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The

Startup

Guide

2013 Edition

Building a Better World Through Entrepreneurship

RYAN ALLIS

With Ellen Daly

CEO of Connect.com

SHARE

FREELY

Through Entrepreneurship RYAN ALLIS With Ellen Daly CEO of Connect.com SHARE FREELY More slides at www.startupguide.com
Through Entrepreneurship RYAN ALLIS With Ellen Daly CEO of Connect.com SHARE FREELY More slides at www.startupguide.com

More slides at www.startupguide.com

ENTREPRENEURSHIP Create A plan STARTUPGUIDE.COM 440

ENTREPRENEURSHIP

Create A plan

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ABOUT THIS PRESENTATION

ABOUT THIS PRESENTATION THIS presentation IS PART OF A LARGER slide DECK on building a better

THIS presentation IS PART OF A LARGER slide DECK on building a better world through entrepreneurship

For more slides & CONTENT visit:

Startupguide.com

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cREATE A PLAN

SHOULD YOU CREATE A PLAN BEFORE A PROTOTYPE?

cREATE A PLAN SHOULD YOU CREATE A PLAN BEFORE A PROTOTYPE? SOME ENTREPRENEURS choose not to

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

cREATE A PLAN WHY A LITTLE BIT OF PLANNING IS HELPFUL I find that it’s helpful

I find that it’s helpful to at least

create a short slide deck or exec summary

To ensure you know what you’re building & What problem you’re Solving before you start building

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cREATE A PLAN

YOUR COMPANY PITCHDECK

c R E A T E A P L A N YOUR COMPANY PITCHDECK Many ‘Business

Many ‘Business PLANS’ ARE created as sLIDE DECKS WHICH INCLUDE:

1.TEAM 2.PROBLEM 3.PRODUCT & TECHNOLOGY 4.MARKET & COMPETITION 5.revenue model 6.FINANCIAL PROJECTIONS

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cREATE A PLAN

the problem

cREATE A PLAN the problem In your plan, CLEARLY ILLUSTRATE THE PROBLEM YOU ARE SOLVING HOW

In your plan, CLEARLY ILLUSTRATE THE PROBLEM YOU ARE SOLVING HOW YOU ARE SOLVING IT

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AND FOR WHOM

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cREATE A PLAN

the product

cREATE A PLAN the product SHOW PICTURES OF A PROTOTYPE OR WIREFRAMES & MOCKUPS And MAKE

SHOW PICTURES OF A PROTOTYPE OR WIREFRAMES & MOCKUPS And MAKE YOUR SPECIFIC SOLUTION

EASILY VISUALIZED

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cREATE A PLAN

the product

cREATE A PLAN the product SHARE YOUR PRODUCTION TIMELINE AND KEY MILESTONES TOWARD INITIAL PRODUCT DELIVERY

SHARE YOUR PRODUCTION TIMELINE AND KEY MILESTONES TOWARD INITIAL PRODUCT DELIVERY AND DISCUSS FUTURE PRODUCTS AND SERVICES

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cREATE A PLAN

the market

cREATE A PLAN the market ADDRESS THE FOLLOWING ABOUT YOUR MARKET SUPPLIERS BARRIERS TO ENTRY INTELLECTUAL

ADDRESS THE FOLLOWING ABOUT YOUR MARKET

SUPPLIERS BARRIERS TO ENTRY INTELLECTUAL PROPERTY MARKET SIZE MARKET TIMING DIRECT COMPETITORS POTENTIAL PARTNERS

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cREATE A PLAN

revenue model

c R E A T E A P L A N revenue model ADDRESS THE FOLLOWING

ADDRESS THE FOLLOWING IN YOUR REVENUE SECTION

B2B or B2c DISTRIBUTION CHANNELS WHOLESALE VS. RETAIL REVENUE ONE TIME VS. SUBSCRIPTION REVENUE USER & CUSTOMER GROWTH ASSUMPTIONS UNIT COSTS AT SCALE UNIT REVENUE AT SCALE

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cREATE A PLAN

Financials SECTION

c R E A T E A P L A N Financials SECTION ADDRESS THE FOLLOWING

ADDRESS THE FOLLOWING IN YOUR FINANCIAL PROJECTIONS REVENUE ASSUMPTIONS COST ASSUMPTIONS Revenue by Month COST BY MONTH BY CATEGORY NET INCOME BY MONTH BY CATEGORY TIME TO BREAKEVEN FUNDS NEEDED TO REACH NEXT MILESTONE TOTAL EXPECTED FUNDS NEEDED

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cREATE A PLAN

Financials PROJECTIONS

c R E A T E A P L A N Financials PROJECTIONS EXAMPLE 60 Month

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)

($2,000,000)

($2,500,000)

Aggregate breakeven MONTHLY breakeven 0 6 12 18 24 30 36 42 48 54 60
Aggregate
breakeven
MONTHLY
breakeven
0
6
12
18
24
30
36
42
48
54
60
Revenue
Expenses
Aggregate Net Income

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cREATE A PLAN

Financials PROJECTIONS

c R E A T E A P L A N Financials PROJECTIONS Here’s a REALLY

Here’s a REALLY BASIC Example financial PROJECTION

 

2015%

2016%

2017%

2018%

2019%

Revenue%

18,127%

50,984%

143,401%

403,340%

1,134,461%

Expenses%

103,408%

118,539%

139,017%

287,553%

640,004%

Net%Profit%

<85,281%

<67,555%

4,384%

115,787%

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

c R E A T E A P L A N SLIDE DECK checklist MAKE SURE

MAKE SURE YOUR DECK ANSWERS ALL THESE QUESTIONS

! Who’s on your team? ! What is their 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 WILL IT COST TO PRODUCE THE PRODUCT? ! WHAT IS THE TOTAL START-up COST?

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cREATE A PLAN

SLIDE DECK checklist

c R E A T E A P L A N SLIDE DECK checklist MAKE SURE

MAKE SURE YOUR DECK ANSWERS ALL THESE QUESTIONS

! HOW MUCH IS NEEDED TO REACH BREAKEVEN? ! WILL YOU NEED TO ACQUIRE ANY IP? ! WHO IS YOUR TARGET CUSTOMER? ! WHAT ROLES 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 YOUR ANNUAL PROFIT PROJECTIONS?

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cREATE A PLAN

incorporate

cREATE A PLAN incorporate NOW THAT YOU HAVE YOUR PLAN It’s time to become official AND

NOW THAT YOU HAVE YOUR PLAN It’s time to become official

AND INCORPORATE

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cREATE A PLAN

incorporate

cREATE A PLAN incorporate THE BENEFITS OF INCORPORATING MUCH LOWER TAXES (only pay taxes on profit)

THE BENEFITS OF INCORPORATING

MUCH LOWER TAXES (only pay taxes on profit) LIABILITY PROTECTION BEING TAKEN SERIOUSLY 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

cREATE A PLAN incorporate TO INCORPORATE YOURSELF YOU JUST NEED TO KNOW THE NAME OF THE

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

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

YOU CAN INCORPORATE VIA

LEGALZOOM.com INCORPORATE.COm OR VIA ANY CORPORATE LAW FIRM

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cREATE A PLAN

incorporate

cREATE A PLAN incorporate IN THE U.S. you can start a STARTUPGUIDE.COM S Corp C Corp

IN THE U.S. you can start a

STARTUPGUIDE.COM

S Corp C Corp LLC BENEFIT CORP

cREATE A PLAN incorporate IN THE U.S. you can start a STARTUPGUIDE.COM S Corp C Corp

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cREATE A PLAN

incorporate

cREATE A PLAN incorporate IN CHOOSING A LAW FIRM LOOK AT REPUTATION & REFERENCES START-up EXPERIENCE

IN CHOOSING A LAW FIRM LOOK AT

REPUTATION & REFERENCES START-up EXPERIENCE INTRODUCTION TO INVESTORS IPO EXPERIENCE PARTNER CHEMISTRY

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cREATE A PLAN

incorporate

cREATE A PLAN incorporate ONCE INCORPORATED YOU’ll RECEIVE YOUR ARTICLES OF INCORPORATION SET OF BYLAWS SET

ONCE INCORPORATED YOU’ll RECEIVE YOUR

ARTICLES OF INCORPORATION SET OF BYLAWS SET OF STOCK CERTIFICATES

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cREATE A PLAN

incorporate

cREATE A PLAN incorporate THEN if in the U.S. YOU CAN GET AN EMPLOYER IDENTIFICATION NUMBER

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

c R E A T E A P L A N What matters is execution Don’t

Don’t spend too long on planning. BUSINESS IDEAS ARE A DIME A DOZEN WHAT REALLY MATTERS IS THE OPERATIONAL EXECUTION

AND THE QUALITY OF the team.

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The

Startup

Guide

2013 Edition

Building a Better World Through Entrepreneurship

RYAN ALLIS

With Ellen Daly

CEO of Connect.com

SHARE

FREELY

Through Entrepreneurship RYAN ALLIS With Ellen Daly CEO of Connect.com SHARE FREELY More slides at www.startupguide.com
Through Entrepreneurship RYAN ALLIS With Ellen Daly CEO of Connect.com SHARE FREELY More slides at www.startupguide.com

More slides at www.startupguide.com