Startup Guide

2013 Edition

The

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Building a Better World Through Entrepreneurship

RYAN ALLIS With 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 through 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 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 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

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 SOLUTION

EASILY VISUALIZED
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cREATE A PLAN the product

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

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

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

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

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) 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

Here’s a REALLY BASIC Example financial PROJECTION
Revenue% Expenses% Net%Profit% 2015% 18,127% 103,408% <85,281% 2016% 50,984% 118,539% <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 !  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

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

NOW THAT YOU HAVE YOUR PLAN It’s 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 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

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 EXPERIENCE PARTNER CHEMISTRY
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cREATE A PLAN incorporate

ONCE INCORPORATED YOU’ll 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

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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Startup Guide
2013 Edition

The

SHARE FREELY

Building a Better World Through Entrepreneurship

RYAN ALLIS With Ellen Daly
CEO of Connect.com
More slides at www.startupguide.com

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