The Market, Customers, Competition, Management Team, Intellectual Property, Financial Plan
Describe the Opportunity
- What stage is your business in – e.g. concept, development, later stages?
- What is the market’s total size?
- Annual growth rate?
- What are the market segments?
- Who Are They and What’s in it for Them?
- Why do customers need your product or service?
- Why will they change their present buying habits to use your product or service?
- What is the value proposition of your product or service to your customers?
- How will you retain your customers and encourage repeat and multiple purchases?
- What is your plan for Customer Service?
Companies and Regulatory Issues
- Who are your competitors?
- Describe your competitive advantages.
- Do you have first mover advantage?
- Are the regulatory issues affecting your business?
- Are there international trade and globalization considerations?
Leaders, Managers, Workers
- Who is on the Management Team?
- Describe their experience, successes and failures in the industry
- How much equity does Management have invested in the company?
- Does Management display motivated and enthusiastic leadership?
- What degree of confidence do you, as CEO, have that the business will be
- How will you communicate that confidence to investors, employees, stakeholders
and the media?
- Are there patents awarded or pending?
- Are these patents defensible?
- Are competitors infringing on your patent rights?
- Does your company have breakthrough technology that could change your industry
or create a new one?
Financial Plan – First Five Years
Optimistic & Conservative scenarios
- Can it be a big company?
- What are the limiting factors to your company’s growth?
- Show the margin analysis, including:
- Gross margin
- Operating Cash Flow Projections
- Explain the use of proceeds showing complete financial projections and
- How has the business been financed until now?
- Who are the investors in the company?
- How much equity do the investors and managers have?
- How much money are you seeking in this round?
- Is the business capital intensive?
- What are the main capital expenditures over the next 5 years?
- What systems will be used to track and control costs, e.g. IT systems &
services, Internet tools, ASPs, etc.?
Staffing and Alliances
- Describe the Organizational plan
- How many people will be needed?
- Show ramp-up over 5 years.
- What are the measurable benchmarks for success in
- Revenue growth
- Customer growth
- Expense reduction
- Organizational expansion