Your Business Plan

صفحه 1:
UC Santa Cruz September 23, 2000 Steve Mushero GLOBALTECH www.globaltech.com - mushero@globaltech.com 

صفحه 2:
Why do a plan ? ‏سلا مم‎ * To raise money * To see if you want to raise money * To plan your startup * To reduce the risks - financial, market, technology, team Copyright 2000 GLOBALTECH 2 

صفحه 3:
305 للب سه * Compelling " Tell a gripping story * Concise = Short, powerful, to the point * Complete = All NECESSARY information " Not everything you can think of Copyright 2000 GLOBALTECH 3 

صفحه 4:
Plan Components SS * Executive Summary * The Plan * Financials * Cover Letters / Emails Copyright 2000 GLOBALTECH 4 

صفحه 5:
Who reads what ‏سس‎ * Executive Summary is critical = You will mail this out = Investors will start here "Goal: Next step * Business Plan = Rarely read, maybe in diligence = You must know it cold * Financials = Perhaps read = You must know it colder Copyright 2000 GLOBALTECH 5 

صفحه 6:
Executive Summary سس * Purpose - Next Step * Structure - 2-3 pages * Format - Short & Clean * Main concepts =" Unfair monopoly = Great idea " Great interest/market " Great execution planned = Great people « Great financials Copyright 2000 GLOBALTECH 6 

صفحه 7:
Exec Summary Outline سس * Summary = Very concise, strongest messages = Make them keep reading = “MyCompany.com will create world peace using patented technology that makes everyone happy. The market is the world GNP, or $100 trillion dollars, the founders are all ex- presidents of western countries and customers are all lined up.” Copyright 2000 GLOBALTECH 7 

صفحه 8:
Problem — * What extremely painful problem are you solving ? * Describe in concrete terms, " Be as familiar as possible, connect with reader * Hit hot buttons " Costly, time consuming, paper intensive, fragmented, chaos Copyright 2000 GLOBALTECH 8 

صفحه 9:
Solution ‏سس‎ * What is your solution * Value proposition (why will someone buy it) * How does it work (briefly) * Why is it better * Pricing and acceptance * “People will pay $100/month for this.” * Future products / revenue * Keep it short Copyright 2000 GLOBALTECH 9 

صفحه 10:
Market / Need ‏سس‎ * Who are the customers and how many are there * Use ADDRESSABLE market, not market size = How much you can get ! = If you help rent apartments, the market is not the world-wide rental market. * Pricing - plan, power * Barriers to entry * Cite external sources Copyright 2000 GLOBALTECH 10 

صفحه 11:
Execution — * Critical - show you can manage this * Customers / Revenue today * Technology status and plan * Marketing plan and cost * Sales strategy * Partners, existing and planned Copyright 2000 GLOBALTECH 11 

صفحه 12:
Competition SS * Be honest, more or less * List of firms and products * Why you are better " What if you are late to market " Don’t be “me-too” or have a few extra features * Barriers to entry Copyright 2000 GLOBALTECH 12 

صفحه 13:
People ‏له‎ * Impressive bios =" Management " Advisors * Accomplishments * Startup experience * Working as a team Copyright 2000 GLOBALTECH 13 

صفحه 14:
Money ‏د للح‎ * How much you need * How long it will last * How it will be used * Some milestones for reference * Financials - one page summary Copyright 2000 GLOBALTECH 14 

صفحه 15:
Business Plan — * Executive Summary, plus more * More in depth * More execution * More market and need analysis * Back up everything you say in appendices Copyright 2000 GLOBALTECH 15 

صفحه 16:
Business Plan Extras سس * Solution = Product details, flow = Technology specs (high level) = Follow on products * Market =" Marketing methods / plan = Who the customers are =" Market segments = Future directions/growth = Pricing options = Sales methods, cycle = Partners and your value to them Copyright 2000 GLOBALTECH 16 

صفحه 17:
Business Plan Extras سس * Execution " Staffing and office plans " International strategy = PR strategy Copyright 2000 GLOBALTECH 17 

صفحه 18:
Financials ‏سس‎ * Sophisticated is good, but simple is okay * Do three years * Multi-sheet Excel " People / Payroll, loaded " Capital expenditures = Expenses = Revenue " Cash flow Copyright 2000 GLOBALTECH 18 

صفحه 19:
Resources ——_ | * GLOBALTECH * www.globaltech.com * Artemis Ventures =" www.artemis.ventures.com/resources.html * Other VC Sites Copyright 2000 GLOBALTECH 19 

صفحه 20:
Thanks ! — Steve Mushero Mushero@globaltech.com www.globaltech.com 888-564-8004 Copyright 2000 GLOBALTECH 20 

Your Business Plan UC Santa Cruz September 23, 2000 Steve Mushero GLOBALTECH www.globaltech.com mushero@globaltech.com Why do a plan ?  To raise money  To see if you want to raise money  To plan your startup  To reduce the risks – financial, market, technology, team Copyright 2000 GLOBALTECH 2 3 C’s  Compelling  Tell a gripping story  Concise  Short, powerful, to the point  Complete   All NECESSARY information Not everything you can think of Copyright 2000 GLOBALTECH 3 Plan Components  Executive Summary  The Plan  Financials  Cover Letters / Emails Copyright 2000 GLOBALTECH 4 Who reads what  Executive Summary is critical    You will mail this out Investors will start here Goal: Next step  Business Plan   Rarely read, maybe in diligence You must know it cold  Financials   Perhaps read You must know it colder Copyright 2000 GLOBALTECH 5 Executive Summary  Purpose – Next Step  Structure – 2-3 pages  Format – Short & Clean  Main concepts       Unfair monopoly Great idea Great interest/market Great execution planned Great people Great financials Copyright 2000 GLOBALTECH 6 Exec Summary Outline  Summary    Very concise, strongest messages Make them keep reading “MyCompany.com will create world peace using patented technology that makes everyone happy. The market is the world GNP, or $100 trillion dollars, the founders are all expresidents of western countries and customers are all lined up.” Copyright 2000 GLOBALTECH 7 Problem  What extremely painful problem are you solving ?  Describe in concrete terms,  Be as familiar as possible, connect with reader  Hit hot buttons  Costly, time consuming, paper intensive, fragmented, chaos Copyright 2000 GLOBALTECH 8 Solution  What is your solution  Value proposition (why will someone buy it)  How does it work (briefly)  Why is it better  Pricing and acceptance  “People will pay $100/month for this.”  Future products / revenue  Keep it short Copyright 2000 GLOBALTECH 9 Market / Need  Who are the customers and how many are there  Use ADDRESSABLE market, not market size   How much you can get ! If you help rent apartments, the market is not the world-wide rental market.  Pricing – plan, power  Barriers to entry  Cite external sources Copyright 2000 GLOBALTECH 10 Execution  Critical – show you can manage this  Customers / Revenue today  Technology status and plan  Marketing plan and cost  Sales strategy  Partners, existing and planned Copyright 2000 GLOBALTECH 11 Competition  Be honest, more or less  List of firms and products  Why you are better   What if you are late to market Don’t be “me-too” or have a few extra features  Barriers to entry Copyright 2000 GLOBALTECH 12 People  Impressive bios   Management Advisors  Accomplishments  Startup experience  Working as a team Copyright 2000 GLOBALTECH 13 Money  How much you need  How long it will last  How it will be used  Some milestones for reference  Financials – one page summary Copyright 2000 GLOBALTECH 14 Business Plan  Executive Summary, plus more  More in depth  More execution  More market and need analysis  Back up everything you say in appendices Copyright 2000 GLOBALTECH 15 Business Plan Extras  Solution    Product details, flow Technology specs (high level) Follow on products  Market        Marketing methods / plan Who the customers are Market segments Future directions/growth Pricing options Sales methods, cycle Partners and your value to them Copyright 2000 GLOBALTECH 16 Business Plan Extras  Execution    Staffing and office plans International strategy PR strategy Copyright 2000 GLOBALTECH 17 Financials  Sophisticated is good, but simple is okay  Do three years  Multi-sheet Excel      People / Payroll, loaded Capital expenditures Expenses Revenue Cash flow Copyright 2000 GLOBALTECH 18 Resources  GLOBALTECH  www.globaltech.com  Artemis Ventures  www.artemis.ventures.com/resources.html  Other VC Sites Copyright 2000 GLOBALTECH 19 Thanks ! Steve Mushero Mushero@globaltech.com www.globaltech.com 888-564-8004 Copyright 2000 GLOBALTECH 20