Business  Plan  Wri-ng  A  roadmap  to  success  Author:  Eva  Hukshorn  

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EFactor:  An  introduc4on  

•  Founders  Adrie  Reinders,  Marion  Freijsen,  Roeland  Reinders  •  Started  OHM  Inc.  in  2004:  Business  Development  for  Fortune  2000  •  Serving  (mainly)  technology  companies  around  the  globe  •  Goal:  assist  emerging  technology  companies  in  selling  their  product  to  Corporates  •  In  2007  they  wrote  a  book:  The  N-­‐Factor  

-  How  efficient  networking  can  change  the  dynamics  of  your  business  -  Huge  success:  no  theory,  but  hands-­‐on  4ps  &  tricks  

•  Result:  EFactor  -­‐  a  social  plaTorm  for  entrepreneurs  -  Strategic  business  networking  impacts  the  future  of  your  business  -  Goal:  share  knowledge,  increase  sales,  decrease  costs,  find  capital  -  Mission:  increase  success  of  entrepreneurs  to  start-­‐up  or  accelerate  their  organiza4on  

-  In  2012  the  new  book  was  launched:  The  E-­‐Factor:  Entrepreneurship  in  the  Social  Media  Age  

     

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EFACTOR,        THE  WORLD’S  LARGEST  ONLINE  NETWORK  FOR  ENTREPRENEURS  ON  EARTH  

 An  online  community  offering  you  a  network,  knowledge,  events,  and  every  business  resources  you  need  to  

succeed  

Eva  Hukshorn:  An  introduc4on  

•  Work  Experience  -  Current:    Partner  EFactor  

     Board  of  Advisory:  TreFoil  Energy  /  CleanDrinks  /          Global  Thinkers  /  ShowLinq  

         Coach  Startup:  Bootcamp  Amsterdam  /  New  Venture  McKinsey  -  2009  –  2010:  Dutch  Bou4que  –  Marktlink  Mergers  &  Acquisi4ons,  Amsterdam  -  2007  –  2009:    Royal  Bank  of  Scotland  –  Corporate  Finance,  Amsterdam  -  2004  –  2009:    ABN  AMRO  –  Corporate  Finance  New  York,  Amsterdam  -  2003  –  2004:    Accenture  –  Consul4ng  London,  Amsterdam  

•  Educa-on  -  1997  –  2002:  MSc  Economics,  Finance  –  University  of  Groningen,  the  Netherlands  -  2003:      Interna4onal  &  Asian  Studies  –  Na4onal  Sun  Yat-­‐Sen  University,  Taiwan  -  2009  –  2011:    Cer4fied  Management  Accoun4ng  (CMA)  –  Ins4tute  of  Management  Accountants    

       (IMA),  United  States  -  2009  –  2001:    Colloquium  General  &  Modern  Art  –  Academy  for  History  of  Art,  the  Netherlands  -  2012:    Interna4onal  Financial  Report  Standards  (DipIFRS)  –  Associa4on  of  Chartered  Cer4fied  

       Accountants  (ACCA),  United  States      

       

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FUNDING  TUESDAY,  EVERY  TUESDAY  

So  what  can  you  expect  from  us  each  Funding  Tuesday?  

1.   Webinars  on  EFactor  on  Finance  &  Funding  related  topics  in  the  EVENT  Sec4on  

2.  Blogs  &  interviews  with  informal  investors  and  funded  entrepreneurs  with  4ps  &  tricks  in  the  BLOGS  sec4on  under  NOW  

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3.  Finance  &  Funding  related  ar4cles  on  NOW  feed  

4.  In  the  Finance  &  Funding  GROUP  on  our  website  you  will  find  Q&As  of  the  webinars  under    NETWORK  

5.  In  the  KNOWLEDGE  base  you  will  find  more  and  more  presenta4ons  on  Finance  &  Funding  related  topics,  including  the  webinar  presenta4ons  

6.  And  if  you  become  a  VIP  MEMBER  you  will  personally  be  supported  on  your  Finance  &  Funding  related  ques4ons  

 

Webinar  Program  Overview  2012  

June  19:    Business  Plan  Wri-ng  -­‐  A  Roadmap  to  Success  July  3:      Pitching  &  Presenta4on  -­‐  3  Minutes,  1  Impression  July  17:    Strategy  -­‐  A  Vision  for  the  Future,  A  Strategy  for  Geing  There  July  31:    Budge4ng  &  Forecas4ng  -­‐  Predic4ng  the  Outcome  Aug  14:    Working  Capital  -­‐  An  Unknown  Key  to  Success  Aug.  28:    Capital  Management  -­‐  Playing  with  Risk  Sept  11.:    Funding  &  Investments  -­‐  Some  Sources  are  More  Equal  then  Others  Sept.  25:    Valua4on  -­‐  Art  or  Science  Oct  9:      Exit  Strategy  -­‐  Nice  to  Have  or  Need  to  Have?  Oct.  23:    Bootstrapping  -­‐  An  Alterna4ve  Answer  to  Funding  Nov  6:    Crowdfunding  -­‐  The  Power  of  Friends,  Family  and  Fools  Nov.  20:    Networking  -­‐  Nice  You  have  3000  Friends,  I  have  30  Relevant  Connec4ons  Dec.  4:      Marke4ng  &  (Social)  Media  -­‐  Noise  or  Value?  Dec.  11:    No  Sales,  No  Glory  Dec.  18:    Most  Common  Mistakes  of  Entrepreneurs     5  

A  solid  business  plan  is  important:  Luck  is  for  the  unprepared!    

6  Business  Plan  =  Guidebook  for  the  Founder  

Business  plan:  learn  to  Live  &  Breath  your  company,  market  and  customers    Business  plan  as  a  tool:  •  Systema4c  approach  for  mapping  your  idea  •  Focus  •  Entry  strategy  •  Iden4fying  gaps:  knowledge,  experience,  specialists  •  Checklist  of  resources  •  Communica4on  tool  •  Prac4ce  

Business  plan  is  for  YOU  and  YOUR  SUCCESS!  

Some  basic  ingredients  to  start  a  successful  company  

7  3  key  elements  of  life:  Ideas,  People  and  Money  

 

8  You  are  the  biggest  investor  of  them  all!  

•  Your  own  investment  does  not  consist  only  of  4me  spend  

•  Become  as  cri-cal  as  your  external  investors  would  be  

•  Your  Team  is  as  important  as  your  idea  

•  Money  is  the  end-­‐game  of  the  investor,  so  is  yours  

Take  a  different  approach,  become  your  own  investor  

Evolu4on  of  your  startup  life  

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1

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3 YOUR  COMPANY  •  4me  spend:  ?  •  structure  tasks,  weekly,  monthly  •  success  =  old  investors  out,  new  investors  in  

YOUR  IDEA  •  4me  spend:  6-­‐9  months  •  describe  the  problem  you  are  solving  for  whom  •  test  for  outside  interest  

 

YOUR  BUSINESS  PLAN  •  4me  spend:  2-­‐3  months  •  details  of  the  execu4on  process  •  5  years,  3  phases,  1st  phase  18  months  explicit  

9-­‐12  months  prepara-on  before  launch  

Content  to  cover  in  your  founder’s  guidebook  

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Content  overview  1.  Execu4ve  summary  2.  Idea  descrip4on  3.  Marke4ng  &  sales  4.  Management  team  5.  Organiza4on  6.  Finance  7.  Risk  analysis  8.  Funding  9.  Timeframe  

 

Your  idea:  prepara4on  

ü  Problem  to  be  solved  

ü  Target  group  

ü  Need  by  target  group  

ü  Unique  selling  point  

ü  Technical  details  

ü  Comparable  products  compe4tors  

ü  Superiority  of  your  product  

ü  Duplicable  

ü  Protec4on  

ü  Costs  of  produc4on  

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Your  idea:  business  plan  content  

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1.   Illustrate  &  quan-fy  

2.   Content:  1.  Name  of  product  or  serve  2.  Name  of  founder  3.  Illustra4on  of  product  or  serves  4.  Descrip4on  5.  Benefit  6.  Unique  selling  point  7.   Protec-on  8.  Descrip4on  target  group  &  market  9.   Revenue  model  

Marke4ng  &  sales:  prepara4on  

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ü  Compe44ve  advantage  

ü  Compe4tors  

ü  Subs4tutes  

ü  Describe  customer  

ü  Choice  target  segment  

ü  Size  market  

ü  Market  share  

ü  Market  price  

ü  Communica4on  

ü  Distribu4on  

Marke4ng  &  sales:  business  plan  content  

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BRAND  AWARENESS  

TEASING  &  POSITIONING  •  Recogni4on  •  Messages  frequent  &  

consistent  •  Posi4ve  feelings  •  Awareness  of  USP  •  “Experience”  

SALES  ENCOURAGEMENT  

ACTIVATING  &  CONVINCING  •  Understanding  problem  •  Awareness  of  ‘how’  problem  

is  solved  •  Products  &  services  are  

easily  accessible  •  Administra4on  process  are  

clear  &  prac4cal  

LOYALTY  

SATISFACTION  &  RELATION  •  Con4nuous  dialogue  •  Deliver  promises  •  Solve  problem  •  Create  long-­‐term  rela4on  •  Rela4on  con4nues  even  

ater  product  or  services  is  delivered  

55%   35%   10%  

Note:  www.BiTSEN.nl,  Frans  de  groot  /  Toon  ten  Cate  

Marke4ng  &  sales:  business  plan  content  

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BRAND/IMAGE  –  TEASING  Radio  Public  transport  Free  Publicity  Press  release  

Guerilla  Bill  Boards  Spectacular  SMS  

Tell  a  friend  Cars    

BRAND/IMAGE  –  POSITIONING  Television  Magazines  Advertorials  Press  interviews  

Brochures  Website  News  Rooms  Podcasts  

Flicker  Video  /  YouTube  Partners  TV  shows  

   

 

SALES/TRAFFIC  -­‐  ACTIVATING  Conferences  Congresses  Seminars  Direct  mail  

E-­‐mail  Telemarke4ng  Leaflets  Ac4on  website  

Free  cards  Point  of  traffic  Newspapers  SEO  /  SEA    Social  communi4es*    

LOYALTY  -­‐  RELATIONSHIP  Blogs  Widget  Tes4monials  Book  wri4ng  

Member-­‐brings-­‐in-­‐member  In-­‐house  /  online  magazine  

Individual  entertainment  &  business  rela4onship  building  events  

LOYALTY  -­‐  SATISFYING  Membership  Cashback  card  Events  Newslewers  

News  updates  Forum  Educa4on  Apps    

Online  games  Panels  Mentoring  Q&A    Video  calling  Workspace  

SALES/TRAFFIC  -­‐  CONVINCING  Sales  promo4on  Premium  Services  Personal  sales  Sales  presenta4ons  

Sales  training  Sales  coaching  Product  folders  Sampling  

Trials  Case  studies  Tes4monials  Post-­‐ordering  Catalogue  Display  

Note:  www.BiTSEN.nl,  Frans  de  groot  /  Toon  ten  Cate  

Management  team:  prepara4on  

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ü  Members  &  responsibili4es  

ü  Creden4als  

ü  Founders  

ü  Skills  

ü  Missing  skills  

ü  Expansion  

ü  Mo4va4on  

ü  Advisors  

ü  Contracts  

ü  Opera4onal  procedures  

Management  team:  business  plan  content  

1.   1  page  +  appendix  

2.   Pictures,  -tles  

3.   Short  summary  of  responsibili-es  

4.   Op-onal:  skill  profile  

Sales  

Marke-n

g  

Fina

nce  

Legal  

Prod

uct  

Tech  

Process  

HR  

Social  

Nego-

a-on

 

Lead

ership  

ini-a-

ve  

Networking  

Maria   Y   N   N   Y  

John   N   Y   Y   N   Y  

Carry   N   Y   Y   Y  

Mike   N   Y   N  17  

Organiza4on:  prepara4on  

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ü  Business  model  and  supply  chain  

ü  Ac4vi4es  in-­‐house  

ü  Ac4vi4es  outsourced  

ü  License  

ü  Main  focus  business  model  

ü  Organiza4on  chart  

ü  Team  expansion  and  costs  

ü  Corporate  culture  

ü  Picking  partners    

ü  Your  added  value  

Finance:  prepara4on  

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ü  Assump4ons  

ü  Cash  flows  next  18  months  

ü  Cash  flow  next  3-­‐5  years  

ü  Profit  &  Loss  next  3-­‐5  years  

ü  Balance  sheet  next  3-­‐5  years  

ü  Ra4o’s  &  drivers  

ü  Break-­‐even  point  

ü  Capital  need  un4l  break-­‐even  

ü  Capital  need  best-­‐case  

ü  Capital  need  worst-­‐case  

BALANCE SHEET

xUSD ths 2012 2013 2014 2015 2016

ASSETS

Cash 0 0 0 0 0

Account receivables 0 0 0 0 0

Inventories 0 0 0 0 0

Prepaid expenses 0 0 0 0 0

Other current assets 0 0 0 0 0

Total current Assets 0 0 0 0 0

Property, Plants, Equipement 0 0 0 0 0

Leasehold improvements 0 0 0 0 0

Vehicles 0 0 0 0 0

Other fixed assets 0 0 0 0 0

Total fixed Assets 0 0 0 0 0

TOTAL ASSETS 0 0 0 0 0

EQUITY & LIABILITIES

Accounts payables 0 0 0 0 0

Short-term interest bearing debt 0 0 0 0 0

Accrued expenses 0 0 0 0 0

Other current liabilities 0 0 0 0 0

Total current Liabilities 0 0 0 0 0

Long term interest bearing debt 0 0 0 0 0

Paid-in capital 0 0 0 0 0

Retained earnings 0 0 0 0 0

Total Equity 0 0 0 0 0

TOTAL EQUITY & LIABILITIES 0 0 0 0 0

error check = 0 0.0 0.0 0.0 0.0 0.0

PROFIT & LOSS STATEMENT

xUSD ths 2012F 2013F 2014F 2015F 2016F

Sales

Sales prod. A 0 0 0 0 0

Sales prod. B 0 0 0 0 0

Other Income 0 0 0 0 0

Total Sales 0 0 0 0 0

growth rate #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Cost of Goods Sold

COGS prod. A 0 0 0 0 0

COGS prod. B 0 0 0 0 0

Gross Profit 0 0 0 0 0

gross margin #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Selling, General & Administrative Expenses

Housing 0 0 0 0 0

Utilities 0 0 0 0 0

Management Fees 0 0 0 0 0

Personnel 0 0 0 0 0

Office expenses 0 0 0 0 0

Telephone costs 0 0 0 0 0

Subscriptions 0 0 0 0 0

Internet/website 0 0 0 0 0

Maintenance 0 0 0 0 0

Marketing 0 0 0 0 0

Travel & entertainment 0 0 0 0 0

Accounting 0 0 0 0 0

Legal 0 0 0 0 0

Other 0 0 0 0 0

Total SG&A 0 0 0 0 0

SG&A margin #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

EBITDA 0 0 0 0 0

EBITDA margin #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Depreciation 5 0 0 0 0

Amortization 0 0 0 0 0

EBIT -5 0 0 0 0

EBIT margin #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Interest 0 0 0 0 0

Net Profit Before Taxes -5 0 0 0 0

Profit margin #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

CASH FLOW STATEMENT

xUSD ths Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012F

CASH INFLOWS

Cash Sales prod. A 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash Sales prod. B 0 0 0 0 0 0 0 0 0 0 0 0 0

Payment of receivables 0 0 0 0 0 0 0 0 0 0 0 0 0

Other Income 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL CASH IN 0 0 0 0 0 0 0 0 0 0 0 0 0

CASH OUTFLOWS

Cost of Goods Sold 0 0 0 0 0 0 0 0 0 0 0 0 0

Housing 0 0 0 0 0 0 0 0 0 0 0 0 0

Utilities 0 0 0 0 0 0 0 0 0 0 0 0 0

Management Fees 0 0 0 0 0 0 0 0 0 0 0 0 0

Personnel 0 0 0 0 0 0 0 0 0 0 0 0 0

Office expenses 0 0 0 0 0 0 0 0 0 0 0 0 0

Telephone costs 0 0 0 0 0 0 0 0 0 0 0 0 0

Subscriptions 0 0 0 0 0 0 0 0 0 0 0 0 0

Internet/website 0 0 0 0 0 0 0 0 0 0 0 0 0

Maintenance 0 0 0 0 0 0 0 0 0 0 0 0 0

Marketing 0 0 0 0 0 0 0 0 0 0 0 0 0

Travel & entertainment 0 0 0 0 0 0 0 0 0 0 0 0 0

Professional advisors 0 0 0 0 0 0 0 0 0 0 0 0 0

Tax 0 0 0 0 0 0 0 0 0 0 0 0 0

Payment payables 0 0 0 0 0 0 0 0 0 0 0 0 0

Loan Payments 0 0 0 0 0 0 0 0 0 0 0 0 0

Bank charges 0 0 0 0 0 0 0 0 0 0 0 0 0

Other 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL CASH OUT 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash in minus out per period 0 0 0 0 0 0 0 0 0 0 0 0 0

Funding (needed)/excess 0 0 0 0 0 0 0 0 0 0 0

BEGINNING BALANCE 0 0 0 0 0 0 0 0 0 0 0 0 0

ENDING BALANCE 0 0 0 0 0 0 0 0 0 0 0 0 0

SWOT  analysis:  Know  Thyself  

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•  Poli4cal  •  Legal  •  Economic  condi4on  market  •  Expecta4ons  of  stake  &  shareholders  •  Technology  •  Public  expecta4ons  •  Compe44ve  environment  •  Barriers  to  entry  •  Commodity  prices  •  Amount  of  customers  •  Structure  of  suppliers  

INTERNAL:  Strength  &  Weaknesses  

•  Resources:  financial,  intellectual  •  Customer  service  •  Efficiency  •  Compe44ve  advantages  •  Infrastructure  •  Quality  &  price  •  Delivery  4me  •  Costs  •  Capacity  •  Personnel  /  management  •  Organiza4onal  structure  

EXTERNAL:  Opportuni-es  &  Threats  

Funding:  prepara4on  

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ü  Capital  need  un4l  break-­‐even  

ü  Capital  in  up-­‐  &  downside  case  

ü  How  many  funding  rounds  

ü  Own  funds  available  

ü  External  funds  needed  

ü  Deal:  money  versus  equity/debt  

ü  Terms  &  condi4ons  

ü  Investor  type  

ü  Return  on  investment  

ü  Exit  

SOURCES & USES OF FUNDS

xUSD ths

SOURCES

Cash on hand 0

Investment Founder 0

Investment Others 0

Incentives & Grants 0

Total Invested Capital 0

Bank loans 0

Personal Loans 0

SBA Guaranteed Loans 0

Other Loans 0

Total Debt Capital 0

TOTAL SOURCES 0

FUNDS

Rent/housing 0

Equipement 0

Inventory 0

Working capital 0

Insurance 0

Advisors 0

Reserves 0

Promotions 0

Product development 0

TOTAL FUNDS 0

error 0

A  summary  of  your  vision  and  strategy:  your  milestone  overview  

26  

2012   2013   2014   2015   2016  

Business Plan

Product development

Prod. A

Beta test

Product development

Going to market US

Alpha Customers

Get work space

Product development

Prod. B

Beta test

Going to market

Expand in EU + India

Break-even

Promotion campaign

Employees 3 5 8 10 12 15 20 25

Promotion campaign

Capital need: USD 150k 2nd round: USD 1mio 3rd round: USD 3mio

M M M

Revenue / margin 200k / 10% 1mio / 17.3% 4mio / 21% 12mio / 28%

Conclusion  &  final  remarks  

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CONTENT  &  QUESTIONS  for  prepara-on  Don’ts:  1.  Quick  valida4on  2.  Sales  most  relevant  3.  Delete  trial  balloons  4.  Wrong  audience  5.  Advisor  plague  6.  Poor  understanding  financials  7.  Poor  understanding  product  8.  Underes4mate  compe44on  9.  Low  pricing  strategy  10. Under-­‐define  capital  requirements  DO:  BE  PREPARED!!  

 

Business  plan  wri-ng  =  Roadmap  to  success!  

Next  webinar  =  July  3:  Pitching  &  Presenta-on  -­‐  3  Minutes,  1  Impression    

Webinar  Program  Overview  2012  

June  19:    Business  Plan  Wri4ng  -­‐  A  Roadmap  to  Success  July  3:    Pitching  &  Presenta-on  -­‐  3  Minutes,  1  Impression  July  17:    Strategy  -­‐  A  Vision  for  the  Future,  A  Strategy  for  Geing  There  July  31:    Budge4ng  &  Forecas4ng  -­‐  Predic4ng  the  Outcome  Aug  14:    Working  Capital  -­‐  An  Unknown  Key  to  Success  Aug.  28:    Capital  Management  -­‐  Playing  with  Risk  Sept  11.:    Funding  &  Investments  -­‐  Some  Sources  are  More  Equal  then  Others  Sept.  25:    Valua4on  -­‐  Art  or  Science  Oct  9:      Exit  Strategy  -­‐  Nice  to  Have  or  Need  to  Have?  Oct.  23:    Bootstrapping  -­‐  An  Alterna4ve  Answer  to  Funding  Nov  6:    Crowdfunding  -­‐  The  Power  of  Friends,  Family  and  Fools  Nov.  20:    Networking  -­‐  Nice  You  have  3000  Friends,  I  have  30  Relevant  Connec4ons  Dec.  4:      Marke4ng  &  (Social)  Media  -­‐  Noise  or  Value?  Dec.  11:    No  Sales,  No  Glory  Dec.  18:    Most  Common  Mistakes  of  Entrepreneurs    

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BECOME  A  VIP  MEMBER  WITHIN  1  WEEK  AND  GET  YOUR  PLAN  CHECKED!  

1.   Increased  Business  Exposure  and  Social  Media  Integra-on  2.   Jay  Abraham's  Business  Maximizer  Manual  3.   Access  To  Exclusive  Expert  Events  Twice  A  Month  4.   "Special  Solu-on"  Ac-on-­‐Based  Reports,  at  least  twice  a  month    5.   VIP  Only  Discounts  6.   VIP  Weekly  Newslener  7.   VIP  Inner  Circle  8.   eProducts  from  the  world's  largest  library  

9.   IN  ADDITION:  If  you  anended  this  workshop  AND  become  a  VIP  Member  of  EFactor  within  ONE  WEEK,  you  can  send  me  you  ques-ons  on  working  capital  and  I  will  provide  you  with  assistance:  www.efactor.com/hukshorn  

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HTTP://WWW.EFACTOR.COM/VIP  

Thank  you!    

This  document  was  prepared  by  Eva  Hukshorn.  Several  people  and  organiza-ons  have  inspired  

her  to  write  this  presenta-on,  amongst  which  are,  but  not  limited  to  the  Founders  of  EFactor,  

McKinsey&Company/NewVenture,  BiTs,  ABN  AMRO/RBS