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Characteristics of a good plan

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a ritten by management team (support of experts)
a alidated & run through with knowledgeable advisors
a eferences to quality research (primary & secondary)

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a Crisp (16-20 slides)


a ogically sequenced and de-jargonized
Characteristics of a good plan contd..
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a elevance to audience (pointedly address key concerns & avoid
analysis paralysis syndrome)
a imple business orientation (not too techie)
a ealistic projections; promise the moon only if you can deliver it
a inancial prudence; high sensitivity towards cash burn
a aturity & self-awareness (competition, returns, risk & gaps
assessment)
a air valuation expectation

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a eliver a 360 degree perspective; don¶t tell only part of relevant story
a act-based; avoid fluffy adjectives
a ndustry insights s industry information (domain expertise)
a emonstration of excellent ability to execute per operating plan
a xit opportunities if audience is investor; understand C perspective
on fund level returns
tructure

¡ levator Pitch
¡ ision and ission tatement
¡ arket and ndustry nvironment
¡ alue Proposition, Key Products/ervices and ifferentiation
¡ Competitive cenario and ntry Barriers
¡ Business odel and ales/arketing trategy
¡ arket Traction
¡ anagement Team
¡ Organization
¡ inancials
¡ xit
¡ Capital
¡ isks and Gaps
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¡ hat does the Company do?


¡ hat new benefits do you provide and/or what pain points are addressed?
¡ How are you differentiated from competitors on a sustainable basis?
      

¡ Powerful and realistic enough to rally all stakeholders


¡ hould reveal core focus area of the company
¡ Avoid verbose and very generic statements
¡ No jargon
¡ True well thought through guiding principle for the company
¡ nvestors back current and potential market leaders
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¡ etails about target segment and industry such as


a arket definition
a Key segments (size and growth rates)
a arket trends (challenges & opportunities)
a Critical success factors

¡ isual illustration of eco-system


a Competition
a endors
a istributors
a Customers

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¡ Convince the audience that very large number of customers will pay good
amount of money for your offering on a regular basis
¡ ist of key products and services being offered & future roadmap; one-trick
ponies can be a challenge
¡ Target customer profile; try to please all and you may please none
¡ mportantly do not kid yourself about differentiation; competition is global

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¡ mNo competition¶ is almost never a reality; acknowledge potential


competition if no head-to-head player exists
¡ xistence of some competition can serve for crucial market validation
¡ Audience is sure to do its own competitive analysis; you might as well
assist the process with matrix of
a Competitor name
a Business line
a Geography
a elative key strengths and weakness of each
¡ ntry barriers for the new entrants are critical
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¡ evenue drivers
¡ Cost drivers
¡ ales/marketing strategy including
a Overall product/brand positioning
a ales & distribution strategy
a Key business development alliances & partnerships
a Pricing approach
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¡ A key clincher slide


¡ Provide information on customer wins and historical traction with key
accounts
¡ nclude applicable metrics such as
a Key accounts
a epeat business
a Customers won over from competition
a Number of unique users
a istribution partners
a Average revenue per account/user
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¡ A very crucial clincher slide- good teams rarer than good plans
¡ Provide information about management team including factors such as
a x-employer/venture names
a Past role descriptions and timelines
a Key strengths
a Achievements
a oles & high level responsibilities in this Company
¡ Audience will look for indication of
a ntegrity
a omain expertise
a Proven chemistry amongst core team
a stablished credibility in industry especially in case of large cos
a Perseverance especially in case of start-ups
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¡ Ability to attract good talent across organization is also credible validation


of company prospects
¡ High level on Bo and BoA if applicable
¡ Give a sense for the structure and size of the company ex.
a Business division break-up and approach used
a Human resource structure
a No of employees in various functions/departments
a ocations
 

¡ Audited annual high level Profit and oss & Cash low statement for the
last three years (if applicable)
¡ High level Profit & oss & Cash low projections for the following three
years
¡ ist key underlying assumptions for the top & bottom line projections
¡ Breakdown the revenue per lines of business
¡ mportant hygiene factor: mention & maintain consistency in currency &
denomination
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¡ nvestors have definite intention of exit


¡ Understand perspective on fund level return expectation
¡ Think through and share specific exit scenarios ex.
a Time frame and revenue scale for PO or
a Potential acquirers and specific reasons for their potential interest
a esearch & provide information on relevant & recent exit/valuation
events in the market



¡ f raising money specify how much & timelines for same


¡ Provide breakdown of capital allocation
¡ Calculate by when you will burn money being raised (if applicable)
¡ f further rounds of funding are required then specify the plan
¡ aising too much is as dangerous as raising too little
¡ pecify current capital shareholding structure
¡ hare history of earlier funding (if any)
a ates of such transactions
a Amounts raised
a Pre-money valuations
a quity stake allotted
    

¡ xcellent opportunity to demonstrate maturity of management team


¡ ention specific risks that your venture and market/industry face
¡ hat are the likely reasons that would cause your Company to under-
achieve its targets?
¡ hat steps are being taken to mitigate these risks?
¡ Current gaps can pan for ex.
a trategy
a Business model
a Customer traction
a Talent
a Technology
a Operations
¡ hat are the priorities & consequent plan around filling in these gaps?
Thank-you