PACE Generic Business Plan

<Name of Venture>
<Your Logo Here>
Business Plan
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Private and Confidential

gantthead.com Business Plan
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Table of contents
Business Plan...............................................................................................................4
Executive Summary...........................................................................................4
People................................................................................................................4
Opportunity.........................................................................................................4
Context...............................................................................................................4
Risk and Reward................................................................................................5
Funding..............................................................................................................5
The People....................................................................................................................5
A unique, established skill mix...........................................................................5
The Opportunity............................................................................................................6
The Need...........................................................................................................6
The Approach.....................................................................................................6
The Customer Mix..............................................................................................6
The Three-year Picture......................................................................................7
The Context..................................................................................................................7
The Environment................................................................................................7
The Market.........................................................................................................8
The Competition.................................................................................................8
The <Name of Venture> Edge...........................................................................8
Risk & Reward..............................................................................................................9
Reward...............................................................................................................9
Risk..................................................................................................................10
Risk Mitigation..................................................................................................10
Exit Strategies..................................................................................................11
Appendix A – Financial Plan.......................................................................................13
Assumptions.....................................................................................................13
Pre-operating Budget.......................................................................................13
Profit & Loss Statement...................................................................................13
Balance Sheet..................................................................................................13
Cash Flow........................................................................................................13
Breakeven Analysis.........................................................................................13
Return on Investment.......................................................................................13
Appendix B – Partnership, Marketing and Sales Strategy.........................................13
List <Name of Venture>’S Critical Success Factor..........................................13
Appendix C – Ownership & Structure.........................................................................14
©2007 gantthead.com Confidential 2

Ownership and Control....................................................................................14

Location............................................................................................................14
Start-up Summary............................................................................................14

Business Plan
Executive Summary
Here is where you state clearly and succinctly what your VENTURE is about, what
products/services it supplies, what value it offers, and what it sets out to accomplish in
its market space and medium. Keep this description at a high level for now. The detail
will come later in the document.
<Name of Venture> is the place where <Fill in the Blank> to ensure the success of <Fill
in the Blank>.
<Name of Venture> is a business run by experienced professionals having a history of

collective accomplishment. Quickly list some of your accomplishments. As an
opportunity, it creates new value from <Fill in the Blank>, addressing a market <Fill in
the Blank>. State value of market space and how <Name of Venture> will dominate it.
Emphasize record of accomplishment and highly profitable future.
People Sustainable Advantage
Tell what kind of experience that the <Name  Substance – What’s the
of Venture> team has in this market space, meat behind the venture?
why they will be a cohesive unit, and what How will the venture
they will bring to <Name of Venture>. distinguish itself from the
competition?
Opportunity  Reputation – Elucidate how
you lead the industry.
The <Name of Venture> opportunity means
<What> to <Whom>. Is it a natural extension  Relationships – With whom?
of an already existing business? If so, how Why is that good?
does it build on success of the past? How
will <Name of Venture> can deliver  Freshness and Expertise –
incredible value to its audience and at what Elucidate.
cost?
Context
<Name of Venture> is entering a market where user needs are <What> and services are
projected to <What>? Competitors fall into <Number of> basic categories:
 Competitor-type number one (name names).
 Competitor-type number two (name names).
 Competitor-type number three (name names).
<Name of Venture> is unique in this space in that it takes advantage of the best aspects
of each of the above models, leaving behind dependencies that hobble the competition.
Risk and Reward
From a financial perspective, <Name of Venture> has all the advantages and flexibility of
<What> coupled with the stability and resources of <What>. We expect the business to
break even within NUMBER of fiscal quarters and be increasingly profitable thereafter.
These projections are based on conservative growth estimates and pricing models.
Many risks are mitigated by <What>. Chief among the remaining risks are LIST
(examples: new entrants into the space, low support from sponsors, and limited
participation from users). These risks are addressed HOW. New entrants in this space
are to be expected. <Tell how their impact will be mitigated>. The base case return for
<Name of Venture> is <XX>% with a range of <XX-XX>%.
<Name of Venture> focuses an experienced team and an opportunity to dominate a

market space filled with people who influence and make decisions relative to <What>.
<Name of Venture> offers the high rewards of <What>, combined with the decreased
risk of <What>. To <Target Market>, it is key to their success.
Funding
WHO has made a substantial commitment to exploring and developing the <Name of
Venture> concept. $<XXX> has been invested at this point to build this business plan.
The current funding requirement is $<XXX> million through <Month, year>.
The upside potential of this investment is clear, given the:
 Base case IRR of <XX>%, and the

 Operating cash flow and profit break-even point achieved within <When> of
<Venture start-up>.
The People
A unique, established skill mix
The team running <Name of Venture> is a group with a long history of <What>.
Our core members possess an average tenure of <XX> years on the team, and the
combined experience of <XX> years in the industry. Individually, they possess unique
skill sets that compliment and enhance each other, the team, and the projects on which
they work.
List the following, along with highlights of their experience:
Chief Executive Officer
Chief Operating Officer
Chief Financial Officer
Chief Technical Officer
Asset Manager
Customer Relationship Manager
Partnership Manager
Any other key officers or managers

Legal counsel (if necessary)
The Opportunity
The Need
<Name of Venture> addresses a particular need in a target market. Name it right here.
The Approach
<Name of Venture> provides <What> to <Whom>.
Functionality: Feature Sets
<Name of Venture> functionality falls broadly into feature sets: <List here>
Assets—These are <What>.
Information—<What>.
Interaction—<What>.
<Whatever else – list it here>.
Functionality: Levels of Service
List, if this applies.
<What> is Key
What really makes <Name of Venture> different from others is how it <What>.
Other sites provide LIST. <Name of Venture> does <What>. This offers
significant advantages:
 <Name of Venture> does <What>.

 <Name of Venture> provides a unique <What>.
 <Name of Venture> delivers incredible value to <Whom> by doing <What>.

The Customer Mix
Customer Value
The numbers shown below are indicative of what to expect by the end of year
<Number> and reflect pricing per <Whatever> unit. Higher numbers may be
achieved either by a higher investment in marketing or by lowering the cost of
participation, or by <List>.

The Three-year Picture
<What> Drives Revenues
List what will drive revenues for <Name of Venture>.
Value to Advertisers and Sponsors
<Name of Venture> is valuable to sponsors and advertisers because <List>.
Sponsors and advertisers want:
 To tightly target buyers.

 To offer better support.
 To know when and where to contact prospects.
 To make buying easy and pleasurable.
In retail, a common complaint is that 80% of all marketing is wasted. The problem
is identifying the 20% that is not. <Name of Venture> offers a way to target that
illusive 20%.<List how>.
Sponsors can be <Whom> for <What>.
Value to Investors
Investors are in search of real businesses that make money and provide value to
both customers and partners. These businesses are:
 Profitable.
 Unique.
 Filled with knowledge assets.
 A model that can be duplicated and extended.
<Name of Venture> derives revenue from the following sources: <List>
<Name of Venture> offers investors a new business model, multiple sources of

value, and near-term profits.
The Context
The Environment
Rapidly Changing Market Conditions Call for Something New and Different
List the marketing conditions that provide the opportunity that <Name of
Venture> will exploit. <Name of Venture> will fill this gap and exploit this niche.

The Market
The market we address can be viewed from distinct perspectives. <Name of Venture>
addresses the needs of <Whom>. <Name of Venture>’s approach is designed to work
best for TARGET MARKET.
Market Scope
The <Name of Venture> offering is targeted at <Whom>. This market is

comprised of organizations WHO. Specifically for this business plan, our primary
target market is those companies with revenues between $XXM and $XXXM.
Market Characteristics
Describe companies that have an ideal set of circumstances where a service

such as <Name of Venture> could be put to use.
Additional characteristics evident in that market that further support the decision
to target the <Name of Venture> service there include: <List>
The Competition
We looked at the competitors and comparable products. Competition exists in the form
of <What>. What stage of sophistication is every competitor at? List major competitors
individually, providing strengths and weaknesses.
Current Competition
<List>.
Future Contenders
<List>.
The <Name of Venture> Edge
<Name of Venture> stands out as a business with a competitive edge. State it

clearly.
From a Services Perspective
<List>.
From a Revenue Perspective
<List>.
Risk & Reward

Reward
Building a Community of Value
<Name of Venture> as an established community will represent a tremendous

amount of market value–both as a stand-alone entity and as a take-over target
for larger organizations. A public offering could propel <Name of Venture> to
market dominance and enrich investors, as could any number of equity-sharing
arrangements.
Revenue Sources
There are a number of revenue sources for <Name of Venture>. These include,
but are not limited to:
Revenue Source #1
<List>.
Revenue Source #2
<List>.
Revenue Source #3
<List>.
Vendor Sponsorship
<List>.
Advertising
<List>.
Value-added Services
<List>.
Pass-through Fees
<List>.
Vendor Membership Fees
<List>.
Syndication of Content
<List>.

Risk
The <Name of Venture> venture is not without risk. However, the risks identified below
are manageable and on some level mitigated by <What>. The major sources of risk that
we have identified are outlined below.
Time to Market
The importance of getting <Name of Venture> off the ground quickly is obvious.
What makes this more urgent is <What>.
Customer Retention
It is always less expensive to retain current customers than to acquire new ones.
Given that we can expect new entrants to this space, retaining customers is
important on a number of levels.
Advertising
We have assumed a certain CPM in pricing that we believe is conservative.

However, this is a rapidly changing market. A decline in CPM rates could have a
significant impact.
New, Superior Entrants
This is our most significant risk. An organization with significant resources, a

built-in audience, and knowledge assets could duplicate our model and impact on
our market share.
Focus on Profits Too Soon
This is a difficult risk to measure and deal with. Explain how <Name of Venture>
will deal with it.
Lack of Interest
Sponsors may not be willing to pay. Since sponsorship represents a significant

portion of our overall revenue, we must be mindful of this risk.
Inability to Differentiate Our Offering
How will <Name of Venture> set itself apart from the others?
Risk Mitigation
In order to address the risks outlined above, we have planned the following
countermeasures. We believe these will greatly reduce the risk we are facing in each
case.
Time to Market
What factors influence time to market, and how will they be addressed by <Name
of Venture>?

Customer Retention
How will <Name of Venture> retain customers?
Advertising
We will mitigate the risk of falling advertising rates by building long-term contracts
and commitments with our clients. To mitigate this risk further, we will continue to
build multiple revenue sources to lessen the impact of withdrawal of any one
source.
New, Superior Entrants
There are ways how we can mitigate this risk:
1. Way No. 1
2. Way No. 2
3. Way No. 3
Focus on Profits Too Soon
Actions that mitigate this type of risk have to do with setting expectations and
planning that is goal-focused. Those goals should have costs and revenue
expectations tied to them, but not be driven by profitability.
Lack of Interest in Sponsorship
If our sponsorship package does not precisely meet the needs of our target
clients, we need to be aware of this early and make adjustments.
Inability to Differentiate Our Offering
To ensure the success of our offering, we will take the following actions:
1. Action No. 1
2. Action No. 2
Exit Strategies
There are three basic exit strategies for <Name of Venture>. Each is contingent upon
our building an audience of value quickly.
1. IPO – For all the reasons outlined elsewhere in this document, there is a strong story
behind the business. We can show revenue history based on the jm+co products
business that extends far into the past.
2. Sale of the Business as a Whole – Our target market has a broad appeal to many
of our partners and competitors. At some point, it may make sense to seek or
entertain offers from these parties.

3. Sale of Parts of the Business – Our sponsors will depend on us as one part of their
overall support strategy, giving project managers what they need to implement their
products. At some point, they may want to have more control over the material, etc.
Selling off parts of <Name of Venture> is always an option.
4. Entering a Partnership – At some point, an organization may realize that it needs to

be closely associated with <Name of Venture>. A partnership may be feasible at that
point.

Appendix A – Financial Plan

Assumptions
 The existing <Name of Venture> team will remain in their current roles, at a minimum
until the venture is deemed successful.
 Early stage financing will come from <Where and how>.
 List all other assumptions for <Name of Venture>.
Pre-operating Budget
(follows)
Profit & Loss Statement
(follows)
Balance Sheet
(follows)
Cash Flow
(follows)
Breakeven Analysis
(follows)
Return on Investment
(follows)
Appendix B – Partnership, Marketing and Sales Strategy

List <Name of Venture>’S Critical Success Factor
Our <What> is the critical success factor in <Name of Venture>’s viability. Consider the
following:
Sponsorship
Indicate why sponsorship is important.
Advertising Sales
The <Name of Venture> marketing strategy centers on <What> and HOW.
We Have an Excellent Value Proposition
Do you? State it here.

We Have the Resources to Get the Word Out
<Name of Venture> has the resources to make our presence known and reach
the <Target market>. Advantages we have in this area are <List>, all of which
are important in our ability to craft and continually refine our message and the
offerings behind it.
Initial Strategy
What will <Name of Venture> do in the short term to get the ball rolling?
Long-term Strategy
As <Name of Venture> matures, what will it do to keep its market growing?
Scheduled Now
 List any and all events to take place.

 Advertising?
Implications
What marketing strategy approach will allow <Name of Venture> to work toward
specific goals while continuously optimizing efforts over time? How will this
approach allow <Name of Venture> to seize changing opportunities as they
arise?
Appendix C – Ownership & Structure

Ownership and Control
<Name of Venture> is currently wholly-owned by <Whom>. The proposed funding

method has <Whoever> providing initial capital for start-up, then seeking outside
partners for additional funding of ongoing operations. <Name of Venture> would become
a separate company from <Whom> and act as a stand-alone venture.
Location
During start-up, <Name of Venture> would be located <Where>. After start-up, <Name
of Venture> would be located <Where>.
Start-up Summary
The high-level startup plan involves a number of parallel efforts, each of which is
substantially underway. Each effort is focused and driven by measures.
Business Planning
The Business planning effort to date has been focused on quantifying the value
created by <Name of Venture>, using conservative assumptions, then
determining whether the venture is a viable opportunity. The planning process
will continue on an ongoing basis as <Name of Venture> develops and the
established measures will be used to judge its ability to continue operations.

Marketing
The job of our Marketing staff is primarily to acquire new members for <Name of
Venture>. The Marketing effort to date has been focused on <What>. A fair
amount of research has been performed into determining the value of each user
to <Name of Venture>. This research has been used heavily in our decision-
making process. Many tactical opportunities have been explored and all of the
information gathered through <What> METHOD will determine how that budget
is actually allocated.
Relationship Management
The Relationship Management effort is focused on keeping existing

<Customers>and increasing <What>.
Member and Sponsorship Management
The membership and sponsorship management effort pulls the marketing and
relationship management efforts together in an integrated way. <Explain>.

PACE Generic Business Plan

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<Name of Venture>

<Your Logo Here>

Private and Confidential

©2007 gantthead.com Confidential 2

Ownership and Control....................................................................................14

©2007 gantthead.com Confidential 3

<Name of Venture> is a business run by experienced professionals having a history of

People Sustainable Advantage

 Competitor-type number one (name names).

 Competitor-type number two (name names).

 Competitor-type number three (name names).

Risk and Reward

<Name of Venture> focuses an experienced team and an opportunity to dominate a

The upside potential of this investment is clear, given the:

 Base case IRR of <XX>%, and the

List the following, along with highlights of their experience:

Chief Executive Officer

Chief Operating Officer

Chief Financial Officer

Chief Technical Officer

Customer Relationship Manager

Any other key officers or managers

Legal counsel (if necessary)

<Name of Venture> provides <What> to <Whom>.

Functionality: Feature Sets

Assets—These are <What>.

<Whatever else – list it here>.

Functionality: Levels of Service

List, if this applies.

 <Name of Venture> does <What>.

©2007 gantthead.com Confidential 6

The Three-year Picture

<What> Drives Revenues

List what will drive revenues for <Name of Venture>.

Value to Advertisers and Sponsors

<Name of Venture> is valuable to sponsors and advertisers because <List>.

Sponsors and advertisers want:

 To tightly target buyers.

Sponsors can be <Whom> for <What>.

<Name of Venture> offers investors a new business model, multiple sources of

©2007 gantthead.com Confidential 7

The <Name of Venture> offering is targeted at <Whom>. This market is

Describe companies that have an ideal set of circumstances where a service

The <Name of Venture> Edge

<Name of Venture> stands out as a business with a competitive edge. State it

From a Services Perspective

From a Revenue Perspective

Risk & Reward

©2007 gantthead.com Confidential 8

Building a Community of Value

<Name of Venture> as an established community will represent a tremendous

Vendor Membership Fees

©2007 gantthead.com Confidential 9

We have assumed a certain CPM in pricing that we believe is conservative.

New, Superior Entrants

This is our most significant risk. An organization with significant resources, a

Focus on Profits Too Soon

Sponsors may not be willing to pay. Since sponsorship represents a significant

Inability to Differentiate Our Offering

©2007 gantthead.com Confidential 10

How will <Name of Venture> retain customers?

New, Superior Entrants

There are ways how we can mitigate this risk: