A Company Business Plan
Sometime
Business Plan Updated 09/01/2009 09:47:00 PM
Information memorandum wording Insert LIMITED This Information Memorandum ("the Memorandum") is based on information and opinions supplied by the Board of Directors of insert Limited (“insert�) solely for the use by you and a limited number of other parties who may be interested in acquiring shares in insert. The Memorandum is being made available only to persons who are deemed sufficiently expert or sufficiently substantial to understand the risks involved and as such fall within Article 11 of the Financial Services Act 1986 (Investment Advertisements) (Exemptions) Order 1996. The Memorandum does not purport to be all inclusive or to contain all the information that a prospective investor may desire. The purpose of the Memorandum is to provide initial information to interested parties upon which they may base a decision as to whether to pursue the matter. The information in this Memorandum does not constitute or form part of any offer to sell any shares in insert nor shall the Memorandum or any part of it, or the fact of its distribution, form the basis of, or be relied on, in connection with any contract. If you do not wish to pursue this matter you must return the Memorandum immediately. insert together with its respective officers, directors, partners, advisers, agents and employees, make no representation or warranty, express or implied, in relation to and accept no responsibility or liability for, the accuracy or completeness of the Memorandum or any other written or oral information transmitted or made available to you or any prospective investor and in accepting this Memorandum you acknowledge such exclusion of liability is reasonable in the circumstances. Notwithstanding the foregoing, nothing in this paragraph shall exclude liability for fraudulent misrepresentation. Any prospective investor shall rely solely on its own judgement, review and business analysis in its evaluation and nothing contained herein is, or shall be relied upon, as a promise or forecast of the future or warranty. The information in this Memorandum will not be warranted other than as may be specifically set out in any agreement that may be entered into. This Memorandum (including its contents), is confidential, has only been made available to persons who have signed and returned a confidentiality agreement, and the recipients are therefore bound by that agreement in respect of all the information contained in this Memorandum. By accepting the Memorandum, the recipient acknowledges and confirms that it is acting exclusively as principal and not as agent or representative for another party. This Memorandum is for the exclusive use of the persons to whom it is addressed and shall not be copied, reproduced, distributed or passed to others without the prior written consent of insert. By accepting the Memorandum the recipient agrees upon request to return promptly all material received from insert (including this Memorandum) without retaining any copies. In furnishing the Memorandum, insert undertakes no obligation to provide the recipient with access to any additional information or to update this document or to correct any inaccuracies in it. It is the responsibility of any person outside the United Kingdom to whom this Memorandum is provided to inform himself about and to observe in full any laws of the relevant territory in connection with the distribution to and/or the possession by him of the Memorandum including the obtaining of any governmental or other consents and compliance with any other necessary formalities.
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Neither the receipt of the Memorandum by any person or any information supplied in connection with any proposed investment is or is to be taken as constituting the giving of investment advice.
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Contents A Company ................................................................................................................ 1 Business Plan .......................................................................................................... 1 Information memorandum wording..................................................................... 2 Insert LIMITED............................................................................................................. 2 Contents .................................................................................................................... 4 Executive Summary ................................................................................................ The Business............................................................................................................... The Opportunity............................................................................................................ The Offering................................................................................................................. Business Model/Revenue Sources.............................................................................. Marketing Strategy....................................................................................................... Management Team...................................................................................................... Financing...................................................................................................................... Investment Proposal and Exit Strategy........................................................................
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Mission Statement .................................................................................................. 7 Company Description ............................................................................................. 8 The Opportunity....................................................................................................... 9 Market Size.................................................................................................................. 9 Industry Analysis.......................................................................................................... 9 The Offering ........................................................................................................... 10 Business Strategy ................................................................................................ 11 Technology Strategy ............................................................................................ 12 Sales and Marketing Strategy ........................................................................... Target Market............................................................................................................. Sales Strategy............................................................................................................ Marketing Strategy.....................................................................................................
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Competitive Analysis ........................................................................................... 14 Operations Plan .................................................................................................... 15 Management Team ............................................................................................... 16 Critical Risk Factors ............................................................................................ 17 Financial Plan ........................................................................................................ 18 Required Funds..................................................................................................... 19 Investment Proposal ............................................................................................ 20 Appendix................................................................................................................. 21 Help – Text hierarchies ....................................................................................... 22 Help – Text layout................................................................................................ 24 Help – Charts & Tables layout .......................................................................... 25 Help - Information notes ..................................................................................... 29
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Executive Summary The Business Start Here. Point your cursor to the number at the end of this line should you require more information about this section. The Opportunity Start Here. Point your cursor to the number at the end of this line should you require more information about this section. The Offering Start Here. Point your cursor to the number at the end of this line should you require more information about this section. Business Model/Revenue Sources Start Here. Point your cursor to the number at the end of this line should you require more information about this section. Marketing Strategy Start Here. Point your cursor to the number at the end of this line should you require more information about this section. Management Team Start Here. Point your cursor to the number at the end of this line should you require more information about this section. Financing Start Here. Point your cursor to the number at the end of this line should you require more information about this section. Investment Proposal and Exit Strategy Start Here. Point your cursor to the number at the end of this line should you require more information about this section. 1
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Mission Statement Start Here. Point your cursor to the number at the end of this line should you require more information about this section. 9
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T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Company Description Start Here. Point your cursor to the number at the end of this line should you require more information about this section. 10
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
The Opportunity Start Here. Point your cursor to the number at the end of this line should you require more information about this section. Market Size Start Here. Point your cursor to the number at the end of this line should you require more information about this section. Industry Analysis Start Here. Point your cursor to the number at the end of this line should you require more information about this section. 11
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
The Offering Start Here. Point your cursor to the number at the end of this line should you require more information about this section. 14
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T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Business Strategy Start Here. Point your cursor to the number at the end of this line should you require more information about this section. 15
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T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Technology Strategy Start Here. Point your cursor to the number at the end of this line should you require more information about this section. 16
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Sales and Marketing Strategy Start Here. Point your cursor to the number at the end of this line should you require more information about this section. Target Market Start Here. Point your cursor to the number at the end of this line should you require more information about this section. Sales Strategy Start Here. Point your cursor to the number at the end of this line should you require more information about this section. Marketing Strategy Start Here. Point your cursor to the number at the end of this line should you require more information about this section. 17
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Competitive Analysis Start Here. Point your cursor to the number at the end of this line should you require more information about this section. 21
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Operations Plan Start Here. Point your cursor to the number at the end of this line should you require more information about this section. 22
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Management Team Start Here. Point your cursor to the number at the end of this line should you require more information about this section. 23
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Critical Risk Factors Start Here. Point your cursor to the number at the end of this line should you require more information about this section. 24
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Financial Plan Start Here. Point your cursor to the number at the end of this line should you require more information about this section. 25
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Required Funds Start Here. Point your cursor to the number at the end of this line should you require more information about this section. 26
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Investment Proposal Start Here. Point your cursor to the number at the end of this line should you require more information about this section. 27
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T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Appendix Start Here. Point your cursor to the number at the end of this line should you require more information about this section. 28
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T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Help – Text hierarchies The following are some hints on how to layout your business plan. Any business plan text is divided into hierarchies. All these hierarchies need different styles of text which are available in the type tool bar, to the left of the typeface menu. This is what they look like: The Heading 1, Section Title
Executive Summary In this template, all Sections Titles have been created and should not be moved or altered.
The Heading 2, Primary Heading The Business Headings are the highest hierarchy within a section
The Heading 3, Secondary Heading
The Business Secondary Headings are the second highest hierarchy within a section. Use them if you need headings within the text referring to a Primary Heading.
The Heading 4, Bullet Level 1
The Business Use to create bullet points within the Body Text.
The Heading 5, Bullet Level 2
The Business Use to create bullet points within another bullet point.
Body Text 22
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
This is body text. Trial settings which use other languages or even gibberish to approximate text have the inherent disadvantage that they distract attention to themselves.
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Help – Text layout This is what your text should look like when all the hierarchies are applied: Revenue Streams (Primary Heading) This is body text. Trial settings which use other languages or even gibberish to approximate text have the inherent disadvantage that they distract attention to themselves. As a simulation of actual copy, using ordinary words with normal letter frequencies, it cannot deceive eye or brain.
Ecommerce (Secondary Heading) This is body text. Trial settings which use other languages or even gibberish to approximate text have the inherent disadvantage that they distract attention to themselves.
CPD (Secondary Heading) This is body text. Trial settings which use other languages or even gibberish to approximate text have the inherent disadvantage that they distract attention to themselves. As a simulation of actual copy, using ordinary words with normal letter frequencies, it cannot deceive eye or brain.
• Bullet point Level 1. This is dummy text. It is intended to be read but have no meaning. As a simulation of actual copy, using ordinary words with normal letter frequencies, it cannot deceive eye or brain. Bullet Point Level 2. It is intended to be read but have no meaning. Bullet Point Level 2. This is dummy text. Bullet Point Level 2. What you see here is dummy text. Partnerships (Primary Heading) This is body text. Trial settings which use other languages or even gibberish to approximate text have the inherent disadvantage that they distract attention to themselves. As a simulation of actual copy, using ordinary words with normal letter frequencies, it cannot deceive eye or brain.
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Help – Charts & Tables layout The following three pages show you some examples on how to layout tables and charts. Every table and chart has its own data requirements, so follow the examples as a style guide only. As a general rule, avoid vertical lines in your tables. The first two examples were created in Excel and you can double click on them if you wish to change and use them. July 2000
Jan 2001
Phase 0 "Jump Start Value Phase 0 Proposition"
July 2001
Phase 1 "Build Collaboration Phase 1 & Commerce"
Jan 2002
July 2002 Phase 44 Phase "Exit" June 2002
Phase 3 "Roll Out" Phase 3
Phase 2 "Test & Scale" Phase 2
Marketing & Brand Develop Brand Register Users
Penetration Register Users Reg Subs
Penetration Register Users Reg Subs
Penetration Register Users Reg Subs
International Rollout
Marketplace V2 ERP Integration
Emerging Technologies
Technolgy
Content Management System
Develop Marketplace V1 Streaming Technology
Rollout & Scale Marketplace V1 Advanced Products
-----------.com
Target Users 1
Users 2
Target
Expand into other media
Round 2 Functionality
-------------.com People
Team 18
Candidate Partners Funding Required
Team 30, Hiring of CEO, COO, CFO. (Constitution of Non-Executive Board)
Team 40, Marketplace Compliance Panel
Team 50
MMF
£m
Consumables UK £000's
Funds for International Expansion
CY 2000 ( 6months)
CY 2001
CY2002
CY2003
CY2004
CY2005
78,125 75% 2% 1,171
156,250 84% 7% 8,515
156,250 89% 10% 13,828
156,250 90% 13% 18,281
156,250 93% 14% 20,344
156,250 95% 15% 22,266
Smile-on margin Revenue
10% 117
10% 852
10% 1,383
10% 1,828
10% 2,034
10% 2,227
Direct marketing Contribution
458 -341
522 330
440 943
400 1428
400 1634
400 1827
Total v alue of spend Penetration into product range Penetration into surgeries Value of spend thru SO
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T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Title
Title A
Title B
Title C
Title D
Title E
Title F
Item A
0
0
0
0
0
0
Item B
0
0
0
0
0
0
Item C
0
0
0
0
0
0
Item D
0
0
0
0
0
0
Item E
0
0
0
0
0
0
Total
0
0
0
0
0
0
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Key Strategies
Action Plans
Rational
Budget
1) Adopt a single positioning for all professional communication
Recruit communications agency
Dental insight into our product offering and communication plan will ensure we communicate the most motivating benefits in and an integrated launch plan in the most motivating way.
- £25,000 Mkt research, £30,000 agency fee (May-August)
Establish brand positioning, communicate offer and get a response
- £50,000 on media
Research positioning (see appendix “a”) Develop launch creative bundle for UK and European Roll-out 2) Off-line communication
Direct response advertising Launch direct response mailing
- £25,000 (£5,000 agency retainer there after) Sub Total £80,000
- £30,000 on launch mailing - £20,000 on follow up mailing
Follow up mailing
Sub Total £100,000 3) PR
Set up external agency
Editorial will add credibility to brand message
Develop PR plan for next 12 months
- £3,000 per month - £21,000 for rest of year Sub Total £40,000
Implement 4) Attend major Dental Exhibitions and sponsor key opinion former programmes
BDA 2000 and BDTA London
Adds credibility (a public face) to brand
Attend select satellite meetings
Underpins ethical professional positioning
Run training on the benefits of using the internet in practice
- £35,000 BDA - £30,000 BDTA London - £10,000 Satellite meetings - £70,000 European Expo’s
Sponsor key opinion former events
- £30,000 Sponsorship Sub Total £175,000
5) Develop a one to one relationship with each dental practice and dental professional
Select/purchase CRM software Select data handling resource/ database warehouse
To manage one to one relationship with profession and communicate the most motivating messages to the most motivated dentists.
- £60,000 software build - £30,000 management fee Sub Total £90,000
Set up a series of reports to track purchasing behaviour and effect of sales promotion activity
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Key Strategies
Action Plans
Rational
Budget
6) Test and rollout a series of “added value” offers in the E-Shop
5-25% discount brochure price
Drives sales using incentives that are not available off-line.
£100.00 x 2,500 practices
Loss leader offers
Sub Total £250,000
Offer free IT Training
Integrates the web site benefits.
Offer free qualifying hours of CPD
Test best mix of offers for European rollout.
Offer free use of recruitment pg Offer priority position on find a dentist search engine Offer discounted IT hardware 7) Educational Programmes
Develop/Research verifiable CPD programme.
Adds credibility to Smile-on’ ethical positioning.
Develop Promotion Plan for CPD
Generates revenue.
- £10,000 on research - £30,000 on promotion Sub Total £40,000
Develop patient education programme
8) Dental Student Programmes
Gather information about student needs on-line Develop a range of online services
1999 Marketing Budget
We will build registrations, develop our understanding, appear to really listen to student needs etc..
- £15,000 promoting online research - £60,000 on sponsorship and promotion to students
Launch at freshers fairs (Oct)
Sub Total £75,000
Including £150,000 to staff Marketing Department
£1,000,000
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UK Business Advisors Limited, White House, 66 Altwood Road, Maidenhead, SL6 4PZ
T: 0870 420 2756 F: 0709 280 8482 E: info@ukba.co.uk W: www.ukba.co.uk
Help - Information notes
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1 This section should contain a summary of what your business is: one-sentence description of what you do, what your vision/mission is, how you intend to generate revenue, what your initial focus will be. An investor should have a solid idea of what you are doing from this paragraph alone. Our advice is to leave this to last and only attempt to write it once you’ve done everything else. It is the most important part of this document and may be the only bit that anybody actually reads carefully…..so you must do the same. 2 Market size, trends, growth rates, needs, inefficiencies, fragmentation, etc. in the market you are going after. 3 What your business will deliver in response to the above opportunity. The value proposition. How exactly does your business add value to the industry? How does it reduce inefficiencies, aggregate industry players, etc. How will your business make money? 4 How will your business make money? What are the initial and long-term revenue sources? 5 How will you raise brand awareness, acquire customers, form partnerships etc. 6 . Who are the key members of your management team/ advisory board and how will their experience, expertise and connections allow you to execute? 7 What are your financial projections? What is the bottom line? What funds are required at what price (usually left blank) and how will your investors cash out? 8 What funds are required at what price (usually left blank) and how will your investors cash out? 9 What are your guiding principals or vision? What is the bigger picture for the business? 10 Company’s legal details: structure, location, number of employees, etc 11 A description of the opportunity your business is going after at, specifically tailored to what your business delivers! This section usually includes the following: 12 What is the size of the opportunity…..is the market growing? Is it trending up or down? Are multiple markets converging? Relevant graphs could include a pie chart, trendline, etc. 13 .How does this industry currently function? What are the current trends? What are the current inefficencies or needs in the industry? How do the different components of the industry currently interrelate? Relevant diagrams could include a cashflow diagram of the industry, a workflow 14 What is your business and what is the value proposition? How does it address the above industry conditions? How does it change the above diagrams? How will your business position itself with regard to the value chain? What exactly are the products and services you offer? How does your offering leverage the power of the network (community, positive feedback loops, network effect) ? Relevant graphs include the above diagrams (value chain, workflow, industry map, etc) with the addition of your business, to graphically show how your offering streamlines the workflow diagram, acts as a hub on the industry map, specific examples of value added, etc. 15 How will you execute? How will you deliver your offering? Include overall guiding principles as well as sequencing….in what order will you unfold your offering? Also include strategy for business development (strategic partnerships? Industry alliances?) 16 Is technology a significant part of your business? Are you developing technology from the ground-up or outsourcing it? How will internal/external technology be integrated? What are the reasons for these choices? Justify…competitive advantage, cost etc. 17 How will you get people to buy in to your offering? 18 Who is your target market? What are the relevant demographics of this market? 19 How will you sell your business? What is the pricing strategy? Justify. 20 How will you raise brand awareness? How will you attract and retain customers? PR plan? Marketing plan? 21 If you are first mover in this space, how will you use this competitive advantage? What barriers to entry exist for potential competitors? Proprietary technology? Exclusive partnerships? Can you build critical mass before other competitors enter? What is the competitive landscape? Indirect competitors? If you are not a first mover, where is the opportunity relative to the existing competition? Provide map of competitive landscape and analysis of the offerings of your competitors, direct and indirect. Future threats from other major industry players? 22 Detailed execution plan. What is your plan to unfold the above strategies? Timeline, workforce requirements,etc. See sample phase diagram in the help section of this document. 23 Who will execute? Why are they qualified to execute? Bios of team and board of advisors. 24 What could go wrong? Show that you have evaluated the worst possible case scenarios… 25 Projected cash flows……what are your projected revenues and expenses etc. when will you break even…what percent of marketshare must you capture to reach these revenues and what are your assumptions, sensitivity analysis, etc. 26 How much money do you require to execute your plan, given your timeline etc. 27 How much money are you raising and at what price. (exact amounts are rarely provided) 28 Supporting graphs, calculations etc.