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