presentation to lim college on start-ups

Download Presentation to LIM College on Start-Ups

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A presentation on how to prepare a business plan for a Venture Backed Start-Up.

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  • 1. Launching A New Venture:Successful Elements of a Business Plan By David J. Freschman Adjunct Professor MBA program LIM College, NYC Managing Principal of Innovation Capital Advisors, LLC. MNGT 702 Launching New Ventures Textbook New Venture Creation:Entrepreneurship for the 21 stCentury/ 8 thEdition By:Jeffry A. Timmons and Stephen Spinelli

2. Elements of a Venture BackedBusiness Plan

  • Executive Summary
  • The Industry and the Company
  • Product(s) or service(s) Offered
  • Market Research
  • The Economics of the Business
  • Marketing and Distribution Strategy
  • Product & Service Development
  • Manufacturing and Operations Plan
  • Management Team
  • The Financial Plan
  • The Company Offering
  • Appendices

Innovation Capital Advisors, LLC. | David J. Freschman 3. Executive Summary

  • Grab the investors attention by describing a compelling business opportunity
  • Identify a need or opportunity being addressed in a large and growing market
  • Present a business that will solve a problem, or take advantage of that opportunity
  • Demonstrate that you have the know-how and the team to start and grow a company successfully.
  • Example of a Executive Summary Layout
    • Description of the Business Concept and the Business
    • Opportunity
    • Target Market
    • Competitive Advantages and Value Proposition
    • Projections
    • Economic, Profitability, and Exit Opportunity
    • Management Team
    • The Deal

Innovation Capital Advisors, LLC. | David J. Freschman 4. The Industry and the Company

  • Explain the type of industry you are entering
  • Identify if the industry is a mature, growing or declining
  • Describe the company and the business model

Innovation Capital Advisors, LLC. | David J. Freschman 5. Product(s) or Service(s) Offered

  • Describe the companys product(s) or servicing offerings
  • Describe the feature and benefits

Innovation Capital Advisors, LLC. | David J. Freschman 6. Market Research and Analysis

  • Identify customer profile.Determine why the customer will purchase your product or service, how much they will buy at what price.
    • Include list of existing customers, if any
  • Cleary define the Market Size and Trends
  • Discuss Competition, Value Proposition and why the customer will buy your product or service versus the competition

Innovation Capital Advisors, LLC. | David J. Freschman 7. The Economics of the Business

  • What is the companys Gross and Operating Margins
  • Identify Profit Potential and Sustainability
  • Identify what are your Fixed, Variable, Semi-variable Costs
  • Calculate how many months to breakeven
  • Calculate how many months to reach positive cash flow

Innovation Capital Advisors, LLC. | David J. Freschman 8. Marketing & Distribution Strategy

  • Define overall marketing and distribution strategy.How will the company increase brand awareness of their product and service, and how will they company convey their benefits?
    • Pricing
    • Sales Tactics
    • Service and Warranty Policies
    • Advertising and Promotion
    • Distribution
    • Sales Force

Innovation Capital Advisors, LLC. | David J. Freschman 9. Product & Service Development

  • Development Timeline and Task List
  • Identify potential risk and challenges
  • Product Improvement and New Products
  • Expenses
  • Proprietary Concerns

Innovation Capital Advisors, LLC. | David J. Freschman 10. Manufacturing and Operations Plan

  • Operating Plan
  • Geographical Location
  • Facilities and Maintenance
  • Strategy and Plans
  • Regulatory and Legal Issues

Innovation Capital Advisors, LLC. | David J. Freschman 11. Management Team

  • Discuss what relevant experience each person brings to the business and be specific.
  • Outline the type of key managerial experience you want and how you plan to recruit that person.
  • Key management and compensation layout:
    • Key Management Personnel (CEO, CTO etc.)
    • Management Compensation and Ownership
    • Other Investors
    • Employment and Other Agreements and Stock Option and Bonus Plans
    • Board of Directors
    • Other Shareholders, Rights, and Restrictions
    • Supporting Professional Advisors and Services

Innovation Capital Advisors, LLC. | David J. Freschman 12. The Financial Plan

  • Actual Income Statements and Balance Sheet
  • Projected Income Statements
  • Projected Balance Sheets
  • Projected Cash Flow Analysis
  • Breakeven Chart and Calculation
  • Cost Control

Innovation Capital Advisors, LLC. | David J. Freschman 13. Proposed Company Offering

  • Desired Financing
  • Offering
  • Capitalization
  • Use of Funds
  • Investors Return

Innovation Capital Advisors, LLC. | David J. Freschman 14. Appendices

  • Purpose
    • Supporting documents used to enhance your business proposal.
  • Includes
    • Photographs of product, equipment, facilities, etc.
    • Copyright/Trademark Documents
    • Legal Agreements
    • Marketing Materials
    • Research and or Studies
    • Operation Schedules
    • Organizational Charts
    • Job Descriptions
    • Resumes
    • Additional Financial Documentation

Innovation Capital Advisors, LLC. | David J. Freschman