Joe RouseAdvisor, NUS Enterprise

Business Planning Fundamentals

Science undergrad, MBA marketing & finance ◦ Both from Queen’s University, Canada

Product management roles at BMS Tundra Semiconductor (Networking)

◦ Highly-succesful IPO Philsar Semiconductor (Wireless)

◦ Acq. by then-NASDAQ leader Conexant Systems iNovia Capital - IRR 47% GridIron Software (SW development tools) Pioneer Capital Partners

Me◦Present an overview of business planning as

a keystone to entrepreneurial success◦Outline what a great business plan should

include You

◦Better determine what you need to complete your business plan to help our company get investment-ready So ask questions at any time

What a business plan is◦ A 3-5 year narrative roadmap for your

business’ success◦ A description of the essential

‘Who/What/When/Where/Why and How’ of your business

◦ A stand-alone, living & breathing document◦ The basis of a contract between you and your

key internal and external stakeholders

Internal reasons◦Build & maintain alignment within the team◦Promote consistency and other business

disciplines◦Reference for the future

External reasons◦Build & maintain alignment with external

stakeholders (especially investors)◦Establish credibility and trust◦Reference for the future

Always write your own business plan◦ An opportunity for focus, clarity of thought

and greater customer/market insight, as well as alignment amongst stakeholders

◦ No one should know more about your business than you and your team

◦ But confer with experienced help as required

◦ Your story must come from your head- and heart

◦ Make sure it is proofred, er, proofread by a stickler for grammar

◦ Know your audiences!

So what? ◦ What is the critical pain that your product/service

solves Who cares?

◦ What are the markets that have this pain, ‘where’ and how big are they? How fast are they growing?

Why you?◦ Why (and how) will you best serve the customer

versus the competition ◦ i.e. why you will win!

Executive Summary Especially business objectives The Company and the Team

Market Opportunity Product Description and Business Model Go To Market Strategy

Include competitive set and marketing & sales plan!

Financial Plan Raise quantum sought, uses of proceeds Exit strategy and target ROIROI

Credible management team, led by a compelling CEO

Market-based product/service for a validated market

Credible, sustainable business model Strong competitive analysis and positioning Well-defined exit strategy with attractive ROI

Experienced advisors Company valuation based on future revenue

and profit, as well as recent comparable financings/exits

Appropriate intellectual property strategy & plan

Evidence that the founder/leader likes to work with other smart, engaged, passionate people, can share the wealth, and understands what ‘win-win’ means

More on markets and customers, less on technology

Use graphics and charts effectively Don’t disparage or dismiss your

competition In general, ‘Less is More’

Most plans are not read from cover to cover Your executive summary is critical, as are your

financials and any early market validation/engagement

Online resources for business planning No shortage of these

Warning: Cognitive dissonance is a real possibility When in doubt, follow Guy Kawasaki’s advice:

Be specific, keep it straightforward, and ask women. Guy believes that women don't possess the ‘one upmanship’ gene inherent in men, and thus will be able to give better advice about your business plan

Remember the old adage◦“If you fail to plan, you plan to fail”

Short stories are harder to write than long novels, but tend to get read, remembered and referred!

Thanks and good luck!