Business Plan Ready Reckoner
Business Plan A Business Plan is a well thought out document describing why, how, and when the firm will accomplish economic viability which basically comes from sustained positive cash flows.
Target Audience for the Business Plan
- VCs / Angel investors
- Potential senior employees
- Bankers
- Attorneys and accountants
- Leasing companies
Stages in the Growth of a Company
- Idea / Concept
- Prototype / Proof of the concept
- Incubation / Product development
- Organization building
- Scale up (alliances, partnerships)
- IPO: Initial Public Offer
Sources of Funds
- Idea /Concept: Personal savings
- Prototype: Loan from friends and relatives
- Incubation: Angel / Early stage fund
- Organization building: VC, first round
- Scale up: Second round / growth/ scale up funds/ PE
- IPO: Investment bankers, underwriters
What is the VC Looking For in a BP ?
- Basic value proposition
- Market size, segmentation, target customers, competitors
- Entry barriers, IP protection, Unique Selling Points
- Technology expertise and domain knowledge
- Alliance and strategic partnerships
- Promoters, Board of Directors, Top management (VPs)
- Team (Project management, execution capabilities)
- Scalability and growth potential
- Marketing and selling plan: channels, distributors, customer acquisition costs
- Milestones and deliverables (prototype, proof-of-concept, beta customers)
- Requirement and application of funds: Setting offices, where, how many?
- Equity/Capital structure, Financing policies (debt/equity ratio)
- Revenue model: Sources of revenue (service/product mix)
- Profitability, break even point, growth estimates (revenue, team size)
- Risks and contingencies: De-risking/risk management/risk containment plan
- Projected (pro-forma) financial statements
- Exit strategy (IPO, equity buyer, strategic buyer, Merger & Acquisition)
- Valuation and offer (equity price, number of shares)
Business Plan Sections Checklist
- Executive summary
- Introduction / Company overview
- Concept / Proposition / Product description
- Market opportunity
- Competition survey
- Development plan and milestones
- Marketing plan
- Team
- Financials
- Offer
- Appendix
Popularity: 12%
March 20th, 2008 at 11:47 pm
cool! so this is what people talk about when they say they have to chalk out a business plan
March 21st, 2008 at 1:26 am
I saw that Sun Microsystems is hosting a “startup review” of a new startup each week for their startup essentials program
http://mashable.com/startup-review-sponsored-sun-startup-essentials/
Looks cool!
April 2nd, 2008 at 1:10 am
[…] […]
April 6th, 2008 at 3:09 pm
[…] investors Network.http://www.localtechwire.com/business/local_tech_wire/opinion/blogpost/2679843/How to draw a business plan for your startupA Business Plan is a well thought out document describing why, how, and when the firm will […]
April 20th, 2008 at 6:51 am
[…] […]
June 4th, 2008 at 2:48 am
[…] positive cash flows. Target Audience for the Business Plan VCs / angel investors Potential shttp://www.bharatentrepreneurs.com/2008/03/20/business-plan-ready-reckoner/Angel InvestorsWhat angel investors are and how they work with […]
July 8th, 2008 at 11:48 pm
[…] […]