3. Acknowledgments
Consultants
INJAZ Al-Arab expresses its gratitude to the consultants for their contributions to the
development of INJAZ Al-Arab Startups Program. Their expertise in entrepreneurship,
startups, business, curriculum development and pedagogy has significantly enhanced
the quality of this program.
• Khaled Sadeddin, Entrepreneurship and Business Management Consultant.
• Maher Kaddoura, Founder and General Manager, Meydan Business Incubator.
• Ayman Basheer, Startups Business Consultant.
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5. Contents
Program Overview P6
Startups Quick Guide P8
Startup Check List P 10
Website Registration P 14
Your Access Code P 16
Start The Application P 18
The Three Critical Parts Of The Application P 20
Application Submission P 22
The Complete Business Plan P 24
The One Hour Interview P 26
A Matching Event P 28
Booth Setup P 30
Elevator Pitch P 32
Incubator Agreement P 34
Mentors P 36
Seed Funding P 38
Company Registration P 40
Your Bank Account P 42
Accounting Firm P 44
5
6. Bookkeeping And Auditing P 46
The Incubation P 50
Business Model, Financial Model, Business Plan, … P 52
Your Learning P 54
Incubation Sessions P 56
Angel Investor P 58
Execution P 60
Achieving Sustainability And Profitability P 64
Office Renting P 66
Sustainability And Growth P 68
Tools
Tool # 2 : Executive Summary Template P 72
Tool # 6 : Business Plan Tool Guide P 78
Tool # 14 : Startup Stages P 88
Websites P 90
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7. Program Overview
Objective
The program aims to give carefully selected “companies” the chance to establish real business entities and operate
them into profitability as going concerns. Those selected companies would be provided with seed funding, physical
incubation by sponsoring businesses, and mentoring services provided by the incubators’ staff.
How does it work?
In collaboration with various corporate incubators across the Arab World and a funding entity, the new program aims to
bridge that gap in seed funding, eco-system support, and mentorship and offer the graduates of those programs a new
path leading them to set up profitable small businesses with the potential of growth.
Who Would Benefit?
Short Tem Targets
Companies that went through the JABE and Company Program are encouraged to apply and set up growth focused, for
profit business entities that are going concerns.
Long Term Targets
Any startup company in Arab countries where INJAZ operate can benefit from this program. A slightly different path is
set for them where such companies have to meet rigorous criteria before being admitted into the program.
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8. The Process
• INJAZ graduates:
a. Apply to the program online
b. Application is subjected to a set of selection criteria
c. Once approved, the application is directed to the local INJAZ office/country where the company operates
or intend to operate in
d. Corporate incubation is offered through a match making process, where the incubator chooses the
company it wants to incubate based on its own evaluation of the services and support it can offer the
incubated company
i. The company is physically incubated for six months and after six months they graduate from the
program and have to be market ready and able to self-sustain through profitable operations or
second round of Angel investment or Venture Capital Investment.
e. Each incubator assigns a principal mentor
i. The mentor ensures adequate support to the incubated company through direct interaction with
him/herself and other mentors in the incubator or through mentor networking activities (where the
company is matched with business mentors from other companies).
f. Seed funding from INJAZ (which controls the funding process) is offered based on a submitted budget
(with maximum funding of $ 15,000 USD).
i. The budget is linked to certain milestones and the assigned mentor from the incubator is entrusted
with monitoring the expenditures of the incubated company.
ii. Expenses are monitored by the accounting entity who sign off on the account in collaboration with
the incubated company
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9. Startups Quick Guide
1. Refer to your Startup Check List
2. Read Orientation to Startups to understand the stages that each startup goes through, the driving
issues of each stage, and the deliverables/must have of each stage (Refer to Tool # 14, Orientation
For Startups)
3. Read the What is a Business Model
4. Design your own business canvas
5. Refer to Business Modeling Guidelines Plus Examples for detailed explanation on business
modeling and to see many examples of business models
6. Once you finish your Business Model Canvas, start working on your Financial Model
7. Read and closely examine the Financial Model Explained
8. Use the One Page Financial Model to build your own business model
9. Study the 10 Weeks Work Plan Explained carefully
10. Use the 10 Week Work Plan Template to develop your own work plan or action plan
11. Refer to the marketing and sales material and develop your own One Page Marketing Plan
12. Refer to the pitching folder and use the template as guidelines and develop your own Ten Minutes
Pitch (the template is a guideline to help you develop your own pitch)
13. Once you launch your business, update your business plan to reflect realities of the market
(including real sales versus projections, real costs versus projections, challenges in marketing and
sales, etc.)
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11. Startup Checklist
6 5 4 3 2 1
7
One Hour
Interview Submit your Submit Finish the Start the Receive the Go to our
complete application three critical application access code website and
8 business plan before parts of the to the tools register
deadline application and the
application
A matching process
event
9 10 11 12 13 14 15
Set up a
booth
Give your two sign an Get mentors Seed Register your Open a bank
minute agreement funding company account
elevator pitch with a
on stage particular
incubator
11
12. 26 25
G R O W ! 24
Sustainable and
Now you Rent an profitable business
should have office within 6-months
a self- 23
sustaining
business
Start
executing
you work
plan
16 17 18 19 20 21 22
Prepare yourself
for the angel
investor
Hire an Bookkeeping 6 months of Develop you Guide your Use the Three
accounting And Auditing incubation business learning Types of
firm model, interaction
financial Sessions
model, work
plan, … 12
21. 4 Finish the three critical parts of
the application
21
22. You need to develop the following parts:
1. Business Plan (use the business plan template provided in the tools section
of the website, Refer to Tool # 6, Business Plan Template).
2. Executive Summary (Refer to Tool # 2, Executive Summary Template).
3. Two Minute Elevator Pitch:
i. Make a video of the elevator pitch.
ii. Upload the video to YouTube.
iii. Attach the YouTube link to your application.
22
23. 5 Submit application before
deadline including all the part on
the next page. If you passed this
stage, you will be asked to submit
your complete business plan.
23
24. Develop the following to send with the application:
1. Initial application (Refer to Tool #13, Startup Program Application Form).
2. The Executive Summary (Refer to Tool #2, Executive Summary Template).
3. A YouTube video of the Two Minute Elevator Pitch
24
25. 6 Go to website and submit your
complete business plan.
25
29. 8 If you are selected (after the
interview), you will be asked to
participate in a matching event
where you will meet potential
investors, incubators, and
mentors.
29
31. 9 You will need to set up a
booth and have your product
demo/literature, company
literature, and copies of your
business plans ready for
investors, mentors, and
incubators
31
33. 10 You will be invited to give your
two minute elevator pitch on
stage and then retire to your
booth where you will be
expected to answer questions
regarding your business and your
business plan
33
35. 11 If an incubator selects you then
you will be asked to sign an
agreement with that particular
incubator where you will be
incubated in their premises for
six months. (Refer to Tool #10,
Sample MOU Agreement)
35
37. 12 You can also get mentors from
the incubator and outside the
incubator and you have to ask
for their mentorship and
solicit their advice at least
once a week for two hours per
week
37
45. 16 Upon company registration,
you will be asked to hire an
accounting firm that will
monitor your financial
activities and be a cosigner on
all of your monthly expenses.
45
53. 19 With the help of your
mentors, you need to
develop all the points on the
next page.
53
54. Develop and do the following:
1. Business model.
2. Financial model.
3. Work plan.
4. Marketing and sales plan.
5. Pitching presentation for angel investors.
6. Your budget for a year of operation.
7. Continuously work on your business plan.
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55. 20 Use the available resources
available on the website to
guide your learning.
55
56. Use these resources:
1. Use the references, resources, and tools designated for the
startups on the website (those tools should help you design your
business model, financial model, work plan, pitching to investors, sales and
marketing, and your business plan).
2. The incubator offering is a suggested list of topics you need to
be aware of and study.
56
57. 21 You should also use the
Three Types of Interaction
Sessions (available in your
folder) to engage your
mentor on a weekly basis.
57
69. 26 At this point you should have
a self-sustaining business with
revenues, expenses, and
profits as well as a full team
working fully on the business.
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71. Tool # 2 : Executive Summary Template
Company Name and Logo Company Snapshot
Year Founded:
The Grab – This section is probably the most
important part of your entire executive summary. In Industry:
two or three sentences tell the reader why your
business is special. Maybe you have Michael Jordan as Annual Sales:
a customer and he has promoted your product on
twitter for free. Maybe you just signed a partnership Growth Rate:
with Google. Maybe you were just awarded a patent,
or maybe you just made your first big sale. Whatever Investment Requested:
it is ask yourself “so what” if it sounds reasonable to
say so what then you didn't do a good enough job.
Obviously if you just signed a partnership agreement
with Google no one would say “so what” so grab their
attention.
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72. Big Problem – The first ingredient of a good business idea is a Big Problem, so explain
the Big Problem that your product addresses. For instance, there is too much traffic in
Chicago and everyone hates traffic. Everyone in the room should be saying “yeah I hate
that”.
Unique Solution – The big problem is the easy part. Now you have to convince the
reader that you have come up with a unique solution to the big problem. If you have
these two ingredients you have a good business side. Maybe you developed a new
traffic control system that will save 1 minute for every person in Chicago each day during
their commute. 1 minute each day is valuable when you are talking about a couple
million people.
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73. Tool # 2 : Executive Summary Template (Cont.)
Market Potential – Elaborate on the big problem, by providing stats for your
industry. How much is spent annually on similar products or services and how fast
is it growing. Maybe you operate an in home healthcare service company and with
all of the Baby Boomers getting older and sicker each day you have a very large
market potential with a rapidly growing market.
Unique Selling Proposition – This is where you elaborate on your unique
solution. What specifically gives your product or service an advantage over the
competition? Maybe your home health care service actually sends Doctors to the
home instead of just nurse practitioners. Or maybe you guarantee same day visits
so that you don't have to schedule ahead of time. Just point out why you are
special.
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74. Management Team – Depending on what industry you are in this can be the most
important parts of your executive summary or one of the least important parts.
Regardless your investors or bankers are putting trust in the team not the idea. Ideas are
easy to come by, but executing on those ideas can only be accomplished through a
strong team. Quickly show why your team has the experience and know-how to execute
your business plan.
Business Model – In this section it is vitally important that you communicate clearly
and concisely how you are going to make money. Not only how are you going to create
sales revenue, but how will your sales be profitable. Often times the best way to do this
is by using a diagram. Maybe something like the diagram shown to the right. Yes that is
simple, but at least it gives readers an understanding of how you think you will make
money and then hopefully the rest of the Executive Summary convinces them that you
can make that business model successful.
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75. Tool # 2 : Executive Summary Template (Cont.)
Financial Projections - Based on your market, your business model and, your
historical performance you need to develop a bottom up financial forecast. If
your plan is for a group of investors don't spend too much time on this section
because you know and they know that you really have no idea how much
money you might make. Investors typically won't make a go / no go decision
based on your financial projections. They will essentially make their own
financial projections. That being said you should have some sort of graph or
table with current sales and projected sales going forward for at least 3 years.
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76. Request – Now it is time to request either an investment, loan, or sales contract
depending on the purpose of the executive summary. You should restate why your
company provides value. Remind the reader of the big pain that you are solving and
your market potential. Finally reemphasize your team and its ability to get the job done.
Ask for the dollar amount that you need to reach the next major milestone for your
business. Don't disclose how much equity you are willing to give up or what interest rate
you are willing to pay. This should be done later through face to face negotiation.
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77. Tool # 6 : Business Plan Tool Guide
1. You already have a business plan which you submitted to the Startup
Program.
2. There is no universal business plan template.
3. Some business plans are better than others.
4. The one you are provided with is a good business plan template.
5. You can continue to use your initial business plan and make amendments as
you go along.
6. Check the business plan template and see if your initial business plan is
missing any components.
7. Always write the executive summary last after you finish writing the entire
business plan.
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78. 8. The executive summary should not exceed 2-3 pages and it
should summarize all aspects of the business plan.
9. Follow the template and finish each section accordingly.
10. Each section include a description and instructions on how to fill it up.
11. Check the progress of the business plan with your mentor and make sure to
review each section with him/her and get their feedback.
12. Once finished, make sure you read the entire business plan and then start
writing the executive summary.
13. Ensure that your mentor reads the entire business plan and give you more
feed back.
14. You are strongly encouraged to ask other entrepreneurs and business
professional read your business plan and give you feedback.
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79. Tool # 6 : Business Plan Tool Guide (Cont.)
If the executive summary doesn’t succeed, your business plan will never sell
investors. We recommend that you write the summary first and use it as a
template for the plan as a whole. Since one of its primary functions is to capture
the investor’s attention, the summary should be no longer than two pages. The
shorter the better.
Mission
Our company's mission is to [describe your ultimate goal, or insert your mission
statement].
Company
[The Company] was founded in [date] and [describe what your business does,
such as baby products manufacturer, distributor of pencils, provider of medical
services]. It is a [legal form of your company, such as BV, Partnership,
Proprietorship]. Our principal offices are located at [x].
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80. Business
We make [describe product, or service that you make or provide].
Our company is at the [seed, start-up, growth] stage of business, having just
[developed our first product, hired our first salesman, booked our first national
order].
In the most recent [period], our company achieved sales of [x], and showed a
[profit, loss, break-even]. With the financing contemplated herein, our company
expected to achieve [x] in sales and [x] in pretax profits in 20[xx] and achieve [x]
in sales and [x] in pretax profits in 20[xx+1]. We can achieve this because the
funds will allow us to [describe what you will do with the funds, such as a)
marketing for your new product, b) build or expand facilities to meet increased
demand, c) add retail locations or others means of distribution, d) increase
research and development for new products or to improve existing ones.
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81. Tool # 6 : Business Plan Tool Guide (Cont.)
Product or Service
Tell us about your product or service in terms we can understand.
[The company] produces the following products; [list products here briefly, in
order of highest sales or significance in product line].
Alternatively, [The company] delivers the following services; [list services here
briefly, in order of highest sales or significance in product line].
Presently, our [product or service] is in the [introductory, growth, maturity]
stage. We plan to follow this [product or service] with extensions to our line
which include [x,y,and z].
Critical factors in the [production of our product, or delivery of our service are [x,
and y]. Our [product or service] is unique because [x,y,or z] and/or we have an
advantage in the marketplace because of our [patent, speed to market, brand
name].
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82. The Market
We define our market as [manufacture and sale of writing and drawing
instruments, low fat cheese, oral care products]. This market was approximately
[€x] at [wholesale or retail] last [period available], according to [site resource],
and is expected to grow to [€x] by the year [x], according to [site resource].
Who are your customers? Where are they, and how do you reach them? Are they
buying your product / service from someone else?
How will you educate customers to buy from you? Why will they care?
Competition
We compete directly with [name competition]. or We have no direct
competition, but there are alternatives to our [product or service] in the
marketplace. Our [product or service] is unique because of [x] and/or we have a
competitive advantage because of our [speed to market, established brand
name, low cost producer status].
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83. Tool # 6 : Business Plan Tool Guide (Cont.)
Risk/Opportunity
The greatest risks we have in our business today are [market risk, pricing risk,
product risk, management risk]. We feel we can overcome these risks because of
[x].
The opportunities before us are significant; we have the opportunity to
[dominate a niche in the marketplace, become a major force in the industry] if
we can [x].
Management Team
Our team has the following members to achieve our plan. [x] men and women
who have a combined [x] years of experience; [y] years in marketing, [y] years in
product development, and [y] years in [other disciplines].
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84. Capital Requirements
We seek [€] of additional [equity, sub-debt, or senior financing] which will enable
us to [describe why you need the funds, and why the opportunity is exciting]. We
can provide and exit for this [loan, investment] within [x] years by [a dividend of
excess profits, recapitalizations, sale of company, or public offering].
Financial Plan
At this point the investor must have a clear idea of where your business stands
today. If you bore him or make the information he needs hard to find, you get
canned. You must provide a snapshot, however sparse, of your financial position.
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85. Tool # 6 : Business Plan Tool Guide (Cont.)
Sales Summary
At this point the investor must have a clear idea of where your business stands
today. If you bore him or make the information he needs hard to find, you get
canned. You must provide a snapshot, however sparse, of your financial position.
Last Year | This Year | Next Year | Year Two
Sales:
Gross profit:
Pre-tax:
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86. Balance Sheet Summary
Assets:
Liabilities:
Book Value:
In [x] years we will provide an exit, which we expect to be in the form of [sale to
a competitor, initial public offering, distribution of profits] or perhaps [z]. We
expect to be able to acheive this in [b months / years].
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87. Tool # 14 : Startup Stages
orientation for startups
Startup Stages
Stage Name
Shape
Explanation of Stage
During this stage the concept of the company is developed starting from identifiying the company structure and it's surrounding ecosystem extracting the value points in the
business. After a clear & complete business model is developed, the blueprinting is conducted by developing high-level financial modeling and identifing needed core
capabilities. This stage get finalized by packaging the whole project within 9-weeks work plan.
What are the Driving Issues?
* What's our core value? What does make my business different?
* What're my value chain activities and what goes under each in my case?
* What's the finacial aspect of my business?
* How can I manage my activities during the build phase?
What are the related ‘must haves’ deliverables?
* Complete Business Model
* Complete Financial Model
* Fully identified core capabilities
* Developed 10-weeks work plan.
Build
Explanation of Stage
During this stage (with the concept reaching a ‘steady state’, the delivery of the concept complete and the necessary resources attained) the company needs to concentrate on
delivering the productservice to its customers.
What are the Driving Issues?
* Is the Business Architecture scalable?
* Can we meet planned performance targets with current capabilities?
* Are processes, people and technologies fully integrated across all operating departments? * Is the leadership communicating to its staff?
* How are outsourcers, partners, alliances performing in their roles?
What are the related ‘must haves’ deliverables?
* Staff Recruited
* Fully tested product
* Fully tested and scaleable capabilities (peopleprocesstechnology)
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88. Launch
Explanation of Stage
In this stage you have a formal business structure and the necessary documents and tools in place to transact business. But if you are just established you may have little or no
income, so cost containment is important because it defines the amount of runway you have to find customers. Consider short term income generation steps that will lead to your
full vision. During this stage you may devote more time to product development and customer development. Key aspects of customer development and testing your market theory
are insertion strategy, messaging plan, lead generation and pricing. The primary risk you face is not whether you can create a working technology but who will pay how much for it–
and how to reach likely prospects.
What are the Driving Issues?
What value do we bring?
How do we make money?
How much do we charge?
What are the related ‘must haves’ deliverables?
We have something to sell.
We have a business ownership structure.
We are a team.
Grow
Explanation of Stage
Now is the time to grow a sustainable business in additional niches and expand your customer base. Cash flow has become more stable and predicable. Product development
should allow you to broaden your customer base and go after new customers. Customer development relied on more traditional marketing and sales specialists. Team needs to
grow from a small set of generalists by adding a collection of specialists. The key challenge is a vision for growth and continued execution.
What are the Driving Issues?
We cannot do everything, how do we expand the team?
We need to add specialists to our core set of generalists.
How do we expand our customer base?
What are the related ‘must haves’ deliverables?
Sustainable business
Growth vision
Identify next niche
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