A guideline for how a strong business plan should be prepared for funding and the common errors that most entrepreneurs make.

1. Get Funded
Structuring Your Start Up Documents

2. emagine group
 Founded in 2003
 Global venture development firm with investments in 15 countries
across multiple industries
 Group made up of:
 emagine consulting – Consulting and Research
 iMedia – Graphic Design and Web Development
 tesla communications – Technology Planning and Management
 Wicked Code – Software Development
 4SquarePeg – Human Resources
 We are venture catalysts
 We work with entrepreneurs in every stage of business
development from brainstorm to private equity investment

3. Our History In Venture Capital
 In the past 5 years
 We have heard over 600 elevator pitches
 We have received over 400 executive summaries
 We have read and assessed 100 business plans
 We have invested over USD 400 million in industries ranging
from technology to fashion and publications
 Our current investment portfolio stands at USD 700 million
 As a result, we have a special understanding of entrepreneurship
and how to get businesses funded

4. Our Funding Process
Brainstorm
Internal Business Plan ~50 – 150 pages
Teaser 1 – 2 page introduction
Elevator Pitch ~5 minute quick pitch
Pitch Deck ~15 – 20 slides
Business Plan 20 – 30 page plan
Executive Summary ~2 page introduction to Business Plan

5. Why Do Entrepreneurs Need Business Plans
 Written summary of a proposed business venture
 Helps us understand an opportunity and how to best exploit it
 Gives a blueprint for the operational and financial viability of a
business venture
 Explains marketing opportunities, go‐to‐market strategy and post
launch promotional plans
 Identifies key personnel’s skill sets and experience
 Increases the chances of business success or elimination of a
business idea based on feasibility
 Specifies the potential risks to the venture’s success
 Provides a baseline to compare projected vs. actual results

6. Why Do Venture Capitalists Need Business Plans
 Helps us to see that the entrepreneur has thought out the business
idea
 Shows us that the entrepreneur has done their homework on how
to bring the concept to market
 Provides us with the financial requirements for start‐up, production
and operations
 Defines the return on investment to the VC
 Sets a timeline for launch, growth and expansion

7. 6 C’s of Business Plans
 Complete
 Clear
 Credible
 Compelling
 Customer Focused
 Concern for the Investor

8. Do You Know What You’re Getting Into?

10. Benefits and Challenges

11. What You May Not Know

12. Elements of A Business Plan

13. Well Structured Business Plan
 Executive Summary
 Mission Statement
 Business Description
 Industry Analysis
 Business Strategy
 Customer Analysis
 Product/Service Offering
 Marketing Strategy
 Promotional Strategy
 Competitor Analysis
 Team Composition
 Operational Plan
 Technology Plan
 Research & Development
 Financial Forecasts
 Investment Strategy
 Supporting Appendices

14. Executive Summary
 “The Elevator Pitch” that summarizes the business plan into 2
pages
 This should be written last to assure that all key elements are
explained first in the business plan and then related into a strong
Executive Summary
 If the Executive Summary isn’t strong, the business plan will never
be read

15. Mission Statement
 Entrepreneur’s Vision
 What is the business?
 What will it become?
 What will it stand for?

17. Business Description
 Introduce your business and explain it
 Legal Structure
 Locations
 Market Need (Pain) ‐> Solution
 Business Goals and Objectives
 Overview of Unique Advantages
 What Benefit Will It Provide The Customer
 Professional Services
 Attorney
 Accountant
 Consultants
 Insurance

18. Industry Analysis
 Current industry position and trends
 Potential trends that can be leveraged for business success
 Total size of the market ‐> How much can you serve?
 What need do your products/services solve?
 Entry barriers
 SWOT analysis

19. Marketing and Strategy Principles

20. Business Strategy
 How will you gain competitive advantage?
 What makes you unique?
 How will you meet your goals and objectives?
 What is the company brand?
 What will it cost to enter the market, establish position and
maintain it?

21. Customer Analysis
 Who is the target customer?
 What is the profile of the customer?
 Demographic and psychographic breakdown
 Customer Need Analysis
 Buying criteria
 Value proposition

23. Product/Service Offering
 Tell us about your product/service
 Key Features
 Unique Advantages
 What does it do/What need does it satisfy?
 How will people use it?
 Where does development stand currently?
 Are there any patents, trademarks or copyrights that will affect
product development?
 How will technological changes affect product development?
 What are the shortcomings and how do you plan to overcome
them?

24. Marketing Strategy
 Prove that a profitable market exists
 Demonstrate customer interest
 How will you build awareness?
 How will you position your product/service and brand?
 What is your pricing strategy?
 What is the Go‐To‐Market strategy?
 What is the sales and distribution strategy?
 Is there a service plan and, if so, how will it be implemented/
followed?

25. Promotional Strategy
 Advertising
 Public Relations
 Personal Sales
 Websites and Social Media
 Direct Marketing
 Telemarketing
 Articles and Publications
 Budget?

26. Competitive Analysis
 Information on competitors’ market share, products and strategies
 What are your advantages over the competition?
 How else can your solution be achieved?
 Competitor response
 What will it take for customers to switch to your offering?
 How will competitors respond to your market entry?

27. Team Composition
 Breakdown of key personnel
 Education
 Skill Sets
 Professional Experience
 Direct relevant industry experience
 Accomplishments and track record (P&L responsibility)
 Experience of the team working together
 Status and Nature of Commitment
 Additional roles to be filled
 Talent Acquisition Strategy
 Board of Advisors
 Board of Directors

28. Operations Plan
 Detail the daily operations
 Structure, Ownership and Legal Form
 Organization Chart with responsibilities
 Leases and agreements necessary to operations?
 How will the offering be produced?
 Required resources
 Capital expenditures
 In‐house and/our Outsourced production
 Post Startup Production Expansion Costs
 Supplier Agreements
 Required Licenses and Permits

29. Technology Plan
 How will your venture use/utilize technology?
 Cut costs?
 Increase revenues?
 Streamline production/product delivery?
 Obtain more clients/customers?
 Business Information Systems?
 How will it help to achieve business goals and objectives?
 What will be the costs to implement, maintain and upgrade?
 What are the training costs?

30. Research & Development Plan
 Does your offering require on‐going research and development?
 How will it be funded and carried out?
 What indicators will be used to determine where the research and
development should be directed?
 How will it be implemented into product/service development and
management?
 How will the research ownership be controlled?

31. Financial Forecasts
 Capital Expenditures
 Sales Forecast
 Will you sell on credit?
 What will your policy be?
 What will it cost you?
 Breakeven Analysis
 3 Sets of Forecasts
 Optimistic
 Most Likely
 Pessimistic
 Monthly Proforma for Year 1
 Quarterly for Years 2 – 5

32. Investment Strategy
 Amount of required capital
 Personal investment
 Use of funds
 Return on Investment
 Exit strategy

33. Appendices
 Resumes
 Owners
 Shareholders
 Key Personnel
 Financials
 Start Up Expenditures
 Income Statement (1 year)
 Cash Flow Statement (12
months)
 Balance Sheet (1 year)
 Personal Financial
Statements
 Competitor Weaknesses
 Risk Assessment
 Required Business Equipment
with Quotations
 Market Research Studies
 Industry Studies
 Research & Development
 Key Agreements
 Technology White Papers
 Advertising Materials (if
available)

34. How Do We Decide Who To Fund?

35. Three Tests
 Reality Test
 Does the market really exist for the offering?
 Can you build it within the costs defined in the plan?
 Competitor Test
 Company position relative to key competitors
 Management’s ability to create a company that can give a
competitive advantage over rivals
 Value Test
 Will it make money?
 Will it cover operating expenses?
 Does it give investors an attractive rate of return or a high
probability of repayment?

36. Things That Keep Us From Funding
 Lack of logic in the development
of financials
 Unrealistic financials or lack of
detail
 Lack of planning for variables for
business
 Underestimating upfront
marketing & advertising costs
 Location! Location! Location!
 No research on upfront costs,
purchases and expenses
 No allowances for A/R and A/P
 Forgetting to include a reasonable
salary
 Pie In The Sky Projections
 No quotes for required products,
services and equipment
 Failing to relate to a real need/
requirement
 Trying to be all things to all people
 No Go‐To‐Market strategy
 “We have no competition”
 Business plan too long or too
technical
 No risk analysis
 Poorly organized business plan
 Badly designed or un‐proofread
business plan