Elements of writing a BP

Shared by 張育銓

Elements of Sustainable Companies

Clarity of Purpose Large Markets Rich Customers Focus Pain Killers Think Differently Team DNA Agility Frugality

The goal of writing a BP is…

To communicate the company’s story as clearly as possible To create excitement for the company to attract further

resources To get a presentation meeting!

Writing A business Plan

Company Purpose Problem Solution Market Competition Product/ Technology Business Model The Team/ Company Traction Financials

Company Purpose

Company Purpose

Define the company/business in a single declarative sentence.

Summarize the company's business on the back of a business card.

Problem

Problem What is the pain? Who has it? Will they pay for the solution?

Who are your target customers? How do they suffer from the pain? Is your solution “the pain killer/must have” or “the

vitamin/nice to have”?

Quantify the problem concisely! ($) How much does the problem cost to its owner?

Solution

Solution

Compelling presentation of your solution Graphics, illustrations or pictures are highly recommended

(Remember: Keep It Simple) Relate to the problem part

List the key points that will help the audience understand What is it? What it does? NOT how it does. What will happen if it is implemented? How much will it save?

What will it allow your customer to do that couldn’t be done before?

Why are they going to pay for a solution? Cost savings? Increased market share? Elimination of a bottleneck?

Market

Market (How big is the problem?) Demonstrate a significant market opportunity Size, growth, maturity (graphs) Show how your solution is positioned in the market Demonstrate how uniquely your product fits into the

market Focus on the smallest segment for credible penetration

Ex, If you are selling wheat bread to the restaurant industry, the segmentation order should be: Restaurant industry size: $5555 (Total Available Market-TAM) Restaurants that buy the bread instead of cooking: $444 Restaurants that buys wheat bread: $33 Restaurants that you can reach (your target):$2 (Served

Available Market – SAM)

Competition

Competition

Competitive Landscape: list direct (same/similar solution providers) and indirect (current other methods, but can move into your space) competition Southwest Airline’s direct competitors are other airlines

but they declared that they are indirectly competing with all other available travel choices

If no, invent one! Large and small companies How you are different?

Providing a detailed competitive analysis and listing the potential competitors increase your credibility

Comparison of solutions based on customers’ decision making criteria

Customer feedback, why you versus others?

Competitive Advantage What is your unfair advantage? What are the differentiated features that will hook the

decision makers? How long does your solution last? How often it will be replaced? Why the customer should pay? What is the value proposition?

Value Proposition Articulate the exceptional value to your customers

If there are more members in the value chain, articulate value propositions for each

Product/ Technology

Technology (Solution Description) If the value is in cost savings focus on that aspect,

always relate to benefits Graphs, pictures work Assume that the audience does not know the

technological field you are in Yet, give a compelling description without using

abbreviations or techy terms

Business Model

Business Model Who are your target customers How do they buy? Online? Trade? Pricing model; how are you going to make money? Revenue Model, how will your customers scale (sales

strategy) Sell direct? Sell through (channels to market) Graphs work

Go to market strategy

Marketing plan and Distribution plan (address market risk)

The sustained initiatives and processes to acquire your target customers PR, Media, Search Engine Optimization,

Advertisement, etc. How you are going to tackle the market?

Direct versus Indirect distribution channels, alliance partners

Identify customer acquisition cost and other business metrics; benchmark against competitors

Highlight third party validation Graphs work

The Team

The Team/ Company Traction Team (could be your greatest strength)

Short summary of the members key strength and achievements, particularly as it relates to the business (address management risk)

Possibly board of advisors (if recognized) Barriers to entry: Your existing IP/ IP strategy

(address technology risk) Depending on the company stage, important

milestones achieved Short personal experience to hook the audience and

to have a smooth transition to the “Problem” part!

Financials

Financials

Financial Plan – Pro-Forma Everyone knows that this is an estimate, but still they

want to know how realistic are the financials and if you are capable of predicting the market

5 Year realistic estimates – graph is a must Highlight critical assumptions/milestones, and mention

if there is an important issue for the realization of revenue projections

Funding (if seeking investment)

How much $ are you seeking? Where will the money be put to use?

(i.e. 45% R&D, 20% Marketing, %10...etc) Pie Graphs work nicely

How long will the money last? How long until you need another cash infusion or will

this be all the financing you need?

2006 2007 2008 2009

Strategic Planning

Phase IDevelopment

Phase IIDevelopment

Pilot Test

Mass Production (II)

2010

IPO

MassProduction (I)

Corporate Development

Time

ProjectMilestone

FinancialMilestone Fund

Raising (I)US$ 1 M

Fund Raising (II)US$ 1.5M

Take away

W.I.N. DonutWindow of addressable Market

Incentive of taking ventureNecessary of the team

ROI on proven items/ Risk

Market potential / current market

Precondition to Execute

Thanks

5 個 YEF 常見的 BP 弱點

Nathan Chiu

nathan@funP.com

1. 吸引不了人的商品或服務好的 BP 一定有一個最吸引人的甜密點

務必一槍斃命

How to solve?請從現有的問題與需求出發。這商品會不會有人用 ?團隊中有人懂這商品嗎？你必需證明你說的假設

研究數據 問卷調查

2. 賣不出去的產品 很多 BP 為了要賺大錢，都會訂一個很高的

商品價格或是假設可以賣很多

Remember… 市場價格，請與競爭的商品做比較

現在的價格不等於有競爭時的價格 不要忘記行銷通路成本

3. 不可思議的神奇商品 如何證明你說的完美商品或服務可以由你發明

出來

Solutions… 現有可以使用的專利或技術 與研究單位的合作

成本與利潤分享 堅強的研發團隊

相關的工作經驗

4. 永遠低估的營運成本 很多 BP 為了要賺大錢，都會訂一個很節儉

的營運成本

Remember… 人事成本不止有薪水 義氣請勿寫在 BP 裡 製造成本要先估算

材料成本與可能的波動

5. 馬上大賺錢的夢想 很多 BP 強調 馬上大賺錢或是回本，但不一

定是大家愛的模式。

Remember… 訂好合理的 Break Even 與 Cash Flow Break-

Even 的點。 幫創投想合理的 Exit Strategy 請提及市場環境所可能遇到的風險

對手有新產品 銷售不順利 大環境低靡

題目一「不會破」安全避孕套

題目二「躺就睡」睡眠輔助機

題目三「可錄音」的明信片