SBM 1000
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Business Plan
Presentation Format
- The investor presentation must be clear, concise and compelling to:
- Generate investor interest and build confidence
- Lead to additional investor meetings
- Should be 20-30 minutes in length
- Charts, graphics, pictures and verbiage should be simple and easily read (no “eye tests”)
- Each slide should have between 3 and 6 bullets that are succinct (no paragraphs, uncluttered)
- Presentation format may vary depending on the company but the following format provides a reasonable order and flow –it is but one approach to making investor presentations.
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Order of Presentation
- Introduction
- Problem
- Solution
- Market, Customers
- Competitive landscape
- Business and Revenue Models
- Management Team
- Financial Projections Funding
- Timeline
- Summary
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Introduction
- Briefly introduce yourself and your company
Company name and company logo
Presenters names (give titles if pertinent)
Slide time: approximately 30 seconds
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Introduction--continued
[this is a very important slide that requires lots of time to create because it must be succinct, comprehensive and COMPELLING]
- Brief overview of company (elevator pitch)
What exactly the company does (stated succinctly)
What products or services are offered
What problem is being solved, and
Why these products or services are compelling, e.g., “…the only product that enables [solution] to [the problem]…”
Slide time: approximately 1 minute
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The Problem/Opportunity/Need
- Define the problem or need in the market
- Describe how significant or prevalent the problem may be
- If appropriate, describe why now is the right time for a solution
- Provide a “problem” scenario that provides a basis for your company’s product or service
Slide time: 60 to 90 seconds
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The Solution
(1 to 2 slides)
- Clearly and succinctly describe the company’s product or service that will address the problem
- Illustrate the company’s solution with graphics, pictures or videos as necessary (keep this very simple)
- Provide brief list of features, benefits and advantages
What is the value proposition for the customer (How well will the product or service solve the problem)?
Cost savings, convenience, reliability, etc. (be specific)
- Describe “barriers to entry” created by your product (e.g., patents)
Slide Time: Approximately 01:30 (May require more than one slide)
The Solution
- Provide an understandable, practicle example of how your product/service works or what it does.
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Sample Feature-Benefits Table
Slide Time: Approximately 60 seconds
| Features | Benefits |
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Company Status/Progress
- Build investor confidence in your company
Domain expertise of management and staff
Customers and contracts established (letters of intent)
Strategic partnerships established
Product development status—describe milestones achieved to reduce risk (e.g., alpha or beta testing)
Other significant information to validate or reduce risk
Slide Time: Approximately 60 seconds
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The Market
(2 to 5 slides)
- Describe market size, growth, trends and maturity
Industry and market segment data (see sample, next slide)
- Market challenges
- What market segment(s) are served by the company?
- What is the company’s potential in the market?
Estimated Revenue Growth in graphic or tabular form (see next slides, for examples)
Market share projections are optional
Slide Time: Approximately 90 seconds
(More than one slide may be required)
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Global Market for [your product]
Slide Time: Approximately 60 seconds
| Region | Demand (US $ MM) | % Globe |
| Asia | 1700 | 32 |
| Europe | 1500 | 30 |
| North America | 1300 | 25 |
| Latin America | 415 | 8 |
| Africa | 200 | 4 |
| Others | 64 | 1 |
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US Market with key segments
Slide Time: Approximately 60 seconds
| City | World Rank | US $ MM | % Country | % World |
| New York | 1 | 865 | 22.8 | 5.3 |
| Los Angeles | 3 | 300 | 8.3 | 1.9 |
| Chicago | 4 | 285 | 8 | 1.8 |
| Dallas | 21 | 105 | 2.8 | 0.64 |
| San Jose | 22 | 104 | 2.8 | 0.63 |
| San Francisco | 23 | 103 | 2.7 | 0.62 |
| San Diego | 26 | 100 | 2.6 | 0.61 |
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Customers
- Describe the company’s current and potential customers
Profile of the optimal customer
Value proposition to customer
Validation of Customer Acceptance
Customer Feedback, Survey Data, Testimonials
Purchases, Letters of Intent
Partners
Example of customer
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Competition and Advantage
(2 TO 3 SLIDES)
Competition
- Describe the direct (competing product or service) and indirect competition (alternative solution) for your company and its product or service.
- Describe specific strengths, weaknesses, and opportunities related to competition.
- Describe how your product, technology or service differentiates itself from the competition? [very important]
Competitive Advantage
- What is the company’s competitive advantage?
Why will customers buy your product or service over the competition?
Show a competitive matrix to illustrate differentiation (see next slide)
Subject Time: Approximately 2 minutes (more than 1 slide)
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Competitive Comparison
(see next slide for optional approach)
| Product | Advantages | Disadvantages |
| Product A ~$12/100 units | ||
| Product B ~$30/100 units | ||
| Product C ~$17/100 units | ||
| My Company Product ~$9/100 units |
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Competitive Matrix
| Product | Feature A | Feature B | Feature C | Feature D | Feature E |
| MY PRODUCT | ● | ● | ● | ● | ● |
| Product 1 | ● | ● | |||
| Product 2 | ● | ● | ● | ||
| Product 3 | ● | ● | ● | ||
| Product 4 | ● | ● | ● | ||
| Product 5 | ● | ● | ● | ||
| Product 6 | ● | ● |
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Competitive Positioning
Your Company, Inc.
Gizmo
Gadget.com
Yippee
Flexibility
Functionality
Yikes
Zowie
Thingamabob
End First Section
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Business Model and Marketing Plan
(2 TO 5 SLIDES)
- Describe the company’s business and revenue model
What is the overall business strategy?
How will you sell your product or service (distributors, internet)?
How will the company generate revenue for its product or service?
Describe the sales cycle for the company’s product or service
- Describe the Marketing Plan (if appropriate)
What is the go-to -market strategy?
What is the pricing model? Gross margin?
How will you access customers? (including advert. and promo.)
How will your product or service be distributed?
What customer support will be needed?
- Note any commitments from partners, distributors, granting agencies, etc. regarding benefits of your product
Slide Time: Approximately 90 seconds
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Regulatory Issues
(not necessarily included in all investor presentations)
- Include pertinent info regarding FDA, FTC, or other pertinent government agency
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Management Team, Advisors
- Build investor confidence with team
Credentials, proven track record, domain experience (do not include weak credentials )
Describe skill and experience gaps to be filled
- List the company’s leadership team
Include name, position, experience (abbrev.)
These are credentialed experts
- List of company Directors and Advisors
Include name, summary of experience
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Financial Projections
- Provide 3-5 year financial projections for the company (abbreviated chart or graph—see next slide)
Include financial projections to show year-to-year growth (show a basic income statement table—see next slide for an example)
Is the company overstating or understating market share and/or growth?
Can the company scale its operations as it grows?
- List major facts and assumptions
Are the assumptions believable and achievable?
Slide Time: Approximately 90 seconds
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Financial Projections:
Income Statement Summary
| 2008 | 2009 | 2010 | 2011 | 2012 | |
| Revenue | 500 | 5,207 | 12,203 | 25,565 | 51,894 |
| COGS | 402 | 3,270 | 7,179 | 14,395 | 29,145 |
| Gross Profit | 102 | 1,937 | 5,024 | 11,170 | 22,749 |
| Oper Exp | 4,318 | 3,572 | 4,229 | 8,165 | 16,445 |
| Net Income | (4,216) | (1,635) | 795 | 3,005 | 6,304 |
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Financial Projections:
Break Even Analyis
B/E(Quantity) =
Total Fixed Cost
Price per Unit – Var. Cost per Unit
Break-Even
TR = TC
Units Sold
Revenue
[
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}
Variable Cost
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Funding
- What funding has the company received to date?
Amounts and sources
- How will the company be financed?
- How much money is the company currently seeking from Investors?
How will the funds be used? (use tabular format—see next slide for an example)
What key value-building milestones will be achieved with funds (market test, market expansion, etc.)
- Anticipated future funding needs
- What are the exit strategies for the company? (when?)
- What is the expected ROI for investors
Slide Time: Approximately 2 minutes (this section is more than one slide)
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Startup Budget/Use of Proceeds
| First year Budget | Cost |
| Salaries | 510,000 |
| Repairs & maintenance | 8,400 |
| Local Advertising | 5,000 |
| Marketing | 51,400 |
| Accounting and legal | 5,000 |
| Rent | 17,798 |
| Internet & Telephone | 5,940 |
| Equipment | 48,000 |
| Domain Name | 10 |
| Total | $651,548 |
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Use of Proceeds Breakdown
Chart1
| Salaries (includes payroll taxes) |
| Repairs & maintenance |
| Local Advertising |
| Marketing |
| Accounting and legal |
| Rent |
| Internet & Telephone |
| Taxes (Real estate, etc.) |
| Depreciation |
| Equipment |
| Domain Name |
| Miscellaneous expenses |
use of funding
| Use of Funding Proceeds | |
| Salaries (includes payroll taxes) | $ 510,000 |
| Repairs & maintenance | $ 8,400 |
| Local Advertising | $ 5,000 |
| Marketing | $ 51,400 |
| Accounting and legal | $ 5,000 |
| Rent | $ 17,798 |
| Internet & Telephone | $ 5,940 |
| Taxes (Real estate, etc.) | $ - |
| Depreciation | $ - |
| Equipment | $ 48,000 |
| Domain Name | $ 10 |
| Miscellaneous expenses | $ - |
| Total Expenses for Yr 1 | $ 651,548 |
use of funding
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Timeline
- Use a Gantt Chart for key milestones or use the preferred model shown on the next slide.
Timeline of Milestones
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
Idea
Primary Research
Feasibility Analysis
Relationships Secured
Business Plan
Prototype Install (Fall Gardens)
Funds Raised
Neighborhood Mkt.
Initial Contracts
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2007
2008
Beta Test
Milestone
Break-even
Milestone
July
Development
Milestone 1
December
2nd Product
Development
Milestone
Sept.
Sales Milestone
December
Value-Added Milestones Timeline (Sample)
Product 1
Partnered*
* Company retains co-dev./co-promotion rights
Product 1
First Sales
1st Financing
$660K
2nd Financing
$1Million
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Summary
- What do you want your audience to remember about the company?
Unique and Sizeable Opportunity
Unique product or service
Competitive Advantage, Strengths
Marketing Approach, Customers, Sales Pipeline
Intellectual property
Management team
Other…
0
200
400
600
800
1000
1200
020406080100
Fixed Cost
Total Cost
Total Revenue
Use of Funding Proceeds
78%
1%
1%
1%
7%
0%
0%
0%
1%
8%
3%
0%
Salaries (includes payroll taxes)
Repairs & maintenance
Local Advertising
Marketing
Accounting and legal
Rent
Internet & Telephone
Taxes (Real estate, etc.)
Depreciation
Equipment
Domain Name
Miscellaneous expenses