1.Ken BerkunPresident, Labels That Talk berkun@soundpaper.com http://www.slideshare.net/kenberkun/ business-plans-135988771

2. Who am I? President, Labels That Talk Co-Founder Singingfish.com Wrote business plan Successful (10X) exit Old Timer 34 years in high tech Software development Project Management Technical Marketing Business Strategy2 3. Who are you? 3 4. Why have a business plan?4 5. ChangeZero percent of businesses perform to plan.- Gordon Bell5 6. The Real Reasons For yourself Change! The Process, not the goal? For your team Focus! For your investors Because they insist on it They arent going to read itIf it is not in the business plan either dont do it or change the plan.If it is too much trouble to change the plan then DONT DO IT! 6 7. Key Elements Executive Summary Main Body Financial Plan Text Spreadsheet Elevator PitchBe Honest! 3 Minute Pitch 5 Minute PitchDont let me forget to talk about NDAs 7 8. Executive Summary One Page Or not Bare minimum Doesnt matter, they arent going to read it either You/Management Product/Service Market Business Model The Deal 8 9. Main Body I. Presentation & Operating PlanOrganization SWOT Analysis Cover Page V. Financial Information Table of Contents Overview II. Executive Summary Income Statement III. Sales & Market Potential Cash Flow Products / Services Balance Sheet The Market Capitalization and Use of Sales and Marketing PlanFunds IV. Operating Plan VI. Wrapping it Up Management Team Exit Strategy or Payback Analysis Go-To-Market Strategy Notices and DisclaimersSource: http://www.greatbusinessplans.com/ 9 10. Mission Plan and Statement of EthicsThe only thing I have ever found this good for is hiring.10 11. LTT Business Plan1.Executive Summary2.Soundpaper - A Technological Break-Through3.Intellectual Property4.Product Features5.The Opportunity Market Size6.The Competition7.Execution Plan8.Soundpaper Go to Market Plan9.The Team10. The Financial Plan11. Pro-Forma Financials12. Risk Factors11 12. How Long? Just Long Enough And then a little bit shorter12 13. Sales and Marketing Sales & Market Potential Products / Services The Market Competition Sales and Marketing Plan 13 14. Sales & Market Potential Description of the Market Growth Rates and Key Trends Target Market (Including Location, if Retail) Size of Target MarketDO YOU HAVE A MARKET?14 15. Products and Services Product/Service What exactly are you selling? Intellectual property Do you have a product or a company? This is really about focus! Dont try to be all things to all people.15 16. CompetitionTechnologyCompanyEase of Use PriceHigh-DensityLabels That Talk Easy to Use;$100Barcode (small)no contactscanner scanner; all- in-one unit $.01 labelsMicrochip withScrapbook AliveEasy to Use;$7 per unitBattery (small)bulky; battery requiredRFIDEn-VisionAwkward to$325WHATS MISSING? America (small)Use; Pharma scanner set-up $$$$Barcode En-VisionAwkward to$1295(database look- America (small)Use; Bulky; scannerup)Database is outdatedBarcode and AD Information Awkward to$395Text to Speech&Use; ContactCommunicationScanner(Korean small)Intel Text to SpeechIntelAwkward to$1500Reader/Kurzweilhold, slowReaderKurzweil operation 16 17. Sales and Marketing PlanMarketing SalesResearchThe actual dealCompetition One to oneMarket size and make up ProductCommunications/Creating Closing the dealDemandPricing IncentivesLong Term Short Term What makes a good sales and marketing plan? I dont know. 17 18. Operations Operating Plan Management Team Go-To-Market Strategy Operating Plan SWOT Analysis18 19. Management Team Bios 1 Page and 1 Paragraph Advisory Board Board of Directors Include: Lawyer(s) Accountants Other References Highlight empty positions19 20. Go To Market Strategy Distribution Channels Have you thought about how you will sell and deliveryour product or service? Direct or Indirect? Consider licensing esp. if you have a product not acompany Often your biggest competition is Do Nothing! (I stole this) Focus groups, first sales, giveaways anything to provethat the market exists If your answer is go virile then go home.20 21. Operating Plan Execution Cost Servers and Bandwidth Cost Manufacturing Plant, inventory, equipment, etc. Cost Software Development Did I mention cost?21 22. http://www.businessballs.com/swotanalysisfreetemplate.htm#SWOT analysisinventors, origins and history of SWOTanalysis SWOT Be f-cking honest Run this past your advisors Run it past your motherNot This This22 23. Financial Text Financial Information Overview Assumptions Projections Income Statement Cash Flow Balance Sheet Capitalization and Use of Funds 23 24. AssumptionsAll assumptions are wrong.If an investor doesnt like your projections then you canchange the assumptions.You must go back and fix them as you learn reality.24 25. Projections Projected Revenue and IncomeEBITDA70,000,00060,000,00050,000,00040,000,00030,000,00020,000,00010,000,0000 Year 0 Year 1 Year 2 Year 3Year 4 Year 5 Year 6 Year 7(10,000,000)Revenue Income25 26. Income StatementThe Income Statement shows yourRevenues, Expenses, and Profit for aparticular period. Its a snapshot of yourbusiness that shows whether or not yourbusiness is profitable at that point in time;Revenue - Expenses = Profit/Loss.Source:http://sbinfocanada.about.com/cs/businessplans/a/bizplanfinanc_2.htmSource:http://www.accountingcoach.com/online-accounting-course/04Xpg04.html26 27. The Cash Flow Projection shows how cash isCash Flowexpected to flow in and out of your business. Ibid. Source: http://www.accounting4management.com/preparation_ of_statement_of_cash_flows.htm27 28. Balance Sheet The Balance Sheet presents a picture of your business net worth at a particular point in time. It summarizes all the financial data about your business, breaking that data into 3 categories; assets, liabilities, and equity. Ibid.Source:http://www.accountingcoach.com/online-accounting-course/05Xpg04.html 28 29. Capitalization Labels That Talk - Pro Forma Capitalization WarrantsWarrants Warrants(Cap Table) Ken Berkun (D)DollarsRevenueParticipationUnitsOutstanding Shares1,834,000IssuedConvertible Notes (A) Revenue Participation Offering (B) Options and Equity Pool(C )Total 1,834,000% FullyDiluted 45.85%HarveyStorms520,000520,000 13.00%Peter Weiss20,00020,000 0.50%HarveyStorms (E)80,000 80,000 2.00%HankTurner (F)75,000 75,000 1.87%Michael Berkun (A)(D) $519,648 20.78593332,575 332,5758.31%The Cap Table OtherSpreadsheet is a table used RelativesOther Conv. (A)$157,492 6.29967 100,795 100,7952.52%Debtby partners orHolders(A)$123,749 4.9499779,199 79,199 1.98%shareholders in a businessRevenueParticipationUnits(B)$1,200,000 48.00000 486,000486,000 12.15%to list who owns what in aReserve forstartup FutureIssuance (B)472,431472,431 11.81%Total $2,000,889 80.03557 1,834,000 540,000512,569486,000 627,4314,000,000100.00%Note APro forma warrants to be issued if first closing occurs on September 30, 2010; final amount will determined by interest accruedthrough date of first closing.Note BUnder the terms of the Offering 16 Revenue Participation Units accepted at the First Closing will receive warrants to purchase16,000 common shares, the next 14 Units accepted will receive warrants to purchase 10,000 common shares per Unit and theremainiNote CThe Company anticipates a limited number of option grants will be made to advisors and other parties prior to the first closi ng.Note DKen Berkun is the Companys Founder and CEO. Michael Berkun is Ken Berkuns brother.Note EMr. Storms is the Companys VP of Business Development.Note FThe Company anticipates hiring Mr. Turner as its Chief Operating Officer29 30. Use of FundsIT HAD BETTER BE GOOD!Series A Deliverables: Year 1Functional Recorder/Scanner (manufacturing prototype)Reference hardware design (for manufacturing)Finalized Barcode designSoftware running on PCSoftware running on ASIC or embedded processor of choiceDecoding software on iPhone or other smart phoneManufacturing ramped up and first shipments madeFull documentationMarketing materials 30 31. Summary Wrapping it Up Exit Strategy or Payback Analysis Notices and Disclaimers Risk Factors If you are planning on raisingmoney you need to talk to a lawyer about this. Period.31 32. # 33. Optional The Deal Call to Action 33 34. Financial Plan Detailed Spreadsheet 5 Year projections by quarter First 18 months month by month Tabs: Taxes Summary Headcount Sales & Revenue Personnel Margins Departmental Cash Flow Charts Balance Sheet 34 35. Summary Think about why you are making a plan Review the plan quarterly (fat chance!) If it is not in the plan, dont do it, or take the time tochange the plan Be willing to walk away from bad business Focus! Focus! Focus! 35 36. Resources SCORE http://hawaii.score.org/ HVCA http://hvca.org/ Hawaii Angels http://hawaiiangels.org/ High Tech Development Corp. http://www.htdc.com/ HiBEAM http://www.hibeam.org/36