The Structured Business Plan Presentation
Bill Warner Wednesday, May 06, 2009
With so many entrepreneurs trying to get their businesses launched, I thought it would be a good idea to remind them of what it takes to successfully present their businesses.
Whether you are approaching venture investors or simply trying to convince someone of the attractiveness of your company, you need to have a well thought out story that presents your business in a compelling and exciting way. Nobody is going to invest in or join your company if you cannot effectively explain why they should be spending their time and money to participate in it. The key in communicating your business plan story is to explain enough that your audience wants to spend time with you to learn more of the details about your business. There is some fundamental content your presentation should have, starting with a clear description of the opportunity you are going after and ending with why an investor, potential partner or prospective employee should join you.
There are ten major areas you need to cover in order to effectively communicate the fundamentals of your business.
The Opportunity
Every good business is founded in a compelling need that is currently not being successfully filled. Describe this need and the way you will solve it (problem or opportunity). Some business people call this the “pain” that your buyer feels, that you will cure. This part of your story validates the demand for your solution.
The Solution
Briefly explain your product or service, focusing on how it satisfies the buyer’s need, describing it from the perspective of the buyer. Highlight the benefits and value that the solution brings the buyer. Don’t dwell on “feeds and speeds,” but express your solution in results oriented language that relates to the buyer’s need.
These first two fundamental areas will make or break the interest of your audience. At this point, you will have essentially revealed what business you are in. If your audience is on the edge of their chairs wanting to hear more, you have really grabbed their interest. If not, you will probably not get any traction.
The Market
Now that you have grabbed the audience’s interest, you can start talking about the business in a little more depth. Explain some of the important aspects of the market segment that you will target, including information which profiles the characteristics and market opportunity size.
Competition
Every business has competitors. Keep in mind that it may be the status quo that you are up against or an internal solution that has its own sponsors. Typically, there will be many well entrenched competitors who address the buyer’s need in various ways. You need to portray how you are going to win.
Summarize the key competitors by portraying their strengths and weaknesses, and explain what differentiation you have that will beat them.
Product or Service Description
Briefly describe the product or service your sales team will sell to the buyer. Describe its salient features and the benefits they bring to the buyer; highlighting those that differentiate you from your competitors and sprinkle with examples.
In concluding your description, summarize the barriers to entry. There is no need to give away the intellectual property farm, but you need to explain the results of your “secret sauce” and show not everybody can easily get into your business.
Marketing Plan
Take some time to concisely explain the value your product or service brings to the buyer. This is a prelude to your marketing plan, showing that you know how to clearly explain the benefits you bring to the buyer and can quantify its value. In effect, you are explaining “why the buyer will buy.”
The Marketing Plan is all about generating sales leads. Don’t get hung up in brand management issues, corporate communications and public relations. Get right to the point about how you are specifically going to find your buyers and deliver your marketing messages. Describe your revenue model. Most companies fail because they don’t have an effective way to reach the market and close sales.
Sales Plan
Explain your sales model and process; for example, direct, indirect, OEM. Describe your near term sales objectives and status, including product readiness. If possible, explain what pipeline of customer prospects, demonstrating that you are getting market traction. The more you can demonstrate this with key account situations and next customers to close, the stronger your story will be.
Management Team
It’s important to show that the company is in the hands of a great management team that can be trusted to take it forward. This may be the most important confidence builder in your presentation, based on their credibility and experience.
Financials
You need to provide a forecast of key financial results: revenue, gross profit, net profit, cash flow and position, and significant capital needs. Explain your current financial status and show when you will be profitable and cash flow positive. Highlight the timeline for major business milestones. Many people believe this to be crystal ball kind of stuff. However, the important thing you are demonstrating is that you have a clear view of the dynamics of how revenue and profit will be made.
Investor Summary
Structure your summary to your audience and what they need to hear. Most people will want to know that this business will succeed because it satisfies compelling needs within the market. If you are looking for financing, you will also need to include the appropriate information. And last, explain the potential benefits for the investor when you achieve your objectives.
Summary
By covering these ten fundamental areas, you will provide a complete and concise view of your business that most people will understand. By focusing on the most important aspects of your business, and clearly netting it out, you will maximize your chances of your audience being interested in taking the next step with you.
Filed Under: Angel Investment, Financing a Company, Business Operations, Business Coaching & Leadership Skills
Bill Warner is the Managing Partner of Paladin and Associates, a business consulting firm in the Research Triangle Park area of central North Carolina, and is the Chairman of the Triangle Accredited Capital Forum, an angel investor network with over one hundred members throughout the southeast.
Bill Warner is the Managing Partner of Paladin and Associates, a business consulting firm in the Research Triangle Park area of central North Carolina, and is the Chairman of the Triangle Accredited Capital Forum, an angel investor network with over one hundred members throughout the southeast.
