Business Plan Template - Revision history

Marcin: /* Judge’s Rating Sheet */

2018-03-26T23:32:29Z

Judge’s Rating Sheet

Marcin: /* PROPOSED COMPANY OFFERING */

2018-03-26T23:29:45Z

PROPOSED COMPANY OFFERING

Marcin: /* FINANCIAL PLAN */

2018-03-26T23:28:58Z

FINANCIAL PLAN

Marcin: /* CRITICAL RISKS, PROBLEMS AND ASSUMPTIONS */

2018-03-26T23:27:37Z

CRITICAL RISKS, PROBLEMS AND ASSUMPTIONS

Marcin: /* OVERALL SCHEDULE */

2018-03-26T23:25:33Z

OVERALL SCHEDULE

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	##Incorporation of the venture.		##Incorporation of the venture.
	##Completion of design and development.		##Completion of design and development.
	Completion of prototypes.		##Completion of prototypes.
	Rental of facilities.		##Rental of facilities.
	Obtaining of sales representatives.		##Obtaining of sales representatives.
	Obtaining product display at trade shows.		##Obtaining product display at trade shows.
	Hiring of key managers.		##Hiring of key managers.
	Obtaining critical financing.		##Obtaining critical financing.
	Initiating marketing activities and in what order.		##Initiating marketing activities and in what order.
	Signing up of distributors and dealers.		##Signing up of distributors and dealers.
	Ordering of materials in production quantities.		##Ordering of materials in production quantities.
	Starting of production or operation.		##Starting of production or operation.
	Receipt of first orders.		##Receipt of first orders.
	Delivery on first sale.		##Delivery on first sale.
	Receiving the first payment on accounts receivable.		##Receiving the first payment on accounts receivable.
	#Step 3: Show on the schedule the “ramp up” of the number of management personnel, the number of production and operations personnel, and plant or equipment and their relation to the development of the business.		#Step 3: Show on the schedule the “ramp up” of the number of management personnel, the number of production and operations personnel, and plant or equipment and their relation to the development of the business.
	#Step 4: Discuss in a general way the activities most likely to cause a schedule slippage, what steps will be taken to correct such slippages, and the impact of schedule slippages of the venture’s operation, especially its potential viability and capital needs.		#Step 4: Discuss in a general way the activities most likely to cause a schedule slippage, what steps will be taken to correct such slippages, and the impact of schedule slippages of the venture’s operation, especially its potential viability and capital needs.

Marcin: /* OVERALL SCHEDULE */

2018-03-26T23:24:13Z

OVERALL SCHEDULE

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	#Step 1: Prepare a month-by-month schedule that shows the timing of such activities as product development, market planning, sales programs, production, and operations, and that includes sufficient detail to show the timing of the primary tasks required to accomplish an activity.		#Step 1: Prepare a month-by-month schedule that shows the timing of such activities as product development, market planning, sales programs, production, and operations, and that includes sufficient detail to show the timing of the primary tasks required to accomplish an activity.
	#Step 2: Show on the schedule the deadlines or milestones critical to the venture’s success, such as:		#Step 2: Show on the schedule the deadlines or milestones critical to the venture’s success, such as:
	Incorporation of the venture.		##Incorporation of the venture.
	Completion of design and development.		##Completion of design and development.
	Completion of prototypes.		Completion of prototypes.
	Rental of facilities.		Rental of facilities.

Marcin: /* OVERALL SCHEDULE */

2018-03-26T23:23:51Z

OVERALL SCHEDULE

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	=OVERALL SCHEDULE=		=OVERALL SCHEDULE=
	A graphical schedule that shows the timing and interrelationship of the major events necessary to launch the venture and realize its objectives is an essential part of a business plan. The underlying cash conversion and operating cycle of the business will provide key inputs for the schedule. In addition to being a planning aid by showing deadlines critical to a venture’s success, a well-presented schedule can be extremely valuable in convincing potential investors that the management team is able to plan for venture growth in a way that recognizes obstacles and minimizes investor risk. Since the time necessary to do things tends to be underestimated in most business plans, it is important to demonstrate that you have correctly estimated these amounts in determining the schedule.		A graphical schedule that shows the timing and interrelationship of the major events necessary to launch the venture and realize its objectives is an essential part of a business plan. The underlying cash conversion and operating cycle of the business will provide key inputs for the schedule. In addition to being a planning aid by showing deadlines critical to a venture’s success, a well-presented schedule can be extremely valuable in convincing potential investors that the management team is able to plan for venture growth in a way that recognizes obstacles and minimizes investor risk. Since the time necessary to do things tends to be underestimated in most business plans, it is important to demonstrate that you have correctly estimated these amounts in determining the schedule.

	Create your schedule as follows:		Create your schedule as follows:
	Step 1: Prepare a month-by-month schedule that shows the timing of such activities as product development, market planning, sales programs, production, and operations, and that includes sufficient detail to show the timing of the primary tasks required to accomplish an activity.
	Step 2: Show on the schedule the deadlines or milestones critical to the venture’s success, such as:		#Step 1: Prepare a month-by-month schedule that shows the timing of such activities as product development, market planning, sales programs, production, and operations, and that includes sufficient detail to show the timing of the primary tasks required to accomplish an activity.
			#Step 2: Show on the schedule the deadlines or milestones critical to the venture’s success, such as:
	Incorporation of the venture.		Incorporation of the venture.
	Completion of design and development.		Completion of design and development.
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	Delivery on first sale.		Delivery on first sale.
	Receiving the first payment on accounts receivable.		Receiving the first payment on accounts receivable.
	Step 3: Show on the schedule the “ramp up” of the number of management personnel, the number of production and operations personnel, and plant or equipment and their relation to the development of the business.		#Step 3: Show on the schedule the “ramp up” of the number of management personnel, the number of production and operations personnel, and plant or equipment and their relation to the development of the business.
	Step 4: Discuss in a general way the activities most likely to cause a schedule slippage, what steps will be taken to correct such slippages, and the impact of schedule slippages of the venture’s operation, especially its potential viability and capital needs.		#Step 4: Discuss in a general way the activities most likely to cause a schedule slippage, what steps will be taken to correct such slippages, and the impact of schedule slippages of the venture’s operation, especially its potential viability and capital needs.
	Note: You want to be fairly detailed for the first six months to a year, and then just hit key developments or benchmarks for years two and three. A three-year schedule is adequate		Note: You want to be fairly detailed for the first six months to a year, and then just hit key developments or benchmarks for years two and three. A three-year schedule is adequate

Marcin: /* MANAGEMENT TEAM */

2018-03-26T23:22:44Z

MANAGEMENT TEAM

Marcin: /* OPERATIONS PLAN */

2018-03-26T23:21:53Z

OPERATIONS PLAN

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	=OPERATIONS PLAN=		=OPERATIONS PLAN=
	The operations section outlines how you will run your business and deliver value to your customers. Operations is defined as the processes that deliver your products/services to a customer or user and can include the production process for delivering your service to a given customer, manufacturing process if you are a manufacturer, transportation, logistics, travel, printing, consulting, and after-sales service. It also includes such factors as plant location, the type of facilities needed, space requirements, internal processes, capital equipment requirements, and labor force (both full- and part-time) requirements.		The operations section outlines how you will run your business and deliver value to your customers. Operations is defined as the processes that deliver your products/services to a customer or user and can include the production process for delivering your service to a given customer, manufacturing process if you are a manufacturer, transportation, logistics, travel, printing, consulting, and after-sales service. It also includes such factors as plant location, the type of facilities needed, space requirements, internal processes, capital equipment requirements, and labor force (both full- and part-time) requirements.

	For a manufacturing business, the manufacturing and operations plan needs to include policies on inventory control, purchasing, production control, and which parts of the product will be purchased and which operations will be performed by your workforce (called make-or-buy decisions).		For a manufacturing business, the manufacturing and operations plan needs to include policies on inventory control, purchasing, production control, and which parts of the product will be purchased and which operations will be performed by your workforce (called make-or-buy decisions).
	A service business may require particular attention to location (proximity to customers is generally a must), the service delivery system, minimizing overhead, and obtaining competitive productivity from a labor force. In all likelihood 80% of your expenses will be for operations, 80% of your employees will be involved in operations and 80% of your time will be spent worrying about operating problems You will probably have to make trade-offs with your operations ---it is impossible to have the lowest costs, highest quality, best on-time delivery and most flexibility in your industry all at the same time. This is where you have to make trade-off decisions that fit your other plans.
	A.Operating Model and Cycle:		A service business may require particular attention to location (proximity to customers is generally a must), the service delivery system, minimizing overhead, and obtaining competitive productivity from a labor force. In all likelihood 80% of your expenses will be for operations, 80% of your employees will be involved in operations and 80% of your time will be spent worrying about operating problems You will probably have to make trade-offs with your operations ---it is impossible to have the lowest costs, highest quality, best on-time delivery and most flexibility in your industry all at the same time. This is where you have to make trade-off decisions that fit your other plans.
			==A.Operating Model and Cycle: ==
	Outline the operations process for your business. Identify the inputs, operations (key steps or stages) and outputs (present a flow diagram). This is a day in the life of actually producing your product or creating and delivering your service---walk us through the mechanics of doing so.		Outline the operations process for your business. Identify the inputs, operations (key steps or stages) and outputs (present a flow diagram). This is a day in the life of actually producing your product or creating and delivering your service---walk us through the mechanics of doing so.
	Where are you likely to have bottlenecks in your service delivery or manufacturing process and how will these be anticipated and addressed.		Where are you likely to have bottlenecks in your service delivery or manufacturing process and how will these be anticipated and addressed.
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	Explain how any seasonal production loads will be handled without severe dislocation (e.g., by building to inventory using part-time help in peak periods).		Explain how any seasonal production loads will be handled without severe dislocation (e.g., by building to inventory using part-time help in peak periods).
	What quality consistency issues exist and how will quality consistency be ensured? What controls exist, for instance, to ensure every burger is cooked exactly the same?		What quality consistency issues exist and how will quality consistency be ensured? What controls exist, for instance, to ensure every burger is cooked exactly the same?
	B.Geographic Location:		==B.Geographic Location: ==
	Describe the planned geographic location of the business. Include any location analysis, site selection etc. that you have done.		Describe the planned geographic location of the business. Include any location analysis, site selection etc. that you have done.
	Discuss any advantages or disadvantages of the site location in terms of such factors as labor (including labor available, whether workers are unionized, and wage rate), closeness to customer and/or suppliers, access to transportation, state and local taxes and laws (including zoning regulations), access to utilities, and so forth.		Discuss any advantages or disadvantages of the site location in terms of such factors as labor (including labor available, whether workers are unionized, and wage rate), closeness to customer and/or suppliers, access to transportation, state and local taxes and laws (including zoning regulations), access to utilities, and so forth.
	C.Facilities, Equipment and Improvements:		==C.Facilities, Equipment and Improvements: ==
	Describe the facilities, including plant and office space, storage and land areas, special tooling, machinery, and other equipment needed to conduct business. Discuss any economies to scale.		Describe the facilities, including plant and office space, storage and land areas, special tooling, machinery, and other equipment needed to conduct business. Discuss any economies to scale.
	Provide a schematic diagram of the layout of your facility.		Provide a schematic diagram of the layout of your facility.
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	Discuss whether equipment and space will be leased or acquired (new or used) and indicate costs and timing of such actions and how much of the proposed financing will be devoted to plant/equipment.		Discuss whether equipment and space will be leased or acquired (new or used) and indicate costs and timing of such actions and how much of the proposed financing will be devoted to plant/equipment.
	Discuss how and when, in the next three years, office/ retail site/ plant space and equipment will be expanded to the capacities required by future sales projections and any plans to improve or add to existing space or move the facility; indicate the timing and cost of such acquisitions.		Discuss how and when, in the next three years, office/ retail site/ plant space and equipment will be expanded to the capacities required by future sales projections and any plans to improve or add to existing space or move the facility; indicate the timing and cost of such acquisitions.
	D.Strategy and Plans:		==D.Strategy and Plans: ==
	Describe the manufacturing processes involved in production of your product(s) – what will you do in-house and what will we purchase (i.e. make versus buy decision)? or		Describe the manufacturing processes involved in production of your product(s) – what will you do in-house and what will we purchase (i.e. make versus buy decision)? or
	Describe the service delivery processes involved in providing your service(s) and any aspects of the service that are outsourced or provided by others.
			Describe the service delivery processes involved in providing your service(s) and any aspects of the service that are outsourced or provided by others.

	Justify your proposed make-or-buy policy in terms of inventory financing, available labor skills, and other non-technical questions, as well as production, cost, and capability issues.		Justify your proposed make-or-buy policy in terms of inventory financing, available labor skills, and other non-technical questions, as well as production, cost, and capability issues.

	Discuss who potential subcontractors and suppliers are likely to be and any information about, or any surveys that have been made of, these subcontractors and suppliers. Discuss relationships with them.		Discuss who potential subcontractors and suppliers are likely to be and any information about, or any surveys that have been made of, these subcontractors and suppliers. Discuss relationships with them.

	Present a plan for operations that shows cost/volume information at various sales levels of operation with breakdowns of applicable material, labor, purchased components, and factory overhead, and that shows the inventory required at these various sales levels.		Present a plan for operations that shows cost/volume information at various sales levels of operation with breakdowns of applicable material, labor, purchased components, and factory overhead, and that shows the inventory required at these various sales levels.
	Describe your approach to quality control, production control, inventory control, and explain what quality control and inspection procedures the company will use to minimize service problems and associated customer dissatisfaction. How will you win in the market place on cost, quality, timeliness or flexibility?

			Describe your approach to quality control, production control, inventory control, and explain what quality control and inspection procedures the company will use to minimize service problems and associated customer dissatisfaction. How will you win in the market place on cost, quality, timeliness or flexibility?

	=MANAGEMENT TEAM=		=MANAGEMENT TEAM=

Marcin at 01:36, 28 February 2016

2016-02-28T01:36:28Z

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			Use this document as a basic template:

			<html><iframe src="https://docs.google.com/presentation/d/1cXi14ISA8UB8Lg6ZZA5ptuoSN-tPY8lBWJICggxg7J0/embed?start=false&loop=false&delayms=3000" frameborder="0" width="960" height="569" allowfullscreen="true" mozallowfullscreen="true" webkitallowfullscreen="true"></iframe></html>

	*From http://library.syr.edu/research/internet/management/nutsandbolts.doc		*From http://library.syr.edu/research/internet/management/nutsandbolts.doc
	=Links to Resources=		=Links to Resources=

← Older revision		Revision as of 23:32, 26 March 2018
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	I.Coverage of Key Components (please rate each area below on a 5-		I.Coverage of Key Components (please rate each area below on a 5-
	point scale where 1 = poor, 5 = excellent)		point scale where 1 = poor, 5 = excellent)

	a.The Industry (definition, size, growth, structure, key trends,		a.The Industry (definition, size, growth, structure, key trends,
	success factors) __________		success factors)
			__________
	b.The Business Concept and Product(s) (core concept for		b.The Business Concept and Product(s) (core concept for
	capitalizing on the opportunity, products/services, benefits ) __________		capitalizing on the opportunity, products/services, benefits ) __________

	c.The Market (definition, size, market potential, target		c.The Market (definition, size, market potential, target
	audience, purchase decision maker & process) __________		audience, purchase decision maker & process) __________

	d. Economics of the Business (margins, breakeven, cost		d. Economics of the Business (margins, breakeven, cost
	structure, how we will make our money) __________		structure, how we will make our money) __________

	e. Marketing (pricing, promotion, selling, distribution,		e. Marketing (pricing, promotion, selling, distribution,
	customer service) __________		customer service) __________

	f. Operations (staffing requirement, how product or		f. Operations (staffing requirement, how product or
	service will be produced, delivered, supported, logistics) __________		service will be produced, delivered, supported, logistics) __________

	g. Non-financial resource requirements (people,		g. Non-financial resource requirements (people,
	facilities, etc) __________		facilities, etc) __________

	h.Management Team (players, roles, experience/credibility,		h.Management Team (players, roles, experience/credibility,
	Compensation, board of directors, key advisors) __________		Compensation, board of directors, key advisors) __________

	i.Venture financing (money needed, from where, how		i.Venture financing (money needed, from where, how
	investors will receive their return, rate of return to them) __________		investors will receive their return, rate of return to them) __________

	j.Financials (projected cash flow, income statement, balance		j.Financials (projected cash flow, income statement, balance
	sheet) __________		sheet) __________
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	a. Pragmatism/Realism __________		a. Pragmatism/Realism __________

	b. Completeness/Comprehensiveness __________		b. Completeness/Comprehensiveness __________

	c. Internal Consistency __________		c. Internal Consistency __________

	d. Writing Style __________		d. Writing Style __________

	e. Professionalism of the Document __________		e. Professionalism of the Document __________


	III. Overall Recommended Score (100 = outstanding---I want to invest) __________		III. Overall Recommended Score (100 = outstanding---I want to invest) __________
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	Judge’s Rating Sheet Name of Concept___________________		Judge’s Rating Sheet Name of Concept___________________
	Business Plan Evaluation: Oral Presentation
			Business Plan Evaluation: Oral Presentation

	Syracuse Business Plan Competition		Syracuse Business Plan Competition
	April 2004 Judge # ___
			April 2004
			Judge # ___

	Please rate the presentation of the business plan first on each of the seven content areas listed in Part I below, and then rate the presentation itself in Part II. In Part III, please give the presentation an overall rating from 0 to 100. Your written comments are very much appreciated and will be shared with the team.		Please rate the presentation of the business plan first on each of the seven content areas listed in Part I below, and then rate the presentation itself in Part II. In Part III, please give the presentation an overall rating from 0 to 100. Your written comments are very much appreciated and will be shared with the team.
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	a. The Opportunity (forces creating the opportunity, size of the		a. The Opportunity (forces creating the opportunity, size of the
	opportunity, market need) __________		opportunity, market need) __________

	k.The Business Concept (core concept for capitalizing on the		k.The Business Concept (core concept for capitalizing on the
	opportunity, products/services, benefits ) __________		opportunity, products/services, benefits ) __________

	l.The Market (definition, size, market potential, target		l.The Market (definition, size, market potential, target
	audience, purchase decision process) __________		audience, purchase decision process) __________

	m.Operations (staffing requirements, how product or		m.Operations (staffing requirements, how product or
	service will be produced/delivered/supported, logistics) __________		service will be produced/delivered/supported, logistics) __________

	n.Marketing (pricing, promotion, selling, distribution, how		n.Marketing (pricing, promotion, selling, distribution, how
	an actual sale will be accomplished) __________		an actual sale will be accomplished) __________

	o.Economics of the Business (margins, breakeven, cost		o.Economics of the Business (margins, breakeven, cost
	structure, how we will make our money) __________		structure, how we will make our money) __________

	p.Financials (projected cash flow, income statement, balance		p.Financials (projected cash flow, income statement, balance
	sheet, how much money we need, how we will get it,		sheet, how much money we need, how we will get it,
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	a. Powerpoint or other audiovisuals __________		a. Powerpoint or other audiovisuals __________

	b. Ability to capture audience attention __________		b. Ability to capture audience attention __________

	c. Completeness of the presentation __________		c. Completeness of the presentation __________

	d. Mastery of facts and material related to venture __________		d. Mastery of facts and material related to venture __________

	e. Professionalism of the presentation __________		e. Professionalism of the presentation __________

	f. Handling of questions __________		f. Handling of questions __________

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	The purpose of this section of the plan is to indicate the amount of any money that is being sought, the nature and amount of the securities offered to the investor, a brief description of the uses that will be made of the capital revised, and a summary of how the investor is expected to achieve its targeted rate of return.		The purpose of this section of the plan is to indicate the amount of any money that is being sought, the nature and amount of the securities offered to the investor, a brief description of the uses that will be made of the capital revised, and a summary of how the investor is expected to achieve its targeted rate of return.
	It is important to realize the terms for financing your company that you propose here are only the first step in the negotiation process with those interested in investing, and it is very possible that your financing will involve different kinds of securities than originally proposed.		It is important to realize the terms for financing your company that you propose here are only the first step in the negotiation process with those interested in investing, and it is very possible that your financing will involve different kinds of securities than originally proposed.

	A.Desired Financing:		A.Desired Financing:

	Review the monthly real-time cash flow projections and your estimate of how much money is required over the next three years to carry out the development and/or expansion of your business as described.		Review the monthly real-time cash flow projections and your estimate of how much money is required over the next three years to carry out the development and/or expansion of your business as described.
	Determine the amount and timing of cash infusions required to prevent cash balances from going negative. Add a cash safety cushion (~25% as a good “guesstimate”) to the anticipated cash needs to protect against unexpected expenses or delayed income.		Determine the amount and timing of cash infusions required to prevent cash balances from going negative. Add a cash safety cushion (~25% as a good “guesstimate”) to the anticipated cash needs to protect against unexpected expenses or delayed income.
	Determine the type of funding that will suit your business: debt/equity or non-traditional financing. Indicate how this capital requirement will be obtained -- from whom and how much will be obtained via term loans or lines of credit.		Determine the type of funding that will suit your business: debt/equity or non-traditional financing. Indicate how this capital requirement will be obtained -- from whom and how much will be obtained via term loans or lines of credit.

	B.Offering (deal structure – pitch for money):		B.Offering (deal structure – pitch for money):

	If you have decided to seek equity capital, then you need to describe the type of security being offered (e.g., common stock, convertible debentures, debt with warrants, debt plus stock), the unit price, and the total amount of securities to be sold in this offering. If securities are not just common stock, indicate by type, interest, maturity, and conversion conditions.		If you have decided to seek equity capital, then you need to describe the type of security being offered (e.g., common stock, convertible debentures, debt with warrants, debt plus stock), the unit price, and the total amount of securities to be sold in this offering. If securities are not just common stock, indicate by type, interest, maturity, and conversion conditions.
	Show the percentage of the company that the investor in this offering will hold after it is completed or after exercise of any stock conversion or purchase rights in the case of convertible debentures or warrants i.e. what share of your company does the investor get for a specified investment.		Show the percentage of the company that the investor in this offering will hold after it is completed or after exercise of any stock conversion or purchase rights in the case of convertible debentures or warrants i.e. what share of your company does the investor get for a specified investment.
	Securities sold through a private placement and that are therefore exempt from SEC registration should include the following statement in this part of the plan: “The shares being sold pursuant to this offering are restricted securities and may not be resold readily. The prospective investor should recognize that such securities might be restricted as to resale for indefinite period of time. Each purchaser will be required to execute a Non-Distribution Agreement satisfactory in form to corporate counsel”.		Securities sold through a private placement and that are therefore exempt from SEC registration should include the following statement in this part of the plan: “The shares being sold pursuant to this offering are restricted securities and may not be resold readily. The prospective investor should recognize that such securities might be restricted as to resale for indefinite period of time. Each purchaser will be required to execute a Non-Distribution Agreement satisfactory in form to corporate counsel”.
	If you are seeking a loan, then you need to indicate to the potential lender how the loan will be repaid and what the interest rate is. What is the collateral for the loan?		If you are seeking a loan, then you need to indicate to the potential lender how the loan will be repaid and what the interest rate is. What is the collateral for the loan?

	C.Capitalization:		C.Capitalization:

	Present in tabular form the current and proposed (post-offering) number of outstanding shares of common stock. Indicate any shares offered by key management people and show the number of shares that they will hold after completion of the proposed financing.		Present in tabular form the current and proposed (post-offering) number of outstanding shares of common stock. Indicate any shares offered by key management people and show the number of shares that they will hold after completion of the proposed financing.
	Indicate how many shares of your company’s common stock will remain authorize debut un-issued after the offering and how many of these will be reserved for stock options for future key employees.		Indicate how many shares of your company’s common stock will remain authorize debut un-issued after the offering and how many of these will be reserved for stock options for future key employees.
	Identify any other terms that you are willing to negotiate as part of the deal e.g. right of first refusal, seat on board, voting rights, and other rights and preferences.		Identify any other terms that you are willing to negotiate as part of the deal e.g. right of first refusal, seat on board, voting rights, and other rights and preferences.

	D.Use of Funds:		D.Use of Funds:

	Investors like to know how their money is going to be spent. Provide a brief description of how the capital raised will be used. Summarize as specifically as possible what amount will be used for such things as product design and development, capital equipment, marketing, and general working capital needs.		Investors like to know how their money is going to be spent. Provide a brief description of how the capital raised will be used. Summarize as specifically as possible what amount will be used for such things as product design and development, capital equipment, marketing, and general working capital needs.

	E.Investors’ Return (Exit Strategy).		E.Investors’ Return (Exit Strategy).

	What is the value of your company? How did you calculate this value?		What is the value of your company? How did you calculate this value?
	Indicate how your valuation and proposed ownership shares will result in the desired rate of return for the investors you have targeted. What will be the likely harvest or exit mechanism (IPO, outright sale, merger, MBO, operate and grow, etc.)?		Indicate how your valuation and proposed ownership shares will result in the desired rate of return for the investors you have targeted. What will be the likely harvest or exit mechanism (IPO, outright sale, merger, MBO, operate and grow, etc.)?
	What is the exit strategy for the investors and founders?		What is the exit strategy for the investors and founders?


	=COVERING YOUR BASES: FORTY ISSUES TO DIE FOR=		=COVERING YOUR BASES: FORTY ISSUES TO DIE FOR=

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	=FINANCIAL PLAN=		=FINANCIAL PLAN=
	Documents To Be Developed For This Section (Put In Appendix)		Documents To Be Developed For This Section (Put In Appendix)
	i. Pro forma income statements (3-5 years)		#Pro forma income statements (3-5 years)
	~~ii.~~ Pro forma balance sheets (3-5 years)		#Pro forma balance sheets (3-5 years)
	~~iii.~~ Pro forma cash flow analysis (3-5 years)		#Pro forma cash flow analysis (3-5 years)
	This section lays out exactly what you are requesting from investors; it is number-oriented. Give the investors the columns and rows that they want to see. The more you give them, the more difficult it will be for them to challenge the assumptions that you have made to produce those numbers.		This section lays out exactly what you are requesting from investors; it is number-oriented. Give the investors the columns and rows that they want to see. The more you give them, the more difficult it will be for them to challenge the assumptions that you have made to produce those numbers.

	The financial plan is basic to the evaluation of an investment opportunity and needs to represent your best estimates of financial requirements. The purpose of the financial plan is to indicate the venture’s potential and to present a timetable for financial viability. It also can serve as an operating plan for financial management using financial benchmarks. In preparing the financial plan, you need to look creatively at your venture and consider alternative ways of launching or financing it.		The financial plan is basic to the evaluation of an investment opportunity and needs to represent your best estimates of financial requirements. The purpose of the financial plan is to indicate the venture’s potential and to present a timetable for financial viability. It also can serve as an operating plan for financial management using financial benchmarks. In preparing the financial plan, you need to look creatively at your venture and consider alternative ways of launching or financing it.

	As part of the financial plan, financial exhibits need to be prepared. To estimate cash flow needs, use cash-based, rather than an accrual-based, accounting (i.e., use a real-time cash flow analysis of expected receipts and disbursements). This analysis needs to cover three years (or five depending on your type of business). Included also are pro forma income statements and balance sheets; and a break-even chart.		As part of the financial plan, financial exhibits need to be prepared. To estimate cash flow needs, use cash-based, rather than an accrual-based, accounting (i.e., use a real-time cash flow analysis of expected receipts and disbursements). This analysis needs to cover three years (or five depending on your type of business). Included also are pro forma income statements and balance sheets; and a break-even chart.

	On the appropriate exhibits, or in an attachment, assumptions behind such items as sales levels and growth, collections and payables periods, inventory requirements, cash balances, cost of goods, and so forth, need to be specified. Your analysis of the operating and cash conversion cycle in the business will enable you to identify these critical assumptions.		On the appropriate exhibits, or in an attachment, assumptions behind such items as sales levels and growth, collections and payables periods, inventory requirements, cash balances, cost of goods, and so forth, need to be specified. Your analysis of the operating and cash conversion cycle in the business will enable you to identify these critical assumptions.
	Pro forma income statements are the plan-for-profit part of financial management and can indicate the potential financial feasibility of a new venture. Usually the level of profits, particularly during the start-up years of a venture, will not be sufficient to finance operating asset needs, and since actual cash inflows do not always match the actual cash outflows on a short-term basis, a cash flow forecast that will indicate these conditions and enable management to plan cash needs is recommended. Further, pro forma balance sheets are used to detail the assets required to support the projected level of operations and through liabilities, to show how these assets are to be financed. The projected balance sheets can indicate if debt-to-equity ratios, working capital, current ratios, inventory turnover and the like are within the acceptable limits required to justify future financing that are projected for the venture. Finally, a break-even chart showing the level of sales and production that will cover all costs, including those costs that vary with production level and those that do not, is very useful:		Pro forma income statements are the plan-for-profit part of financial management and can indicate the potential financial feasibility of a new venture. Usually the level of profits, particularly during the start-up years of a venture, will not be sufficient to finance operating asset needs, and since actual cash inflows do not always match the actual cash outflows on a short-term basis, a cash flow forecast that will indicate these conditions and enable management to plan cash needs is recommended. Further, pro forma balance sheets are used to detail the assets required to support the projected level of operations and through liabilities, to show how these assets are to be financed. The projected balance sheets can indicate if debt-to-equity ratios, working capital, current ratios, inventory turnover and the like are within the acceptable limits required to justify future financing that are projected for the venture. Finally, a break-even chart showing the level of sales and production that will cover all costs, including those costs that vary with production level and those that do not, is very useful:
	A. Pro Forma Income Statements:
			==A. Pro Forma Income Statements:==
	Using sales forecasts and the accompanying operating costs, prepare pro forma income statements for at least the first three years. Be sure these numbers are consistent with what is being proposed in all the earlier sections of the plan (marketing, operations, management team, etc.)		Using sales forecasts and the accompanying operating costs, prepare pro forma income statements for at least the first three years. Be sure these numbers are consistent with what is being proposed in all the earlier sections of the plan (marketing, operations, management team, etc.)
	Fully discuss assumptions (e.g., the amount allowed for bad debts and discounts, or any assumptions made with respect to sales expenses or general and administrative costs being a fixed percentage of costs or sales) made in preparing the pro forma income statement and document them.		Fully discuss assumptions (e.g., the amount allowed for bad debts and discounts, or any assumptions made with respect to sales expenses or general and administrative costs being a fixed percentage of costs or sales) made in preparing the pro forma income statement and document them.
	Draw on Section X of the business plan and highlight any major risks, such as the effect of a 20% reduction in sales from those projected or the adverse impact of having to climb a learning curve on the level of productivity over time, that could prevent the venture’s sales and profit goals from being attained, plus the sensitivity of profits to these risks.		Draw on Section X of the business plan and highlight any major risks, such as the effect of a 20% reduction in sales from those projected or the adverse impact of having to climb a learning curve on the level of productivity over time, that could prevent the venture’s sales and profit goals from being attained, plus the sensitivity of profits to these risks.
	B. Pro Forma Balance Sheets:		==B. Pro Forma Balance Sheets: ==
	Prepare pro forma balance sheets semi-annually in the first year and at the end of each of the first three years.		Prepare pro forma balance sheets semi-annually in the first year and at the end of each of the first three years.
	C.Pro Forma Cash Flow Analysis:		==C.Pro Forma Cash Flow Analysis:==
	Project cash flows monthly for the first year of operation and quarterly for at least the next two years, detailing the amount and timing of expected cash inflows and outflows; determine the need for and timing of additional financing and indicate peak requirements for working capital; and indicate how needed additional financing is to be obtained, such as through equity financing, bank loans, or short-term lines of credit from banks, on what terms, and how it is to be repaid. Remember they are based on cash, not accrual, accounting. Explain how much money you will need. For debt funding, what will you use as collateral? How will the money be used-for working capital, R&D, marketing, capital acquisitions? This dictates the level of risk of the investment. Investors generally feel that expenditures for R&D and marketing are riskier than are expenditures for capital acquisitions.		Project cash flows monthly for the first year of operation and quarterly for at least the next two years, detailing the amount and timing of expected cash inflows and outflows; determine the need for and timing of additional financing and indicate peak requirements for working capital; and indicate how needed additional financing is to be obtained, such as through equity financing, bank loans, or short-term lines of credit from banks, on what terms, and how it is to be repaid. Remember they are based on cash, not accrual, accounting. Explain how much money you will need. For debt funding, what will you use as collateral? How will the money be used-for working capital, R&D, marketing, capital acquisitions? This dictates the level of risk of the investment. Investors generally feel that expenditures for R&D and marketing are riskier than are expenditures for capital acquisitions.
	Discuss assumptions, such as those made on the timing of collection of receivables, trade discounts given, terms of payments to vendors, planned salary and wage increases, anticipated increases in any operating expenses, seasonality characteristics of the business as they affect inventory requirements, inventory turnovers per year, capital equipment purchases, and so forth. Again, these are real time (i.e., cash), not accrual.		Discuss assumptions, such as those made on the timing of collection of receivables, trade discounts given, terms of payments to vendors, planned salary and wage increases, anticipated increases in any operating expenses, seasonality characteristics of the business as they affect inventory requirements, inventory turnovers per year, capital equipment purchases, and so forth. Again, these are real time (i.e., cash), not accrual.
	Discuss cash flow sensitivity to a variety of assumptions about business factors (e.g., possible changes in such crucial assumptions as an increase in the receivable collection period or a sales level lower than that forecasted).		Discuss cash flow sensitivity to a variety of assumptions about business factors (e.g., possible changes in such crucial assumptions as an increase in the receivable collection period or a sales level lower than that forecasted).
	D. Months to Breakeven and to Positive Cash Flow:		==D. Months to Breakeven and to Positive Cash Flow:==
	Given the above strategy and assumptions, show when the venture will attain a positive cash flow. Show if and when you will run out of cash. Note where the detailed assumptions can be found. Note any significant stepwise changes in cash flow that will occur as you grow and add capacity		Given the above strategy and assumptions, show when the venture will attain a positive cash flow. Show if and when you will run out of cash. Note where the detailed assumptions can be found. Note any significant stepwise changes in cash flow that will occur as you grow and add capacity
	Given your entry strategy, marketing plan, and proposed financing, how long it will take to reach a unit breakeven sales level. How many months to breakeven? Briefly describe your break-even estimates. In other words, how many units (or dollars’ worth) of the product (or how many hours of the service) must be sold to cover your costs?		Given your entry strategy, marketing plan, and proposed financing, how long it will take to reach a unit breakeven sales level. How many months to breakeven? Briefly describe your break-even estimates. In other words, how many units (or dollars’ worth) of the product (or how many hours of the service) must be sold to cover your costs?
	E. Cost Control:		==E. Cost Control:==
	Describe how you will obtain information about report costs and how often, who will be responsible for the control of various cost elements, and how you will take action on budget overruns. Explain any unusual items not identified in the financial statement.		Describe how you will obtain information about report costs and how often, who will be responsible for the control of various cost elements, and how you will take action on budget overruns. Explain any unusual items not identified in the financial statement.
	F. Highlights of the Financial Statements:		==F. Highlights of the Financial Statements: ==
	Highlight the important conclusions, such as what is the maximum amount of cash required is and when it will be required, the amount of debt and equity needed, how fast any debts can be repaid, etc., start up costs, etc.		Highlight the important conclusions, such as what is the maximum amount of cash required is and when it will be required, the amount of debt and equity needed, how fast any debts can be repaid, etc., start up costs, etc.
	To help validate your financials compare critical financial ratios from your plan with those of your industry. Explain and justify significant differences.		To help validate your financials compare critical financial ratios from your plan with those of your industry. Explain and justify significant differences.


	=PROPOSED COMPANY OFFERING=		=PROPOSED COMPANY OFFERING=

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	=CRITICAL RISKS, PROBLEMS AND ASSUMPTIONS=		=CRITICAL RISKS, PROBLEMS AND ASSUMPTIONS=
	The development of a business has risks and problems, and the business plan invariably contains some implicit assumptions about these issues. You need to include a description of the risks and the consequences of adverse outcomes relating to your industry, your company and its personnel, your product’s market appeal, and the timing and financing of your startup. Be sure to discuss assumptions concerning sales projections, customer orders, and so forth. If the venture has anything that could be considered a fatal flaw, discuss why you do not see it as a problem or how you intend to overcome it. The discovery of any unstated negative factors by potential investors can undermine the credibility of the venture and endanger its financing. Be aware that most investors will read the section describing the management team first and then this section. It is therefore recommended that you not omit this section. If you do, the reader will most likely come to one or more of the following conclusions:		The development of a business has risks and problems, and the business plan invariably contains some implicit assumptions about these issues. You need to include a description of the risks and the consequences of adverse outcomes relating to your industry, your company and its personnel, your product’s market appeal, and the timing and financing of your startup. Be sure to discuss assumptions concerning sales projections, customer orders, and so forth. If the venture has anything that could be considered a fatal flaw, discuss why you do not see it as a problem or how you intend to overcome it. The discovery of any unstated negative factors by potential investors can undermine the credibility of the venture and endanger its financing. Be aware that most investors will read the section describing the management team first and then this section. It is therefore recommended that you not omit this section. If you do, the reader will most likely come to one or more of the following conclusions:
	1.You think he or she is incredibly naïve or stupid, or both.		#You think he or she is incredibly naïve or stupid, or both.
	2.You hope to pull the wool over his or her eyes.		#You hope to pull the wool over his or her eyes.
	3.You do not have enough objectivity to recognize and deal with assumptions and problems.		#You do not have enough objectivity to recognize and deal with assumptions and problems.

	Identifying and discussing the risks in your venture demonstrate your skills as a manager and increase credibility of you and your venture with a venture capital investor or a private investor. Taking the initiative on the identification and discussion of risks helps you to demonstrate to the investor that you have thought about them and can handle them. Risks then tend not to loom as large black clouds in the investor’s thinking about your venture.		Identifying and discussing the risks in your venture demonstrate your skills as a manager and increase credibility of you and your venture with a venture capital investor or a private investor. Taking the initiative on the identification and discussion of risks helps you to demonstrate to the investor that you have thought about them and can handle them. Risks then tend not to loom as large black clouds in the investor’s thinking about your venture.
	1.Discuss assumptions implicit in your plan. Examples of key assumptions might include:		#Discuss assumptions implicit in your plan. Examples of key assumptions might include:
	Revenue forecasts (price, volumes, discounts, margins).		##Revenue forecasts (price, volumes, discounts, margins).
	Development expenses (number of people, key salaries, sub-contracts)		##Development expenses (number of people, key salaries, sub-contracts)
	Average cost of a unit.		##Average cost of a unit.
	COGS (material, etc.).		##COGS (material, etc.).
	Working capital (accounts receivable, inventory, payables)		##Working capital (accounts receivable, inventory, payables)
	Capital expenditures (major items)		##Capital expenditures (major items)
	Ability to obtain key distribution channel.		##Ability to obtain key distribution channel.
	Getting a patent licenses or permit.		##Getting a patent licenses or permit.
	Rate of growth in sales.		##Rate of growth in sales.
	Obtaining a particular site or facility that is key to the business.		##Obtaining a particular site or facility that is key to the business.
	Hiring of key staff members with experience in a critical area.		##Hiring of key staff members with experience in a critical area.
	Approval of critical financing.		##Approval of critical financing.
	Overcoming key obstacles in product design.		##Overcoming key obstacles in product design.
	2.Identify and discuss any major problems and other risks, such as:		#Identify and discuss any major problems and other risks, such as:
	Running out of cash before orders are secured.		##Running out of cash before orders are secured.
	Competitor risks e.g. you are pre-empted in the market by a competitor		##Competitor risks e.g. you are pre-empted in the market by a competitor
	Technological risks i.e. cannot make the product work		##Technological risks i.e. cannot make the product work
	Potential price-cutting by competitors.		##Potential price-cutting by competitors.
	Any potential unfavorable industry-wide trends.		##Any potential unfavorable industry-wide trends.
	Design or manufacturing costs in excess of estimates.		##Design or manufacturing costs in excess of estimates.
	Sales projections not achieved.		##Sales projections not achieved.
	Difficulties or long lead times encountered in the procurement of parts or raw materials.		##Difficulties or long lead times encountered in the procurement of parts or raw materials.
	Difficulties encountered in obtaining needed bank credit.		##Difficulties encountered in obtaining needed bank credit.
	Larger-than-expected innovation and development costs.		##Larger-than-expected innovation and development costs.
	Running out of cash after orders pour in.		##Running out of cash after orders pour in.
	3.Indicate what assumptions or potential problems and risks are most critical to the success of the venture, and describe your plans for minimizing the impact of unfavorable developments in each case. What is the worst-case scenario and how will you respond? Focus on risks that are important and critical to your business, not the ordinary operating risks faced by any business.		#Indicate what assumptions or potential problems and risks are most critical to the success of the venture, and describe your plans for minimizing the impact of unfavorable developments in each case. What is the worst-case scenario and how will you respond? Focus on risks that are important and critical to your business, not the ordinary operating risks faced by any business.

	=FINANCIAL PLAN=		=FINANCIAL PLAN=

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	=MANAGEMENT TEAM=		=MANAGEMENT TEAM=
	This section of the business plan includes a description of the functions that will need to be filled, a description of the key management personnel and their primary duties, an outline of the organizational structure for the venture, a description of the board of directors and key advisors, a description of the ownership position of any other investors, and so forth. You need to present indications of commitment, such as the willingness of team members to initially accept modest salaries, and of the existence of the proper balance of technical, managerial, and business skills and experience in doing what is proposed.		This section of the business plan includes a description of the functions that will need to be filled, a description of the key management personnel and their primary duties, an outline of the organizational structure for the venture, a description of the board of directors and key advisors, a description of the ownership position of any other investors, and so forth. You need to present indications of commitment, such as the willingness of team members to initially accept modest salaries, and of the existence of the proper balance of technical, managerial, and business skills and experience in doing what is proposed.
	A.Organization:		==A.Organization:==
	Present the key management roles and responsibilities in the company.		Present the key management roles and responsibilities in the company.
	Discuss the individuals who will fill each position.		Discuss the individuals who will fill each position.
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	If any key individuals will not be on board at the start, indicate when they will join the company.		If any key individuals will not be on board at the start, indicate when they will join the company.
	Discuss any current or past situations where key management people have worked together that could indicate how their skills complement each other and result in an effective management team.		Discuss any current or past situations where key management people have worked together that could indicate how their skills complement each other and result in an effective management team.
	B.Key Management Personnel:		==B.Key Management Personnel: ==
	For each key person, describe career highlights, particularly relevant know-how, skills, and track record of accomplishments that demonstrate his or her ability to perform the assigned role. Include in your description sales and profitability achievements (budget size, numbers of subordinates, new product introductions, etc.) and other prior entrepreneurial or general management results.		For each key person, describe career highlights, particularly relevant know-how, skills, and track record of accomplishments that demonstrate his or her ability to perform the assigned role. Include in your description sales and profitability achievements (budget size, numbers of subordinates, new product introductions, etc.) and other prior entrepreneurial or general management results.
	Describe the exact duties and responsibilities of each of the key members of the management team.		Describe the exact duties and responsibilities of each of the key members of the management team.
	Complete resumes for each key management member need to be included here or as an exhibit and need to stress relevant training, experience, any concrete accomplishments, such as profit and sales improvement, labor management success, manufacturing or technical achievements, and meeting of budgets & schedules.		Complete resumes for each key management member need to be included here or as an exhibit and need to stress relevant training, experience, any concrete accomplishments, such as profit and sales improvement, labor management success, manufacturing or technical achievements, and meeting of budgets & schedules.
	C.Management Compensation and Ownership:		==C.Management Compensation and Ownership: ==
	State the salary to be paid, the stock ownership planned, and the amount of their equity investment (if any) of each key member of the management team.		State the salary to be paid, the stock ownership planned, and the amount of their equity investment (if any) of each key member of the management team.
	D.Other Current Investors:		==D.Other Current Investors:==
	Describe here any other investors in your venture, the number and percentage of outstanding shares they own, when they were acquired, and at what price.		Describe here any other investors in your venture, the number and percentage of outstanding shares they own, when they were acquired, and at what price.
	E.Employment and Other Agreements, Stock Options and Bonus Plans:		==E.Employment and Other Agreements, Stock Options and Bonus Plans: ==
	Describe any existing or contemplated employment or other agreements with key members.		Describe any existing or contemplated employment or other agreements with key members.
	Indicate any restrictions on stock and vesting that affect ownership and disposition of stock.		Indicate any restrictions on stock and vesting that affect ownership and disposition of stock.
	Summarize any incentive stock option or other stock ownership plans planned or in effect for key people and employees.		Summarize any incentive stock option or other stock ownership plans planned or in effect for key people and employees.
	F.Board of Directors:		==F.Board of Directors: ==
	Discuss the company’s philosophy about the size and composition of the board.		Discuss the company’s philosophy about the size and composition of the board.
	Identify any proposed board members and include a one or two sentence statement of the member’s background that shows what he or she can bring to the company.		Identify any proposed board members and include a one or two sentence statement of the member’s background that shows what he or she can bring to the company.
	G.Other Shareholders, Rights, and Restrictions:		==G.Other Shareholders, Rights, and Restrictions: ==
	Indicate any other shareholders in your company and any rights and restrictions or obligations, such as notes or guarantees, associated with these. (If they have all been accounted for above, simply note that there are no others.)		Indicate any other shareholders in your company and any rights and restrictions or obligations, such as notes or guarantees, associated with these. (If they have all been accounted for above, simply note that there are no others.)
	H.Supporting Professional Advisors and Services:		==H.Supporting Professional Advisors and Services: ==
	Indicate the names and affiliations of the legal, accounting, advertising, consulting, and banking advisors selected for your venture and the services each will provide.		Indicate the names and affiliations of the legal, accounting, advertising, consulting, and banking advisors selected for your venture and the services each will provide.