Do's and Don'ts in Business Plan Writing

1
Do's and Don'ts in Business Plan Writing

• Organizer SJSU e-society
• Advisor Prof. Mike Solt
• Moderator W.G. Paseman - Paseman Associates

2
Why Write a Business Plan?

• Get your own thinking straight
• Create a checklist to double check you have all
  the bases covered
• Communicate with co-workers
• Communicate with Investors (Raise Money)
• Especially in this last capacity, a Business plan
  is a Sales document
• You must only answer on Question Why in the
  world should I invest my money in your company?

3
How does an investor view a company?

• Short Term - Risk
• Market - KPCB Perspective
• Team - Mayfield Perspective
• Technical
• Financial
• An early investors goal is to remove as much
  risk from the investment as early as possible.
• Your goal then, is to identify and retire as much
  risk as possible before they get the business
  plan.

Risk
Value
Time
Round A
End Game
IPO
4
Perfect Pitch

• Market I know the Market. It is big. We can
  get a big Piece. Heres why.
• (Market Risk)
• Product I have developed the Product. I know
  what to develop next.
• (Technical Risk)
• Distribution I am selling the Product. I have
  repeat orders. Customers love it. Call them.
• (Financial, Market Risk)
• Competition I beat the Competition. I will
  continue to do so. Heres why.
• (Market Risk)
• Finance I am Cash Flow Positive. My Margins are
  great. I can be Profitable soon.
• (Financial Risk)
• Revenue is Opinion. Cash is Fact.
• Team You know, respect and trust the Team. Help
  me hire more great people.
• (Team Risk)
• Note The faster you can convince someone to
  fund it, the more likely it is to be successful
  John Jarve Menlo Ventures - 1986

5
Panelists

• Bill Tobin, Director, Emerging Company Services,
  PricewaterhouseCoopers
• What Audiences should a Bplan serve?
• Laura Merling, Executive Director, SD Forum
• How should Marketing contribute to Bplan
  creation?
• Prashant Shah, Principal, Hummer Winblad Venture
  Partners
• What is the VC vetting Process and where do
  Bplans fit?
• Punita Pandey, Founder and CEO, netCustomer, Inc.
• How do you turn the Bplan into a Living
  Document?