The document provides guidance on writing an effective business plan to engage investors. It emphasizes that business plans should be tailored for pitching investments and engaging interest. An effective plan will (1) define an unmet medical need, (2) demonstrate product differentiation versus competitors, and (3) detail an operational plan with timeline, costs and milestones. The document also notes several commonly overlooked areas that should be addressed, such as competitors, use of proceeds, and risk mitigation. The overall message is that business plans are iterative tools that should find champions, get feedback, and be revised to effectively engage investors.

1. 1
Writing a Business Plan
Jeanne Bolger, MD BCh BAO
Johnson & Johnson Innovation - JJDC
February 2015

2. Introduction – Jeanne Bolger
2

3. Agenda
3
Overview: Why a Business Plan?
Content: Commonly Overlooked Areas
Parting Thoughts

4. Business Plans are Tools to Start Conversations
with Investors, and Need to be Tailored as Such
4
Business
Plan
Pitch Diligence Transaction
?!

5. A Good Business Plan Engages Interest, Focuses
on Differentiation and Showcases Preparation
5
Demonstrating the following... …will trigger stronger interest from VCs
Define a specific unmet
medical and commercial
need
This is an important area
for us to consider an
investment
Demonstrate how the
product is differentiated
vs. competitors
Investing could make us
a leader in this field
Detail an operational plan
with timeline, cost and
milestones
This is the right team to
execute on the
investment
$

6. Engage Interest: The unmet need should be
focused, transparent and value creating
6
Scope
ValueCreation
Broad Focused
LowHigh
Money Pit
Niche
Investment
Blue Sky
High Risk
Ideal Investment
Opportunity

7. Differentiation: 3 ways you will beat
competitors when you reach the market
7
How will it translate to a
patient or customer?
Will your outcome be
binary, 2X or 10% better?
Will others be able to
replicate what you do?
?

8. Preparation: Genius is 1% inspiration, 99%
perspiration
8
An idea should not be proposed in
isolation; need supportive evidence

9. Agenda
9
Overview: Why a Business Plan?
Content: Commonly Overlooked Areas
Parting Thoughts

10. Topics to Address in a Business Plan
10
Executive Summary
Outline of Unmet Need
Product/Platform Overview
Market Research/
Competitive Intelligence
Operating Plan
IP/Financials

11. Competitors: Who are other smart people out
there solving the same problem?
11
Type II
Diabetes
Lifestyle
Surgery
Medicine

12. Use of Proceeds: Have you really thought about
how you will spend my money?
12
Task 2015 2016 2017 2018 2019 Budget Notes
Lead generation
Discovery
Optimization
Deliverable
$400,000
$300,000
$300,000
NewCo generates lead
Upfront
3 hit compounds
Lead plus 2 back ups
Subtotal $1,000,000
NME / IND
Base case
(no extension)
$500,000
NewCo generates NME /IND
Milestone
Subtotal
(base case)
$500,000
IND Extension 1
(12 month ext.)
IND Extension 2
(24 month ext.)
$250,000
$250,000
12 month ext. fee
12 month ext. fee
Subtotal
(extension)
$1,000,000 Includes 24 month ext. fee
Grand total $2,000,000 Includes 24 month ext. fee

13. Risk Mitigation: How prepared are you for the
hurdles you will face?
13
Technical
Risk
Operational
Risk
Regulatory
Risk
Market
Risk

14. Agenda
14
Overview: Why a Business Plan?
Content: Commonly Overlooked Areas
Parting Thoughts

15. Find a Champion, Get Feedback Syndicate
and Iteratively Revise Your Business Plan
15