1. Business Plan 5.4 1

2. What is a Business Plan? Defn: “written document containing the guidelines for the business center’s (product/ group of products/ market segment) marketing programs and allocations over the planning period” 5.4 2

3. How to Write a Great Business Plan 5.4 3

4. The “Business Concept” Customers’ Really Big Problem Valuable, Differentiated Solution What are Their Needs and Wants? How Do They Solve It Today? How Do They Buy? What Do They Value/Pay? How “Really Big” Is The Problem? How Are We Different? How Do We Deliver Value? What Do We Build/Buy/Partner? How to Balance Speed & Quality? What’s Our Solution? 5.4 4

5. Your “Investor Toolkit” 1. Executive Summary (of the Business Plan) ■ 1-3 page standalone Word or PDF document 2. Investor Pitch ■ 10-16 Slide PowerPoint 3. Business Plan ■ 15-40 Page Word or PDF document 5.4 5

6. Your “Investor Toolkit” 1. Financial Plan ■ 5-20 Page Spreadsheet ■ 2-3 pages in Business Plan ■ 1 Slide in Investor Pitch 5.4 6

7. How This Works Sum You Advisors Sum Investors Sum Investor Pitch Investor Presentations PPT BP Fin Due Diligence BP Fin Terms Negotiations Funding $ Great, send me your business plan & financials I’d like to meet Investor Pitch All Partners Meeting PPT 5.4 7

8. 8 What’s in a business plan? Business Plan Sample Table of Contents 1.Executive Summary 2.Problem/Market Opportunity 3.Business Concept & Vision 4.Solution 5.Competitive Landscape 6.Intellectual Property 7.Customer Value Proposition 8.Revenue Model 9.Sales, Marketing & Alliances 10.Manufacturing/Operations 11.Financials 12.Investment/Uses of Funds 13.Team No “right or wrong” – just “complete” and “incomplete” Adjust sequence to tell your story Team Customers Solution Lead with your strength 5.4

9. Problem/Market Opportunity What’s the REALLY BIG PROBLEM you’re solving? What’s the market size? How much is spent ON THIS PROBLEM today? How fast is the market growing? Compound Annual Growth Rate (CAGR) What are the market trends? Why invest now? 5.4 9

10. Business Concept Introduce your company - what’s your idea? What kind of company are you? “We sell software”, “We license pharmaceuticals” Who will you sell to? Specific titles, demographics, examples What are their biggest problems? How being addressed today? What people are willing to pay for your solution? 5.4 10

11. Solution What is your solution to the problem? What is your technology? How does it work? How is it better? Functions? Features? What are you actually selling? Answer, “So what?” Describe benefits. 5.4 11

12. Customer Use & Value Proposition Include your protagonist, the customer, in the story. How is their life better after using your solution? How do economics work for one customer? How does that customer justify purchase? Include “Whole Product” cost 5.4 12

13. 13 Competition From the buyer’s perspective Who else do buyers consider as substitutes? From the investor’s perspective If you prove there’s a profitable market, who else would enter? Then how will you beat them? What’s your strategy to win long term? 5.4

14. Barriers to Entry/Intellectual Property Brief (1-2 sentence) patent description & number Patent approval status Status of key regulatory approvals (e.g., Ministry approval, legal approval, ISO certification) Also different business model, limited distributors or partners, few global players, financials required to be successful, etc. 5.4 14

15. Revenue Model / Business Model Describe revenue streams & pricing, e.g.: License fees, subscription revenues, service contracts, consulting fees, gain share, etc. Distinguish 1-time vs. ongoing Distinguish by product and market What is pricing based on? How does price compare to customer value? What PROOF do you have that customers will actually pay this for your solution? 5.4 15

16. Sales, Marketing & Alliances “Go to Market” strategy How will you reach your customers? How much website traffic? Type of sales model ( direct, keywords, telesales, through partners, etc.) What will it cost to sell the product? What are the risks? 5.4 16

17. 17 Operations/Manufacturing For product companies How will product be built? Who on the team is managing? Are costs known ? contracted for ? Offshoring? Outsourcing? Your team’s experience with this? 5.4

18. Financing/Uses of Funds How much capital are you raising? Debt/equity? How will the money be used? 5.4 18

19. Team Describe the team members and advisors Their role & responsibility relative to the plan, and Their relevant experience achieving similar results CEO Prior relevant experience? Who is accountable for the investment? Avoid “Three musketeers” 5.4 19

20. Cover Company name Industry Date Contact information Name of primary contact Email Office phone Mobile phone Company website 5.4 20

21. Write a Business plan for a New Service you want to introduce in your sub- Division 5.4 21