When submitting a business plan, always include an executive
summary. The executive summary is separate document that
is a clear and concise synopsis of your business plan, usually
running no more than 3 pages. The purpose of the executive
summary is to entice a busy investor to read your main business
plan, and invite you for a meeting. You can go to whatever
length and detail you need in the main business plan, but
keep the executive summary brief and interesting to a lay
reader.
Things to include in your business plan:
Each of the following topics should be discussed in detail
in your business plan, and most should also be summarized
in your executive summary.
1) Overview: Your "elevator pitch" (typically
60 to 100 words). Explain your venture in succinct and compelling
terms
2) Problem and Solution: Describe the problems in
the market place or industry that you are solving, how much
pain is being felt by current players, and how you are reducing
their pain or solving their problems.
3) Market Analysis: Discuss the size of your potential
market, and analyze the segment you are targeting. You may
also discuss the potential value of your company by comparing
to similar companies in your market place. If you have existing
customers, list them.
4) Competitive Analysis: Discuss your existing competitors,
and also those current players who could become competitors
in the future. Explain both your advantages and disadvantages
over all of the competitors you identify, and how you plan
to overcome them. If your company or product will change
the dynamics of the current market, describe which current
players will gain by your product's success, and which ones
will lose. Also discuss your long term competitive advantage,
if you become successful and how you will compete against
other companies that try to copy your success.
Note: Every company has competitors.
5) Management Team: Describe your current management
team. Be clear about those members who are currently working
full time, those that are occasionally involved, and those
who have agreed to join when you meet certain milestones.
If you have a Board of Directors, or a Board of Advisors,
list these members in this section as well.
6) Revenue Model: Describe how your company will
make money. Explain immediate and potential sources of revenue.
Describe both the number of customers you will need to reach
your targets, and the average size of the sale per customer.
Discuss the length of the sales cycle in your target market..
Also discuss costs, including both cost of goods sold, and
marketing costs. Discuss your marketing strategy and the
profile of your ideal customer.
7) Use of Funds: Describe what you will do with
the money once you get it from investors. Also describe
any previous rounds of funding you have received and the
valuations of those rounds. In addition, project any additional
financing rounds you will require after the current one
before your exit strategy.
8) Exit Strategy: Describe how investors will get
their money back, if they invest in your company. Explain
the options that you will aim for, the likely time it will
take before they can get a return on their money, and provide
some sort of comparable so they can see the potential size
of the return, if you succeed in executing to your business
plan.
g) Financials:Describe your current capital situation,
including investments from previous investors. Also include
the structure of the entity that you have formed, or plan
to form, and where it will be incorporated. If you are currently
earning revenue, include a history of your revenue and profit/loss.
Also include 3-5 years of projected revenue and profit loss
after you get the investment you are seeking, providing
greater detail on the first 1 or 2 years. Describe the assumptions
you are making on your projections, but don't go into too
much detail - your financial projections should fit on one
page.
Due to the large number of executive summaries received,
we accept executive summaries only through e-mail.
Submit your Business Plan
