You are on page 1of 26

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

ENTREPRENEURSHIP

Create A plan
STARTUPGUIDE.COM 440

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
STARTUPGUIDE.COM 441

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


STARTUPGUIDE.COM 442

cREATE A PLAN WHY A LITTLE BIT OF PLANNING IS HELPFUL

I find that its helpful to at least create a short slide deck or exec summary To ensure you know what youre building & What problem youre Solving before you start building
STARTUPGUIDE.COM 443

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
STARTUPGUIDE.COM 444

cREATE A PLAN the problem

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

AND FOR WHOM


STARTUPGUIDE.COM 445

cREATE A PLAN the product

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

EASILY VISUALIZED
STARTUPGUIDE.COM 446

cREATE A PLAN the product

SHARE YOUR PRODUCTION TIMELINE AND KEY MILESTONES TOWARD INITIAL PRODUCT DELIVERY AND DISCUSS FUTURE PRODUCTS AND SERVICES
STARTUPGUIDE.COM 447

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
STARTUPGUIDE.COM 448

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
STARTUPGUIDE.COM 449

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
STARTUPGUIDE.COM 450

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
STARTUPGUIDE.COM

Expenses

Aggregate Net Income


451

cREATE A PLAN Financials PROJECTIONS

Heres a REALLY BASIC Example financial PROJECTION


Revenue% Expenses% Net%Prot% 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.)
STARTUPGUIDE.COM 452

cREATE A PLAN SLIDE DECK checklist

MAKE SURE YOUR DECK ANSWERS ALL THESE QUESTIONS ! Whos 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?
STARTUPGUIDE.COM 453

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?
STARTUPGUIDE.COM 454

cREATE A PLAN incorporate

NOW THAT YOU HAVE YOUR PLAN Its time to become official

AND INCORPORATE
STARTUPGUIDE.COM 455

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
STARTUPGUIDE.COM 456

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
STARTUPGUIDE.COM 457

cREATE A PLAN incorporate

YOU CAN INCORPORATE VIA


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

STARTUPGUIDE.COM

458

cREATE A PLAN incorporate

IN THE U.S. you can start a


S Corp C Corp LLC BENEFIT CORP
STARTUPGUIDE.COM

Most firms that plan on raising capital are Delaware C Corporations

459

cREATE A PLAN incorporate

IN CHOOSING A LAW FIRM LOOK AT


REPUTATION & REFERENCES START-up EXPERIENCE INTRODUCTION TO INVESTORS IPO EXPERIENCE PARTNER CHEMISTRY
STARTUPGUIDE.COM 460

cREATE A PLAN incorporate

ONCE INCORPORATED YOUll RECEIVE YOUR


ARTICLES OF INCORPORATION SET OF BYLAWS SET OF STOCK CERTIFICATES
STARTUPGUIDE.COM 461

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
STARTUPGUIDE.COM 462

cREATE A PLAN What matters is execution

Dont 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.
STARTUPGUIDE.COM 463

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

You might also like