Capital Raising & Venture Capital Funding For Entrepreneurs | Chris Benjamin | Skillshare

Capital Raising & Venture Capital Funding For Entrepreneurs

Chris Benjamin, Instructor, MBA and CFO

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14 Lessons (1h 14m)
    • 1. Course Introduction

      3:09
    • 2. Instructor Introduction

      2:50
    • 3. Introduction to Investor Documents and the VC Process

      5:06
    • 4. Business Plan Part 1

      5:06
    • 5. Business Plan Part 2

      6:09
    • 6. Business Plan Part 3

      6:49
    • 7. Business Plan Part 4

      4:35
    • 8. Business Plan Part 5

      6:33
    • 9. Business Plan Part 6

      4:37
    • 10. 1 Page Executive Summary

      5:50
    • 11. Financial Model

      9:33
    • 12. Investor Presentation

      9:46
    • 13. Term Sheets and Valuations

      2:14
    • 14. Course Conclusion

      2:01

About This Class

Are You An Entrepreneur Who Is Baffled By The Capital Raising Process?

Do You Watch Shark Tank and Think You Your Company Should Be On There Getting Millions?

Are You At The Helm Of A Rapidly Growing Business Who Will Need Expansion Capital?

Do You Want A Head Start On The Capital Raising Process with Venture Capitalists From Someone Whose Actually Done It?

If You Answered "Yes" To Any Of The Above, Look No Further.  This Is The Course For You!

*** Updated June 2019 with new content! ***

Enroll today and join the 100,000+ successful students I have taught as a Top Rated instructor!

Three reasons to TAKE THIS COURSE right now:

  1. You get lifetime access to lectures, including all new lectures, assignments, quizzes and downloads

  2. You can ask me questions and see me respond to every single one of them thoroughly! 

  3. You will are being taught by a professional with a proven track record of success!

  4. Bonus reason: Udemy has a 30 day 100% money back guarantee if for some reason you don't enjoy the course!

Recent Review:

Daniel N. says "Fantastic course from someone who actually knows what happens on the inside with VC's.  The entire capital raising process is such a mystery to most people and entrepreneurs, and forget about knowing how to go about getting capital raised and stand out from the others.  Chris goes in depth on the process, and as someone whose worked with VC's I can tell he really knows his stuff.  Highly recommended for all entrepreneurs, a must-take I would say."

Why You Should Take This Course:

As someone who has helped startup companies raise venture capital, I know that raising venture capital for your company can be a long and frustrating process.  Part of the problem is entrepreneurs do not know how to properly approach venture capital firms.  There are standard primary documents every start up company should have which venture capitalists are looking to see.  Learn from someone who has been through the process and successfully raised capital for several companies. 

Start raising venture capital today with these key 4 documents!

In this course we will review these 4 documents in detail.  I will show you how the proper presentation, what information should be included, what should not be included, and how to properly present these to investors.  As well I've added in some extra special tips and tricks on the best way to successfully obtain venture capital for your business!

What We Do In The Course:  

  • Review & examine an investor quality business plan

  • Review & examine a 1 page executive summary

  • Review and examine a 5 year financial model & budget 

  • Review an investor presentation / pitch deck

  • Give you tips and tricks on how to best approach investors

  • And Much More!

  • At any point if you have a question, please feel free to ask through the course forum, I'd be happy to answer any and all questions.  

***JOIN NOW AND LEARN ALL ABOUT CAPITAL RAISING AND VENTURE CAPITAL FUNDING! ***

About The Instructor

Chris Benjamin, MBA & CFO is a seasoned professional with over 20 years experience in accounting, finance, venture capital and angel investors.  Having spent the first 10 years of my career in corporate settings with both large and small companies, I learned a lot about the accounting process, managing accounting departments, financial reporting, external reporting to board of directors and the Securities and Exchange Commission, and working with external auditors.  

The following 10+ years I decided to go into CFO Consulting, working with growing companies and bringing CFO level experience to companies.  I help implement proper best business practices in accounting and finance, consult on implementation of accounting systems, implementing accounting procedures, while also still fulfilling the CFO roll for many of my clients which includes financial reporting, auditing, working with investors, financial analysis and much more.  

Thank you for signing up for this course. I look forward to being your instructor for this course and many more!

Chris Benjamin, Instructor, CFO & MBA

Transcripts

1. Course Introduction: Hello, everyone. Welcome to the course raising venture capital, The four essential documents. My name is Chris Benjamin. I'm a CFO. I'm m b a degree and also going to your instructor for this course. So, first of all, thanks so much for signing up. We're gonna be learning a lot in this course. I'm really excited. You chose to take it in the next video. I'll introduce you to myself a little bit more in my background on my experiences with working with venture capitalists and where I sort of learned all the all the sort of the essentials. But in this video, I want to go over more of just what we're gonna be covering in the course kind of eso you have a sort of road map of where we're going. So after we get through the introductions, first thing I'll do is I'll give you, uh ah, further introduction to the investor documents, so we'll just kind of quickly touch based on the four primary documents. We'll talk a little bit about the different companies that I'm using as examples. Then we'll go into each one specifically, so we'll start with the business plan. We're gonna go through an entire business plan. Ah, page by page. I mean, we're not gonna read every single paragraph, but I'm going to give you sort of, you know what? What the sections are why they're important, what you definitely want to include. Well, you definitely don't want to include things you shouldn't say and how it should be presented. Etcetera from there will go on to an executive summary kind of a one page document that you should definitely prepare doesn't take that long to prepare. So it's definitely worthwhile toe. Have it handy and ready to go so that if you have interest from an investor, you have something that you can send them quickly because not everybody wants a business plan upfront. Third will go into the financial forecast on the budget. Now, this kind of has to be done before you do your business plan, or at the same time, because parts of this information needs to be included in the business plan. But nonetheless, we'll talk about 1/3 and we'll go through a full sort of investor quality financial forecast. When I chose this for three years, 3 to 5 years, it's very standard and then lastly, we're going to go through an investor pitch deck and the and I chose an example there. Ah, the example we're going to use, actually, Airbnb, the company reason being is there. It's kind of a well known case study, mainly because they were very successful in raising venture capital with a very simplistic pitch deck. But it's exactly what your pitch decks should be. Essentially stuff. We'll go through all those, um, at the end. And then So by the end of the course, you'll have a great idea of what the four documents are that you need to be creating. Now, keep in mind, we're not actually going to be building each of these in the course itself. Not in this course. I do have other course available where we go through step by step and build those different documents themselves because they take a lot of time. They take hours and hours. Obviously, it takes beyond hours to create a business plan could take, you know, 5 to 10 hours to create financial forecast, etcetera. So this courses meant really to introduce you to all those documents, show you what they are, show you how they should look. And then if you have further interest in learning on, how do they do them yourself? I'll point you in the right direction as to my other courses, where I actually teach you how to build each of those and that's about it, guys. So as you take the course, if you have any questions, please feel free to send me a message. Always happy to answer your questions. Um, best way is through the course website itself, and then as well, uh, that's it, I think, actually, so let's get started on this course. 2. Instructor Introduction: All right, everyone. So just a little introduction to me. Your instructor again. My name is Chris Benjamin. So I have an undergraduate degree in accounting and finance. I got that at the University of the Fraser Valley in Canada. Ah, then went on to get my master's in business MBA from the University of Washington in Seattle, Washington, where I focused on entrepreneurship. I really wanted to ah, work with entrepreneurs. So my career I have 20 plus years experience, both publicly traded large companies all the way down to small start up seed stage companies and often times in the CFO role. So I've worked a CFO for that whole gamut of different sizes. So the most recent 10 years I spent working as an interim part time CFL basically what I did was I want to get out of corporate life. I wanted to get into working with smaller companies exclusively those start ups, those entrepreneurs and really bringing that all that knowledge experience that I had, bringing it to the smaller guy and helping them grow properly from the start implementing best business practices. Um, you know, bringing my knowledge about financial reporting and forecasting and venture capitalists that trip. So a to this point, I've worked with close to 100 companies in different capacities. So sometimes it is that ongoing CFO role, which sometimes can be a few months. And sometimes it ends up being a few years. If things were really working out well, oftentimes, though, I do one time project. So I go in and I do things like a financial forecast or an investor pitch deck. Write a business plan. Things like that. The last point here, my brought companies from seeds, staged AIPO where literally I was maybe the second employees, and four years later, one example, we took the company public. So I've definitely been through the entire process and now two related a little bit more to this course. Part of that process is obviously raising capital, so I've had experience helping companies raise capital as well. Back when I was in my, you know, quotes, corporate days, I worked for a start up. There is a full time CFO, and they had actually already raised one round of venture capital. But I got to be the one who was sort of the interface of the company with those venture capitalists. So, um, both in board meetings and then as well, just going to their office is presenting updates, you know, working out, you know, showing the financial forecast, that the direction of the company talking about goals at etcetera, getting their input. So it had a lot of direct experience with venture capitalists themselves. Ah, it's definitely lead to sort of a great knowledge base that not every entrepreneur gets toe have. I mean, it's definitely difficult raising metric capital. If you haven't already started down that path, I think you'll realize once you start, it's really definitely something that's a little bit difficult. But a big part of this course is to try to give you the tools and knowledge you need to make that process a lot more easier. And in doing so when you have these four investor documents I like to think of, you'll be well on your way to sort of presenting to investors exactly what it is they want to see. So enough about me. Enough about that. Let's go ahead and dive in and start actually talking about the course 3. Introduction to Investor Documents and the VC Process: all right, everyone. So before we get into the actual four documents, I want to give you a little introduction as to what they are. It kind of did a little bit in the intro video, but just a sort of reiterated and really make sure you know where we're going with things. So, um, basically, in my experience, there's four mean I call him documents, but basically things that you need to have. Some you know, and they vary, so one will be a business plan. The second is a one page executive summary. The third is ah, financial forecast, which will be out Numbers primarily and forth will be a pitch deck, a presentation that you could put on for a potential investor. So it's important to have these things upfront. Rated goes So as you start your journey trying to solicit investors and look for them you want well, First of all, you need something in the Senate. It's one thing to send an email or pick up the phone or fill in the form on their website. But typically you have to submit something now investors very based on what they want, so some will say Hey, send us your full business plan upfront. Others will say no. Just give us a one page executive summary and then occasionally some will say sinister pitch deck. Very seldom will they ask for your financial forecast up front. Attn. Early stage. No, they're just trying to get a sense of if you're even a company, that they'd be interested in different investors. And I'm gonna talk primarily about venture capitalists. The same will apply to angel investors, although there's a bit of a different dynamic there. If you're familiar with angel, investors tend to be just sort of individual, wealthy individuals who like to invest in companies typically passively, you know, they don't want to be too aggressively involved. Um, you know, when you find those more through sort of your own personal network people you know, etcetera, venture capitalists is more of a formal process. You're gonna have to, um, sort of go the way they want you to go. So you'll be going to their website. Seeing how you submit their company. Whether it is you just send in a business planner, you fill in their form, um, etcetera. Venture capitalists tend to focus on specific industries. So you have to realize that a venture capitalist is think of it kind of as a mutual fund. So the venture capitalists isn't always just lending out their money. Their money is actually other people's money. Now, who are those other people? A lot of times, it's big, you know, pension funds. So, for example, one venture capitalist that I worked with that it had invested in a company that was with you know, their money came from things like pension funds or mutual funds, etcetera. So these were other investments and other investors who were investing in the venture capitalists, who would then in turn, invest in the startup company whose you and look for a return. And then they can obviously get that return. They keep a piece of it and pass it back to their original investors. So it's a big you know, it's a bigger sort of cycle than people realize. Sometimes I think venture capitalists are just handing out their own money, and that's not always the case. Nonetheless, you're gonna have to comply with the venture capitalists process, so you need to have this stuff ready up front when you start your search for investors. And that's why I kind of wanted to put this course together to teach you. Well, here's the things you're going to need tohave eso have these prepared before you start cause it's very I mean, my experience of venture capital are sorry with start ups and entrepreneurs as they get very gung ho. They're excited, the right passionate and these air great qualities. But sometimes they get, you know, going a little bit too fast. And, you know, they're already working on building their product and, you know, sourcing suppliers and talking to potential employees. And they get really excited about all the fun stuff. But what they don't think about it. Well, you have to do all this other things as well to get funding before you're able, really gonna be able to move forward. So we're gonna try to slow down the train a bit, um, give you sort of the knowledge about the tools that you're gonna need tohave, and that's essential are going to be doing in this course. So again, just to reiterate the four things, I'm gonna bring him up on the screen. So I have samples for each of these that were basically gonna work through and in order to keep companies anonymous. Um, you know, I had to strip out the actual company name and what not some of their logo. So this book business kind of look a little bit plain, Jane, if you will. But still, it's, um, a good example of actually pretty good quality business plans. So this will be a business plan. We're gonna go through as 37 pages. We're gonna look at an executive summary. And again, I stripped out the logo on stuff. That's why there's kind of some empty white space source of nice logo up here. I will look through this how to write at what should be included. What shouldn't we'll also look at a pitch deck or we're gonna examine Airbnb. He's just cause they did a terrific job. It's often a common case study just cause they did a really good job. And then, lastly, we're going to look at this financial model, which I built myself. This is sort of my style includes everything you need in a financial model, so we'll go through this and I'll demonstrate what you should be including and then through the course as well. I'll be giving you references as to, you know, just ways to get started. What? Not again. I'm not teaching to the specifics of how to right. Like, we're not gonna go through how to build this entire financial model that's gonna be teaching you. You know, the things that you should have put set you on the right course. Um and then I have also pointed in the direction of other places. You can go to learn more about it if you care to do it yourself. So that's about it, guys. So that's based on the next were lectures. They're gonna be going through each of those for individual documents. Let's get started. 4. Business Plan Part 1: All right, everyone, let's get started. First thing we're gonna go through is the business plan. So the business plan is the largest document by far that you need to prepare. I think we mentioned this, I believe is 37 pages. Um, so we're gonna go through this. So first of all, just the introduction to this company. It is a real company. Although I've stripped out their actual company name and like their product name, I've changed as well. I mean, names that you see in there like people's names. I've changed those. So those aren't the real people with the company just toe keep the and an amenity, and so we'll go through this. This is a really good example of a business plan. I will make this available for you to download as well, so you can read through it later. If you want to. In more detail. I use it as a sample for writing around. And then, of course, I always mentioned if you actually really want to get into detailed sort of writing of a business plan, I have a course available on that where you can actually download a template as well that you could use to get you started. So for now, though, let's go through this business plan to see you know what? You're up against what you have to put together. So excuse me there. OK, so 1st 1st page cover page would typically be the company name. Uh, you know, company CPLP would be the real name if you put it in. I have a company logo, etcetera. Address, telephone, fax, website address. Just the normal stuff. Just a cover page, uh, table contents you want to have and typically would be, like, clickable as well. So if somebody is reading this in a pdf format, they could click on anything. It will jump to it. Um, so, yes. And so before we get into the actual plan, let's just look at what the main topics are. So first thing is an executive summary, and we're gonna circle back to this. I'm gonna mention this. We're gonna talk about this a little bit more in a second. Uh, then you get into your business model on all the subheadings there, the market itself, the management team operations, financial information and exit strategy. I believe that's it. On enough There's another page open. There's out in some exhibits, so just touching quickly on the executive summary. So one of the other investor documents that we're talking about in this course is a one page executive summary. That's not necessarily this. So this is an executive summary within your business plan of the entire business. It might end up only being one page, but it's not quite format at the same as the actual one pager that we're gonna make. That's a stand alone document. This will be written in paragraph format. Ah, the one pager. The other document I'm talking about will be more like bullet points up, just a heads up in case people see this Think Oh, well, the executive summaries right here is that one of the documents already included not so much. Same thing with the financial information. This information will actually come from your financial model, but this is very summary. This is not all the nuts and bolts in the details. So let's get started. Okay, so the executive summary So again, we're not going to read through each of these again. I have it available for download. You can read all about this business, if you like. It's more of the purpose of me demonstrating what sort of a good business plan looks like and what should be included. So, um, purpose Or it would be, uh, maybe your mission statement would be another way of saying that they write that out. Ah, your business model. So notice this is very brief. It's an executive summaries. This is summarizing information that's later in the business plan itself. So basically, think of somebody reading this who knows nothing about this company. They say, Okay, here's the purpose company. Here's what we do. Here's the management team is some and they obviously speak to their, you know, their skill sets, um, etcetera and then market opportunity. So, you know, here's the way our here's our management team. Here's why we're gonna be successful. Essentially, here's the problem that we're solving out there, and that's what they're doing here with market opportunity. So financial highlights again. So this is very summary information, So this is more summary than the information that's later in the business plan, which is also more summary than the full financial model. The full financial model will show. Excuse me all of the details off and the breakdown of how this is calculated. But you see, it's a nice summary. Something to look at this and go. OK, well, there's a four year forecast for the company. Kind of Ah, little bit nonstandard. Usually either go three or five years. I mean four years right in the middle. So it's not too bad. Uh, just ah, just ahead up to you guys. Um, one thing you'll want to do and we'll talk more about when we get to the financial model itself. You don't want to get too ludicrous with your projections If you're showing, you know, crazy, insane numbers, and from what I can see, they're not too bad. I mean, they have 1.2 million here. There's the sense on their This is why these look like, really big numbers. If you can't quite tell if the image is too small, 1.2 is very reasonable projection for four years out. Okay, So financial needs and use of funds they're looking for, you know, they're only looking for 50,000 etcetera and what they're going to use it for. Alright, guys. So we're actually five minutes already, so I'm gonna cut this video often. In the next video, we'll start off with the business model 5. Business Plan Part 2: Okay, So, as promised, let's get started with the business model now. So eso Now we're getting into the one of the meat potatoes, if you will, of the actual company itself. So PLP So their mission statement I mentioned before, you know, they put their purpose, which is kind of mission statement. And although the mission statement does tend to be, ah, one sentence statement, um, you know, they talk about about the organization. Not as important. Quite honestly. You don't really need to include this historical background. I think it's good to put a little bit of color. Um, you know about where the company came from, You know, um, where the idea came from? A little bit. Maybe about the background of the founders. Let's just see how long they have historical background. It's not too bad. I mean, it looks like it's three paragraphs. Basically, um, so not too bad. I wouldn't go much more than a page, basically, you know, like so that probably takes up a page and full between those two. Ah, opportunity that in that. Oops. Oh, sorry. I'm jumping around here. Business objectives and milestones again. Um, good idea. Have some so some of the things in here are subjective. You don't have to include every single thing that these people including. I certainly don't want you to. You know, one on fallacy or thing that countries get hung up on is they get a sample of a business plan and they follow it to the letter, and they think they have tohave every section that the sample has. So just because I'm saying this is a good example of a business plan doesn't mean you should write your business plan exactly like this one. You do have to tailor it to your strengths and weaknesses and and what you have. And maybe you don't have a business history. Really. It's just Ah, you're a solo entrepreneur who saw a need in the market and, you know, came and you're a programmer and came up with a cool app. I mean, that's not a whole history. You don't need a one page history like don't force a one page history just because there's a one page here. Business objectives and milestones, good toe have not. Everybody's gonna have this quite honestly, but I think it's if you have them, would be good to have. It shows a little bit in sight. Shows you're projecting forward about your company. All right, so revenue stream. So again, if you Let's just see how long it is before I So that you know, about half a page essentially between the two. Um, if you have multiple products, Definitely good to talk about it. Um, revenue. Streams of revenue drivers would typically actually be a better standard phrase to use. But talk about the different products that you're gonna offer. You don't necessarily have to talk about pricing. It doesn't look like they do it all. You can get to that in your financial projections when you get into more of the details. But basically just saying, Hey, here's how we make money. Here is what we sell. So if it's you know, APS you make or a products you sell online or if it's services you provide, you know, say what they are. You don't need to go into the micro, you know, say you provide three sort of larger scale services and then within each of those you have , like, six other sort of sub services, you know, different plan to offer something don't need to break it down to that level here. Um, you know, again, you got to think of the reader of your plan. You want to give them information so they understand your company. They're excited about it, but as well, you don't want to overwhelm them with so much detail that they're confused and they probably just want continue reading. Quite honestly. Uh, then they get into a little bit about their vision and strategy. So, um, I think that's good again. Providing vision definitely shows some force that you're thinking ahead to the company. What you're gonna be doing to really make those sales happen approximates services. So revenue streams, Proxim services That probably could have, um, somehow combined those, quite honestly, it seems a little disjointed to have revenue streams and then later on, go talk about Proxim services. So, um, it's almost like they talk about sort of the bigger picture here, and they get into the more detail here. Not bad, but quite honestly, I might have combined this into this and probably put vision first. And then just proxim services included all that information. Um, so they talk about that, then they go into their value proposition in their business model. So, um, fairly, I'm just skimming down here. Okay, so we'll cut this video off when we get to the market. But just going back now, value proposition of model a little bit wordy, quite honestly, um, doesn't hurt. I mean, we know that overall, this business plans only 37 pages. I think we said, which isn't too bad. So we're really trying to manage our space with the amount of information we provide. You don't want 100 page business plan? Quite honestly, guys, but I also don't want a 10 page business plan. You know, 30 40 50 pages. Pretty solid again. Those are rough estimates. Don't force your business plan to be 40 pages just because, you know it's only feeling 30 and you're having a hard time. You mean you might just not have enough to talk about? This is a company that was already up. It's running. Um, it's doing what they do. So they can already talk about their products and what it is they're doing in the services and how they want expand. So versus somebody who's maybe just starting out. Um, and you're kind of a step before that. So, um, don't feel pressured to fill out 50 pages if you don't have. So anyways, back to this, though, value proposition of model I'm good toe have I said This is maybe a little bit on the long side. Quite honestly, um, process overview. I like this for them only because they do have a fairly amenity comptel here. It's an 11 step process for the services they provide. You know, it's not a simple as you come to our website and buy our product. This is a much more involved, um, company. What their doing? It's related to medical and doctors and clients and patients. So there's lots of steps You have health insurance companies involved? Um, health insurance companies, etcetera. So there's quite a bit to this, so I like it for them. Showing the process overview. Try to clarify what it is for you guys. Something like this probably doesn't apply to most companies. Quite honestly, you don't need to do this and say, Person comes to our website clicks on the on the item, adds it to the carton, buys it, so I think most people would get that so nonetheless, just a little heads up. Maybe need it. Maybe not. Let's go ahead were cut the city off in the next one will talk about the market. 6. Business Plan Part 3: Okay, so next let's talk about the market. So this section of the business plan specifically about the market, not the marketing, just to clarify that. So this here, going talk about who's the customer? How big is that? Is the market etcetera? So, taking a look at the example we have here, um, I like what they've done here. Market trends, So they kind of are demonstrating that there is a need out there for their products and service. You know, here's where the market is going and it's right in line with what it is that we actually do . So that's good. It shows a lot of potential before the company. They then go on to talk about the target market, which would be very standard. Um, basically kind of carving out those demographics and saying, Here's exactly who we are gonna be targeting for our company. Um, then they do go on to talk about marketing and sales plan. So that's I mean, that's the perfect way to break it up. Say, here's who The people. I mean, the market trends was kind of Ah, just a scroll. Back of page. The section you're not going to see in every business plan. Um, I think it's important, though this is so. This is a good example, though, of something you should definitely include the target markets fairly standard saying, You know, here's who we're going after. It's kind of your demographic. Um, they didn't really write. Actually would consider this a little bit brief. The target market. I would expect a bit mawr probably bit more demographic away, like statistics on the on the target market. Just to really prove the point that hey, there is a sizable market out there. And the other thing I don't see, too. There's really not, like a lot of dollar signs here, you know, they're not saying, Hey, it's a $10 billion market. Anything like that, Um and you know, we expect to capture, you know, 10% of that. Whatever the numbers might be typically would put in something like that. So while I'll say market trends is nicely done, I'd say the target market is a little bit too brief in this business plan. So as you're going through the process, definitely blow that up and included a little bit more. Ah, seven on the marketing and sales plan. So this is where you are talking about how you are going to market your product or service and get it out there. Uh, just gonna stroll down a page or two. Curious. How long? Okay, so it's a fairly I'd say it's fairly detailed, and I mean, they do break it down. So I mean again, this is kind of a unique business. Most businesses that I see they would talk about things like their social media marketing plan. You know, if they're doing your print ads or direct mailers or sales people who go out and talk to people. So actually, this one, that's kind of what independent reps would be would be those sorts sales people that you know, get out there unless I like the format of it. So again, keep in mind It's kind of a unique business we're looking at, but definitely consider writing out. Okay, here's the specific kind of categories of marketing that we're going to undertake, and here's how we're going to go about it. Looks like they've done a pretty good job with that S e have they broke it out? Several trade SOS medical groups, direct mail so, yeah, they basically did a pretty good job there with breaking that out Pricing. Um, it's not something everybody includes in their in their business plan. I think it's, you know, if you have a detailed sort of explanation for the pricing model of your business, important to include if it's fairly standard, if it's nothing too exciting about it. If you're just kind of charging what the the standard rate is in the market or maybe you have a set mark up on your product, you might not have need to write an elaborate. You know, this might be a little late, long for a pricing section like I would only expect me behalf of this information typically , So it's weird. In some ways, they've really gone elaborate on some sections that they didn't need to. And then there are a little bit too brief on other sections. Um, like that target market. I'm just a squirrel up again. You know, this should have been the bulk of the market section. So just some words to the wise there, So, yeah, definitely. I like what they've included, but I'm not sure I agree with the sort of allocation of space, if you will, or how in depth they went with some things versus other things. So that's it for market and marketing and pricing. Ah, let's see where we're at four minute video. Let's talk about competition. We'll talk about competition really quick, and then we'll leave it at that for this video. So competition is really important to put in your plan. And the reason is is that it shows that you've thought ahead. You've done some research. You've examined who your competitors are. You'd be surprised how often entrepreneurs will put in, you know, Oh, there's no real direct competition for a product. You know, we're pioneers were creating something new, whatever the case might be. And unfortunately, that looks really bad in investors eyes because they feel like you're ignoring them. Some potential competitors. There's always something. So while there might not be direct competitors for what it is that you do, people always have choices and alternatives. So, um, you know, there might be a company that's doing something different than yours, but it's an alternative to what it is that you offer, and it's hard to say what that is exactly when we're talking in such generic terms. But really put on your thinking hats and think, you know, you know you as, say, the buyer of your product or service. What other choices might they have? And then who is providing that choice for them? Those of your competitors? So I definitely want to include those. Or on the flip side, if you do have actual direct competition, definitely include them. Try to put as much information about them as you can like. If you know how big their company is, how many employees, what areas they service, how long they've been in business. I'm just put all that. I mean, you're not trying to identify. You know what? They're good at what they're bad at. Um, you know, if there's things they do that are blatant, loose or bad and quotes meaning, you know, you do a much better job at it, you could certainly write that and say, Hey, here's why we have a competitive advantage. So speaking of that, they do have a competitive advantage section here, So if it is so, if you had a specific pet advantage against each of these people that may be deferred. I would write it within the competition section. If you haven't overall competitive advantage, something you do that's just better than all your competitors. This is perfect. Just write it out specifically in its own little section again not to, you know, they didn't go on and on. Uh, this looks about right. You know, You just want to say hes Here's what it is that we do a lot better. Ah, brand strategy. I'm just going to scroll down on the next page. Fairly brief. It looks like I'm not sure that it was necessary to put this in. Quite honestly, um, you know, it looks like a touch of filler. It's almost There is a bit of a sense that, you know, they had their own template and they tried to fill every box when he didn't necessarily need to write a brand strategy. When you've already touched all kind of the major things in your market, Um, how you're gonna in your marketing strategy, etcetera. So might be admit much. So let's leave it at that, Guys, when we come back, we'll get into this SWAT analysis, which is really important 7. Business Plan Part 4: All right. So we're just gonna talk about the SWAT analysis in this video just to give you highlight Here, it's just goes on just over one page, basically. So SWAT stands for, as you can see here, strengths, weaknesses, opportunities and threats. Um, this is very standard for kind of your to be kind of included with your whole market slash marketing section. What you're really doing, obviously, is your calling out. Hey, here's all the great things we are, but you're not ignoring the bad things you're saying, Hey, we also have some weaknesses and here's what they are opportunities that obviously is. You know, here's the opportunities out there in the market and then threats things like your competition. Maybe you don't win funding, etcetera. So let's just take a quick look see um, and go into each of these just slightly more. So we haven't talked like we haven't dived too much in depth into this actual business and what they do, What? I've kind of done that on purpose because I want to leave it vague because I want this toe , apply to everybody and not drill in. And these people do definitely have sort of a unique business. So, um, that is part of the reason. But nonetheless, before we dive in, one thing I do notice is you know, they obviously went heavy on the strengths and then only three weaknesses. Um, a few threats. That's fine. I probably would have tried to balance this out a little bit more. And it's only because, I mean, maybe these are all true, but, you know, you have to get think of this from the investor's perspective. So if they feel like you're really trying to sell yourself a little bit too hard, it turns them off a little bit. You know, they're gonna look at it with more skeptical eye than if you're just, you know, Frank. So again, it's not to say this stuff isn't valid. It's just that you want to do that nice balance for your investors, sir, your potential investors. And that's the whole point of doing this is to raise investors so strengths, you know you're gonna talk about Well, let's see what they talked about. I should say unique business model, no, up front costs easy, so they're in a dispensary type of business. Ah, well known reputable supplier. I guess that's a strength. But the thing is, if their competition uses the same supplier, that's not really a strength. So hard to say on some of these. Is it a true strength or just stuff their tryingto put in for fun? Um, over 20. Satisfied clients say I don't know that that's a strength. I mean, that's just kind of a fact more than anything. So, uh, you know, I appreciate the fact they put in a SWAT probably, you know, pulled a few out here that they could have did without. So things like high gross emergence like that is a strength. I mean, that's a true strength. Um, low exposure from client default. Perfect. That's a strength, increasing demand. That's a strength. But things like 20 satisfied clients. I probably left something like that out there. Supplier probably left that out. Ah, weaknesses. Undercapitalized. So that that's good, because they're calling out there saying, Hey, yeah, this is this is true. You know, we we need more money. Um, some initial clients are underperforming. Perfect. I mean, not perfect that it's happening with perfect, just in the sense that they're calling out, like there are some weaknesses with this business. Um, other things you can consider putting in here is they say you didn't have a fully rounded out management team yet. Put in something like that, like we still need to hire key positions that will help us grow. Um, even though their weaknesses, the fact they're putting them in their record, shows that you recognize that you have these issues and also put, you know, kind of puts it out there that, you know, you know, you're letting people know that it's a weakness, and that is something you're gonna work on. So, you know, for example, the one I just said if you didn't have all your management positions field so saying, you know, uh, keep it management positions of say, whatever cto and CMO not yet filled. You know, Dash, currently interviewing applicants or something like that, then at least also indicates okay, but they're working on it so you can turn those weaknesses pretty quickly into something not just like positive, but at least something that's going to be positive opportunities. You do want to talk about things like, you know, maybe how big the market is, Maybe how underserved the market is. There's only a few competitors. Um, you know, you have a better way of doing to your competitors, So there might be some repetition in here, obviously from other areas in your business plan. But that's OK, then threats. You know, again, you want to be fair with this. So, you know, maybe your competitive competitors could easily copy our business model. That might be a threat. Or there's two other companies that are currently trying to build up the same business. You know, we only have one supplier, and they might have. They might sign an exclusive agreement with one of our competitors, etcetera. So just some ideas, guys, definitely. At the end of the day, it definitely include a SWAT analysis. Be fair with it, be balanced and just be honest. So there you go. That's a SWAT analysis, and we'll pick it up again in the next video with the management 8. Business Plan Part 5: All right. So the management personnel section, Um, obviously important to have I already feel like this one's maybe a touch on the longer side . Always. Um, So we look at this first person, Brian, and we've committed the last name, Um, you know, full page on each person. Probably a bit much. So when we scroll, the next pages seem more like 1/2 a page. I feel like this is probably more appropriate. Um, so let's just take a look at these Were not going to read through this, but, you know, I get the point. You want to kind of sell, You know, the management team. This person was probably more of the actual founder, so I get maybe having a little bit more elaborate. Ah, you know, resume of sorts on here. Up. The thing is, this is might not all be applicable. What you really want to do is I mean, I like the education, the professional experience, but I would probably try to keep it to a few points then that are directly related to you know why you are a good person to be working for this company. You know, one of the relevant things you've done in your past that applied to the current company that you're trying to start and whether bu the person, the founder or, you know, you talk about other key personnel that you have. Um, you pretty much only need to do this for the kind of the key management team. You don't need to do this for every employee, obviously. So again, I'd stick with educated professional experience a few points, you know, like this is probably perfect, But professional advisers, I would include if you have any. Obviously, if you don't do not, you know, force that you don't need to write. You know, we don't have any professional visors, but we're looking for some. Um, I would just leave that out because not every company has advisers. I mean, you know, the honesty is truth is just maybe you're really good at what you do. And you started up this company and its growing and and on you go, ah, personnel plan. Um, somewhat, This is if he I mean, some companies include this Some don't. If you have very key kind of rolls like this company is very much dependent on independent rep so I could see why they, uh, you know, decided to put in independent wraps that kind of named each one, put in their location what they do. That's a bit much. I wouldn't do that. What I would do is more by category, you know? Hey, we we expect where you're gonna need a staff of 20 people within the first year to meet all of our needs and the cover, you know, accounting and finance and sales. Um, and that's provided for in the budget. A simple is that you don't need to start calling out different positions of different names . Of what? Your plan. This. So putting it a little blurb about your personal plan. Terrific. What goals are, how big it's going to be? Ah, that's great. Specific positions and people's names. I wouldn't go so far with that. I mean, investor, you can never think of your investors. Is your investor really care about your specific independent wraps? Not really. They are going to care about the fact that you recognize you need reps and what your plan is for filling those positions. So that's ah pretty much got to say about the management section really fairly straightforward section, if I will. Ah, for the for the business plan. Eso maybe. Ah, let's talk about this section. It's only for four pages. It looks like And, um so this one is kind of unique operations, so clients inventory management. So not every company is gonna have inventory. So obviously have no inventory. None of this is gonna apply to you. Um, what? Even if you have inventory, I don't know that you need this elaborate of Ah. I mean, it's not too bad, but this fairly lengthy inventory management, you know, kind of dialogue and their business plan again, I keep bringing it back to think of your investors. Do they really care about the nuts and bolts? You know, some might. Sure. And they want to see that you've thought it through, but at the same time, they're really more focused on the company is a viable idea. Do you have the people in place? Do you have a plan to grow the company? You know, as long as you kind of verbalize all that in your business plan, that's more important than calling out very specific things. Like, here's our plan on how we're gonna manage our inventory. So not the worst that they have it, but might be a little bit too much. On the filler side would be my opinion there. Service agreements, Same thing. I mean, uh, I just can't Ah, can't say that. Get behind this. I mean, he really don't need to, um, like things like this, you know, owns all their equipment. Printer, scanner, cabinets. Ah, etcetera. It's a bit much. So, uh, I definitely cut back on this. I mean, operations should just be more of a discussion off, maybe like one paragraph about. Here's how we handle our inventory. And here's how we dispense it. You know, the service here is that the types of service agreements we enter into with our clients boom. Like a paragraph CETRA client tenure? Um, that's fine, too. I don't know that it warrants a full paragraph that really probably just been included under service agreements. So, guys, and I'm kind of picking this business plan apart, but it's I think that's the useful part. I want you guys know what what you should be doing. What? Maybe you shouldn't be doing so. Klein implementations this actually for them was someone important because that's a big part of their business. Is finding a client signed them on and, you know, on boarding them. So I like what they've done here with this. And then when it comes to suppliers, um, again, not Yeah, not a bad idea. I mean, again, you have to keep in mind to This is sort of a medical type of company. There's a lot of regulations around that. So it's probably important to call and say, Hey, we have a reputable supplier. Ah, now this all definitely accounting. You know, they really you don't need to talk about your accounting practices and policies in ah, in your business plan. I mean, it's just, you know, accounting is a function of running any business. I mean, that's yeah, that's definitely kind of going a little bit too far with it was filling out the operation section. So, um, guys, my overall kind of feedback on this would just be too really Trim this down. Keep it tight. Um, I definitely probably honest, quite honestly wouldn't use these guys as a great example of the operation section like they've done a lot of great stuff. Other wear in the business plan this section, though Not so much. So, uh, that kind of went heavy on this and again, it feels like maybe that was filling up information or they're really trying toe. Maybe in their eyes, they thought it was really important. From an investor's perspective, I can say they're they're also just not going to care about this much detail. They definitely don't care about what kind of counting system they use or their accounting policies, etcetera. Since this is, you know, kind of after the fact, you know? So all right, enough about that. Let's, um I'm gonna cut this video often will come back. We probably have one more video to go through the remainder of this business plan. 9. Business Plan Part 6: Alright, guys. So the final part of those business plan the financial information. So they've done a very standard job, which is which is totally fine. It's hard to get too creative with the financials. Basically, there's, like, the right way to do it. And then the wrong, the two wrong ways to do it would be to either oh, minute or two put in way too much detail. So they've done a good balance. You really just want summaries. By year, they've done their profit and loss. And again, this will come from our financial statements, which will look at in the future lecture, profit and loss summary. So here they did, monthly. Now this, actually, after saying that this is a little bit, um, a little bit ambitious. The only thing I can think is this was their year to date. So they were trying to Oh, it is. It's right here. Okay, so here's the forecast that year. Today actually kind of agree with this. It shows they have a history there making sales. They're doing okay, So, um, actually kind of support this in a way. Just say this is the every year to date revenue prove that there's a business model that's coming along. Uh, then they have their full P N l a little bit much. Ah, the summary probably would have been totally fine. Um, then they want to put in a few graft. Terrific. Again, We're not looking at the details here. It looks like the pie charts fairly broken up. I'm quite not quite sure. Sales summary, um, might be a bit much. I mean, it's not the best laid out, either. If you look at this, I mean, I don't quite agree with, um, photograph is built. Okay, But nonetheless, let's not get too hung up on it. Ah, point being include your your forecasted profit and loss. Honestly, I probably would have included my forecast IQ, cash flow statement and balance sheet. I do like the current monthly piano. The summary. I would have nixed the detailed P and l sales graph. Cesaire. Fine. Like it's good to put in grafs. Nice graphical stuff. The problem is, I don't sure what this graph is really conveying to me. I see it growing graph its sales by month. I mean, that's terrific. Four. Man, it could be cleaned up a bit. And then this graph definitely not sure what this is just because it looks like it's part numbers or something. And the percent is your prayer. There's dollars down here. Definitely. This craft doesn't make a lot of sense, if you will. So, um, Capital structure. Who owns what? That's Ah, that's okay to include. Honestly, if I was going to go so far as to put in this, I would also include maybe a proposed capital structure after investment. So, you know, these people own this company and they owe 100%. Well, where did the investors come in? What percentage did they own? What percentage are you offering them? And I'm sure if that's on the next year or not, it's not really so. They don't really say. So. Where is the percent coming from? It was Brian going to give up 10% or they each give up an equal percentage, like and they obviously have a lot of space here that could fill with some more information about that. So I would include a little bit more proposed capital structure. Post investment would be a good idea. Exit strategy. I do like this. I mean, you're giving them a heads up like look, based on the nature of the business, Here's where we see things going. And here's how you're gonna cash out your money. A lot of times, companies don't include this. I think it's important to include, though, and I mean, it thinks might go different. I mean, they might not go this way, but at least you've thought it through and thought about different ways that the investor might be able to exit the business. So they say, like someone else buys them out, a large pharmacy, advise amount, or they roll up etcetera. So they came up with some possible solutions. So Ah, I definitely kind of like this exhibits And, um, you know, Okay, Not sure that ah, completely necessary, to be honest with you, 100%. I'm just trying to scroll the top here, So Okay, guys, that's the balance sheet or her starts on a balance sheet. That's a business plan. Um, hopefully, you got a lot of value out of that, and I know I really picked it apart and there was some good things and some bad things, and I kind of started off a thing. This is a good example. They did a lot of good in there. And honestly, any time I look at a business plan, I'm gonna kind of pick it apart and kind of go for that sort of best case scenario. So there was a lot of stuff in here I didn't like, But I hope you got from that things that you should consider not putting in your own business plan. So, uh, definitely put a lot of thought, a lot of work in your business plan because this is really a foundation than four. Your investor pitch deck and for your one page executive summary, which we're gonna be talking about next and ultimately, if you get to the point of, you know, finding investors who are truly interested business plan is gonna be kind of the ultimate document that they're looking and reading through and picking through. So that's it for the business plan. Let's get started. Next, we're gonna talk about the one page executive summary, which is fairly briefing pretty, pretty straightforward. 10. 1 Page Executive Summary: All right. So after having your full business plan, what you want to do is put together a one page, and I urge you to try and keep it to one page. And really, there's no reason it should be more, um, executive summary or a lot of times this will just be refer to literally It's just a one page one pager. Um, so where this gets used as a lot of times, investment companies again, we're talking more about venture capitalists that they will ask for. Just they last for this. They last for just a brief, one page summary of your company. So you want to have this ready to go? It's also nice. I mean, this is an easy email attachment. So say you do go route where you're emailing different investors. You could include this and somebody opens this. You know, this is what they see their going to read through this. They get a, you know, 30 40 page business plan. Probably not going to read that. They're not gonna get past the first few pages, so I'm definitely gonna have this ready. Um, I would have your company logo up here. It's been omitted from this one. That's why there's big, empty space. Everything just kind of shifted up. Said, Have a company logo again, like maybe your your contact information. Obviously, your website phone number, name, etcetera. So I'm going to zoom, inherits guys if it can. There we go. Eso profile. Just talking a little bit about the business, the background, what it is that you do. Um, you know, keep it. I mean, this isn't necessarily brief relative to everything else in here. Doesn't have to be bullet points, but it just just kind of give it overview of the company what it is that you're doing. I would almost including here and it us. He could break this up if you want to, But I'll include, You know, here's our background. So maybe that's one section. Ah, here's the problem we're solving out there in the market. Here's how we're doing it basically a product or service, and that's it. You know, I'm maybe something else about your your marketing strategy. Whatever you feel is like the real key points that I really sell your company, and you definitely could break this ups rather than just a profile in a lot of information put something like background. Um, the problem. We solve our solution, our marketing plan, and break it up into, like, four different paragraphs because that's a little bit more easy to take. If I see this, you know, it might read through here and get kind of born than to start skipping down the numbers. So just a recommendation there. Revenue streams, So definitely just show, you know. What are you? Revenue streams. What do you charge again? We're trying to give them the bullet points. Your revenue projections? Definitely. Like just numbers. Like straight up. Just tears of numbers. We don't need to break it down by product or anything like that Again. This is a one page executive summary Were just tryingto kind of Put the highlights out there. They look at that. They see some growth. Okay, Perfect. You know, this is in line. I like what I'm seeing. This is the type of company would invest in. That's the type of, you know, answers you're trying to get from investors. Ah, Funding request. Here's evaluation. Funding request pay back two years. So again, you're not talking about anything about interest rates or the exit strategies or anything like that. Just very simple. Here's how much money we need. So an investor can look at this and go OK, Yes. That's in our sort of feasible range that we invest in. Companies say they were looking for five million and the investor you're approaching only invest up to a 1,000,000. Then they know right away like, Oh, this probably isn't a good fit. Ah, your mission. That's fair statement definitely would include then your management team, this company. So this is a different executive summary just by the way. Then the company, we looked at the balance sheet. I tried to pick out the best of the, you know, different examples for each thing that we're gonna look at. So sorry did mentioned that up front, but, um, so this is a different company than the business plan we went through. So this company only had one basically the entrepreneur that started it. So he had to kind of list out his kind of best, you know, traits. If you had management, you had several people like they didn't that other company list the meat down? Just one or two, maybe bullet points on each of them advisers. Ah, this one again, if you have advisers. Terrific. If you don't, I wouldn't worry about it. Your management team itself is much more important than ah who your advisers are. That's about it. I mean, you could certainly include Say, you were reaching the like kind of Phyllis Paige in Austin. Guys, I would feel this page like, you know, what a big, empty space. Um, just a side note on for money to I would honestly justify this. Just what fills out nicely. It's a little bit easier on the eyes again. That's maybe nit picking. That's, you know, But I think these little things are important. So, uh, they kind of hit this company, hit the right things to put in here We get especially given where the rat and ah, you know who they are. In fact, the only have really one management person etcetera they could have Honestly, what they could have done here is maybe in lieu of industry advisors put staffing plans. Since they only have one person investors, you're definitely gonna wonder. Well, who else is gonna work with this company? Um, you know. Ah, that's something I would have maybe considered including other than that and breaking this out maybe a little bit more into, you know, like I said, No background problem. We're solving our solution, etcetera. So that's a one page executive summary, guys, it's kind of hard to goof it up. Put the most important information about your company on here. Keep it somewhat balanced. You know, you don't need entire side listed of management teams. So you had five people working. Don't make it a full, like, half of the page. You know, balance this thing out. You definitely want numbers on here. You want revenues? Um, possibly cash balance. Projected cash balance at the end of each year, assuming funding to sort of show that you'll be, you know, casual positive each year. Uh, those would be only my recommendations for this. So that's it for the one page or guys. Fairly straightforward should just kind of fall out of your business plan. Just pulling out that kind of most important information. My last tip would be save. This is a pdf same thing All your documents really save them off as pdf, because that's what you want to be emailing people. One. You don't want people to be able to go in and edit what you have written to. It's just a little bit more professional, so save it off as a pdf before sending it out to anyone. 11. Financial Model : All right, guys, the next financial model. So a good financial model or I should say, great financial model. It's definitely important Tool. I mean, obviously, everything is important that we're looking at, but this is, you know, the actual numbers, and this is really where the investors are going to dive in and ask questions. So it's one thing if you have a business model, you know, your management team in place, all that. But if the numbers don't make sense, then you're not gonna get anywhere with them with a potential investor. So, um, a few points before we take a look at this briefly, first of all, you want to have it, um, just done in a format that investors are used to seeing. And I'll talk about that a bit more as we go through each tab. Here s So if you are not familiar with excel, um, it's definitely a lot of work to build one of these. I mean, something like this would probably take I mean, someone like with experience at least 10 hours. Um and that doesn't include just research. And like actually thinking up the numbers that's just actually building the model once. You already kind of know what the numbers are you gonna be putting in. Um, So if you're not familiar with Excel, definitely a task that you want to find someone else to do. Um, definitely kind of follow. Sort of a standard format that they're used to seeing which I'm going to show you. And that's about it. And then, um yeah, you want to? Well, let's get into it here. Uh, justice, I notice. Well, guys actually have a course on how to build this. This actual model is the one that's built in my course on building a financial model for investors. So if you're interested that go check that out and actually provide this is a download for that course s so I can't really prize that download for here because, um, just the kind of disservice to people who actually take the course and build it out themselves. So Ah, but let's go through it. So first things first. Multiple tabs here. Assumptions. Summary profit loss, balance sheet, cash flow, inventory variance analysis. Very standard layout. My key if if anything, if you remember anything from this presentation Ah, put all your assumptions on one tab. This is the go to place. This is where you put in any of the variables. Now, once in a while, there'll be a spot on one of the other financials where you can put in a variable and see changes, but very seldom, really. Everything should be here. And it doesn't matter if this ends up being super long and there's a ton information here. You want this to be kind of the key, like input section where everything goes and even call it out. Only things and red should be changed. Um, see, there's formulas built in here. So on Leigh read information should be changed. And then all this information is linked back to this sheet or is linked to each other, which is driven off of the sheet. So all of your financials will flow from here. So the goal and building a financial model is you. You first, you kind of frame things out like set up kind of just let's click on P. And l, like, just set up like Okay, this one was done by quarter. So let's set up each quarter, you know, without any other formulas. Nothing like that. Here's our revenues, etcetera. Lay it all out. Ah, Secondly, go create all your great assumptions. Next, go link all your formulas back to here and then lastly. Besides you in some quality checks and making sure things like your balance sheet balances and cash flow makes sense, Um, then looking at the numbers and how they how they come out, do they make sense? Because it is a viable business based on the honest inputs that you put. So that's that, um, you know, break it up to buy sections. So revenues how maney you're gonna sell by quarter the growth rate so you'll see here. Just we're not gonna go through every foreign, really, guys. But the race is saying, Hey, start with Q One year one, we're going to sell 12. You're one Q two is based on, and I was hit off to their the previous quarter, plus some growth rate. So everything is very tied together even in here. Ah, price per product. Perfect. Your cost to get sold for each type I'm per unit. And again, remember, they have the total units up here already, so you don't need to repeat the total units. Ah, your G and S o. Based on what are your expenses? Put them all in here. Somebody might say. Well, why not just put these directly in the profit and loss? Uh, it kind of defeats. The whole purpose is to have this one stop shop just put everything on this sheet. Otherwise, people are gonna be having to hunt around. Like, where do I enter this? Where you enter that? It's easy to goof up formulas. It's just a lot easier to employees the rest of their expenses, sales and marketing. So you get the point balance sheet, anything you need to put in receivables as a percentage of sales payables, That is percentage of operating expense beginning payable. So you'll and you figure this out as you go and you start building these out to go. You know what? I need a beginning payables. Okay. Make it an input. Let somebody enter it, or you're like, Ok, well, how do I fuck calculate my accounts receivable? Well, it's gonna be some percentage of your previous, you know, sales. Perfect. What is it? Put it in here. So some of this is kind of figure out as you go in your building at inventory variance analysis. Kind of best case. Worst case. And there you go. So everything is on here. Now, just go into the next tab, Um, summaries ends up actually being the last tab. And this is just summarizing information from all these other tabs. You see, there's profit and loss, the balance sheet, cash flow statement, variance analysis. So these four are these five. Sorry. Okay, so I don't think they have no inventory information here, but that's fine. They're saying, here's the highlights so somebody could come here and see. Okay, let's see, while they're losing money, losing money, losing less money. Okay, um and for whatever reason, that was okay with him. I thought this would be a financial model someone would be interested in, but and the numbers might have changed. I mean, quite honestly, somebody might have played around with the assumptions, so but that's where you would be able to change assumptions. Come back and look here and see Well, you know, what's it gonna take to make us profitable? Etcetera? Um, you go into your P and l. This was done. My quarter very standard layout. Not too, too long, but has enough detail, right? Has the salaries the Guiana etcetera, Um, by quarters. Nice because it keeps it a little bit more compact than by month. But you also get these totals for each year, which is great. And they just did a three year one. So I shouldn't say they was actually one that I built in the course. So as an example, So very nice layout. You have some highlighting on kind of total's clean. I mean, this is clean. This is easy to read. Guys, people can come here. They can follow the growth of the revenues. Etcetera, Balance sheet. Very standard balance sheet. Again. You kind of follow the same convention in terms of timing. So do it by quarters. You wouldn't do your income statement by months and your balance sheet by quarters. Do them all the same. It will make your life 20 times easier as well when you're linking formulas, because things will be in the same sort of progressive order. But a very standard balance sheet here. Balance sheet, of course, needs to balance. And that's actually what this cell is doing is it's checking total liabilities against total assets. That's like just one kind of check that you put in cash flow statement, uh, statement of cash flow. If you're not familiar with this, this one's a little bit more confusing to read. Um, not this 1% we're looking at just in general statements of cash flows, people aren't always intuitively, um, in tune with them. It kind of takes your beginning. Cash works in your changes on your income statement and your balance sheet. That impact kasher didn't impact cash that need to be factored in and out. At the end of the day, you come up with your ending cash, this will tie back to your actual balance sheet. Um, but that's sort of accounting. You know, these these different financials tied each other in different ways. Inventory. So inventory was a big part of the sort of sample that I've created here. Um, again, he knows everything's just called widget A which it's very be very generic term for whatever it is that you sell. Um, but they basically want to show that Hey, when we get to key like low points, we buy more inventory. So and then that would also factory into your balance sheet and the cash your cash spend. So this is important for companies are just that have inventory if you don't. If you provide a service, let's say, or maybe a vier inventory on demand. Not as important include something like this. So this would be the one that I'd say was maybe if he you may not need it Last one is a variance analysis. Basically, take your results from your P and l and you say, Hey, if things go terrific, how do things shake out for those three years If things go worse, if they're worse than we're expecting, how do they go? And what are these numbers based on while they're right here? But they come from, uh, oops. If we scroll back to our assumptions, remember at the bottom here, variance analysis. So, hey, best case things were 10% better 15 20 above Ah, etcetera. So that's where so just a little example of how things on here are tied back and you'll see that these numbers are tied to your profit and loss and your variance analysis and your P and l. So again, it's taking numbers from your other sheets or from here. And this is coming from your assumption. So everything is ultimately coming from your assumptions at the end of the day. So that's just a little over here. I want to give you a taste of what financial model looks like again building. This is a whole other ah, deal. You know, it takes a lot of time, takes a lot of thought process you have to put into this. But this would be a typical investor model that investor would be used to seeing. There's not a lot of fluff. Um, it's very straightforward. The summary tab is a nice touch. For sure, it's not. Everybody does that, and it's a quick stop for people to come see the highlights your company on. This is something you could put you know, first page in your, um, the first page of your financial section in your business plan as well to give them a little taste. And then you could, um, I mean, he might be able to even leave it just at this if we want, or you couldn't that include screenshots of your P and L on your balance sheet and cash flow statement. And so that's it, guys, that is a financial model 12. Investor Presentation: All right. So we're gonna look through an investor pitch, Jack. Next. Um, we've chosen heir Ben Breakfast. So Airbnb the website as the example, and I kind of mentioned before This is kind of a classic case study just cause they did a really terrific job. So Ah, that's gonna be a great example for for what you should do with your investor pitch decks. So just before we get started looking at it, a few kind of points You want to keep it somewhere, say, 10 to 15 slides? Um, the reason for that is I mean, you have to realize that if you're given the chance to present, you're gonna be given somewhere between 10 and 20 minutes. 20 minutes is fairly standard. I would say it gives you, you know, about that 1 to 2 minutes to talk about each slide. Uh, and that's all you really want. When you're also creating your pitch deck, you want to be brief in terms of just bullet points. You don't the worst presentations or where people just write a lot of stuff on the slide and then just stand there and read it. Anyone could read the side So you just want the very bullet points, and then you talk to the bullet points and you'll see this example. They did a great job. They went really, really brief, actually. Um, what else can I tell you? You want nice, big, bright colors. They've done that, obviously. I mean, they use their own company, you know, logo colors in here. There's definitely certain things you want to cover. So we'll see that as we go through this one on, I'll point out the things that you definitely want include in your investor presentation. So just keep in mind this is something that you would actually present in front of someone . So you're ultimately end the day wannabe touching on kind of those key points against Let's get started and take a look. So cover page, you know, just first slide up. You know, you put it up with people are kind of gathering Airbnb, you know, their their slogan groups. We go, um, so Okay, problem. So the problem is definitely aside. You want include we kind of talked about in the executive summary, you know, also in the business plan. Like, what's the problem out there in the market that you are ultimately solving. So for Arab in breakfast again, we'll kind of read some of theirs just cause it's kind of brief, so kind of highlights the importance of it. Ah, so prices important concern for customers booking travel? I think that's fair Hotels leave you disconnected from the city. So, yeah, you book a hotel somewhere, but you just go and it's basically a boot up. Ah, bedroom. No easy way to exist. A book, a room with with a local or to become a host. So you know people who you know, you basically say you're traveling to something you've never been to before Airbnb or similar models. You just you had to choose a hotel like one other option. Was there really other than that? So every bill trying to solve the problem So their solution A Web platform where users can rent out their space to host travelers, save money while you're traveling, make money if you're the host and share the culture perfect. So they kind of address both sides of their model. You know, Airbnb isn't just about providing a place for travellers to go to find a place to stay. It's allowing a platform for someone who has a house say, and they want to rent it out So both sides win. This is really a win win situation for both sides of the transaction. So again, problems solution perfect. Like right away, you have the investor's attention. Market validation. So this is market statistics couchsurfing dot com, which obviously existed before Airbnb was just saying, Hey, this is where the kind of the option people had the same thing with Craigslist, these air, the options people had before. You know, we come along just to point out that they had no over half a 1,000,000 users, some market size two plus 1,000,000,000 trips booked worldwide. That's the total available market. Then they kind of break it down. 560 millionaire budget and online types of travel and then from there, 84 million or trips with Airbnb. That's their share of the market. So saying Hey, out of this two billion, we think we can capture 84% and then down here really small. If you see it's 18% of the available are 15 kind of small, hard to read, Let's zoom in and I want to goof up the side, but it's 15% of the available market. So they're saying, Hey, the market is so big that even if we get 15% we're still having 84 million trips with through Airbnb That certainly has to translate into some amount of revenue again. Just pointing out guys Very simple sides, right? Not a lot. I mean, it's three big circles with some numbers on them on and then little kind of headers, if you will. So very simplistic. Then they go on to talk about the proxy. Now, at this point, you know the people watching this presentation think of them, you know, they heard the problem. You've presented your solution very briefly. You said, Hey, it's a big market. So now let's talk about Hey, what are we going to do to capture part of that market? Here's our product. It's our website. We could search by the city, review the listings on the new book, the listing of the property that you want and they give a fair like a nice screenshot twos . They're not just saying here's the process, but they're giving kind of a view of like here's what you would see is a user. You'd come the home page, you'd find some listings. You look at them and then you eventually book it. Eso our business model. How do we make money? We take 10% commission on these transactions. So back to that 84 million trips. Now that that's their share of the market, the 15% It's a $25 average fee based on $80 a night over three nights, which is probably kind of a standard trip. I would think so. They're making $25 on each one. Hey, 2.1 billion revenue project by 2011. This is obviously back when they did this, and it was 2009 or 10. But nonetheless, I could be off on that date. Um, so they're saying now it's tying it back. Hey, remember that big market? Hey, we just need $25 from each person and will be a 1,000,000,000 dollar plus company adoption strategy. So how are we going to get out there and let people know about our business events? So they list out some different events that they're going to attend partnerships. They're gonna partner with X Y Z companies and then Craigslist market themselves on Craigslist, and people will be able to actually that so much of that market people, as they make listings for the houses, can cross post on Craigslist. Easy with a click of a button. Who is the competition So again, don't ignore the competition. But they did a nice job here with the Matrix affordable versus expensive on sort of the vertical and then offline versus online offline. Obviously you know who wants to deal with offline. So when we think of affordable, So okay, all these air cheap, you know where is also online? You can book everything online. Airbnb hostels dot com and Airbnb obviously caters to a different audience than, say, the hostile crowd. When they mean things like offline. That means, you know, you don't you might find a place to rent on Craigslist, but you still have to do the transaction with the person and maybe pay them in cash. Or if they accept credit cards. Somehow, where's Airbnb actually handles the entire transaction, so they're saying, Hey, we're in this upper quadrant or affordable. It's all online and hair come and this without blatantly saying that this competitors isn't really quite the same as what we are. Competitive advantages. Uh, first to market host incentive list wants etcetera. I'm not gonna read through each of these. So again, hopefully getting the feel This presentation is fairly simple. It's driving home a lot of points that this company is terrific. Hey, here's the team. I love this. This is perfect. There's three of them. Here's who I am. Here's what kind of my title is with the company. Here's my quick background in, like a sentence or two. That's all you need. So things like I mean, if you remember, we went through the business plan and they had sort of a full page, you know, bio on one of the founders. That was a bit much. This is nice. Has a nice picture. You can identify with them a little bit more when that's perfect. Plus, I mean, add in the fact that, yes, this is an investor presentation. It's meant to be brief. Uh, the other thing I should mention to. You want to keep everything to one page like, don't go on about the team. Say there's three other people I wouldn't make a second team page. I would just put in the key players, make the fund smaller. Whatever you need to dio press, this is obviously only something to include if you actually have it. So if you have had any good press, definitely include those user testimonials. This the only slide I disagree with. To a degree, Um, this is hard to validate. And I mean, who could not just make this up now? I'm not saying they did, but there's really no you know it's to. It's to selling, if you will, like Air Brand breakfast, freaking rocks like complete success. It's easy use and made me money hard to, you know, look at this and actually validate if these air actual honest riel users. So this is one side that out of them that I was concerned, not including financial Perfect. Yeah, this is terrific, and I've never actually seen some present. That's what usually end up seeing lying graphs and whatnot and lots of different numbers that has said, Hey, angel round initial investment opportunity. That's how much money they were looking for. They may said, Hey, we're looking for 12 months money. Um, and with that money don't be able to raise. Ah, we'll make 80 k and then they'll get to two million. So we're sorry? I'm completely saying that run with that money, they'll have 80 K trips and it became money. And that will translate into $2 million sir, saying hey, with your 500 k weaken generate two million over 12 months. And that is it, guys. Yep, that's the last slice there goes. So there's 14 sides just I mean, I would actually consider including a final slide that said something like, you know, questions. You know, just that you put up at the end of the presentation just so it isn't just sitting on here. Not that this is bad. Um, that's it. So other than maybe that one slider considered nixing this side everything else, This is a terrific example. I'll included as a download as well to this video, eso definitely consider, uh, tailoring your investor presentation to something along these lines. 13. Term Sheets and Valuations: Alright, guys. So just a some extra information, as I was kind of, you know, started going through everything I have. And I found some other documents and information. I think they're pretty useful for you guys, so I want to just do a quick, um let you know what they are gonna make them available for you to download. So they'll be attached to this lecture if you want to download them after watching S 02 things. One is how to value a start up. So this is Ah, white paper written by someone else is publicly available on the Internet. But I've made it available for you. I think it's really good. So if you read this, they'll talk all about you know, the executive summary and obviously reckoned go through It gets into some very technical sort of mass. So don't get too frightened by this, I would say, but I just want to give you a sense of, um, calculating valuation, which is something you will probably end up doing. But your potential investors will definitely go about themselves. And again, this is I'm scrolling through this. Don't be too frightened by all the big formulas and stuff. There's basically 3 to 4 primary methods of doing valuation, um, things like just getting cash flow and multiples of comparable companies, etcetera. So, but still a good read second thing I'm gonna give you is the guide to venture capital term sheets. So when you get to the point of, um, striking a deal with venture capitalists, you're gonna have a term sheet presented to, you know, basically sale the terms that they're willing to invest money in you and, um, you definitely want to read this. So there's you know, what types of terms air typically included, and I have a list of 26 year. So there's a lot that goes into a term sheet. When you get to that point, you would have a lawyer involved to help you weed through it. It's definitely a big step. You don't want to have anything in there that you shouldn't have. Definitely some things that can catch you later on. Like that might seem harmless now, but down the road that could cause you problems so I can make this available to you against is available publicly. But I just want to download it and make it easy accessible to you. Um, if you are interested, actually do have a course on term sheets. How? Toe interpret them. You know, basically how to read them. And I talk about sort of all those different terms. Not each of these, but the primary ones that are most important on what? What to look out for. So if you go check out my other courses, you might find that. Ah, so that's it, guys. So download. These were not going to go through these. I just want to sort Adam. It's sort of a little bonus for you guys, if you will. 14. Course Conclusion: All right, everyone, Congratulations. We did it. We looked through all four of those investor documents. Hopefully. Now you have a a lot better sense of what, exactly? They look like what you need to be, including what you need to not be doing. And you're excited to go ahead and get started on your own. So just the conclusions here, obviously fairly simple. We talked about the business plan, the executive summary, the forecast and the investor presentation. Jump ahead the next side. So there's my contact information. Um, honestly, if you have a question, I feel free to message me. Your best bet is to message me through the course website itself. I check it every day, happy to answer any of your questions as well. Through the course, when we looked at the business plan, I have a course on writing an investor called a business plan. I have a course on writing or building a financial forecast. That's investor quality. And then I also have a course all about putting together an investor pitch deck. I don't have a course about the one page executive summary because I feel like that's fairly straightforward. That's basically just Ah, snapshot of your business plan. So no need for a course for that. But nonetheless, the other three courses. I definitely encourage you to check those out if you're interested. Um, so definitely. Look at my other courses. Find those send a message. I'll include Ah, downloadable pages. Well, with direct links to those three courses specifically since I think they're most relevant to you guys have taken this course, Um, other two points. Just check out my other courses as well. I have a ton of different courses. So beyond those three lots, of course, is related to accounting Finance building. Thank things in excel. Um, working with investors, etcetera. Lastly, I love your feedback. So if you could go ahead and leave me feedback for this course, I really appreciate it really helps me out when people leave feedback. So any. You know, I love those positive comments and anything I can do to help you, Uh, go ahead and leave the fair, fair review for the course much. Appreciate it. I love those star ratings. So whatever you can do for me there really appreciate it. And that's it. Guys, I'm excited for you guys. I'm glad you took the course, and I hope to be your instructor in yet another course. Thanks again.