The Complete Masterclass On Writing A Business Plan | Chris B. | Skillshare

The Complete Masterclass On Writing A Business Plan

Chris B., Instructor, MBA and CFO

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27 Lessons (2h 28m)
    • 1. Introduction Video

    • 2. Exec Summary Video

    • 3. Executive Summaries Screen Capture

    • 4. Financial Projections Video

    • 5. Financial Projections Screen Capture

    • 6. Investor Presentation Video

    • 7. Investor Presentations Screen Capture

    • 8. Business Plan Basics Video

    • 9. Sections of a Bplan Part 1 Screen Capture

    • 10. Sections of a Bplan Part 2 Screen Capture

    • 11. Executive Summary Video

    • 12. Executive Summary Review Screen Capture

    • 13. Company Summary Review Screen Capture

    • 14. Products and Services Video

    • 15. Products Services Review Screen Capture

    • 16. The Market Video

    • 17. The Market Review Screen Capture

    • 18. Marketing Video

    • 19. Marketing Plan Review Screen Capture

    • 20. Management Video b

    • 21. Management Review Screen Capture

    • 22. Financial Projections Video

    • 23. Financial Summary Review Screen Capture

    • 24. Exit Strategies Video

    • 25. Exit Strategy Review Screen Capture

    • 26. Conclusion Video

    • 27. Conclusion Bplan Template Review Screen Capture


About This Class

Are You A Small Business or Entrepreneur Who Needs A Business Plan?

Do You Not Know Where To Even Start?

Does Writing A Business Plan Seem Overwhelming?

Do You Want To Write A Business Plan That Investors Love?

Do You Want To Put Your Business Goals In Writing?

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

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% no questions asked money back guarantee!

Recent Reviews:

Wes B says "Everything I needed to know and more.  Writing a business plan seemed like such a huge project.  It is, but Chris broke it down into sections and was able to explain what to include in each.  It was far more easy to write my plan as I followed along with the course.  I can't say enough good about this course. In the end, I had a business plan I was proud of, thorough, and my investors loved."

Learn How To Write A Business Plan - It's Not As Hard As You Think!  Let Me Show You...

As an entrepreneur, one of the hardest things you will ever do is get someone, anyone, to invest in your company!  Unfortunately its a buyers (the investors) market, and there's a whole lot of sellers (you, the entrepreneur).  

There's still hope!!Let me teach you how to wow investors with a business plan that stand out above everyone else.  

By the end of this course, you will have written a business plan that is detailed, complete, and most important: 

This course teaches entrepreneurs, startups and small businesses how to write a business plan that is actually effective for raising investor capital, follows the best business practices, and isn't another "fill in the blank" business plan that investors hate to see. 

I'm not going to write your business plan for you. No boiler plate text will be provided. If you are looking for short cuts, this isn't the course for you. If you want to learn how to write a business plan that is actually effective, then this is the course for you.  You need to STAND OUT from your competition for investors, not blend into the crowd. 

In this course we walk through all of the sections of a business plan, and using my years of experience working with angel investors and venture capitalists, let you know the inside knowledge on how to prepare each section to actually grab peoples attention and have them wanting to invest. 

In each section I'll cover both what you should include, and what you should NOT include. I've seen it all, i know all the pitfalls that will make investors roll their eyes. Don't make the rookie mistakes most entrepreneurs make, and believe me there are plenty. 

The course is almost all video instruction, a mix of both me talking and instructing, along with screen captures as we work through a business plan. Again, we aren't going to write one. I'll be using one as an example though. 

In the end I will give you a plan template, but it will only have the main headings, again, no boiler plate. 

If you are ready to roll up your sleeves, ditch all the fill in the blank software and write something that will actually get attention, then lets get started today! 

The time is now! Get started on that business plan by clicking the Buy Now button above!!! Welcome to your future as a funded startup entrepreneur!

I have also included a copy of my ebook "Fund Your Startup by Chris Benjamin" which you will find as a download in the last lecture.  Learn your options for funding, where to find investors, how to wow them, and lastly the must do steps to successful funding!


About The Instructor

Chris Benjamin, MBA & CFO is a seasoned professional with over 20 years experience in accounting and finance.  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


1. Introduction Video: Hi, everyone, and welcome to the course business plans for raising investor capital. My name is Chris Benjamin and I go by the rogue CFL, which is a chief financial officer. Let me introduce myself a bit more and tell you how I can help you build an awesome business plan for your company. So first of all, my undergraduate degree is in accounting and finance and then went on to get a master's degree in business from the University of Washington. The last 20 years I spent in accounting and finance corporate level big companies, small companies, lots of different industries. The last 10 years old, I went out and did consulting as a CFO, working specifically with smaller companies who were growing fast. I needed help with all things accounting and finance and business related in general. On one of those things that they often need help with is creating business plan or reviewing their business plan or incorporating other information in such as financial reports etcetera. Since I've worked with investors before, I know what they're looking for so I can help you and my client's right awesome business plans that will get their attention. So let me introduce you is, of course, a little bit and how it's gonna go. There's several sections and lots of lectures. The first section we're going to talk about, not the business plan itself, but three other things that are related to the business plan. One of them you would have to create before the business plan the other two would create after you write your business plan. Specifically, they are, ah, financial model or forecast of one page executive summary. On third is an investor pitch deck. So we'll talk about each of those I'll talk like this to you. Kind of explain what you should be putting together and then for each lecture in each section. Throughout this course, we're going to go through a look at specific examples on the screen, and I'll guide you through and say, Here's what you should do And here's what you shouldn't do And we'll look at lots of different companies that way. And at the end of the day, after we're through all the sections of the business plan, you'll have a terrific idea on how to write each section as it pertains to your company. So, as I mentioned each section will contain videos of me talking to you to the camera, just like this were explained different things. And then we'll also contain video of the screen captures of us, going through specifics about an example or two for that section. Each section also has quiz for it and also has a downloadable worksheet that you should download in advance. It has things like key terminology place for you to jot down any questions as you're watching the videos and as well, some other concepts and one not that you might wanna read or jot down. There's also a lot of downloadable content, terms of examples for each section and then, most important, at the end of the course, there's a download template of a business plan to help get you started. So and we go through that in one of the videos as well towards the end of the course. So the goals of the course or first of all, to not make you an expert of business plans but to make you an expert enough to write your business plan for your company, we want you to feel confident that you know what should be included in the business plan. What shouldn't how to phrase what it is that needs to go in there and, most importantly, how to package it all together at the end. So it's professional and something that you're proud of that you feel adequately conveys the message of your company, and you would want to get out to potential investors, other management team, your staff, your friends and family everybody. So before we start the course a few points, feel free to message me at any point. While you're looking through the course, you have a question. You don't understand the concept. Send me a message. I'm happy to respond. Always. Second, just relax and absorb the information. You're not gonna be familiar with all the concepts and all the terminology, and that's OK. Remember, the goal isn't to make you the expert business plan writer of the world. The goal is to give you the tools it takes to write your own business plan. Feel free again. Asked me a question or maybe watch a lecture again to get a better understanding of what we're talking about. I think a lot of times when you watch the actual screen captures of the business plan. You'll understand the concepts really well. Between listen to me talk and then as well, seeing it before your own eyes. So before we start just a few points to keep in mind, feel free to write me a message. Meet question any point during the course I'm happy to answer, and I know a lot of concepts and terminology might not be familiar to you, and that's okay. Just ask a question as well. Just relax and absorb the information you're learning. It takes time to become an expert at this stuff. So if there's something you completely don't understand, maybe rewatched the video. Or like I mentioned, send me a question. On Third, Be sure to take the quizzes and download all the content that you can. You know this is your course. We want to do the best job that we can, teaching you how to write an amazing business plan. So that said, Let's get started. Let's dive right in and start seeing what it is that you have to put together to create amazing business plan for your company today 2. Exec Summary Video: Okay, so let's talk a little bit about executive summaries. What is it? So, first of all, we're not referring to an executive summary that's gonna be in your business plan. This is sort of a different one. Almost referred to this as a one pager or a flyer. So what this is is a document that you would create after you write your business plan. It's a one page summary sheet of everything that's important about your company. There's an example included, so be sure to download that and take a look at it, and it's well, in the next video, we're gonna go through it. But essentially what it is is the key highlights and the most important things that you would want to present to someone if that's all you could tell about your company. So it's things, of course, like your company name and your website address. But then it goes into a little bit about you know, what is your company about, like, what is the history? What is it that you do or that yourself? What's the need out there for it in the market? And what is their problem out there that you're solving. You would also talk a little bit about who is the management team, How much money you're looking to raise for your company and what are sort of the highlights of the financial projections. Now, there might be other aspects to your business that you want to include as well. Each company is unique, and that's okay. So we're gonna go through an example of what one looks like. But I want you, of course, to tailor it to what you feel is most important. Or maybe there's some things that you want to leave out. So that's a one page executive summary. Next, we're gonna take a look and go through one. 3. Executive Summaries Screen Capture: Hello, everybody. All right, so in section two, the first thing we're gonna do in this section as a whole is look at other documents that are not in the business plan but are generated from information in your business plan. So the next three videos will just be going over those briefly just to give you a sense of what else you will create, potentially for investors or employees or management team, whatever the case might be. So the first thing we're gonna look at is an executive summary. So before we dive into this one, first of all, so an executive summary will actually have an executive summary section in your business plan. But it's slightly different than this. So when we when I talk of like, a standalone executive summary, what I'm talking about is this It's a one maybe two page document. This one happens to be one page with the key. Highlights like you really have to cherry pick the main highlights, and we're gonna go through this one, and I'll give you some guidance on what those should be. The purpose of this document is really it is just a one page like highlights summary of the company like Here's who we are. There's the team, our mission, how much money we need if you're raising money at such or something that, like somebody, can quickly look and decide if it's something they're interested in. I'm looking at this one. And before we start, I'll say it. So this was generated based on an actual executive summary. But I've gone through and I've changed the company name. And then all the managers names, etcetera. These aren't the real name. So none of this is is based on reality. In terms of this is not an actual company, but eso In this case, you know, Executive Summary confidential has been older June 2010. Website name I just put in X Y z. I might want to throw up your company logo right here. I would suggest doing that now, in this case, just to give you an overview of what it looks like. That's it in total. So first they did a whole profile where they basically went through, talked about their company, you know? Where did it start? What's the need for it? You know, what products will they be offering? I'm not going to read through this Also, this is available for you to download, so you can certainly put it out and use. It is kind of like a model for your own if you so decide to make an executive summary. So we're going to read all this. But we just got a quick love, but essentially talking about talk about the product they've designed on the service. Why, it's important. Ah, that kept it nice and short. You know, Nice three paragraphs. It's easily readable. Um, so I would encourage you to do the same from there. It's basically bullet points about the company. So revenue streams inspections. They have charges, etcetera. So basically showing. Hey, we have several products and services that we're offering, and here's in general what? The sources will be This. So I want to first off start by saying, you know, what you put on here isn't set in stone. You should really focus on what's most important for your business. In this case, they had several revenue streams and wanted to demonstrate that if you do as well, I encourage you to list them out. If you don't, if you have mainly one source of revenue. There's no sense in having a specific revenue stream area just example. Um, so next they have the revenue projections by year. That's great. I mean, they run out projected again necessary, but just showing the incline. And then these numbers would tie back to the financial plan, which we are going to go over as well in one of the next videos. So again, just some highlights. You know, here's our revenues were expecting come over. This comes so funding request. So this coming specifically was looking to raise capital. So they put in their rally themselves. 2.1. They're requesting 300,000 payback in two years. Um, this I would I would potentially do it a little bit differently myself. Just this is somewhat useful information, but not completely. Um, you know, payback. They don't talk about Well, how are they paying it back? Are they doing an I P O R. Exeter? They're just looking for a loan. Um, that that's not really clear here. So I would have included that. It's what evaluation doesn't state if that's after the 300,000 or before it. So, um, I would probably include a bit more information if I was gonna go to include this section. And certainly if you are looking for money, I think it's important to put that up front and say that instead of payback period, I might have put expected exit strategy. Ah, there mission again this time might have put before the profile, Uh, not gonna read it all. But again, you know, they're just their mission statement. Good to have on here. Not necessarily required. I would say I would focus more on, like, the profile your revenues. Funding is important. And then management it was important. Everything I probably would have put is, besides revenue projections. Maybe the bottom line might have done, like, a little box chart down here or something. I'm just to show not just here's what we will make, but, you know, we're probably losing money the first couple of years. And then things turn around, show people that the investment is gonna work. It's okay. So then the management team, you know, they put together a nice management team. Well, it's basically the one fellow that he has a few advisers with good experience in that industry. Um, so overall, this would be an executive summary. Eso I've already point out the few things that I suggest, like, should have been changed on this one. I don't like the use or the lack of use of the empty space. You know, I'm sure you could find something of quality to put in their company logo. Maybe a few pictures on the products. Whatever the case might be. Talk a little bit about your marketing plan. Um, so basically, I would share it. Like I say, Cherry, pick the most important things that you feel you would want to convey to somebody who's just learning about your company. Like you just met them. They don't know you from anyone. Hey, here I have a company, and here's what we're about. Boom. And you give them executive summary. You know, you read this and you had kind of a jump start on on what they're about. Aside from that, I do like that's one page. Like I said, it can go to two pages. So it's kind like a restaurant. You know, you don't you'd prefer not to You want it all just to be clean on one page. You should be able to sum up everything on one page yourself. So that said, That's the executive summary again different than executive summary We're going to see in the business plan, which is a little bit more flushed out and written out. But that's it. So feel free. There's a sample to download download. It's this one dello This used it on make you know the appropriate changes and build one for your own company. 4. Financial Projections Video: All right, so let's talk a little bit about financial projections. So what are they basically, what you're gonna do or have somebody help you with or maybe do for you is build a forecasted financials financials for your business. So that include the major financial statement, which is profit and loss of balance sheet and a statement of cash flow. But it's gonna include a lot more than that. It's gonna include a base set of assumptions that she'll use to drive the financial model. Um, and again, this probably might sound a little bit foreign to you. And I think in the next lecture, when we actually go through on the screen of financial Model, it'll make a little bit more sense. So just hang in there. So what you're doing is your forecasting out, typically 3 to 5 years to show financially. Here's where our business is going to grow as well. You kind of incorporate what it is you're looking for. So say you're looking for $1 million throughout the course, will this sort of use $1 million? That's sort of the standard amount that you're looking for for your business from an investor. So whether it's $10,000 for you or five million, it doesn't matter. Let's just use one million. So you're looking for one million you're gonna show in your financial projections? Well, if we get $1 million here's what we're gonna do. Here's where we're gonna spend it. And here's what's going to result from that in terms of sales, salaries, marketing everything else. So the point of doing this Is there several points? Well, first of all, in terms of investors, it gives them an idea of where the company potentially could go. So that in mind, we want to give a fair representation of how we think we can grow the company. Oftentimes, it's enticing to sort of show sort of pie in the sky type of projections. But any good investors going to see through that right away, So be honest with your projections as well. It provides a roadmap for you as the company. Here's where we think we can go and helps you make decisions like when can we hire additional staff, or when should we expand to other markets? So just before warning that it does take a significant amount of time to build a quality financial model, you have to do a little bit of research. It takes time in Excel to build the model itself. It depends a little bit on how familiar you are with Excel and again we're using. Excel is kind of the example whether use Excel Google Sheets, another spreadsheet program. That's okay. You want your projections to be realistic, and you don't want to be able to back them up, so it's worthwhile taking the time to do it properly. So besides the point of giving you a road map and helping you make decisions, investors are gonna want to see this. You're also gonna incorporate aspects of the financial model or projections with our budget , whatever we want to call it in your business plan. So that's why this kind of has to be done before you write the business plan, or at least concurrently, with the business plan. Some things are sort of optional in the business plan, but financials air, not one of them. Any investor's gonna want to see what it is. And sure, you have the financial model in excel, but you want to put summary information into the business plan as well. So that said, Let's take a look at a financial model will do a screen cast go tabai tab, and I think you guys will learn a lot from this exercise. 5. Financial Projections Screen Capture: Hello, everybody. All right. In this next video, um, of other investor documents, this one, we're gonna be looking at a financial plan. So financial plan or financial projections or budget, whatever you want to call it. Ah, little bit about this before we look through. And there's quite a bit of information here, so we definitely will look through it somewhat quickly. I just want to give you a sense of what's in here. Um, as far as this, typically, you would build a financial projection. Uh, probably before doing your business plan. You want to make sure the businesses viable financially before you charge ahead with a full business plan. Often, times like you as an entrepreneur might not be savvy with, you know, finances, accounting, profits and loss excelled like the tool we use to build this. Ah, that's OK. I would encourage you to find somebody who can help you build out a full financial model. There's lots of people. There's experts online. Someone like myself. You could go find and contact and, you know, using information that could build it out and kind of a collaborative process. Make sure it all makes sense in the end. So, uh, takes a bit of time to build. And so certainly if you're doing it on your own, keep that in mind. Uh, this is important. So basically, what you will typically do is pro project out five years for your business, and we're looking at everything revenues, expenses, the cash flow, investment, etcetera. And what we're doing is just forecasting the financial statements. We want to see the growth. We will see if it's again financially viable to build this business. Um, and what sort of profitable we have? And then for an investor, you know, what exits are they looking at? What makes sense? So, um, again, we'll try to keep this to just a minute or two on each tab only because there several of them. And I don't want the video to get to excessively long. So, um, certainly, if you're interested in financial modelling, I have other courses of all about just building a financial model, and that's where we would build one of these from scratch. So definitely it's ah, large endeavor. So first off, assumptions the way you would always typically build a financial model, it's start off with your assumptions So it's everything that you're assuming about the business. So for here they had several revenue drivers. They have inspection fees, up charges, brokering etcetera. So they broke. There's out by quarter Q. One Q 234 Then the following year, Um, so inspection fee per facility, the cost for inspection, the number of facilities expected. So this is all projected. So I'm just going to scroll to the right here so you can see they went out like they did four years 9 10 11 12 Unrelated five years. Okay, slated five years and then, yeah, these are all just assumptions. And again, these assumptions that obviously should be based on reality. What you actually expect to dio, um, the same thing for the rubber, other revenues. So you really you want to put in everything you're assuming about the business here, and then everything else pretty much in your financial model will be driven off of this tab or one of the other tabs. But there's no hard coded numbers in other tabs. Everything should be here. So if you are building like a profit and loss, you think, Oh, what's our tax rate? It's whatever 20%. I'll just pop in 20%. No, you should actually have a box over here that says, What's the tax rate that is linked to Then in the future, someone else inherits this. They know there's one central location they can go to to edit different things. So going down, they do consulting. How many hours travel, etcetera, software, licensing fees. Then they get down to expenses. Basically, they break out each expense these quarter. They think it'll be this month much and then year over year growth. So basically, when they get to their profit and loss, they're forecasting out expenses. They'll say Okay, the first year it's $500 1/4. The second year is going to grow by 10% so the 5 50 next year will be 10% of 5 50 etcetera . So that's all in here. I saw their expenses appreciation. The balance sheet assumptions receivables as a percentage of revenue. So accounts receivable. How much will they have on the books carrying forward month a month investment needed, and then some capital expenditures program etcetera. For them, this is what made sense. Each company will be very unique, but I encourage you to use the sort of systematic approach have everything labeled very clear. Like here's some assumptions were using the balance sheet. Here's some about capital. Here's our general expenses and here's a revenue assumptions. So, um, having something well laid out like this will go a long ways. You probably when you build a Finnish model, almost spend 1/3 year time just making sure this is all correct. And everything is in there than building everything else out is I want to say it's somewhat straightforward because that should all just linked to this to the sheep. So next summaries. This is kind, actually, the last thing you build, it's basically just pulling information from all the other reports, putting it in a nice summary. So an investor someone you want to show your business you could show them this like, Hey, here's our cash flow. We're looking for $300,000. We're gonna break even in this quarter. Here's an evaluation that comes from one the other tabs. Here's our revenues, etcetera. R P en el So in this case, they did a low medium and high projection. Here's the totals. Net income, same deal. Medium low, high balance sheet. Just assets, liabilities, equity. Just, you know, you're pulling the highlights. Basically, from each of the main reports. Little graph, and that's it. A nice, quick stop. Someone could look at this again so I could look at it and go. I'm not interested. These numbers are high enough for me, you know, Where did you get to these numbers? And then they could dig in and shown details. So then we get to some of the more, um, the actual financial reports. So profit and loss. So again, all of these numbers in here are driven from the assumptions. And if you see what Clickety ran themselves, it's assumptions. You know, this cell times, this cell, and you'd have to go take a look at what those are. But essentially, everything should be driven. So that one's from the assumptions. And they said every quarter would be the same. This one I remember they said it was plus 50 per over the 10% growth, which it is, etcetera. So there you go. So this is a fully developed profit and loss sheet breaks out there. Cop casa gets sold G and A expenses Web etcetera. And at the other day, they come up with a net income so they could use this. Like I said, to talk to investors, to use it as a budget for the actual business once they start their, this is kind of what they're expecting. Uses benchmark, vet their actual financials against it, etcetera. You're not looking. I mean, here. Your estimate. I mean, this is an estimate, especially the further out you get. So, um, nice round numbers were perfect on this thing. There's no reason to try to drill down to the penny. It really is just a estimate so you can get a ballpark figure. I mean, we wanted to be somewhat accurate, but, um, you know that in reality is something you're gonna hit that number exactly. Let's see, Appeal summary suggested a yearly total and basically established the exact same sheet. And then it's just summarized. They closed it on the just to show the years, which is great to get a nice quick wayto for someone to see it without having a monkey around. Too much statement of cash flows. This very traditional statement of cash flows if you've ever seen one. Um it's, you know, the changes in from operations investing and financing End of the period cash. So they show the $300 investment coming in. They show it paying out there. So assuming obviously that there, um, I'm assuming they're gonna take a loner one. Now, what they didn't do is building any sort of interest, Er or what? Not So unless they included it up in here so nonetheless Stutts in the side. We're not gonna nitpick the details of their business on their financial model. Just to show, though, that here's the starting capital. Here's how it went each month, you know, than they started with that much cash, etcetera. They're good on cash the whole way. That would be one thing if you build your financial model and then in month three Q three all of a sudden you had negative cash. Well, there's a problem there. You don't have enough of investment and you can't run the business on negative cash. So cash will summary against just condensing it, showing all the years the total for each of the years, that's terrific. And then by the end of the year, you get to see cash in period. 2.4 million balance sheets. Same thing, very traditional balance. See, just a nice summer ice wanted. And it doesn't need to be, You know his elaborate er detail as you expect to do it in the real world, but enough to show that the main categories you have your cash cuts receivable current assets etcetera done by quarter again. Everything is linked to other tabs. Started cost, software cost hardware costs, um, profit and loss accounts, payables of some links to the profit or loss and some other cells. So nice balance sheet. Of course, they have the summary perfect. One thing when just a caveat. When you're building your financial model, if you do tackle it yourselves. One of the quickest ways to check if everything is probably going right is your assets should equal. Your liability is if they're not. Ah, then it becomes a bit of a hunt. You have to figure out what's the difference. Like Windows that start doesn't start in us that year and then start figuring out well, where's that coming from? Is that possibly an error on the cash flow? Statement isn't frumpy. And Ellison assumption. Did you forget the link of formula, etcetera. But that's a quick way. You definitely want to see this match. Then you're know you're at least probably on the right track. These guys in a break, even analysis, uh, don't love this graph. Just there's not enough labeling on here. I mean, it kind of shows que move net income. So it starts. Nega starts negative breaks even right here. But there's no riel marker here. I guess it's year one between Q two and Q three, but we know they forecasted by quarter. So, um, nonetheless, I'm not sure that's the best graph, but, um, I might have included some numbers over here and maybe a bit of dialogue, but nonetheless included break even analysis. Um, I would say up to this point is kind of the standard. So the cash flow, the balance sheet, profit and loss some of this other stuff is extra, if you will, and it's not necessarily bad thing. Include, but just know that it's a bit extra. Ah, that is the worst best case scenario. So all they did is they kind of start it with their standard projection right here in the middle and Then they added an adjustment. Factors. They said. Well, what if inspection fees were 50% less than it's this? What if they are 35% higher than its this and they kind of went down the line year two year , three year for your five. So again, a little bit of extra to show in this graph over here. Um, it presents better, probably on the summary. I think it was on there just this. A lot of numbers to absorb. But one thing, I mean, if you just want to look at here, the worst case scenario they're predicting is they lose 110,000 the first year. Likely they will make 70 or 69. Best case. Everything goes really great for them. They make 200,000 and such it is. And of course, he moved down to your five. The numbers a bit more dramatic. They're still showing a profit. So unless that's a best case, worst case, uh, scenario valuation summary. Just a little tab here. So it's the method one current assets and investment method to five years net income. Okay, so they basically kind of didn't show the math behind each of these, but basically said, Well, here's four different ways of creating valuation for a company. Here's what the valuation ended up being this one seems like the odd one out. Um, And then they waited them, and they placed the least amount of weight on there and hiring there. So that's a bit so it might look at this ago. Well, why is this one? So, you know, odd one out that's set sharp when it was so they did all that and they around it and come up with a valuation of 2.1 million. Completely fair. I would have probably explain these a bit better or why they did it. I might have even left the 1st 1 off if they were really targeting this. Um, and I think that would be fair. And obviously, I'm not sure that that's really the best way to value a company, But nonetheless, we don't want to die. GREss. So, um, they're showing this, um, so there you go. That's Ah, nice, pretty concise financial projections. Like I said, a little bit of extra stuff on the end. No big deal. I've seen a lot more done with companies. Um, some companies get really into So rather than just a profit and loss, they might actually just have a revenue spreadsheet where they really break down the details. A lot of companies will do it by month. Actually, do my quarters kind of kind of odd, I would say, usually do do it by month. Um, it's just not that much more difficult just to show that level of detail, but nonetheless eso that's that. So before this gets too much longer, since it's a little on the long side, that's a financial summary. Next, we're going to take a look at an investor presentation. Ah, one last thing about this. So what would happen with this is Obviously use it for lots purposes, talking to investors your own purposes Internally. Some of this will, though, go in the business plan. It's usually attached or just the stuff like things like the summary would be used directly in the business plan for the financials and possibly the most, like the pl summary Cashel, etcetera. This stuff would actually make it into the business plan. It's like a diagram 6. Investor Presentation Video: Okay, let's talk about an investor presentation for a few minutes. So what is this? It's also referred to as a pitch deck, probably more commonly so on what it is is it's a power point or some type of slideshow presented format 8 to 10 sides that you would use to present to an investor. So, just like I'm talking to you now, you would be talking to an investor in person or maybe over Skype and presenting your company. It's similar to an executive summary in that you're hitting on the key important points of your company, so you would typically do this after your at your business plan. And then you extract the important information into this investor presentation. It's meant to just be bullet pointed. You don't want to write out. A good presenter never writes out all the presentation on the screen. It's more like little points that you then point to and you speak to yourself typically. Like I said, 8 to 10 slides and you're talking about things like What is your company? May be the genesis of it. What is the product or service is that you're offering? How does it make the world better. What problem are you solving? Who's the management team was their background? How are they important for your company? And then, of course, some of the financial highlights that we're gonna pull from our financial model. And then lastly, how much money do you need and where you gonna spend it often referred to as a use of funds And then, of course, your company contact information. So this investor presentation or pitch deck nine times out of 10 you would build for the purpose of If you get in front of an investor, you're asked to meet with them. You could present to it. You wanted to be down to a rehearsed kind of 10 minute presentation. I would say that's fairly standard as well, though someone might ask you to email them the presentation and investor and say, Hey, let me take a look at it and I will decide they're kind of using it as a one page in lieu of a one page executive summary at that point. And that's okay. So but you wanted to be polished in an investor quality, of course. So that's essentially what a pitch deck slash investor presentation is again Next. We're gonna take a look at one will go through side by side. Talk about the pros, the cons, types of things that you should include when you build an investor presentation. 7. Investor Presentations Screen Capture: OK, in this video, we're gonna talk about investor presentations. So again, we're talking about other documents, other in the business plan, but things you would probably consider creating after you're done your business plan in this case for this document, Uh, again, this is more if you are gonna be presenting to investors something that she would use its Power point presentation. It literally is. If you are presenting to them So you're in their face, you might have 20 minutes to do an investor pitch. Come. They might ask to see this in advance. And it's something more than the executive summary, but something still a lot less than the business plan. So it's a good time for you to kind of summarize, but still be able to elaborate a little bit on your business plan so we'll just go through it slide by side 1st 1 again. I've taken a lot the company information out, so it's just very generic. You would put in a logo here, your company logo, contact information, your website. You know who you are? Probably So next talk a bit about your background again. This has all been changed, so but you know, just bullet points again. You don't want to write out paragraphs. A good power point presentation is meant for you to just again have the very much summary on the slide, and then you talk to it. In this case, though, since you might actually sending this to someone and they are just reading it. I think there's a good balance here of bullet points, plus enough information that it stands on its own. It's not so brief that it doesn't make sense if that hopefully that makes sense talks a bit about background. The company when it was incorporated, um, and their goals so back around the company, it's a problem. So there's a few things you definitely want include on an investor presentation, and we'll see that in the next few slides. So basically the problem. So, like, what? What is the problem out there in the market that you are attempting to solve? So in this case, they found a problem in the cashew industry with government regulations that sent etcetera . Uh, so that's the problem. And then they're solution is to elevate the standards, modernize the system, educate the industry perfect, nice and concise, basically Here's the problem. Here's what the solution is that we're proposing, and that's what people want to see. It's not just your Korean company because you thought was a good idea. There was actual There's a need for it out there. Ah, the market. So who is the market that you will be, you know, selling your wares to or your services, etcetera. They talk a bit about that Nice few bullet points again. Doesn't get too wordy the competition. So one thing I don't like, I'm just gonna point out things I don't like. Just I want to educate you guys and make sure you guys do the best job you can. It's kind of a no, no to say there's no competition. I mean, there's got to be something right. Or even if there's no current competition, identify that other competitors might be working on something similar. You know, if they're not, I'm not sure what you do. I mean, he obviously don't have to make something up if there's legitimate no competition, but it always looks weird when you just basically say, Well, there's no competition were the only ones doing this and no one else would ever, um, beat us to this. So just think about that. Um, but normally, yes, he would list out not necessary competitors by name. Maybe if there's a few big ones, but in general, just listing out. You know what sort of the competition is and what they're doing and maybe how you're better revenue streams. So again, we saw that in the financial forecast and also the executive summary already So again, they're just breaking it out. Here's our revenue streams. I do like this. They include little pictures of what there is there gonna be building on their team, their management team? In this case, the only really had one person on the company is basically the founder. Have a few industry advisor. So certainly encourage you to put those in if needed, if you have them. In theory, it would be best if you had a bit more full management team. At the point you're going and talking to investors. Um, for example, who's, you know, do taking care of marketing. Who's taking care of accounting and finance? Who's in charge of HR etcetera. So, um, I wouldn't look at this is a complete team, so just know that it would be a good idea to or at least address it. Say maybe we're currently interviewing for these other positions. Um, obviously, this is a stop. They're selling us service and a software. So, you know, I'd be expecting to see sort of a sales person. I'd be our manager sector, see? Sort of. I t, um type people, etcetera, financials, valuations. So if you remember from the if you watch the previous video on financial projections, this is straight out of their, um, again, I didn't love the presentation of this, but nonetheless, whatever you do come up with should include some of it here for the investors. Ah, Summer P and also has mentioned they're using summary. The one sort of nit pick thing I would say about this is really small. Nobody's sitting down watching this presentation is being able to read these numbers, so I might have just put line totals like really summarize this Uhm for, like, total revenues. Gina etcetera, um, this a bit too difficult to read or potentially put this and then put a summary next just so if they do have in the reviewing it later, they have those just nice totals. Same thing for a balance sheet. Not as difficult to read. This was not too bad. And then cash flow. So just in general includes sort of the main financials or honestly, what I would have done if you remember back in the financial model, they had a nice summary tab, and that's not included here. So that's that really could have replaced. I think all four of these slides. So maybe the nice summary. Um, tab would have been the way to go in lieu of these again. I leave that up to you. There's no, you know, Law, there's no set way to do this. Um, I'm just think you have to think of your audience. Something is what's most important. So interested no more, etcetera. Name, contact me. Probably company logo here, etcetera. So they did a pretty good job. I'm gonna have a feud. Nit picky things, but in general, they covered all the basis. You want to talk about the financials? Um, the team, the product, the problem, what you're doing to solve it. Don't talk anything about their marketing plan, which is probably wouldn't include something along those lines and That's probably about it that it might be missing. So but yeah, and you want to keep it toe, like, probably no more than 10 sides. It looks like they have. They hit 14 but one of them is just a summary. And then they included all these financials. So pretty good job. I would use this again. This sample is available for download. So, um, if you go about making your own investor presentation, feel free to use. This is kind of an outline. If you will, uh, go online, Google it, look at other people's investor presentations and get a sense of how other people do it. And that's about it. So good luck with your investor presentations. 8. Business Plan Basics Video: So let's talk a little bit about why you need a business plan. There's lots of reasons, I mean, naturally, the name of the course's business plans for raising investor capital. But they're several reasons that you would write a business plan. Let's go through those about 15 points to make. So first of all, you want to set objectives for your management team. Right in your business plan essentially takes all that information you have inside your head your vision for the company where you think you'll go, the products we're gonna build and puts it on paper, something tangible that other people can read. So for your management team that helps up set those objectives. For example, say your sales manager. Now they know sort of what you're envisioning, like who, where the market is, etcetera. So that's a big reason for writing a business plan to start with as well. You can share your vision and your ideas with your family, your friends and more of the world. Basically, a lot of times you know you're busy working on your company and what not, and it's easy to get excited about it and sort of focus or stress like one aspect of it, like the cool technology that you're building. But one of your friends might ask questions like, What's your marketing strategy or What are your financial projections? Well, if you have a full business plan now, that's something that you could share with them and have them read through it and maybe get them excited about it. A swell. So third is to deal with any self doubt. Now that might sound negative, but a lot of times when you're building a company, you're gonna have ups and downs. Writing a business plan helps you focus and sort of set the course on where you want to bring the company. So whether it's you go back and read your business plan. If you have one of those down days or it just if you're in general, feel like you're spinning your wheels. Writing your business plan to start with will help bring it all together for you as an entrepreneur. It will also help you with making decisions. For example, big ones always do you rent or do you lease or do you buy a property? Well, if you have written out in a business plan. You know where you're going to grow. You know how many employees you want to hire in the future? You might Then we'll know. Well, well priced to move offices in two years, so we probably don't want to buy. Building those types of decisions will become a lot more clear when you're forced to sit down and write it out on paper. And it will really help you focus on lots of decisions that you need to make. It will also justify hiring decisions. So again, things like, Well, way no, we're gonna double our sales in the first year, for example. Okay, well, we probably have to add on sale staff at that point, so ah, lot of things will start tying together. A lot of those loose ends will make more sense after you write a business plan. Oh, my God. So we talked a little bit about buying or renting or leasing office space. Well, there's also big decisions when it comes to other assets as well. So depending on what type of business you're in, obviously, if you're just sort of an at home business, all you need is your computer. This wouldn't apply But so you are starting a big printing press, completely office, a lot of equipment and what not you're gonna have to make decisions. And a big expense will be equipment. Whether you buy it, you lease it. You rented for temporarily again. Where do you see the company going? How fast is it going to grow? Winner, Your needs gonna expand. So a business plan will help you tie those loose ends together again and make big decisions such as those. It'll also help with new employees. It'll help you explain the vision of the company. You can give them a copy of the business plan to say, Hey, as a potential new employees, I want you to read through this. They really understand what our business is about and and might answer a lot of questions that they might have about the company. A business plan can also be used with affiliates and alliances. So again, depending on what type of business you're in, this may or may not apply. But if you are in a business where you on affiliate or alliance businesses would help you out, the business plan again helps you say, Hey, look, we can sit down and talk all day about our different companies, but our business time. We spend a lot of time on it. It's a very succinct, very detailed you plan for our company. This explains where we are, who we are and where we're going. If you read this and still think would be a good fit when you go so it might help get someone excited about your company, but it might also save you time. Instead of explaining your business, you already have it written out for someone else to read another group of professionals you might want to convey the message your company by just like read your business plan. Is professionals such as, like accountants, lawyers, consultants? If these are people you're hiring, they're not necessarily an expert in your industry or what you do. But they're experts at what they do, and you're looking for them to help you out. So on account or lawyer, they want to know they need to know at least a little bit about your company while the business plan probably explains it best. So by giving them a copy of a business plan, you save yourself trying to verbalize everything and you might leave out some key points. It will have everything you would need to tell someone. Another point is that if you ever get to a place where you're selling your business, the business plan is something that would probably be asked of you potential buyers gonna want to read everything about your company. So not only would we write our business plan, we're gonna have it, but we're gonna update it every say, six months to a year, depending on how the business is going on, what the goals are. Certainly if we were selling the business, we want to update at beforehand. Just so it's fresh and it talks about the current management team, anything like that. It's very easy to write a business plan. And then as things happen and change quickly, we forget to update the little details in the business plan. So another aspect that you might not have thought up, but his valuation decisions. So certainly when we're out there talking to the vestige, they're gonna ask about the value of your company and a lot of times they might even ask you to go get 1/3 party independent valuation of your company done well, A business plan is one thing that that evaluator is gonna ask for because they won't understand. What's the business about who is a team, all those good things that are in the business plan and specifically the financial aspect of it. So rather than have to create that stuff later, you wanna have it already? Of course, in your business plan as well, you might go on to expand your business or create a secondary business that's related to your business. So by having a business plan already, it allows you to just kind of tail off that and continue to grow rather than try to create it later on down the road as well. Having your business plan written, you probably already thought about future businesses or product lines. Your going expand into you might already have that detailed in your business plans. So say you're down the road when you think you know what it's time to launch that second productor that third product. Well, let's go back and revisit the business plan and read how that tied into what it is that we were doing and maybe a bigot opportunity update your business plan at that point as well. Of course, the main point of the chorus list you're seeking investment from investor, so they're gonna ask to see your business plan and whether it's an angel, investor, venture capitalist, friends and family. Maybe it's just the lender. Small Business Administration requires a business plan as well. So you wanna have a Polish business plan ready to go? So when those investors asked for it, your rate ahead it over, and you can help facilitate that process a lot more. Plus, it's a lot more professional if you said, Oh, I don't have one that's not gonna look good in front of an investor. So we talked a little bit about investors and Small Business Administration. But there's other lenders out there as well. Things like a bank. People don't always think of good just going to their banking, asking for a business loan these days. Certainly, it's an option. And again, that's a party that is gonna ask you to see your business plan at a minimum on The last point I want to make is when you grow your business. So as your business is growing, you want that road map. I really think of a business plan is a road map to your success. It helps you detail out every aspect of your business. It forces you to think about it and answer hard questions so your business plan will be your road map. And as your business grows, we need to grow our road map. So that's important. Point of doing the business Plan one. When you write your business plan, you actually end up with a physical document, which is terrific, and we need it for lots of purposes. But inside your head you'll have a lot more clarity about your business, where it's going, all the decisions you need to make. But you'll feel a lot more confident and ready to tackle the idea of starting a new company or growing the company that you already have. 9. Sections of a Bplan Part 1 Screen Capture: Hello, everyone. Okay, so now we're in section three. We're gonna be talking about business plan basics. And what I wanted to do was go over a couple different business plans and basically just show you the sections of the business plan. Now it's one thing to just I mean, you're probably familiar in general, with the sections that go in there again. There's no hard and fast rules on what you have to include. I would say there's definitely some industry standards, but each company does it different. And throughout this course, we're gonna be looking at several different companies business plans, and you'll see that no tour like like some companies don't include are they might include an elaborate marketing plan and others just included summary. Others include very detailed financials. Others include a summary some might, you know, maybe it's a products company. So they talked a lot about their product. Where's the different company? That service base, um, has less to say, and they just summarize what services they provide. So nonetheless, let's go through it. So we go through this one first, then we'll go through one or two others in the next video just to break things up. Basically, what I'm gonna be doing is focusing on the on the one called the Chart of Accounts. It's the table of contents for this business plan. Since it summarizes what's in here. This one is very much broken out. This is, ah, company that provides a mainly service based, ah sort of, um, what you call SAS services. Ah, or software as a service type of opportunity. So, um, starting out. And then the reason we're not going into detail in each of these sections is pretty much the remainder of the courses going into detail on each of the sections. So we'll get a chance to read through the executive summary in full and see what that's about. So, um, as stated so first thing raft about. They have an executive summary, if you remember when we went through the other investor documents. This is slightly different than an executive summary, like a one pager. The executive summary in the business plan is more written out includes a lot of the same information, but just a bit more flushed out again. It's a nice, short, brief description of the company, but it's probably a bit more elaborate than the one page document. Next thing they do is they go into the problem and the solution they provide. So that's perfect. That's something you always want to do. You want to tell people like Here's something live we've identified as a problem in the market, and here's what we're doing to fix that problem. Otherwise, it's kind of a question of why does your business exist? If you're just making something for no good reason, that doesn't really sound very good. So you definitely want to say, Well, here's the problem And here's the solution. And if you can identify that yourself, then you might want to rethink your business model. Or, you know, oftentimes entrepreneurs get excited about something, like something they've come up with, something they want to build. But they might not actually be solving a problem out there in the market or helping anyone other than they think there's a problem. Maybe there's not so, um, so they break out their problem and the solution. They break out existing customers that currently have. So this company has actually been in business for a little while. Um, next they go into and their Section three business opportunity in the market size. So that's always good talk about market size. How big is this market? How much of a share of it do we think we can get objectives of the company? So I'm sure they have a little blur about the objectives, and they specifically break out the market definition, the background of the market there in a little bit of analysis about the market future direction of the market, which I think it's terrific. That's important, especially if there's a lot of intervention in the market space you're going into. You want to dress that and talk about it, and then market size and forecasts put out real numbers say it's, ah, $10 billion market. You know, that's $100,000 or 100,000. You know, people market whatever the case might be. So then they break in the specifically customers and customer segmentation. Um, they really go for detail here. You're not going to see this level of detail in all business plans, for sure, so segmenting by sales language this it's a health where health club software solutions when it is so. That's why you see Health Club chains. Um, they really break out the market demographics, not saying that's a bad thing at all. Certainly, they definitely did their homework and do great in, um, I wouldn't expect to see this. And everybody's business plan just in the side. Um, competitive analysis. Always important. Identify your competitors. One of their pros. One of their cons. Um, where do you stack up next to them? Barriers to entry against something it might not see in every business plan. But it's, I think it's terrific that these people included it just because there is oftentimes Barry's entry and they usually have to do with financial or sometimes regulations, universal problems with current solutions, good to have, and then they that's it for the objectives of the company. Next they go into their products, and we're just gonna kind of skim through here a bit faster. Just could I think you get it the product. Then they talk about product definition goals, specifications, um, the light. So they have a light version, I guess, expected Life cycle. I think that's terrific, because not all products are evergreen Last forever. Follow on products. What's in the future? What's in the pipeline. Um, and then that's obviously where they talk about those things. Next they talk about their marketing plan. Who's the target market? What's the price thing? Um, again, they talk about more about their software as it relates to the market. Are the marketing plan I'm sorry? Product positioning based on existing enterprise, etcetera. So this would all make a bit more sense if we actually went red through each of these sections. But what they're doing, I think, has ah, 10,000 foot levels there really breaking down like their marketing plan, like who's the target market? What kind of pricing and we're using? Here's the software we have. I'm sure they dress them. How do we plan a market that sales strategies? So they have their sales strategy, and then they're gonna be doing a partnering promotion, whatever that might be there, detailing that out. So they've clearly spelled out, you know, here's what our plan is. I'm sure they have timelines in there and whatnot as well. Groups get the head too much. Next is the team. So you won't talk about the current staff. So I like this. That kind of have Ah well rounded management team. They feel kind of the key role CEO, CFO and C o Future staff important as well, because so they don't have something like a CTO here. Our chief marketing officer, um, so I'm sure that's addressed in the future staff. Those air positions they're probably trying to fill keep skipping ahead. UM, additional staffing plans, Board Directors advisory board. So again, they just elaborate on other other positions. They want to feel that aren't necessarily probably the management team. Risk management, good toe have not something you're going to see in every business plan. Talk about just risk. There's always risks in the market are related. There's external risks, internal risks, etcetera that would be addressed there. Then financial projections and resource is required. And that's when we skip to the next page in their in their, uh, in their listing of what they have. So let's see financial projections so they have their financial projections and they talk about government financing. So obviously they they're seeking out some government financing. It's not something you're going to see every company do near term milestones and expenses, long term projections, appendixes, such our financial summary. So they probably did a nice job summarizing their financials, then put all the detailed stuff down at the end, which I'd encourage you to do is, well, nobody wants to see if they're sort of 20 pages of your financial projections. Just put in a nice summary like right here, where it's financial projections. You could put in a one or two page summary of all your financials. Then if you want to include everything else later on, so that's it without reading through. And we're definitely gonna look more at these guys. Business plan Throughout the chorus as we looked through each section, um, along with several other companies that I found, I have about six or seven examples, and I will kind of look at the strong ones for depending what we're talking about. And I'll still identify things that I think they're missing or could do a better job on. But eso here that's a typical table contents, a typical business plan. What would expect to see speaking in terms of length with it goes from Page four down to page and it was 30 something, Nope, 23. So all in all, I would say it's actually a fairly tight, even though they include a lot information. It's a fairly tight business plan. So I don't expect, um, there be, like, elaborate descriptions on any specific thing in here. Like, for example, their staff. They do it all, and the future staff future staffs on the next page. But the current staff team all on just one page, page 19 so they definitely keep it brief. Um, nice concise job. Other companies, you know, you might see 100 page business plan based on the exact same sort of categorization. So part of that is just your style. How much you have to say on, uh, what's appropriate for your company. So that said, that's looking over a business plan, the sections of a business plan. In the next video, we'll take another look at a different company. It'll be similar, so I might be a bit shorter video. Just want to point out, though, that there's definitely different ways of kind of organizing your business plan and sort of reiterate the main categories that you need to include while writing your business plan 10. Sections of a Bplan Part 2 Screen Capture: okay in this next video is similar to the previous lecture. We're gonna be going over a business plan, talking about sections of the business plan. I just want to give you a view of a different companies. Business plans. So this is a company that I worked with. And, um, several years ago, they didn't end up going into business. So they had a fully fleshed out plan and then, I believe, had difficulties raising capital. Onda project basically got put aside. So it's video game based company. So let's dig in and take a look. So actually gonna increase the size here? Real quick groups doesn't want Teoh. Here we go. Just for ease of reason. The video pop in bed closer. All right. So similar. The other one, um, that we looked at start off with an executive summary that Todd and they even break down the specific categories Purpose, introduction, Bismol, market opportunity, growth that such a use of funds. Perfect. I mean, it says everything. I don't think it has financial highlights. So it has a bit. Everything doesn't talk about the management team, But I know in this case there was pretty much just one founder. So it probably wouldn't be a highlight of the company just to put the one person, um, introduction and business model talk about historical background. Their revenue streams like that. The market opportunity. Who is the market? The common features, themes progression. They definitely get down into some detailed information. Psychology, economics, etcetera. Might be a bit much. I mean, I don't want to say to that much. It was important to the company to include that, Um, but nonetheless, that's definitely on the more detailed side, if you will. So basically, to talk about the market in the market opportunity growth strategy. Terrific. How they're gonna get their their brand, their marketing, their sales. I love that game over views. This is their own product. If you will eyes basically the game that they're developing So summary of the detail, Um, one of their sort of themes was they're going to get back to charity. There's a green initiative, um, etcetera that gets more into the nitty gritty details off the product, which in this case, was a video game that was being developed. It's gonna jump ahead on the next page here and continue. They talk more about the game. That's basically the product contracts in collaboration. So they had some contracts and collaborations in place that they felt was important for a reader to know about, especially that a lot of that happens in the video game industry. So it's, you know, say they had a contract with a big developer. They would want to include that just to show that, Hey, you know, there's people behind this project that can really make it work here. He does get into management personnel, some professional advisers than financial information. So the assets revenue projections, budget detailed capitals structure, exit strategy. So that's one thing we didn't see on the first business plan that we've reviewed. They do have here, and I think it's important to have that, um, and to include it. So like I said, each business plan is going to be unique. Um, certainly these two are different. They have a lot of similarities. They hit on the key points like management team, financial information and marketing, etcetera. But then you have something like exit strategy, which this company talks about, and the previous one didn't thin. They also include some exhibits, whatever those might be. We'll see them later on again. This is another company's plan who were going to be using, and we'll review as we go through the course. So there you go. Just another quick review of sections of a business plan. The main thing I want to take away from this is there's definitely categories and things that you want to include in your business plan. Definitely. And then there's some things that just depend and depends on the nature of your company. What's important, what's not important now. What's the point of your business plan? Maybe if it's just for internal use, you might not have to talk about exit strategy, obviously. But if you're looking for investors, I think you should. So definitely there's no right and wrong way to structure business plan. Certainly, there's some industry norms, but just so know that you know, if you're going to your business plan writing approach and you get stuck in a specific category and you're like, Wow, this really just doesn't apply to me, you don't have to put something in just for the sake of putting it in. I mean, certainly excludes stuff that isn't important. So what that said That is it for this section business plan basics. Next, we're gonna start digging in section by section on each of the sections of the business plans, starting with the executive summary. What we'll do is we'll talk about some of the examples. Look at them things. You should include etcetera. So look forward to talking with you more in the next section, where we'll start with the executive summary. 11. Executive Summary Video: So let's talk about the executive summary section of your business plan. This is probably gonna be the first section in your business plan, so we want to do a terrific job to kick it off, right? So what? This is First off, it's different than the executive summary that I talked about earlier. The one pager that's meant to just be a one page summary of your company, the executive summary. And I know it's somewhat confusing that they're both often referred to the same thing. But the one in the business plan is a section that's fully written out. It's going include a lot of the same information, but in a more detailed fashion that said, It's not meant to be the full explanation of each of the things we're gonna talk about here in a second. We're basically it's almost like a table of contents with a little blurb about each of the content. So, for example, executive separately, executive summary will start off with just a introduction of the company. What is the company? Where did it start? You know, who are they? I, you the company? What's its purpose? Diving into your mission statement. It's good to have a one phrase mission statement, take your time and develop a terrific mission statement for your company. You'd also then talk a little bit about your business model. What it is again, you're gonna touch on things like your products and your services. It's not gonna be 100% detailed written out because you're gonna get to that in each of the individual sections. But you do want to talk a little bit about your business model. How do you make money and what is it that you do? You talk about the growth opportunity so investors want to see that they're investing in a company that will grow and continue to be an entity over time. So you might talk a little bit about the market here and the products and what the need is for your products or services out there in the in the big world. You're also going to talk about your management team again. Just a quick Who are they? What's their background? You don't need a full detailed resume at this point. Just a little bit about Hey, I'm the founder. You know, I have 20 years experience in this industry, and I see a terrific opportunity. And then down in the management actual section, you'll list out more of your accomplishments and where you work before and why. You're the person who should be running the ship, and that goes for all the management team. So we're just gonna touch on them a little bit here in the executive summary as well. We want a brief, and I emphasize brief financial highlights. Don't need a lot of details on the profit and loss or the balance sheet. What we really want to see is maybe just the forecasted revenues forecast a net income for the next 3 to 5 years. What you've prepared, maybe what the valuation of the company is possibly a use of funds, and that will be partly one of those decisions. A lot of decisions in the business plan will be up to your judgment like I can give you the best practices. But if you have a use of funds, which is 20 or 30 different items, we don't want included here because again, we want the executive sorry to be concise and tight. What we really want to show, though, is just that Hey, we are showing forecasting growth in sales. We will be making money. You would also then be showing essentially, when you're breaking even or turn profitable and possibly what your cast position is each of those years. So we'll see it a bit more. We look through the executive summary, but that's it. Basically, one of the highlights of all those aspects in, you know, a page or two under business plan get it gives somebody so say you didn't send them the one Pedrie sent from the business plan. Well, the 1st 2 pages basically sums up the company as a whole, and it gives people an idea of if it's something they want to continue to read about or not . Certainly, you know, you is the owner and the entrepreneur feel like everybody should love your product or service. But it might just not be a good fit for that investor. So we're saving yourselves a lot of time, but not for them. Not waste their time reading the business plan in full 12. Executive Summary Review Screen Capture: Hello, everybody. Okay, we're now in section for and this is going to be a review of the executive summary. So what I've done is that picked out two different business plans We're just gonna go scroll through. I'm not necessarily gonna read line for line. Each of them. I just want to point out the highlights, the pros and cons and give you guys an idea. So when you're writing your business plan and kind of think of a few things, um, in your head as you're writing them just in terms of, like, length, things include etcetera. So starting with this one, this is a pickup of one we used in the previous lectures. Sections of a business plans. This is the video game company again. So they're executive summary starts off with a purpose. So the purpose of this plans provide Bubba block Not too bad. Um, I think that's fairly probably not necessary. To be honest, I would I would personally axis. You know, we all know what the purpose of the business plan is, and it just ends up being a bit of filler. So you definitely want your plan to be concise. You don't need to, um, kind of give people extra information. That's kind of well known anyways, So introductions. So talking about the company, they're generating the next video game for use of discussion. What their release date. ISS. They talk about six key aspects that differentiate the company etcetera as a lifelong. So companies Several. Okay, so just basically an introduction to who the company is, what they're building. What? They're kind of goalless. I like it. I mean, it's perfect. It's nice. It's concise. That's what you want to convey to potential investor. We're gonna assume that you're writing business plan for a potential investor if you're writing it just for your own internal purposes for the company. Um, you know, the same sort of rules apply. But I'm I think assuming you're writing a business plan for an investor will help you right ? The most sort of specific and concise plan that you could. So next in their executive summary that talk about about their business model, uh, game Bubba Busso talks. So this company is a little bit unique in their building a video game. I mean, it's a little bit different than you are building a product you know that you're gonna sell in stores or you're developing a service. Um, cos they're unique, so you can have to tailor what you're writing to the uniqueness of that. So definitely here, though, given what it is, I think he does a nice job talking about the business model and sort of two new mechanisms that set yourself some kind of highlights some of the differences from the competitors. So that's good market opportunity, and we're gonna roll them down to the next page. Um, talks a little bit about the market. The revenues Century talks a bit about the competitors, so that's good. And then today's challenge is customer retention. And then he talks about loyalty. So he's identified, You know, what's the What's the market like, Who are the competitors? What's the big problem? And besides building, let's just say quickly like a cool video game. He has a plan for retaining customers, etcetera. So I think it's done a nice job here of talking about the market opportunity and what they plan to do with the market growth opportunity. So typically again, he talks a little bit about competitions in one night, and you have to assume that the reader, if their interest in this company probably has some insight into these companies and and who they are and it's familiar with the market. Uh, talks beginning about the market size. How many players that's that try did you do to do, um, celebrity profiles? Okay, um, doesn't talk. I mean, mainly talks about player retention, etcetera. Probably could've did a bit better job explaining growth. Like, really talk about what is the opportunity for growth. Like you talk about the market size and whatnot. But, um, how are you actually gonna grow And, um, and actually, like, attracted me? It's one thing to say you will retain the clients and the customers. But how do you actually go about that? Financial highlights again. So? So if you think back to our one page executive summary, this is basically just sort of a blown up version of that sort, spelling things out a little bit more detail. Um, it talks about the financial projections, initial investment that dio. And that's something we're not putting any fancy graphs from. Not a big charts. And I would advise you do the same. Just a little summary of What are the financial highlights? Um, I might have put something about the break even point. Um, you know, we expect to become profitable and ex year, that type of thing. So maybe missing a few things there, but overall, nice and concise. Use the funds. I like this a lot. So basically telling the investor, you know, we need $6 million here's what we're going to spend it on. Um, it's not broken out too much as long as it's broken out. Oh, actually, it looks like it is broken out, so never mind. Um, I was going to say you should include a bit more of a breakout on what this will be spent on, but he actually did a nice job here of including now, just nice summary categories don't need every dollar broken out, but, you know, salaries, etcetera, um, bait and the different phrases of the development process. Such a republic will release at such all four phase. This 5.5 and obviously had a bit of a buffer Investor strategy, talking now, but about companies seeking, They put 5.5 here too. Talks about authorizing shares, etcetera. OK, so that's it for the executive summary. Like I said, I like it. It's nice. What is about three page three or four page think three page summary of what's going on with the company, the market, how much money we need? Here's what we're going to spend it on. Here's what our goals are. What makes this difference up? I think they did a pretty terrific job there. Let's take another look at a different company and this one we haven't looked at yet. This one was gonna be in the tourism business. Another company that didn't end up surviving. It was actually based overseas in India. Um, but they were gonna have an online portal for for tourism. Um, so more so. Let's focus just on the executive summary. So, again, business description. Here's what we do. Management team. It listed mia CFO. I was working with the company at the time more than advisor, but that I gave them permission toe listening. A CFO certainly was going to go on board if the things worked out. Um, so good. I mean, by name. I mean, they probably could have put a little description about each of the managers. Um you know, a name doesn't necessarily mean much to to someone business model. So talk about their business model fairly extensively. I mean, not overly. It's just a couple paragraphs. Ah, little financial overview investments Series A sought 2.5 million and then use the funds cap back. So they probably could have explained a bit better where, how much would be spent on the different categories. One thing these guys did that the other company didn't do was put in a little highlights. I remember for the other company. I said, You don't really need to do that. I think these guys had a nice job, though. It's just brief like this is just open and cash ending cash net income from just a show. Um, where things are, Um, yeah, so okay, overall. Not too about an executive summary. Fairly brief. It's only what is that paid two pages, um, didn't get too far into the management and get too far into, like the actual market. It's so I mean, the kind of touch on it. Um, they don't talk at all about competitors. There's probably not a huge detail here about what they're actually doing. So I would say this executive summary could have definitely just a bit of work, a bit more elaborate, maybe at an extra page and just kind of grow the section a little bit more. Somebody read This would probably still have a lot of questions about the company's. So that said, I'm just a look into a different way of doing it. I mean, like I said, nothing wrong. I mean, they might have wanted to keep their plan fairly short. Um, nonetheless, that is comparing to executive summaries. So hopefully those air useful. You have an idea, and you've seem to sort of somewhat different ways of writing it with some similarities. Eso What That said You can go ahead and work on your own executive summary on Try to nail all those key points and then you would be ready to move on. We're gonna talk about the company's summary next 13. Company Summary Review Screen Capture: So now we're gonna take a look at two companies again. And now we're looking at the company's summary. So, um, not everybody includes this. I mean, I would encourage you to. Sometimes you feel like you're repeating yourselves a lot like a few in the executive summary. Talked a bit about the company, and now you're talking more about the company. That's OK, as long as it's not just copy paste of the same information. I would say if anything, in the executive summary, you put a brief little introduction, your company and now they're gonna You're gonna talk a little bit more in detail about the company. So this first example it's called business model, but it's essentially a company summaries. That's why I chose this. This plan is one of the ones to look at the include fresh, the same stuff you would include in a company summary. Um, this is one we've looked at before. It's the cashew software solution company. Um, so basically, they put their mission statement, which is important to have commune Just one sentence. You know, here's our mission. Here is what we're gonna do. Ah, the organization that talk a bit about the history, their for profit, etcetera, Uh, come back to the community. Fair enough. Historical background. So again, we're not going to read through this, But I think it's important if you have a historical background of the company to go included. Some companies have a long historical background, Others air Just, you know, we saw a need for this, our product on the market. And we started developing something and realized that it had legs. So here we are. So you tryto go with your strengths and write out what? What actually makes sense? This? I mean, some companies like this one, I think, had a rich background, um, and his own personal background. And that's what eventually evolved into this company. So we're gonna skip down here, talks a bit about it, Okay? Some of the business objectives. Hey, terrific. It's kind of shows goals, you know, The company has goals again. We're not gonna read through each of them, but it breaks him out by year 2008 will do this. 2009 will come. This, um, one thing it could have done a bit better. Maybe put actual specific time like by summer 2009 by, you know, fall, etcetera. Just so there's a bit more concise nature there. Let's see. So from there they go into their revenue streams. So again, this company has, I think, five revenue streams. So not all companies air going toe have five revenue streams. Even if you just have the one. I think it's important to talk about it. Describe it essentially talking about you know where you are going to make your money. How much do you charge for the product or service that you do etcetera again? You're not talking to us about the market or anything like that. I mean, you could throw in a sentence about how its price compared to competitors, but in general, you're talking about what are your revenue streams and how are they presented? Um, they have consulting etcetera. So they have a fairly long kind of companies summary. Okay, then they go into the market so they focus a lot on their revenue streams, their business objectives, history of the company, and then this other little bit of, you know, mission Statement organization. So that said, let's take a look at the other company. So this want to see Joy, Mate. I don't think we've looked at this company yet is also a video game. It's a computer animation company. I wouldn't say it's a video game company. It's computer animation company. Um, so this one, they specifically call it out as a company summary. They talk a bit about when it was established by who? What they do the market. So few graphics here, etcetera. Ah, their eventual goal, etcetera. So, like that again, these guys list out their objectives. So kind of the same. It's the other company listed it out by year. And these guys something's got to actually put in dates of when they plan to do stuff. A little vague, I mean, purchased a the art equipment X higher expanded staff. I would I would probably rework this a bit more. I'd either obviously put in more specific objectives with dates and probably a few more items or leave it out. I'd probably go for Option A that I would just expand on this, then try to include more information. Come, listen, really, doesn't you have? It's got to think of the reader and I mean, does this really help them It's like, Okay. For 2010 we plan to get financing by equipment and hire staff and movement of facility. I mean, that's great. It's just somewhat vague, I would say so. Company location facilities. Okay, so they talk about, you know, where they're at, and one, that's That's great. I mean, no, no big deal for them. The location was important because they, uh, the industry that they're in a motion picture. They want to be close to other facilities like there. So that makes sense. Um, I wouldn't say that every company needs to do this. I mean, obviously, if you're entrepreneur, any work out of your house, you could certainly mention that, but it's probably just not necessary company background. So it gets into background a little bit more and the current status I like that just to get people like Here's we were you were Here's where we are now. Um, start of summary. So, um, it's more of like a financial start of summary. So maybe relabel that, but nonetheless start up expenses. Here's what we think. We need initial funding, etcetera, and then they get in. The market announces so a little bit different way of presenting their company summary. Um, not too, not too different. Um, they don't talk as much about their actual maybe say that process tight. So I mean there computer animation companies. So it's more of a service there providing they don't get too much into it or you know who who is the ultimate? I mean without reading all the specific details here, Um, who's Who's the market like, Who are they really going after? You know, who's the competitors, That type of things. So a little bit different start up costs fair enough from So I would say, Overall, I like this company. Summary probably could have done a bit better detail, including a bit more about even like the management team and whatnot. Um, although they might have had it when they had it up in their executive summary. But still, I might have included something about that Nonetheless, just point being to show you two different companies summaries. Listen, not necessary. Better, good. I kind of pointed out some of the things I would work on in each of them. There's not gonna be a perfect company summering that you're going to see that throughout the entire business plan process, you know, always find something that I think could be done differently and is, who am I to say, What's exactly the right way of doing it? I'm just going based off experience. So that said, hopefully that was usually get to see two companies summaries and then the next lecture, actually, next section we're gonna be talking about the products and services and how companies right those out in their business plan. And again, we'll take a look at at least two different companies and how they sort of present what it is that their products and services are. 14. Products and Services Video: all right, so this next section is gonna be products and services, and it's fairly straightforward. There's not a lot to say here. You'll see more in the example as we look through it. So essentially what we're doing is we're very much focusing on the product and or service. So we're gonna detail out exactly what each thing is that you do. And maybe it's just one thing. Maybe you just have one service that you provide or one product that you sell, and that's OK. But if you do have a line you want to detail out each one specifically, here's what it is. Here's how much we charge for it. You know who's the customer. Maybe etcetera will talk a bit about it. You also want to talk about your future service and products to say you do just have the one service right now, you have some website that provides one service or you personally have one service that you provide or you sell one thing on your website. That's okay. Whatever the case might be, talk about future growth plans as well. If you don't have any future growth plans would be a good time for you to think about it and yourself as a company. Hopefully, you're hoping to grow. And as you grow, you should be looking for expansion opportunities. So whether that's a spin off product that you have or a complementary product, or you just have an idea already, if something else you want to get into that somewhat related but not specifically related to the product that you have, that's OK, too. It might even be a different business that you're starting, and there's products related to that. You don't want to get too far out there, though, So if you have, ah, home cleaning business and you plan on also starting a you know, a tree removal service, those two aren't really related, so you wouldn't talk about that here. But if you sell a product, say a cleaning product online and you plan on spending that off and creating, you know, a secondary cleaning like a type of special sponge, well, those two are kind of related, and you could possibly package them ideas like that. So definitely just remember, you want to focus on writing out what it is that you have focus a little bit too on what problems it solves out there currently in the market. So you have a cleaning product, but it's alcohol free. It's clear there's no dies that's safe for Children, whatever the pros are, and whatever that products or services list them out and be specific again. You want to get people excited about it, but you want to get all the facts to. And if that's the real reason why you created this product, because there's all these benefits that just aren't out there on the market right now, now is your time to tell somebody about it. You want them to really understand what it is that you're building or that. 15. Products Services Review Screen Capture: So now we're going to take a look at two examples of companies proximate services, sections of their business plans and on purpose. I chose to companies that could both use a bit of work. The reason is, you know, I can show you exactly what you should include. I think it's fairly straightforward when you know that. So I want to show you how other companies presented it and you know my comments on it and why? I think they could have done a better job. So the 1st 1 is the animation company eso there Proxim services. I mean, I do like they put up the link. You could go look at examples of their work. I mean, being in an animated business, that's that's probably good thing. Um, so they talk about problem services, films and commercials. They put it a little bit of information about company, you know, some work they did in the past. Um, and then it's while they talk about altars and logos. So my problem with this and then they go into compared competitive comparison and we will go down and look at all that. But, um, they don't really talk about the actual Let's call it a service, if you will. I mean, they ultimately end up developing a product for their clients. That's kind of unique. But they're providing a service there in the animation business. They are hired to do animations. Whether they are for film or a commercial or just something small is a logo. Um, so they don't really talk about the service itself. The genesis of it, how they go about it. Um, you know, I would talk a bit more about the process. So my client comes to them and ask, you know, the have, ah, short film developed. Okay, So how did they go about estimating you know what it would cost? How did they suss out how much time it would take? How long does it take? Typically, what sort of team did they have working on it? Are there reiterations of it? Is the client allowed to come back and say, you know, no, I'd like you to change this and this. And how many times are they allowed to do that? So just a bit more about the service and the give and take between them and the clients. And how the process works. They don't really address that at all. It is talk a bit about what they've done. Um, and the fact that they do it, but they don't talk about the process of doing it. Um, they then go on to talk about competitive comparison. Um, found this a little bit weak. I mean, if you read it. So what is kind of comparison there? No. A new local resource in Philadelphia. There Better quality. Um, known as, uh is the only no company in Philadelphia there. One stop shopping, even things like this, like we have. So they have. Ah, client. Who said we have seen haven't seen animation. That's good in Philadelphia. Glad you're around that doesn't come off is genuine or an actual testimonial to the company . It seems much like just something they wrote. So I would leave out stuff like this. This doesn't add any value. I would say if you were truly going to compare yourself to, uh, competitors do so you know, call out. Who are the competitors? What advantages do you have over them? You know, list out companies A, B and C or the big animation companies, But guess what? We are more sort of competitively priced for smaller projects. We are located in Philadelphia. Where is there? Are located in California. Um, we have hired professionals with 20 years experience. You know, whatever the theater vantage is, our to their company. I would come out more of that than this. Seems just a little bit too fluffy, if you will, if that makes sense. So not a firm description of what? The actual services and how how you go about it. Because certainly we all know there's gonna definitely be a fairly long process in the animation, you know, business. I mean, so talk about it and explain it. I'm going down this I do like they talk about future products and services. They did the best with this part about compared to the previous stuff we just looked at. So they specifically calling out We're going to get into digital entertainment. We're going to get into video games. We're gonna get into architecture and design. They talk a little bit about each of the markets again. I probably could have been happy to see a little bit more expansion on this. At what it is who the competitors air there. Why, there's a market, you know how faster than growing. Maybe a few statistics up. Um, overall, I wouldn't say this is definitely a terrific Proxim services. I mean, it's a page and 1/2 leaves a lot to be desired. I mean, specifically, the thing they should have most is a complete description of the service and or product they provide. Um, and they don't They don't do a terrific job of that other than they kind of touch on the industry's, um, but that's about it. So that said, Let's take a look at another company. This is the travel company out of India. They were doing travel software, Um, so let's see how they did. So they first of all talk about their target market. Um, not too bad, I would say that could be include here is going to say that should be included. Maurin like the marketing marketing section. But it's okay. Toe touch briefly on here, especially since ultimately your product and service and this one's more of services well is being provided to a market. So say who it is. Um, you know, vendors their customers when they break out who their customers are. Three primary ones. That's fair. Proposed association. So a little bit of Ah, OK, here's how we're gonna work with them. One thing I really like about this is a unique selling proposition. Ah, you seldom see that. But it's something that rings true when someone reads that term investor specifically, they're gonna recognize it. USPS just kind of says, Here are the things that we're really good at. Here's like why people would buy our product over someone else's. So, uh, these guys going to call out quite a few? Fair enough. I mean, we're not gonna read through them all, but, you know, live information, virtual travel, transparency. Um, they might have gotten a little bit overboard like it's hard to believe that each of these is unique to them and to know what else. Um, but certainly good toe have. I mean, I probably would have tightened it up a little bit, but nonetheless, I think that's good. Then they get into their product lines, which is perfect. I mean, that's what we want to see. Like Proxim Services. Let's talk about what the product is, so I kind of have a lot of information, for they eventually get to products, but nonetheless, it's still here. They talk about their base platform on what it is Remember, it's a virtual it has to with virtual and travel completely online. So a lot of sort of i t terms And here, if you will, um, they talk specifically about their product. They have a name for it. Always book. Terrific to talk about unfair. Another service. They provide biz treat. Oh, as so calmer com pence. Okay, so just in general, they kind of do it the right way. They talk about each other products. Here's what it is called. Here's what it does. Talk a bit more about it. Who would use it? And we're Look, even This eliminates the need for separate POS software for brothers travel agents. So talks about the benefit of it, like what it is, what it does, what problem its solving, etcetera. So if you go through and read, each of these are going to see a similar theme. So I really like that and then they go onto talking about additional lines. You know, additional revenue lines or product lines if you will, um, based on revenue sharing, etcetera. So they talk about things like they'll earn revenues. Are advertising consulting? Um, etcetera. So that's good. I mean, it's good to mention that they obviously don't put a huge focus on it. I think they nailed that. The main purpose of this section is to talk about their products, what they are, who's going to use thumb, etcetera. There's a bit of, like a lot of information up here. Think selling proposition. I probably would have cut down a little bit. Um, the rest of it, though I like it. I mean aspires presentation. I would clean up just a bit in terms of just spacing and things like that. But that's, um, not so much to do with content. Content wise, I think they did a pretty fair job, um, with their products and services. So that said, um, that's two examples for you. Certainly. Just remember to focus on describing your product or service as the main. If you do nothing else in this section, you know you don't put a unique, self unique selling proposition, or you don't talk about your target market. Just be sure to talk about your product or service. What it is, who's gonna buy it and why is terrific 16. The Market Video: All right, everybody. So the next section is the market, and I don't want to confuse this with marketing. Marketing will be another section. So the market is the actual market themselves. Who are those people out there is gonna be a lot of statistics in the section. And this is one section where you probably do have to do a lot of research up front, and it's okay. You don't have to hire a professional research firm. You can get on the Internet, hop on Google and just check out things on your market. You want to know things like How big is it in terms of people in terms of revenues globally or whatever market you're doing with? So say the product you're selling your only gonna sell in the United States. Or maybe you're just going to sell in your local city. That's okay. You want to focus on whatever that market is that you're going to be dealing with. But you need some numbers on them so that you can present them. Where this will be important is several will several areas. Actually, when you build your financial plan, you're gonna need these numbers you need to know how many people you can realistically cell . If you forecast that you can sell a 1,000,000 units of your product in the first year, that's terrific. But if you your market size, is one that where there's only 50,000 people and they only buy it once a year, the math just doesn't add up. So everything needs to drive together. And that's why you need to do this research up front. So you have a good idea on how big your market sizes, so you'll talk not just about the size of the market in terms of dollars and headcount, if you will, will break down things like the industry as well. And who are you targeting specifically? Just because the market sizes say a 1,000,000 people? Are you targeting all those 1,000,000 people? Maybe you are gearing it towards some specific demographic, like Children or parents or, you know, the mom and the family or the elderly. Whatever it might be, you need to specifically carve out that section of the market as well. So the market as a whole might be a 1,000,000 people, but your niche focuses on that 200,000 people that fit a specific demographic that would really use your product as well. When you talk about the market, you want to touch on the competition, Who are your competition in this market space? How bigger they What are they doing? May be mentioned again. How you're better than them. Even though you're focusing on the market and that's what this section is, you know, you always want to address how you are different from your competitors. So again, though, you do want to address who those other people out there are because you're competing with them for sales in your given market space. So another big term in the business plan world, if you will, is a SWAT. It's the strengths, weaknesses, opportunities and threats. And again, we're gonna look through this in a business plan. So don't worry. If you you know you've never heard that term and you're trying to write it down really fast . It's OK. We'll talk about it a little bit here, and then you'll see it in action in an actual business plan, so that for, you know, word abbreviated SWAT. What it is is that it forces you again to think out detail So strengths is the 1st 1 What's the strengths of your company? And it doesn't need to be 20 bullet points. It needs to be about three bullet points. Or so you know, three or five. Whatever you come up with, the kind of key highlights. What's the strengths of your company? Maybe it's you. You, the entrepreneur, the founder have an extensive background in this industry, you know, that ends an ounce of it may be a strength. Is that the markets untapped where you live? It's a product that you're developing, that no one else is introduced into the market region that you're introducing it to. That's a strength. David stress. There's no current competition, so whatever it might be, the strength could be anything I'm really just focus on. Those 3 to 5 strengths are really important for your company. So while it's easy to think about the strengths, we also have to think about our weaknesses. So what are the weaknesses in the company? And it could be the same things just in reverse in the fact maybe now you are terrific business person. You see great opportunity, but you don't have any experience in this industry. Or maybe you have a lot of experience. But there's not a lot of other talented management professionals who do have experience in your industry. So you're gonna have a tough time, you know, hiring for ah, marketing person or a sales person. That's a weakness, and that's okay. The whole point here is to identify them again. It shows people that you're aware of what your weaknesses are, and it's very much more powerful to be aware of what your weaknesses are than to just ignore them. It's kind of like sticking your head in the sand. You don't want to do that. You want to say, Look, here's what the weaknesses are and then this isn't necessarily the place where you can address how you're going to resolve them, but it's still you want to call them out and it feel free. If you do feel like you have a point to make, like well, we would hire sales people from other regions and have a move here. Whatever the case might be. Just an idea. Nonetheless, they're gonna call out 3 to 5 weaknesses for your company opportunities. So what's the opportunity out there in the market. Remember, we're still in the market section of the business plan. So what are the opportunities out there again? Maybe it's an untapped market. Maybe it's a new markets. You've developed a product that's never been developed before. That's a huge opportunity. Maybe the opportunity is also that it's cost effective. You know, it costs you a dollar to make. And you can retail this thing for $20 for whatever reason, whatever it is that you're doing, so or maybe you are providing a service, maybe your consultant and your consulting in a new social media platform. So there's just not a lot of consultants doing what you do yet. Well, that's an opportunity. You have an opportunity to be one of the first people out there doing that. So think of it in that terms. So threats as well. It's kind of the negative side of the opportunities. One of the threats. Well, the threats are obvious. Competition. I mean competition, my command, steal some of your sales. If you're really successful, it doesn't take long for people to notice and want to duplicate what you're doing. So that's a threat. Or maybe there's other, bigger companies that could easily move in and do what you're doing. So things like that are threats may be a threat, is just that that it's something new. Like I said, there's a new social media platform, but it's not proven yet, so you're kind of the 1st 1 in, so you're gonna have that first mover advantage. But the threat is that it might not last forever. Maybe it doesn't catch on the way you thought it would catch on. So things like that so really think through it again. Take your time. I'm gonna emphasize that for every section I want you to take your time and really think through these things. Write them out to good jobs, sleep on it, re read it the next day. Have someone else read it, see if it makes sense. Someone who's honest friend or maybe a trusted adviser. Have them read it and see if it fully addresses the market as a whole. And after you read it and you feel like you're done, someone else reads that. Make sure if they feel it like completely envelopes the market space for the thing that you dio 17. The Market Review Screen Capture: Hello, everybody. All right, next up, we are in section seven talking about the market. So again, we're gonna take a look at two plans. Um, go through them, point out sort of the pros and cons of each two very different looking ones and go from there. So the 1st 1 we're going to take a look at is the video game developer. They wrote a fairly extensive market section. Probably a little bit of overkill, but we'll see that as we go through it. So, um starts off with generics or a description of the market through the people are the players cetera talks a little bit about the revenue as Typo already? Um, common features. So themes progression. So we're not gonna read through each of this? I'm kind of even thinking of this as if you got this business plan. Would you really want to read about each of the themes etcetera, progression, like, I'd probably skim read some of this social interaction. So I mean, it's important. It does talk about the market kind of mentality of the market, and what's like it's more than just a video game. It's the social interaction of the game, etcetera. The culture. There's certainly a culture associated with, um, no video gaming and online video gaming. They take it very seriously. System architectures. So, overall, I mean, this is important, but it's definitely a bit extensive in the sense that you might lose a few people with this . I'm talking about the history of the market, so that's that's good. Keeps the fairly brief, Let's say three paragraphs. That's alright. Psychology. Probably a little bit on the overkill side here. Um, definitely. I mean, great that this research was done, Talks about the emotions and cetera, um, then goes into the economics important. Yes, but it might again just be a little bit over. Killer may want to keep a bit brief. Certainly, if this hadn't been included, I probably would have missed it. So, um, development talks about the cost of development. So this I probably would have put mawr into the product section, talking about the development costs, skip down on corporate development, See, once he gets of this, Yeah, I start talking about a lot of specific sort of industry jargon, if you will, like, if you're not familiar with this industry, um no. Start reading about different software and other games that you're just aren't familiar with. So all of that sort of previous section, I'm not sure that's completely necessary. Tranz, as of 2008. So this I like I mean, now we're back to talking about the market. Specifically, what are the current trends? Um, goes through licensing, etcetera. So, like that talks about the competition. Perfect. I like that. Terrific. Calls it out. Here's our competition, you know, Blizzard, big company. Most people should have heard of, um, ultimate line, etcetera. So terrific. Talks a little bit about them, shows a little product. All right now goes into his competitive advantage. So again, so this part I like. So where is that? Was a little bit, sort of not a sold on some of the stuff, the economics and the psychology. This I definitely see value in talks about his competitive advantages over them, and that is about it. So that is it for his market discussion. So, I mean, in theory, the market section of your business plan is talking specifically about the market. Who is the market? How big is in terms of number of people in terms of sales is that global is a growing, that type of thing. Some of that is all in here, but there's also a lot more. So, um, again, there's no right or wrong way to do it. But certainly this might have gone a little bit on the on the too heavy side for ah, uh, for this plan. So let's take a look at another one. So this one is back to the animation company. So I just happened to pick two that were both kind of one video game and one animation that we have a few other companies. Um, nonetheless. So they talk about their industry hurt. They jumped right in industry computer animation fast growing, 52%. This is what I expect to see a lot of sort of statistics, you know, billions growth rates, etcetera. When I think about the market, um, etcetera, then the content providers where they are OK like that on because CG animation more hit films perfect the target market. Terrific. I like that. So where is the other plan? Showed? Like very like detailed things about the economics and the psychology. Um, this one's much more just like here's our target market. Here's who they are, and here's what they do. I like that. Although this is granted a little bit brief, so somewhere in between would probably be terrific. Talk a little bit more about the film studios. How much of it do they outsource? How much of it do they do in house the competition? Terrific. So the other company specifically called out the two biggest competitors. Um, these guys don't seem to call out any specific ones. They just kind of talk about General. They're located here, etcetera. Um, I probably would have liked to see a bit more specifics about the competition and maybe then as well, just a little, you know, sense or two about why they're better competitive with them, but certainly at least talk about who they are and how big their sales are, Things like that. So these guys go into SWAT analysis, which the other company didn't. Um, I think this is great. What it is is this is another sort of very recognized term or terminology that investors would see and know immediately what you're what you're talking about. So strengths, weaknesses, opportunities and threats, space that you're gonna say, Here's the strengths. Are company etcetera? Here's all the weaknesses with our company. Here's the opportunities we have to go into and some of the threats to our to us in the industry. Um, perfect. Three points each. I love that. This is what a SWAT analysis should look like. Um, then they go into detail. Fair enough. Talk more about the opportunities, and that's it. And then they get down approx and services. So, um, I like what they did here. Competition. So overall, I really like this. Um, this market section of their business plan a little bit more detail here would have been nice. I'm not sure this graph, I mean, it conveys a message, but, um, I think they did a pretty good job with the market section. Probably could use a few more statistics, a little bit more discussion about who their competitors air. But aside from that, I think they did a terrific job. So it is a good example for you guys to follow when talking about your market 18. Marketing Video: So next we're gonna talk about the marketing part of your business plan so a lot of people will create a standalone marketing plan themselves with lots of details. So it's almost like a business plan, but just focused on the marketing, and that's completely OK. My advice would be to write your full business plan first, including this marketing section. And then, if you feel like the marking section is so large that it warrants its own plan of its itself, then go ahead and create that. But I think nine times out of 10 you're probably good with just the marketing in here unless your business relies heavily on marketing so much so that it really dictates that it needs a lot of emphasis in a lot of detail because you certainly don't want your marketing section. Your business plan to be 20 pages when every other section is 1 to 2 pages, so it needs to be fairly consistent and sizing. So it's easy to read as well. I don't think so that most people wouldn't need that. So let's just focus on the marketing part of the business plan as it is, and as you would present it in here. So first of all, you might have heard of the five peas of marketing. So that's a good way to sort of focus yourself on the marketing section. We're going to go through each of them here. Now, there is some repetition in the business plan if you haven't noticed already. So the 1st 1 is gonna be your product. We've already had a whole products and service. The section our business plan. And that's okay. That was meant to give detail and a lot of light on exactly the specifics of what it waas, how much we're gonna charge for it. You know, etcetera, we talked as well about the market and whatnot. How big their So here in the marketing section, we're talking about the product again. But now we're talking about the product in regards to how we're going to market the product . So So, first of all, you are gonna have to mention again, though. What are the products and services that you provide? Possibly some repetition. Explained the features again that the highlights we just need the highlights again because we've already talked about it in detail and you want to talk about how they're different from the competition. So this is as it relates to marketing. There's a lot related to your competition and how you're going to stand out from your competition. So be sure to include that relative to your product. So the next of the five pieces price. So basically just a little bit. What's your base price? Are there any price modifiers? Maybe there's upgrades people can add on. Maybe there's a two pack that they come by for cheaper. If they buy a 10 there's a quantity discount upgrades, add ons, those types of things to talk about, the price of your product. Do you plan to change the price in the future at all? So that's a good point. So that would be one thing that would be incorporating your financial model is well, and maybe here would be a place to mention. So say you're going to limited quantities right now. You can only afford to buy 100 of your product at a time from your supplier, but you know that over time, as your business grows, you'll be able to buy and more bulk quantities. So do you think that what Maybe you're charging $5 a unit right now. You can get that down to $4. Well, this is where you would talk about that. This is the price section of marketing. And when you think about it, the price itself is a marketing feature. When you go shopping, don't you compare prices of two very similar products? Of course you do. I do as well. So the price is an important part of the marketing part of your business as well. You want to talk about how did you go about determining the price of your product? Did you just come up with it? Did you look at your competitors? Did you take the price that you're gonna be paying like your cost of goods and add on a certain percentage? So talk a little bit about that. How the price was able to come up with and as well. If you do talk about how the price will be cheaper in the future, why so talk about how what the future kind of costs of goods will be and how that impacts the price. And so the next of the five pieces place where basically where do you sell your product? How do you sell your product? Isn't a retail product that's gonna selling grocery stores? Are you going to sell it on your website? Are you going to sell it on Amazon? Maybe you're on eBay. Who knows something with your services? Where do you provide them? Do you provide them? Just in your local city is a nationwide. Do you provide them? Do you have like, a website where you advertise them? Or is that more of like a gardening company where it has to be local? So those types of things talk about that again That's somewhat tied into your market. How big is your market? Where is it? Well, here, this is more related to the marketing part of your business. So if you are running a gardening business and its local okay, so the local is your city. Say, Well, how you gonna go about then reaching those people to place television ads, newspaper ads or web ads? It depends. Will completely depend on what your market is. I e the place talked as well, about sort of 1/3 party resellers. Maybe you have affiliate to help sell your product. That would be more of an online type of business. Those types of things. The fourth of the four pieces promotion. What methods do you go about to inform your potential customers? So that kind of ties into the places? Well, you know, if your local market is, say, your city. Okay, now what methods are using to reach out to them again? I'd mentioned newspapers, television ads. Do you advertise online? If you create YouTube videos, who knows? There's lots of endless possibilities for Markham. So this is where you would talk about promotion, which is how you go about reaching those customers. And how do you go about creating those promotions? Do you do them yourself? Like if you do, say, a print ad, do you do it yourself? Do you hire somebody to write it for you? How often are you going to do? You can do every week gonna send out. Maybe mailers toe local people in the community. So all those questions need to be answered here in the promotional section of marketing. So you really want to give the reader ah, full idea of not just well. Here's who the customers are, but here's how we're going to reach them and here specifically, how we're going to reach them and how often we're going to reach them. You would also want to talk about how did you determine that that was the best method or those air the best methods? Assuming you have several. Did you just decide that? Well, because your local company, you should run print ads well, where they running and running in the newspaper, not as a people read the newspaper anymore. So you want to talk about those methodologies where you came up with them and why they're the most applicable on best suited for your company. The next of the five pieces people, the people themselves. How do you How are you keeping people engaged with your company? So there's a lot of social media marketing these days. Terrific platform to get people engaged. Let's back and forth. Think of Twitter. Think of Instagram. Think of YouTube. People can comment, leave you questions, etcetera. So there's a lot more interaction say this century than last century when it comes to marketing, so you get a better feel for your customer. But that also puts more onus on you to interact with, um, I really get a sense of who they are and how they want to receive your message. You also, when you think of people, think of the people in your company specifically your marketing and sales people. Who are they? How big is your American department gonna be? How big is your sales department gonna be? Who? If you have a sales department, who are they going out and reaching out to? You know who is your customer and how are they reaching them again? Are they doing direct calls? Are they sending information, the mail, the emailing them? What methods are going to use, Maybe touch a little bit, too, on what it's gonna cost you. You want to kind of touch on your marketing budget, Not fully explained every dime since that's more of a financial aspect as well. You want to talk about the pros and cons of every method that you use? I mean, social media. American has its place. Print ads have their place, TV ads have their place and the list goes on. So you want to talk about the method you chose, Why you chose, um, the pros and cons of them and you know I can give you right off the bat. Social media marking is fairly inexpensive. You know, You hire someone who is a pro at it, and it's all done online. It doesn't cost you really anything to market on Twitter or Instagram. Certainly you can. Don't get me wrong. You can pay for ads, states or what not, but it's still fairly cheap and inexpensive compared to, say, running a billboard and putting it up on the main drag. So I know that example might seem a little dated, but these are all methods of marketing, and he really to think about what's going to reach your customer, base the best more effectively for the money and generate the sales that you want. So that said, That's the marketing section again, we're going to take a look at a couple examples on the screen shots in the next few lectures 19. Marketing Plan Review Screen Capture: Okay, so now we're on section eight, and we're talking about marketing, not the market, talking about marketing. And we're actually looking at one company's plan that we haven't looked at yet. Um, they made sort of sports apparel. Another peril. Um What? They're kind of catch being a capture. Cool. So they had special crystals in it that you would kind of freeze and cool down perfect for hot hot markets and whatnot. So even here, you can read a little bit about other problem cooling hats, neck wraps, vest, etcetera. So we're gonna look at their plant first. Overall, we haven't looked at their plan because I would say it's actually not the best business plan, but for some reason, it a terrific job in their marketing sections. So, um, so I will take a look at it one thing right off the bat, just to sort of nit picky thing and feedback for you guys. Um, when you're writing your plan, you want to kind of use conventional sort of layout type of stuff. So here they have, um, sort of a small fund for the heading, which is the main category. Um, then they have this looks like probably the same fund size and then that have a huge fund size for competitive analysis. Um, if anything, this should be the big font. That should be the smaller one. You know, the subheading. So just a nit picky thing. I think it just comes off Kind of weird. So unless they talk about the mark market opportunity so they have their market opportunity in here. Um, really? You know, typically, in other plans, the market section is its own section. Nonetheless, they talk a bit about the market, so I'm gonna skip that. Since Hillary looked at market in previous videos, they look at competitive analysis. So here they've listed out a ton of competitors and kind of done a, uh, what it calls a vector graph where they over laid. And they say there number one. They include cooling effectiveness and stylishness all like in one. Whereas these other companies don't hit on all of this. Fair enough. I won't afford a bit of us. Are Alabamans affordability? I thought it was effectiveness. That makes sense. Okay. So, getting in actual marketing, they talk a bit more about their competitors who they are, assuming it's a lot of those companies from above, um, targeted marketing. So they've been test marketing, etcetera. That kind of list out who the cooling products are geared towards. Outdoor workers do sports and leisure motorcyclists, etcetera. So they're kind of mixing market and marketing in the one section, which is fine. That is That isn't okay. DeWitt isn't okay. Approach. Um, you know, typically, you do separate them completely, But in this case, it seems to be working. Okay? They're talking about the market and how they're going to reach each of them. Specifically, I believe here. So then they talk about marketing strategies. Um, public relations, direct sales, trade shows, and they go on the list, all the big trade shows they're going to go to. Um, I would say this is probably overkill for a business plan. Um, one thing you have to think about your business plan is it could stale date pretty quick. So they write out all these business conventions, they're going to go to our trade shows, but come in a few months. All of these have already passed. So then, you know, are they contain Lee updating their business plan every week to just for this, I probably would have just more summarized. Hey, we have x amount of businesses. Trade shows coming up in the next year. Um, going on with their marketing plans are going just the Internet kiosk, strategic partnerships, TV networks. So for each of these were not reading them. But they are saying a little blurb about, you know, chaos. Here's what we're gonna do. Um, strategic partnerships. Here's what we'll do. So I think this is all Okay, um, chill factor above about through licensed products. Okay. And I'm guessing so then they go on to talk about distribution strategy, which is really completely different section. Not all business plans would have this. Um, certainly this isn't just a part of their marketing plan. Um, so we're just gonna jump back up. So in terms of their marketing plan, I like this. That they break out special civically. What they're gonna do could do with a little bit less detail here again, what they're gonna do. Um, let's see it with marketing. You want to talk about? Here's what we're gonna do. Um, they don't talk a lot about so these you have to realize to this plans a little bit older. It's from 2008. It's 10 years old. The, um you know, now Daisy would want to break out a bit more specifically, like, here's our social media plan. We're gonna use whatever it might be Twitter, our website instagram. You know, um, Google Advertising. So you would expect to see a bit more of that these days? I would say, um so don't be shy about putting in your sort of Internet marketing plan and having that being a bit more specific or whatever your plan is. If it's television ads of its billboards, if it's handing out coupons downtown to college kids, whatever it is, detail out each of the specifics of your marketing strategy and kind of like why it works and why it's applicable to your business. So that said, we're going to take a look at the other company. Let me see here. Okay, so this is back to the animation company. Um, so one thing the other company didn't do that these guys specifically do is they break out , see if they break out all five. Not so much. There's something referred to as the five piece of marketing looks like they got four of them, and then they kind of got to distract us from. I think the 5th 1 they're missing is people, but I was They talked about the product. Actually, they just kind of throw back and say, Hey, we read about a product already Price so they don't get into too much detail. That was kind of one of my problems with these guys and other sections of their plan as well. Place again. They're not talking specifically about it. Promotion, etcetera. Create a hype with a strategic Marceau. They're using the right headings, but they're not writing the right stuff. Eyes what I would say for these guys. So, um, definitely do talk about the product, the pricing, the place, the promotion, the people who were selling it to again. Kind of like your market. But put in more detail about specifically what it is. Yes, there's a lot of repetition, but that's OK. It's OK. Toe kind of, you know, get in there and talk about these things specifically because somebody might just jump to your marketing strategy and they're not gonna have read your other sections. They talk about a launch party film festivals, trade shows. Okay, so I like this. They're getting more into specifics a little bit. Um, Internet print advertising. Okay. They talk about the one thing I'm guessing that's the end of it. Yeah, they don't talk about, like, dollar spent. Like, how much are they going to span? What's the actual plan? Like, talk about your plan. Maybe throwing like a chart that shows 1st 6 months, we're gonna be focused on Facebook and whatever on YouTube. And then as our we have a few customers, we can get testimonials and, well, maybe expand our reached other countries, whatever it might be, get into more of a detailed plan than just sort of some generic like, Here's a bunch of stuff we're gonna do but doesn't really talk about when come with the actual plan of attack for it. So two examples, neither perfect. Both of them kind of have some stuff and not the other stuff. And hopefully between the two, you can come up with something that is terrific for your own company. 20. Management Video b: All right, let's talk about the management section of your business plan. This is another one of the straightforward sections. It's fairly simple, if you will relative to some of the others. You don't have to get creative or anything. It's just needs to be well written and well presented. So a few things to remember. Obviously, it's the management section. You're gonna talk about who these people are. You yourself most likely are the founder, probably the CEO president. Whatever titles you might have talk about yourself in terms off, what's your relative int relative experience to what it is that the company does. Maybe you have a background, and you've been in this industry for 30 years. You worked for one of the big companies in a different city, whatever it might be, you want to touch on your educational background as well, and why you are a good fit to run the company. Likewise, you want a list, that same sort of common theme for all the management roles. So when I think imagine roles, I think of the CEO, the CFO, your chief financial officer, your C M. O. Is your chief marketing officer, your CTO is your chief technology. And then maybe you have other positions as well, such as your CSO chief sales officer, etcetera. Basically all your C level management team you want listed out now, as a growing company, you might not have hired everybody yet Part of your brain, Your business plan is to get investors so you can hire staff. And that's okay. What you want to do is list out those positions that you will fill and kind of who What sort of target person you're looking for for those roles. It's OK to identify them and say, Hey, we don't have these people yet And you could even say part of the funding that were requesting will allow us to hire, you know, terrific personality. Fill these roles that we can grow the company, all that good stuff. That's okay. So but just be aware that you really should identify them, at least list them out. So somebody reading it realizes that you understand and know, as a founder, as the CEO that you do need these key people in place on one just A heads up. One of the examples we're gonna look out in the business plans. They don't do a great job, but that I didn't always pull the best examples of what to do. Sometimes that pulled examples of what not to do because I wanted to show you to sort of mistakes. Other people have made writing their business plans, so gonna show you sort of bad way doing it. That a good way of doing it as well. Um, that's the key thing. So basically, just list those people out. You can talk a little bit about the rest of your staff. Really Don't need to. This is the management section of the business plan. A zoo wealthy company has any advisor, so maybe they're not full time, but they have. You know, you have some industry expert who will help you out a little bit. It's OK to list them out, but you know, when I rely too heavily on them, I really want to focus on those key management roles who those people are, why they're great fit and that's it. And as well. Likewise, if you're a smaller company, that's okay. I mean, say you are a one person show and you are starting an online company. That's fine you're the CEO. Here's the skills. You know, all the things you're great at, Why this company will run fine with just you, and that's okay. So just each person's business plan will be tailored very specifically, obviously to your company. So some things may apply more than others. But keep in mind if you do are you are planning a bigger company, lots of staff, and you will need those positions. Detail them out. And do we get a do good job was saying who those people are and why they're important. 21. Management Review Screen Capture: So in this next section, we're gonna be talking about the management section of your plan. So here is where you would say, you know, here's the team we've assembled the role. They feel a little bio about each, what they've done in the past, why their experience is relevant to your company, Um, and then as well, any holes that you have and positions you're looking to fill. And maybe if you have any leads or where you're looking, whatever. So we'll start with the cashew based business. So there's this not the best, but let's take a look. So in their case, they pretty much only have one person, the founder. So it's a little tough. I mean, um, again, the names were changed and what not, But it does a good job of like, here's the management team. Currently, uh, the creator. His history in the industry don't love things like this. Like rhetorical questions like why? Question? Question? Question, Eric definitely stuff out, like that grammar thing here again, starting a sentence with because isn't proper thing. This is just sort of general nitpicky things that I'm picking up through the plan. So, um, another last talks a bit about its history. Um, you know, I'd like to see things like his educational background. Let me talk about time in the industry, etcetera, Uh, then goes on talking about professional advisers. Certainly, since I mean, they're not really employees or management, but it does have a couple of them. So it's It's worth mentioning where they graduated from, where they worked and sort of their background. So that's primitive for their management section. Um, not the best, but he has limited amount of resource is to include here. It's not like he has a big staff. I would have talked more about my staffing plan, though, is what I would have done. Hey, I recognize that I need a marketing officer at Tech officer sales manager, etcetera CFO, Um, you know, we're currently planning on hiring those positions, you know, in the next three months or after operations star, whatever the case might be, so just sort of acknowledged that you need these positions and where you're gonna be looking for them. So, uh, definitely could have a better job. You know, nobody would read this and be blown away. They would say OK, well, these trivial or just advisors. So it's basically a one man show. Um, and he has No from what we can tell, no experience in other things, like marketing sales, etcetera. That said, Let's take a look at a different one. So this is back to the company that makes the clothing that cooling? Um, a little bit better job. So management team calls out specific people. Here's who he is. His title co founder entrepreneur, etcetera, um, leads all sales. Okay, So called us specifically what he does. VP of product development background history where they went to school. Same thing here. Same thing here. CFO, 18 years. So this guy's really touched on all the kind of the big you know, Numbers has a CFO business development product development of VP of sales sales, rap sports sales manager. So he's really and then even calls out to be hired to be hired, so at least acknowledges that there's other positions to be filled. So overall, really, your management section I mean, this is fine. This is all it really needs to be. I would just make sure, Like I said, that it touches on things like through the people are what the relevant experiences their education, background, um, civilly what they do and try to tight into a swell what your company does and why it's important for this person to be on board and definitely those positions that aren't filled . Um, go ahead and include that. You know, you're still looking for about your recognized that you need to fill those positions. 22. Financial Projections Video: So the next section your business plan is the financial projections. So here is where we're gonna take all the information. Actual correct myself. You take all the information. I take some of the information from our financial model. Now, we talked about early on in this course we're gonna incorporate here in our business plan. So I say we don't include all the information. The reason for that is the financial model will end up being very large. At the end of the day, you're gonna lots of assumptions. Projected P NL balance sheet, cash flow, maybe evaluations. Best case scenarios, etcetera. There's a lot of numbers in your financial statements, and it's usually detailed by month, so you can imagine a five year detailed forecast. There's a lot of data we don't want include all that. Hear somebody who's interested in wants to dig into the numbers can refer to that serve Excel spreadsheet, financial model. What we want include here is the highlights of it. So there's a couple ways to approach this, and a lot of it depends on your company and how much information you feel you need to display here. I've seen companies just do a nice little summary where it says, You know, the next five years Here's our revenues and our net income on Here's our ending cash balance each of those years and are, you know, balance sheet assets, liabilities, equity. And that's fine. That's a very nice summary, one page financial analysis of the company. Some people will go, and they'll kind of include a little bit more detail so they might do one page. That's just the P and L summarized a little bit. Just sales, cost of goods, sold expenses, net income. So somebody it's a little bit more information than a true summary. But still it's not broken out by every expense category and every revenue stream, etcetera. The last thing you want to do is if you put a spreadsheet in your word document or your document. Whatever form it takes for your business plan, and you have to squint to read the numbers, you have too many numbers. So you really wanted to be some reform in the business plan. The financial section doesn't really include a lot of writing. Typically, it will just be literally the spreadsheets from your financial model in the business plan again. But just those highlights. Summer sheets, not the full details. And that's pretty much it for the financial section you definitely want. I would advise you if it was me writing it. Include a nice summary tab with the very highlights taught like I just mentioned revenues net income, cash at the end of each period on my period. I mean the year when it comes to the summary. So you're one year to set up and possibly the balance sheet assets, liabilities and equity, possibly the valuation. If you have one on your company, then I would go on to show that five year P and L and five year balance sheet and five year cash flow, but again by year. Your one year to not the details by month, and I would condense it as well. Just revenues. Cost of goods, sold expenses. You don't need every detail expense on, you know, listed out for each salaries and marketing etcetera. Let them refer back to the financial model. And if you don't feel comfortable, maybe with just having those those few numbers put a comment in there. Just here's their five year profit and loss and then a footnote. Please refer to the financial projections for the details of these numbers and perfect. Somebody will do that again. We don't want any section of the business plan to overwhelm the other section. So if you included, you know, 20 page financial projections, that's a lot of information. And do you really think somebody read a business plan wants to dive into all those numbers right? Then, when they're in the middle of reading? No, they just want to see the highlights of what your financials are for your company. So that's pretty much it again, fairly straightforward in the regard that these numbers are already generated, hopefully in your financial projections. So now it's just a matter of copy paste. I say, you know, embedding the tables into your business plan on going from there. 23. Financial Summary Review Screen Capture: next up, we're going to talk about the financial projections and summary is part of your business plan. So, um, again, this will pretty much just come from your financial plan that you've built in Excel or, you know, Google Sheets. Whatever you used. Um, the point is that you need to include the highlights and not everything you don't want to go to over overboard. Really? Somebody that's interested in this is going to go refer to your actual financial plan and sort of dig into the details a bit more. Um, we'll just take a look. I mean, it's important to include, though, cause somebody who doesn't want it. Some people just don't want to dig into the details. They just want the high level information. So I'll take a look here. Eso this company. This one is the Let me see. This is Thea India based the Travel software company. So they start off with their valuation chart. They called evaluation. I think they Yeah, I didn't quite understand, but nonetheless, they looked at a few different methods of valuing the company. Um, different valuations came up with a number so a little bit on the heist I mean, their death. I mean, they're valuing it at 113 million. Assume this is dollars. Um, a little bit out of control. You would never put evaluation of startup company in $113 million. That isn't even started. Um, actually, I do Just notice up here. This is after your five stars thing. After your five, we expect to be valued at this amount. So fair enough, um, sort takes that and 1/2. So let's see what they have here. Profit and loss that have a nice little summary year by year expenses. Expenditures to To To Okay, it's not too bad. I think this is a fair profit and loss. A nice little summary not too detailed. But enough information fits on one sheet. That's always a good benchmark. If your report fits on one sheet than it's readable, let's see what else they have projected cash flow. Terrific. So we went looking all the details, but yeah, basically a nice yearly summary. The highlights for the categories. All right. And that's it. Some, I think this is probably, honestly, kind of perfect. Just here's cash flow, A, P and l. You could include the balance sheet, but that's probably the least well say the least valuable. Probably least interesting to a potential investor. You know, they're really looking a cash flow on your projected income. So, um, now I would say, honestly, that these guys did a pretty good job. Let's take a look at another one and just see how it compares. I'm trying. Remember which one is this one? Here we go. Siege. I'm it. So the animation company eso they include a three year summary. So I like this is Well, it's just a brief. If you remember out of our financial model, we had one tab that you did at the very end. That was just a summary of like, Hey, here's everything um, like condensed in the 11 sheet. This would be it. So startups summary where they plan to spend some money, profit and loss summary balance sheet cash flow. They include the variance analysis. That's fine. It's still fits on one sheet. So I like that and a couple of graphs. Terrific. I mean, nice little visual sort of representation. So I think that's this is appropriate as well. I mean, this kind of did what the other company did in three sheets. These guys don't have the valuation part on here, but that's fine on. Then what else? Then they go into a bit more detail. It looks like, Yes, here they just have revenue. And then they kind of showed a slightly more detailed version. But I think that's okay, because this is still summarized. And they put a nice profit and loss and a balance sheet on one page in a statement of cash flows so perfect. Both these companies did it fantastic jobs. That would say, I kind of like this one a little bit more. Honestly, just you have the complete summary right here and then a little bit more detailed down here . Um, but both these air Nice. Just three, you know, 234 pages. The highlights. No big long explanations. No. You know, people want the detailed want explanations, they leave their ask questions or go to the more detailed model s. Oh, there you go. So that's a good two examples of what you should include in your financial plan section of your balance sheet 24. Exit Strategies Video: So we're getting close to the end of the business plan Now. We've covered a lot. It might seem like it's going quick, but believe me when you start writing and it's gonna take you time to write each of these sections, so the next section is exit strategies. So what an exit strategy is is. It's a way for your investors to exit the company, get their money back, plus a return they'll be interested in what you're thinking is a suitable excess. Tragic that there's lots of them out there, and we will go into each of them in detail when we go through the samples. But basically want to write out this section doesn't need to be completely, I say, not elaborate. You don't need a detail out every possible exit strategy or how we're going to go about it , or exactly when it's gonna happen, because what will happen is as time goes on, exit strategies will probably change a little bit in terms of what makes sense and what doesn't. So just to name a few exit strategies certainly mostly offered oven AIPO or its initial public offering. When your company goes public, you know When you first start off your private company, you own it yourself or with the investors. AIPO You take your company. You go public of the stock market so everybody can buy your shares well when you go public , although shares go public and now the investors console off their portion of the shares and that's their exit. Now they got out and then get a return based on what those shares are worth. Etcetera, some other ones or management buyouts. So the management team themselves, you might buy out the investors in the future. You know, you make enough that you're able to just pay them off. Leveraged buyouts, acquisitions, mergers there, several options. So you want a list out the you know, the possible ones, the ones that make sense. And it might just be one. Or maybe you don't know yet or it's possible that you know you weren't looking for a true true exit in terms of like a grand finale, AIPO or your company gets acquired and everybody leaves. Maybe it is just a management buyout where you overtime pay back the investors plus a return, and that's okay. It's really what makes sense for your company. The important part here, though, is that you identify what are some options that sound reasonable. So they get a sense of how this will go for the for their end. So think of yourself as the investor you know, your lending the company or investing in the company say, a $1,000,000. Well, when do you get your money back? And how are getting like a 1,000,002 100 back? Are you getting, you know, five million back on their sort of standard benchmarks that investors look for when they're looking for a return on their investments? So you listening out possible exits will help them identify if it's a good fit for their portfolio. 25. Exit Strategy Review Screen Capture: all right. In this final sort of section review, we're gonna be looking at some exit strategies, and I have three of them because they're fairly brief. And I mean, they should be brief, so we'll start with this one. It's probably actually one of the more elaborate ones of the three we're gonna look at. So basically your exit strategy, you know you're talking about, you know, here's how the investors are gonna get their money back out of the company. So you want to present some realistic options. It isn't necessary what will definitely happen, but at least shows that you've thought about it on, um, what those options might be. So, um, in this case, they to do five years, um, strategic partner customer. It's a truck. So it sounds like they're planning to be acquired, so they don't specifically say what their exit strategy is. There's talking a little bit about kind of the growth, so they're open discussion options and timing of exit. So, um, they don't have a specific one called out. It looks like they talk a little about waited valuation, which is terrific. Um, they're saying after three years, expect to be valued at this. Ah, there, capitalization. So, original 250 investment get 20% ownership to return and your multiple on investment. Same thing here. Um, not bad. I mean, it doesn't what it's missing is the actual exit strategy saying, like, here's what we think will happen. Um, you know who is gonna buy this ownership? So that's important. So let's take a look at two of the others. See here. Okay. So this is a global five. This is the overseas to travel software. Um, no frills. I mean, they just say exit strategy envisioned by us could be one of these. Um, So the downfall for this is they just kind of list off a bunch of things. A serious be so Serie B buys out Syria's a strategic investments acquisition by incumbents merger and acquisition, which would be similar to this or a public issue, which would be an i p o. So they kind of just rattle off the big kind of categories of exit strategy. So again, I don't think this is actually the best portrayal of what an exit strategy is. They just kind of identified that they know what exit strategies are all right. Third examples. This is the video game company. They repeat that they're looking for 5.5 million. Uh, of investors have their capital investment return within two years. A suitable return on vessel. It pays 16. Invest in return timing. Okay, so they as well don't they just say they have about a two year time frame, but they don't call out specifically what they're gonna do. So, um, what I would encourage you to do is kind of some combination of all three, But then add on to that. So I like that these guys included, You know, here's what the investment we're looking for. Here's approximately when we're looking at an accident. These guys say two years. I think that's probably a little bit generous. I think, you know, four or five years down the road would be more expected. Um, but I was just a bit call out. You know, we were planning to go public by an I p. O. Um you know, we expect that we will merge with the market competitors and maybe the reasons why, you know, maybe their company of suitable for an i p. O. Because they plan to have such a large supermarket base that it would be well received in the market, etcetera. So you want to talk about just what the plan is? You know the numbers behind it, where you expect to be and why it's a suitable exit for you, Um, and then or as well. So some of these companies might have just been looking for a loan. So if you're looking for a loan, so Okay, well, here's the terms of the payback on the loan and, you know, little be payback over three years at whatever 20% interest or something like that. So that's exit strategies. We don't have a terrific example of a good one, but I certainly hopefully told you what you should do in order to have ah, good exit strategy right now and again. It doesn't have to be elaborate. It could just fill this space just like a little couple sentences. Doesn't have to be a lot of charts or anything. Just spell out what it is. You think your exit strategy will be 26. Conclusion Video: Okay, everybody, that's it. That's this is the conclusion to the course. We've gone through all the major sections of a business plan. I know it's a lot of information, and you've got a lot of writing to do if you haven't been writing all along all along and that's okay. Take your time and right a quality business plan. Review it yourself and then let others read it. Proof. Read it for you. Maybe be good critics for you. Get that trusted friend who is not afraid to give feedback A few extra points from me, though, to help you out as you go through. This journey rang your business plan, and sometimes it's the little details that add up and will make your business plan extra polish. So things like use proper and consistent grammar throughout the plan. Same tone of voice. So if you refer to the company as you know, the company called the company throughout your for yourself by name through the plan or as CEO, Whichever one you choose, use it throughout the plant, so a lot of consistency comes to formatting as well. You know you don't want one section to be written and font size 12 in the next section, inside size 14 and then back to size 10 for the next section. Be consistent. You want consistent for Max. All the headings air the same format. I'm talking about underlining bolding, no centering whatever it might be. Just be consistent and all of that. As I mentioned as others to read it asked them to be tough on you. A big thing as well. I will recommend that I see a lot is don't overhype your business. A lot of people get really excited about him, and they just want to sell it. And they think their company is the best thing since sliced bread. And that's OK. It's OK to be excited about your company. You don't want to over sell because not everybody's gonna have that same enthusiasm. At the end of the day, investors are looking for a realistic portrayal of your business, so if you almost over sell it, you're doing yourself a disservice because they'll think, well, they're trying to hide the fact that maybe it's not a strong as you know what they wanted to be. So don't overhype the business, but just be very frank about statistics, and here's what the business is. Here's what we're doing. Here's where we're going, etcetera. And use that sort of thought process in each of the sections as you write them. Another tip save drafts along the way. So as you write some or maybe do each section separately in a different document, whatever you do, just be sure to save drafts. For one. If you crash, you lose your files. That file gets corrupted it. You have a previous draft. You can go back to something that's really important that I know these things sound like these day and age is that stuff doesn't happen. But believe me, it can. So I think, you know, maybe you're saving it to a thumb drive and it gets corrupted or you lose it. Whatever the case might be, make sure you mitigate any chance that you might lose all the hard work that you put in. So definitely at a minimum, as you're writing, you know, save a different draft at least after every, you know, a few hours each section, whatever you feel is best for you. But just be sure to do that and promise that you will do that. And my last tip for you guys is to have fun. You know, be excited. You're writing about your business. This is your future. It's your passion. You should be able to write this and just you don't even want to stop typing because you're so excited getting all your ideas and everything down on paper. So it's gonna be a lot of work. Don't get me wrong. I know whatever in several business plans. But at the end of the day, you're gonna have an amazing business plan that you are proud of. You're proud of your company. You're proud of all your hard work, and it will just jump start you to get things going. So that said, enjoy running your business plan. As we said at the beginning of the course, some of our goals were at the end of the course. I want you to have all the tools to write a quality business plans. So hopefully through me telling you the screen captures we've done now the templates they can download. You have all those tools to write a least a draft of your business plan, and then you can get into editing and specifics. So that said, Get to work on your business plans. I'm excited for your futures. You should be too on. That's it was Chris. Benjamin and I have enjoyed teaching this class. I really appreciate you watching all the way of the end. And I can't wait to hear about all your successes in life. Feel free to message me anytime I look forward to it. Thanks. 27. Conclusion Bplan Template Review Screen Capture: Okay. One final sort of screen capture review and what I'm looking, what we're gonna go over is, um I provided a template in this section of a business plan. Kind of just the main category. So let's just start off and just take a look at this first page. You know, insert your company logo, business plan, your address, contact info, maybe the date the revision date. You've seen enough examples. You know how to make a cover page. Basically, we're just gonna focus our attention here on the table of contents. So, um, you know, executive summary your business and feel free. I should just say this. I mean, you'd obviously edit this as it applies to your business. I mean, some things might not apply some. There might be something else. Do you need to include that? I haven't included maybe something you saw on one of the examples we went through that I haven't included here. Ah, that you would like to include. I mean, it's your business plan. I want to toe definitely add on to it. Council executive summary breaks it out. Cos summary breaks out all the different areas. It's like vision and strategy. I don't think we saw that in anywhere. Examples, cetera, value Proposition, Proxim services. I put product description. Certainly, if it's a service, you would do that. The market talked about market market trends, target pricing competition. Um, your SWAT analysis that was important to include the marketing plan itself. So I just put in generic marketing plan section management personnel management advisors, your personnel plan financial information sales in lost sales graph capital structure. Maybe you want include that nice summary sheet. So you would include that? Certainly. You're going to write out an exit strategy like we talked about and then just some placeholders for exhibits. If you want to put a screenshot of your website or whatever else might it be? Um, so that's it. And then each of these is laid out here. You can go in, start adding doing things. Um, just so you know, just if you're not familiar with word, these air sort of dynamically linked. So if you right click on this and hit update field, these numbers will, um, update according to whatever page they end up being us. You don't have to change his page numbers as long as you use these headings, there will automatically be linked back to the table of contents. So, uh, that's it. Guys, I hope you really enjoy the course on making a business plan. I hope this, um, blank template helps you. I hope going through all the other people's plans helped. I hope that looking at, um, what were good examples of what not to do helped you all the above. So if you like the course, definitely hop on their give it a review. Feel free to interact, you know, use the comments and what not to interact with me. Use those worksheets. Take the quizzes and good luck out there. I hope I hope you are all successful in your endeavours and in writing your business plans .