Success
Author : Eva Hukshorn, partner EFactor
1.
Efactor is a Smart Network that matches entrepreneurs with the very people who can help them grow
2.
Finding Business Partners: from partners to investors, from coaches to customers
3.
Largest Entrepreneurial Network in the World with 1mio members in 185 countries
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An online community Offering you a network, knowledge, events, and every business resources you need to succeed @ discount!
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It’s not about connections - it’s about the right ones…
A Solid Business Plan is Important : Luck is For The Unprepared! Business plan: learn to Live & Breath your company, market and customers.
Business plan as a tool: • Systematic approach for mapping your idea • Focus • Entry strategy • Identifying gaps: knowledge, experience, specialists • Checklist of resources • Communication tool • Practice Business plan is for YOU and YOUR SUCCESS!
Business Plan = Guidebook for the Founder
Some Basic Ingredients to Start a Successful Company
3 Key Elements of Life: Ideas, People and Money
Take a Different Approach, Become Your Own Investor
• Your own investment does not consist only of time spend
• Become as critical as your external investors would be
• Your Team is as important as your idea
• Money is the end-game of the investor, so is yours
You are the biggest investor of them all!
Evolution of Your Startup Life YOUR IDEA
1 2 3
•
Time Spend: 6-9 months
•
describe the problem you are solving for whom
•
Test for outside interest
YOUR BUSINESS PLAN •
Time spend: 2-3 months
•
details of the execution process
•
5 years, 3 phases, 1st phase 18 months explicit
YOUR COMPANY •
Time spend: ?
•
Structure tasks, weekly, monthly
•
Success = old investors out, new investors in
9-12 months Preparation Before Launch
Content to Cover in Your Founder’s Guidebook
Your Idea: Preparation
Problem to be solved Target
group
Need by target group Unique selling point Technical details Comparable product competitors Superiority of your product Duplicable Protection Costs of production
Your Idea: Business Plan Content
1. Illustrate & quantify 2. Content: 1. Name of product or serve 2. Name of founder 3. Illustration of product or serves 4. Description 5. Benefit 6. Unique selling point 7. Protection 8. Description target group & market 9. Revenue model
Marketing & Sales: Preparation
Competitive advantage Competitors Substitutes Describe customer Choice target segment Size market Market share Market price Communication Distribution
Marketing & Sales : Business Plan Content
Marketing & Sales : Business Plan Content
Management Team: Preparation
Members & Responsibilities Credentials Founders Skills Missing skills Expansion Motivation Advisors Contracts Operational procedures
Management Team: Business Plan Content
Organization : Preparation
Business model
and supply chain
Activities in-house Activities outsourced License Main focus business model Organization chart Team expansion Corporate culture Picking partners Your added value
and costs
Finance : Preparation
Assumptions Cash flows next 18 months Cash flow next 3-5 years Profit & Loss next 3-5 years Balance sheet next 3-5 years Ratio’s & drivers Break-even point Capital need until break-even Capital need best-case Capital need worst-case
SWOT Analysis : Know Thyself
INTERNAL : Strength & Weakness • Resources: financial intellectual • Customer service • Efficiency • Competitive advantages • Infrastructure • Quality & price • Delivery Time • Costs • Capacity • Personnel / management • Organizational structure
EXTERNAL : Opportunities & Threats • Political • Legal • Economic condition market • Expectations of stake & shareholders • Technology • Public expectations • Competitive environment • Barriersto entry • Commodity prices • Amount of customers • Structure of suppliers
Funding : Preparation
Capital need until break-even Capital in up- & downside case How many funding rounds Own funds available External funds needed Deal: money versus equity/debt Terms
& conditions
Investor type Return on investment Exit
A Summary of Your Vision and Strategy : Your Milestone Overview
Conclusion & Final Remarks CONTENT & QUESTIONS for preparation Don’ts: 1. Quick
validation
2. Sales most relevant 3. Delete trial balloons 4. Wrong audience
Next webinar = July 3: Pitching & Presentation – 3 Minutes, 1 Impression
5. Advisor plague 6. Poor understanding financials 7. Poorunderstanding product 8. Underestimate competition 9. Low pricing strategy 10. Under-define capital requirements
Business plan writing = Roadmap to success!
DO: BE PREPARED!!
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Thank You!
This document was prepared by Eva Hukshorn. Several people and organizations have inspired her to write this presentation, amongst which are, but not limited to the Founders of Efactor, McKinsey & Company/New Venture, BiTs, ABN AMRO/RBS