Business Proposal Workshop

Session Overviews

Christine Cromarty

Using the Methodology of

Noel J Lindsay and Gail L. Geronimos, Achaeus Holdings Pty Ltd
School of Business, Bond University
Session 1 - Introduction and Overview

 Understanding the Winning Business Proposal/Why is it

so important?

 Framework – What the whole Proposal Will Look Like

 How the Workshop will Work

 Allocate Tasks
Session 2 - The Offer (if applicable)

 How much money required, the type of finance required (debt and/or equity)
and the timing of capital drawdowns
 Purpose of the funds required
 Details of how the money will be used
 In the case of equity finance, what equity in the venture is offered or in the
case of debt finance, what collateral is provided
 In the case of equity finance, the terms of financing including possible “claw
back” strategies
 What hurt money is/has been provided by the entrepreneurs
 How repayments for debt financing and any dividend payments for equity
funding will be met
 In the case of equity funding, exit agreements/harvest strategies proposed for
the investor
 Any merger/acquisition potential
 Business valuation and basis for the valuation
 The number of board positions available for the financier (if any), and
 Anything else relevant to the financing decision
Session 3 - The Opportunity

 Why there is an opportunity

 What characterizes the opportunity; for example

 Customer need
 Market size
 Market growth
 Proprietary technology
 Sustainable competitive advantage
 Excellent fit with the team
 Barriers to entry
 Forgiving profit margins
 Etc.
Session 4 - The Product/Service

 Brief description of the product(s)/service(s)including diagrams

 Status of the product/service

 Description of the intellectual property

 Who owns the intellectual property

 Description of how the product(s)/service(s) satisfies a need

 Unique selling proposition (USP) of the product

 Any substitutes for the product(s)/service(s)

 Product/service endorsements

 Comparison of the main features and benefits of the product compared with
competing products

 Brief overview of research and development (R&D) plans

 Stage of where the product/service is in the “product life cycle”

Session 5
Overview of the Organization, Vision and Mission

 Registered name
 Date of commencement of operations
 History of the business
 Business activities
 Mission statement
 Vision statement
 Organizational objectives
 Founders/entrepreneurial team
 Milestones achieved by the team
 Business structure
 External contacts
Organizational Plan

 Brief resumes of key staff members

 Development of performance standards, measurement and
feedback
 Job and work design
 Occupational health and safety issues
 Pertinent industrial relations’ issues, and
 Recruitment and induction strategies
 Reward systems
 Staff training needs
 Staffing requirements – now and into the future
 Strategies for encouraging innovation in the organization
 Training needs analysis
 Wages expense details, and
 Other relevant human resource issues
Session 6 - Strategic Analysis

 External environmental analysis: environmental scan

 Macro Environment Analysis (PEST Analysis)
 Industry or Competitive Environment Analysis
 Key Industry Success Factors
 Target Market Analysis
 Competitor Analysis
 Customer Profile

 SWOT analysis
Session 7 - Marketing Plan

 Marketing objectives
 Sales forecasts
 Marketing mix to achieve the objectives and reach the
target markets
 Marketing budget details and
 Marketing action plan
 Marketing controls, and
 Other relevant marketing issues
Session 8 - Development Plan
The Plan to Develop Content or Application

 Team location and layout

 Production process and plan
 Scheduling
 Specs – how long to develop, who develops
 Who is in the team – Project Managers, Programmers,
what type and how long
 Equipment needs
 Production budget, and
 Other relevant development issues
Session 9 - Financial Plan

 Financial history
 Underlying assumptions
 Financial proformas (profit and loss statements, balance
sheets, and cash flow statements)
 Sensitivity analysis
 Breakeven point
 Key financial statement ratios
 Funding and expansion plan
 Harvest/exit strategy
Session 10 - Critical Risks and Problems

 Listing of critical risks and problems faced by the business

as well as strategies for overcoming those risks and
problems
Session 11 - Executive Summary

 The purpose of the business proposal

 A general statement of the business concept

 Why there is an opportunity

 Significant product/service features

 The market to be served and market potential

 Sustainable competitive advantage

 A brief description of the team and why each member is important

 Development milestones achieved to date

 A summary of financial results (for example, sales achievement,

breakeven point, sales and profit growth), and

 The form and amount of capital required, how it will be used, when it will
be repaid (if relevant), and the return on investment
Session 12 - Elevator Pitch

 Bill Gates gets in the Elevator – you have 60 seconds to

tell him what you do!

How do you do that??

Session 13 - Action Plan

 Specific tasks to implement project

 Responsibilities

 Priorities

 Estimated costs

 Deadlines
Session 14 - Don’t Forget the Rest

 Putting it all together

 Cover Page, Table of Contents, Appendices etc.