Homework 1

Mission/Vision Statement

 Mission:

 Vision:

Company Information

1. Objectives:

 What is it that you want to accomplish, and by when? (They should be stated in
such a way that their accomplishment creates a competitive advantage.)

 Do you have any international aspirations?

2. What is/are your competitive advantage(s)?

3. Company history – give the background of the company.

4. The management team--who are you, and who are your key people?

Financial Data

1. The financial request

 How much do you want? How will you use it?

 How much debt and equity?

 Number of investors sought?

 What are the terms of the deal you are offering investors?

 What return are you offering?

2. Tables

Summary of 3 years actual, 3 years projected

ACTUAL PROJECTED

20XX 20XX 20XX 20XX 20XX 20XX

REVENUE
 NET
INCOME

ASSETS

LIABILITIES

NET WORTH

Summary of Financing

CURRENT AMOUNT NEEDED

Debt _____ _____

Debt with Warrants _____ _____

Convertible Debentures _____ _____

Stock Preferred and Common _____ _____

Your Company

1. A history of operation. (Even for a startup, you have some ‘history.’)

 The legal form of the company.

 Why does your company exist?

 Describe in some detail what your company does and how it satisfies customer
needs.

 How did you choose the product or service you sell?

 What significant successes have you had?

 What significant failures or losses have you experienced?

(Concentrate on the successful accomplishment of past objectives, but be honest

about the risk.)

2. Highlight significant financial and operational events.

 When did they happen?

 Why were they significant?

3. Intangible assets.

 Goodwill.

 Established name/reputation.

Description of the product/product line.

1. Describe in terms of features that distinguish the product (line) from competitors.

 Identify the needs/benefits that the features meet for your target market.
(Reference the appropriate appendix for diagrams, photos, and/or technical
data.)

2. Product growth potential.

 Where is each product in terms of the product life cycle (PLC)?

 How are you managing the PLC for each product?

3. Applications of the product/product line.

 How is it used?

 How else might it be used?

 How could that/those use(s) be exploited?

 What potential new products might these suggest?

4. Planned new products.

 What new products?

 Why are you developing them?

 When do you plan to bring them out?

 What target market(s)?

Competitive Advantage(s)

1. How will you build your competitive advantage?

2. What is the basis of your competitive advantage?

 What is the economic forecast for your geographic area for the next year, the
next five years?
Market Share

1. Quantify, where possible and appropriate, i.e., amount of revenue, size of market
share, etc.

2. Sales forecast

 What is the nature of the sales cycle: long or short, simple or complex?

 Provide, in chart form, your sales forecasts for the current year, next year, for
a total of 3 years out.

 What is the average sale?

 Forecast projections in terms of best case, worst case, most likely case.

 Project sales in terms of units, revenues--gross and net.

Sales Forecast Table

YEAR YEAR YEAR

20XX 20XX 20XX

Best Case

Dollars _____ _____ _____

Units _____ _____ _____

Most Likely Case

Dollars _____ _____ _____

Units _____ _____ _____

Worst Case

Dollars _____ _____ _____

Units _____ _____ _____