The Story of the Plan

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The Story of the Plan

• Presented by
• Elizabeth Pyle
• Philippe Sommer

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In Business Plan Development

• The goal is to create interest. In creating
  interest, the full story of your company need not
  be told. Rather, the plan should include the
  essential elements regarding why an investor
  should invest and spend more time examining the
  business opportunity.

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• A well developed business plan is written from
  the stand point of the investor not the
  researcher, scientist or inventor.

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Why How

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Make assumptions explicit
Make business concepts concrete actionable
Tell convincing marketing sales story
Why?
WRITE A BUSINESS PLAN
How?
Executive Summary
Pitch/ Presentation
Concept Paper
Written Plan
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Three Basic Questions

• Is this opportunity interesting?
• Is this business credible?
• Is this investment attractive?

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Is this opportunity interesting?

• Pain Evidence of scorching pain in the
  market.
• Solution Evidence that your product or service
  is fully developed.
• Value Proposition What do you offer to valued
  customers?

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• Customers Evidence of the value to the
  customers.
• Market Evidence of customer interest paying
  customers, orders, letters of intent, size,
  trends, SWOT, etc.

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• Competition Evidence that your target market
  will grow large enough and fast enough.
  Competitor analysis.

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Is this business credible?

• Strategy Evidence of your ability to compete
  effectively. Short long-term plan.
  Intellectual property.
• Marketing Sales Evidence that marketing
  drives your company. Get-Grow-Hold strategy.
  Market based product development.

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• Operations Evidence that the organization
  efficiently makes and delivers products and
  services to customers.
• Management Evidence that the team is capable of
  executing the plan.

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• Financial Evidence of financial health of the
  company.
• ? Income Statement
• ? Balance Sheet
• ? Cash Flow Statement
• ? Assumptions Worksheet
• ? Milestones
• ? Risk Analysis

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Is this investment attractive?

• Investment Evidence that investment is
  required. Amount. Use of Funds, contingency
  plans, etc.
• STORY OF THE MONEY
• Exit Evidence of a clear exit or harvest
  strategy and rationale to support it.
• HOPE is not a strategy

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The Business Story Line
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After Thoughts -

• Remember,
• If you cant identify an appropriate pain, then
  your solution doesnt matter.
• Its not the technology its about the value to
  the customers that is important to the investors.

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• Contact Information
• Elizabeth P. Pyle
• Pyle Associates, LLC
• Leveraging Management for Success
• EPyle920_at_msn.com
• Philippe Sommer Sommerp_at_Darden.Virginia.edu

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It Begins With an Idea

• It is important to remember that an idea alone
  doesnt make the venture.
• The idea may only represent a potential
  competitive advantage or a head start
• Without execution that brings it to market with a
  model that is superior to your competitors, the
  idea has no value.

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Where Are the Ideas?

• Look for problems
• Look at adaptation of old solutions
• Study the lead customer find out their problems
• Study others idea and/or acquire