BUSINESS PLAN CHECKLIST
Young
companies with fresh ideas need financial resources to help turn their
vision into reality. Flush with excitement, these entrepreneurs make the
rounds to banks and potential investors. More
often than not, these prospects never get a chance. Why?
Holes in
the Business Plan.
Over the
years, Edward G. Jones & Co. LLC has evaluated hundreds of business
plans, and has developed a system to gauge how likely a company's Business
Plan will get an investor's attention and receive funding. A company with
a high probability to receive funding has done market research, tested
its product, has clear goals, a solid management team and has articulated
its vision in an effective Business Plan.
Most importantly,
any company that has gone through this rigorous preparation will not only
receive funding, but will likely become a successful long-term enterprise.
As a service,
EGJ has outlined this BUSINESS PLAN CHECKLIST
so you, the entrepreneur, can know what is expected in a business plan,
can anticipate the kinds of questions potential investors will be asking,
and will thus focus on the true objectives of the business.
Using the
BUSINESS PLAN TEMPLATE will help you organize
and present clear, comprehensive and concise information to the investment
community. Plus, you have created a roadmap to guide your steps to growing
your business and ensuring future success.
BUSINESS
PLAN CHECKLIST
The Market * Customers * Competition * Management Team
Intellectual Property * Financial Plan
The
Market
Describe the
Opportunity
- What
stage is your business in - e.g. concept, development, later stages?
- What
is the market's total size?
- Annual
growth rate?
- What
are the market segments?
Customers
Who Are They
and What's in it for Them?
- Why
do customers need your product or service?
- Why
will they change their present buying habits to use your product or
service?
- What
is the value proposition of your product or service to your customers?
- How
will you retain your customers and encourage repeat and multiple purchases?
- What
is your plan for Customer Service?
Competition
Companies and
Regulatory Issues
- Who
are your competitors?
- Describe
your competitive advantages.
- Do
you have first mover advantage?
- Are
the regulatory issues affecting your business?
- Are
there international trade and globalization considerations?
Management
Team
Leaders, Managers,
Workers
- Who
is on the Management Team?
- Describe
their experience, successes and failures in the industry
- How
much equity does Management have invested in the company?
- Does
Management display motivated and enthusiastic leadership?
- What
degree of confidence do you, as CEO, have that the business will be
successful?
- How
will you communicate that confidence to investors, employees, stakeholders
and the media?
Intellectual
Property
Unique Assets
- Patents
awarded or pending
- Are
these patents defensible?
- Are
competitors infringing on your patent rights?
- Does
your company have breakthrough technology that could change your industry
or create a new one?
Financial
Plan - First Five Years
Revenue Outlook
- Optimistic
& Conservative scenarios
- Can
it be a big company?
- What
are the limiting factors to your company's growth?
- Show
the margin analysis, including:
- EBITDA
-
Gross
margin
-
Operating
Cash Flow Projections
- Explain
the use of proceeds showing complete financial projections and milestones.
Financing
- How
has the business been financed until now?
- Who
are the investors in the company?
- How
much equity do the investors and managers have?
- How
much money are you seeking in this round?
Cost
Management
- Is
the business capital intensive?
- What
are the main capital expenditures over the next 5 years?
- What
systems will be used to track and control costs, e.g. IT systems &
services, Internet tools, ASPs, etc.?
Staffing
and Alliances
- Describe
the Organizational plan
- How
many people will be needed?
- Show
ramp-up over 5 years.
Milestones
- What
are the measurable benchmarks for success in
- Revenue
growth
- Customer
growth
- Expense
reduction
- Organizational
expansion
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