HOW TO…Get Their Attention with Your Business Plan
□ Have a snappy executive summary.
□ Have your contact information clearly stated.
□ Keep the initial plan short—ten to twelve pages.
□ Talk about your business and revenue model first.
□ Describe the market and show how your product is unique in that market.
□ Present a management team with a history of successes.
□ Present conservative financial projections.
□ Do not argue about valuation—yet.
None of the ideas in this chapter are all-encompassing, and not all of the items apply to every business. The information should spark your imagination while giving a context in which to analyze the business. Take your ideas, information, and research and develop a plan that makes investors take notice. Use the executive summary to give your potential investors what they want and to get them interested in learning more.4 An example of such a summary appears on the following pages.
Figure 2.4: SAMPLE EXECUTIVE SUMMARY
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Digibelly. inc.^ Headquarters DigiBelly, Inc. 3251 Progress Dr. Ste.-A Orlando, FL 32826 Phone: 407.210.2102 Fax: 407.207.7348 CEO Eric B. Delisle Corporate Facts Employees: 15 Ownership: Private Offices: Florida Stage: Product Launch - Proven Solution - Customers - Reseller Base - University Partner Industry Web-Based Business Software |
Many businesses still DO NOT have a website. This has not changed since 1999. Non-tech business owners are bewildered by the options available and have no confidence in making good decisions regarding their IT needs while at the same time feel very strongly they MUST get digital to be competitive. DigiBelly, Inc. is becoming an essential bridge for non-technical business owners to cross the "Digital Divide."
Combining deep knowledge of state-of-the-art Web technology, process automation and superior delivery capability, DigiBelly helps customers minimize cost and obtain useful business tools while providing the hand-holding this market desires.
The way AOL enabled the ordinary person to get on the Internet, DigiBelly is enabling the ordinary businessperson to get digital. The past three years, the company has built and tested its systems, marketing strategies, and market acceptance, and as of 2003 is ready to launch its first retail product, DigiBuildlt.
• Expanding Market Opportunities — Past and continuing investments in Web presences and online commerce; lower costs of entry; more devices on the Net; easier integration between front - and back-end systems continue to fuel market growth.
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Law Firm Burk & Reedy Law Firm, LLP Washington DC & Los Angeles Securities Law Investors Angel Investors DigiBelly Executives $1.2 Million Raised to Date Amount Financing Sought $2.5 Million Preferred Series B. Fixed 2X Dividend on investment paid from 5% Gross Revenue starting Month 13 plus automatic conversion 1 to 1 to common stock. Use of Funds Infrastructure, Sales & Marketing Profitability Expected Q3 - Q4, 2004 |
To reach customers (both individuals and businesses), businesses around the world are continuing to invest in getting onto the Web. Ten million businesses had websites in 2000; 25 million will by 2005[1]. Today, less than 70% of small businesses have websites. In five years, more than 80% will.
• Value-added Solutions Create Switching
Barriers—While the company wins customers by leveraging market knowledge to deliver a great price, it assures long-term relationships by providing value-added marketing solutions and continued integration with back-end business critical systems. This creates a dependency on the entire implementation far beyond a basic website.
• University of Central Florida Resources—
DigiBelly is supported by UCF with contacts, PR, technology transfer opportunities and resources. DigiBelly has already participated in winning a $600K National Science Foundation Award with UCF.
• DigiBelly Partner Program —DigiBelly has also developed a technology infrastructure to support a grass roots, referral based marketing effort where traditional marketing dollars are directed back to the customer base that refers additional customers to the program. Additionally, the program acts as a customer service buffer with people helping people with their technology needs.
With an average sale of $450+. All in a win/win solution for the business owners and DigiBelly.
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Key Relationships University of Central Florida Time Warner Telecom IBI Global Prominent Clients Tupper Ware - Orlando 1002 Productions - Nashville CENTECOM - Orlando InvestorBeware. org -NYC Demand "It was much easier than I thought. We have 8,000 agents that need this!" Alex Conti Northwestern Mutual Market Perspective "I believe many of the companies we meet need this kind of solution. This should be a great partnership." Ray Maxwell Time Warner Telecom |
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& CEO |
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Irman |
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:ric |
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B. Delisle, Cha |
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Financial Projections |
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Financial Summaries in thousands (000's) |
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Revenue |
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Y1 $2,289 |
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Y2 $14,276 |
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Y3 $36,908 |
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Y4 $47,981 |
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Y5 $62,375 |
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Cost of Sales |
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Y1 $180 |
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Y2 $515 |
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Y3 $872 |
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Y4 $1,047 |
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Y5 $1,256 |
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SG&A (w/o COS) |
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Y1 $3,182 |
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Y2 $9,646 |
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Y3 $16,739 |
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Y4 $21,814 |
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Y5 $27,957 |
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Net Income Before Tax |
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Y1 $(1,073) |
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Y2 $4,114 |
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Y3 $19,297 |
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Y4 $25,120 |
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Y5 $33,162 |
