Startup

Guide
2013 Edition
The
SHARE FREELY
Building
Through Entrepreneurship
a Better World
RYAN
WithALLIS
Ellen Daly
CEO of Connect.com
More slides at www.startupguide.com

ENTREPRENEURSHIP
Create A plan
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ABOUT THIS PRESENTATION

THIS presentation IS PART OF A LARGER slide DECK on building a better world thro
ugh entrepreneurship
For more slides & CONTENT visit:
Startupguide.com
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cREATE A PLAN SHOULD YOU CREATE A PLAN BEFORE A PROTOTYPE?

SOME ENTREPRENEURS choose not to create a plan at all And just start working
On a prototype or Minimum viable product
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cREATE A PLAN WHY A LITTLE BIT OF PLANNING IS HELPFUL

I find that its helpful to at least create a short slide deck or exec summary To
ensure you know what youre building & What problem youre Solving before you start
building
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cREATE A PLAN YOUR COMPANY PITCHDECK Many Business PLANS ARE created as sLIDE DECK
S WHICH INCLUDE:
1. TEAM 2. PROBLEM 3. PRODUCT & TECHNOLOGY 4. MARKET & COMPETITION 5. revenue model 6. FINAN
CIAL PROJECTIONS
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cREATE A PLAN the problem

In your plan, CLEARLY ILLUSTRATE THE PROBLEM YOU ARE SOLVING HOW YOU ARE SOLVING
IT
AND FOR WHOM
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cREATE A PLAN the product

SHOW PICTURES OF A PROTOTYPE OR WIREFRAMES & MOCKUPS And MAKE YOUR SPECIFIC SOLU
TION
EASILY VISUALIZED
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cREATE A PLAN the product

SHARE YOUR PRODUCTION TIMELINE AND KEY MILESTONES TOWARD INITIAL PRODUCT DELIVER
Y AND DISCUSS FUTURE PRODUCTS AND SERVICES
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cREATE A PLAN the market

ADDRESS THE FOLLOWING ABOUT YOUR MARKET
SUPPLIERS BARRIERS TO ENTRY INTELLECTUAL PROPERTY MARKET SIZE MARKET TIMING DIRE
CT COMPETITORS POTENTIAL PARTNERS
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cREATE A PLAN revenue model

ADDRESS THE FOLLOWING IN YOUR REVENUE SECTION
B2B or B2c DISTRIBUTION CHANNELS WHOLESALE VS. RETAIL REVENUE ONE TIME VS. SUBSC
RIPTION REVENUE USER & CUSTOMER GROWTH ASSUMPTIONS UNIT COSTS AT SCALE UNIT REVE
NUE AT SCALE
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cREATE A PLAN Financials SECTION

ADDRESS THE FOLLOWING IN YOUR FINANCIAL PROJECTIONS REVENUE ASSUMPTIONS COST ASS
UMPTIONS Revenue by Month COST BY MONTH BY CATEGORY NET INCOME BY MONTH BY CATEG
ORY TIME TO BREAKEVEN FUNDS NEEDED TO REACH NEXT MILESTONE TOTAL EXPECTED FUNDS
NEEDED
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cREATE A PLAN Financials PROJECTIONS

EXAMPLE 60 Month PRO FORMA P&L PROJECTIONS
$1,500,000 $1,000,000 $500,000 $0 ($500,000) ($1,000,000) ($1,500,000) ($2,000,0
00) ($2,500,000) 0 6 12 18 24 30 36 42 48 54 60
MONTHLY breakeven Aggregate breakeven
Revenue
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Expenses
Aggregate Net Income
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cREATE A PLAN Financials PROJECTIONS

Heres a REALLY BASIC Example financial PROJECTION
Revenue% Expenses% Net%Pro t% 2015% 18,127% 103,408% <85,281% 2016% 50,984% 118,53
9% <67,555% 2017% 143,401% 139,017% 4,384% 2018% 403,340% 287,553% 115,787% 2019
% 1,134,461% 640,004% 494,457%
your financial projections Should list out expenses by major categories (Labor,
Marketing, Servers, OFFICE SPACE, etc.)
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cREATE A PLAN SLIDE DECK checklist

MAKE SURE YOUR DECK ANSWERS ALL THESE QUESTIONS ! Whos on your team? ! What is thei
r background? ! WHAT IS THE NEED FOR THE PRODUCT? ! HOW WILL THE PRODUCT BE PRICED
? ! WHAT IS THE SIZE OF THE MARKET? ! IS THE MARKET READY FOR THE PRoDUCT? ! WHAT W
ILL IT COST TO PRODUCE THE PRODUCT? ! WHAT IS THE TOTAL START-up COST?
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cREATE A PLAN SLIDE DECK checklist

MAKE SURE YOUR DECK ANSWERS ALL THESE QUESTIONS ! HOW MUCH IS NEEDED TO REACH BRE
AKEVEN? ! WILL YOU NEED TO ACQUIRE ANY IP? ! WHO IS YOUR TARGET CUSTOMER? ! WHAT RO
LES WILL YOU FILL IN THE FUTURE? ! WHAT ARE YOUR FUTURE PRODUCTS? ! WHAT ARE YOUR
ANNUAL Revenue PROJECTIONS? ! WHAT ARE YOUR ANNUAL COST PROJECTIONS? ! WHAT ARE YO
UR ANNUAL PROFIT PROJECTIONS?
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cREATE A PLAN incorporate

NOW THAT YOU HAVE YOUR PLAN Its time to become official
AND INCORPORATE
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cREATE A PLAN incorporate

THE BENEFITS OF INCORPORATING
MUCH LOWER TAXES (only pay taxes on profit) LIABILITY PROTECTION BEING TAKEN SER
IOUSLY ABILITY TO OPEN A BANK ACCOUNT ABILITY TO HIRE EMPLOYEES ABILITY TO RAISE
INVESTMENT ABILITY TO GAIN CORPORATE CREDIT
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cREATE A PLAN incorporate

TO INCORPORATE YOURSELF YOU JUST NEED TO KNOW
THE NAME OF THE COMPANy THE STATE YOU WISH TO INCORPORATE IN
THE NUMBER OF SHARES TO CREATE
THE INITIAL OWNERSHIP OF THOSE SHARES
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cREATE A PLAN incorporate

YOU CAN INCORPORATE VIA
LEGALZOOM.com INCORPORATE.COm OR VIA ANY CORPORATE LAW FIRM
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cREATE A PLAN incorporate

IN THE U.S. you can start a
S Corp C Corp LLC BENEFIT CORP
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Most firms that plan on raising capital are Delaware C Corporations
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cREATE A PLAN incorporate

IN CHOOSING A LAW FIRM LOOK AT
REPUTATION & REFERENCES START-up EXPERIENCE INTRODUCTION TO INVESTORS IPO EXPERI
ENCE PARTNER CHEMISTRY
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cREATE A PLAN incorporate

ONCE INCORPORATED YOUll RECEIVE YOUR
ARTICLES OF INCORPORATION SET OF BYLAWS SET OF STOCK CERTIFICATES
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cREATE A PLAN incorporate

THEN if in the U.S. YOU CAN GET AN EMPLOYER IDENTIFICATION NUMBER FROM THE IRS (
YIPEE!) AND OPEN A BANK ACCOUNT
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cREATE A PLAN What matters is execution

Dont spend too long on planning. BUSINESS IDEAS ARE A DIME A DOZEN WHAT REALLY MA
TTERS IS THE OPERATIONAL EXECUTION AND THE QUALITY OF the team.
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Startup
Guide
2013 Edition
The
SHARE FREELY
Building
Through Entrepreneurship
a Better World
RYAN
WithALLIS
Ellen Daly
CEO of Connect.com
More slides at www.startupguide.com