1. Business Plan Preparation Frank Moyes Leeds College of Business University of Colorado Boulder, Colorado Publishing the Plan & Investor Presentations

2. Today’s Agenda Matt Emmi, founder OneButton Publishing your plan Investor presentations Executive Summary Team meetings – review financial projections Hand-in Management Plan Financial Plan (4 statements) Income Statement Balance Sheet Cash Flow Assumptions Publishing the Plan & Investor Presentations

3. End of Semester Schedule I Practice Presentations Workshop 1 hour Dec 6 & 7 S127 Dec 8 (Monday) 12:00 noon email Exec Summary in Word.doc to Frank Publishing the Plan & Investor Presentations

4. End of Semester Schedule II Dec 10 (Wednesday) Cut Round all teams for grade Morning session begins at 8:30am Evening session begins at 6:30pm Presentations in S127 15 minute presentation 15 minute Q & A Publishing the Plan & Investor Presentations

5. End of Semester Schedule III Hand in 2 copies of Plan 1 copy Financial model – all worksheets 1 copy of slide presentation Select 4 teams for finals Grading Criteria are on the website Attendance required to do FCQ’s & peer evaluations Business casual Publishing the Plan & Investor Presentations

6. End of Semester Schedule IV Jan 12 (Monday) four finalists submit 6 copies to Deming Entrepreneurship Center before 12:00 noon Jan 14 Finals Competition Reception at 5:30 Competition in at 6:00 in ? (video) Invite friends and family Publishing the Plan & Investor Presentations

7. Publish Your Plan I Length Plan: 20 pages max Appendices: 10 pages max 5 year IS, BS and CF in Appendix with detailed assumptions Customer survey: summary results and how conducted Resumes Development Gantt timeline Drawings, specifications, layout Capital expenditure detail Other import information that investors would need to understand the plan Publishing the Plan & Investor Presentations

8. Publish Your Plan II Font size 12 point Use tables and graphs (sources) Show sources of info in parentheses or footnotes Spiral binding, white paper Cover sheet with team member names Publishing the Plan & Investor Presentations

9. Publish Your Plan III Financial info in Plan Financial Summary with key assumptions Offering & Valuation Sources & Uses 5 year IS, BS and CF in Appendix with detailed assumptions Financial projection from the model with all assumption worksheets in separate binding Publishing the Plan & Investor Presentations

10. Publish Your Plan IV Less is better White space Make it interesting to read Make it real Use photos Use color if it is appropriate No weasel words Proof read and spelling Publishing the Plan & Investor Presentations

11. Business Plan Elements Executive Summary Company Overview Product or Service Description Market & Industry Analysis Marketing Plan Operations Plan Development Plan Management Plan Competitive Advantage Financial Plan Funding Publishing the Plan & Investor Presentations

12. One Page Executive Summary Opportunity Product/Service Marketing Strategy Competitive Advantage Management Financial Funding Publishing the Plan & Investor Presentations

13. Executive Summary Opportunity Product/Service Marketing Strategy Competitive Advan Management Financial Funding = Size, trends & solves a problem = Differentiation = Key elements = Sustainable = Critical = Revenue, profitability = Cash required, offering Publishing the Plan & Investor Presentations

14. Presenting Your Plan 15 minutes Make it real - tell a story Focus on 3 or 4 points you want judges to remember Introduce points Repeat in Summary Show prototypes, exhibits, short videos Test slides for clarity in your class room before presentation Practice transitions between presenters Publishing the Plan & Investor Presentations

15. Presentation Slides 12 to 15 Slides Back-up slides to help in answering likely questions Each slide conveys one point Everything on the slide must support the point 3 bullets Use simple graphics to convey point Publishing the Plan & Investor Presentations

16. Questions & Answers 15 minutes Answer 30 seconds or less Decide beforehand who will answer what questions Unless team member is in trouble, only one answer If don’t like your answer, they will ask again If you don’t know the answer, say so Publishing the Plan & Investor Presentations

17. Killer Slide Presentation Overview (3 key points) The Problem Opportunity The Solution Target Customer Competition Sustainable Competitive Advantage Go To Market Strategies Management Financial summary Funding Risks Funding & Offering Conclusion (3 key points) Publishing the Plan & Investor Presentations

18. How to Make an Effective Investor Presentation Sources Jim Linfield, Cooley Godward Deloitte & Touche accelerator Publishing the Plan & Investor Presentations

19. Title Slide Name of your firm Date Name of investor firm Optional: How much money is being sought for this round? Appropriate graphics (logo, etc.) Publishing the Plan & Investor Presentations

20. Overview Elevator speech (not on slide) Value proposition (not on slide) Introduce team 3 key points want investors to remember Get their attention Publishing the Plan & Investor Presentations

21. The Problem What problem are you solving? Must be easily understood & communicable Validate by referring Customer research Interviews – use quotes Publishing the Plan & Investor Presentations

22. Opportunity Size & growth Trends Focus on your segment Publishing the Plan & Investor Presentations

23. The Solution Describe what you do Key features Benefits to target customer (could be a 2 nd slide) Future products/services Publishing the Plan & Investor Presentations

24. Target Customer Validation - use your customer research Consumer Demographics & psychographics How make buying decisions Business Type of companies How make buying decisions Publishing the Plan & Investor Presentations

25. Competition Identify your competitors Current & future Direct & indirect Strength & weaknesses Barriers to entry that you face Publishing the Plan & Investor Presentations

26. Sustainable Competitive Advantage How are you different than your competitors Perceptual maps? Barriers to entry that you can create Resources and capabilities Publishing the Plan & Investor Presentations

27. Go to Market Strategy (could be 2-3 slides) High Level description Target market Distribution - channel Positioning Sales strategies Communications Pricing strategy Roll out plan Partnerships Publishing the Plan & Investor Presentations

28. Go To Market Strategy F1000 MID- MARKET $4B Market INDIRECT SALES 18% DIRECT SALES 82% Distributors 6 US 10 European 2 Asian Strategic Partners IBM Today Publishing the Plan & Investor Presentations

29. Distributors Sirrius AvNet Support Net F1000 MID- MARKET $4B Market INDIRECT SALES 50% Strategic Partners IBM ISS Symantec Tripwire Independent Software Vendors JD Edwards SAP Infinium Tomorrow DIRECT SALES 50% Go To Market Strategy Publishing the Plan & Investor Presentations

30. Management Key officers Backgrounds Accomplishments Who is missing? Interim management Publishing the Plan & Investor Presentations

31. Financial Summary Publishing the Plan & Investor Presentations

32. Risks 2 or 3 that are unique to you venture What can go wrong & what must go right? How will you mitigate Publishing the Plan & Investor Presentations

33. Funding & Offering Sources & Uses Different rounds Amount being raised % of Company Return on Investment See Hecho en Case & Chalk2Me Debt Repayment terms Interest rate Exit Publishing the Plan & Investor Presentations

34. Hecho en Casa Sources & Uses Statement FinancingAmountOwnershi p Uses of Funds Round A (June 2005) $315,00041.0%Salaries $221,800 Inventories $ 60,100 Working Capital $ 16,400 Capex $ 15,000 Other $ 1,700 Round B (Oct. 2006) $310,00015.5%Salaries $197,100 Inventories $ 79,200 Capex $ 30,000 Other $ 3,700 Round C (Q3 2007)$170,0004.0%Salaries $122,000 Inventories $ 41,700 Capex $ 6,300 Publishing the Plan & Investor Presentations

35. Conclusion Summarize 3 key points Good investment Questions Publishing the Plan & Investor Presentations

36. Backup Slides Revenue Model Customer research summary Operations Key benchmarks Key financial assumptions Publishing the Plan & Investor Presentations

37. Be Ready to Talk About Your Critical Assumptions Margins Comp’s Key assumptions Break-even Major expenditures Working Capital Burn rate Publishing the Plan & Investor Presentations

38. Suggestions Use your customer surveys to support Tell a story Don’t be boring Use charts, graphs, simple tables Publishing the Plan & Investor Presentations