Where do you want to be in 3 years time? What do you need to do to bridge the gap? A good business plan sets out a compelling vision of the future and outlines, in great detail, how this vision is going to be made real.
2. Today’s session
• Review the business planning process
• Understand why it matters for startups
• Introduce basic startup business plan format
and structure
14. “A startup is a human
institution designed to
create a new product or
service under conditions
of extreme uncertainty.”
Eric Ries, The Lean Startup
20. The Startup Chasm
It’s a long way from here to there
And lots can happen on the way
21. Taking the first steps…
• Getting your good idea to bear fruit is hard
• Will probably require startup and growth
funding
• You need a clear understanding of the
journey
41. The Startup
Business Plan
1. Executive 1. Marketing & Sales
summary
3. Management Team
3. The
Problem/Opportunit 5. Finance
y
7. Current Status,
5. The Solution Key Milestones,
Next Steps
7. Business model
Appendices
9. The Market
11. Competitors & USP
42. 1. Executive Summary
• A short and concise summary of the customer
need, your solution, your business model and
what makes you unique
• This should also make a compelling statement
to potential investors
• Write this page last!
43.
44. 2. The Problem
• What specific customer challenge or problem
does your idea address?
• Try and quantify the scale of the problem from
the point of view of the customer
• The bigger problem, the bigger the need,
the more attractive your business is!
45.
46. 3. The Solution
• What is the proposed product or service that
you have developed that will solve this
problem?
• What key benefits does it provide; try and
quantify these from the point of view of the
customer e.g. reduces costs by £X, reduces
emissions by Y% etc.
• Keep it simple and avoid jargon!
• A picture paints a thousand words!!
47.
48. 4. The Business Model
• Describe in clear and simple language how
your business is going to make money e.g.
one-off transaction, subscription model,
commission etc.
• If your business model is complex, or involves
multiple channels of distribution consider using
a simple diagram
• Show me the money!!!
49.
50. 5. The Market
• Describe your target market in terms of: size,
structure, geographical spread, key customer
types etc.
• Make sure you also demonstrate that you show
good qualitative understanding of your target
customers e.g. what they want, how to reach
them etc.
• Identify the addressable market
51.
52. 6. Competitors and USP
• Who are your key competitors & on what basis
do they compete e.g. quality, price etc?
• What makes your product/service compellingly
different – what’s your USP?
• Why will people fall over themselves to buy
you?
53.
54. 7. Marketing & Sales
• What are your sales goals?
• What mix marketing channels are you going to
use to communicate your USP to target
customers?
• What specifically are you going to do and
when?
• Don’t break the bank!
56. 8. The Team
• What specifically makes you and your team
qualified to get this business off the ground.
• Describe the key players of your management
team, including age, experience, and skills and
knowledge
• Make sure you identify any key gaps
57.
58. 9. Finances
• Provide a 3-year forecast containing projected
cash flow, P&L etc.
• Provide additional metrics in terms of
projected customer numbers, conversion rates
etc.
• How much capital will you need to get off the
ground?
• Make sure you outline all of the key
assumptions behind your forecasts
59.
60. 10. Current Status & Next Steps
• Explain the current status of your product or
service and what the near future looks like if
you are successful in winning.
• Make sure you list key milestones covering the
the next 12-months e.g. product launch, first
customer sales etc.
• Close with a bias towards action!
61. 9.
10 . C U R R E N T
3 0 a m – 10 . 3 0 a m : Leadership refresher
S Explain theabout the £10,000
…ITlied current statusNyour product
A T U S , of E X T
10 . 3 0 a m – 11. 0 0 a m : Coffee break
•
or service and what the near future looks
S like ifE P Spounds
11. 0 0 a m – 12 . 3 0 p m : Interactive exercises
T you are successful in winning.
…
12 . 3 0 p m – 1. 3 0 p m : Lunch
1. 3 0 p m – sure 0 p mlist
• Make 3 . 0 you : key Interactive exercises
milestones covering
the the next 12-months e.g. product launch,
3 .0 0 p m – 3 .3 0 p m : Coffee break
first customer sales etc.,
3 .3 0 p m – 4 .3 0 p m : Partner presentations
• CLOSE WITH A BIAS TOWARDS
62. The Startup
Business Plan
1. Executive 1. Marketing & Sales
summary
3. Management Team
3. The
Problem/Opportunit 5. Finance
y
7. Current Status,
5. The Solution Key Milestones,
Next Steps
7. Business model
Appendices
9. The Market
11. Competitors & USP
64. Tip 1 – Minimise Complexity
• Avoid acronyms NMR, CDMA, ASCII, WDTM
• Functionality – what does this product/service
do NOT how does it work
• Use customer scenarios
• Your job is to explain your idea to investors
and make it easy for them, whilst balancing
with enough detail
65. Tip 2 – Make it easy to read
• Make sure it’s easy to read
• Vary sentence length
• Repeat key messages
• Short paragraphs, wide margins, 11+ font
