SOC SCI 198 Lecture Notes - Lecture 14: Key Management, Exit Strategy, Financial Statement

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100%$more$likely$to$get$investment$or$loans
§
Planning$drives$results$
Make$mistakes$on$paper,$not$in$the$market$
Agreement$between$owners/$executives$
Faster$execution$by$employees$
Main$reason$for$doing$it$
§
Faster$growth$
Focus-goals,$tactics,$WIIFM-deliverables$
Accelerated$growth
®
Faster$and$more$effective$action$
Team$members$
§
3-5$years$
Investors$
Quality$meeting$
®
Focus-team$and$idea$
Investors$
§
Two$audiences$
Why$create$a$business$plan$
Management$team$
Idea-why$customers$will$pay$money$now
§
Completive$advantage-unfair$but$legal$
§
TAM-large,$accessible$market$
§
Exit$strategy-realistic$
§
Opportunity$
First$paragraph-possibly$
§
Executive$summary-might$skim$
§
Management-unlikely$to$get$this$far$unless$the$executive$summary$
is$great$and$its$in$their$area$of$domain$expertise)$
§
Financials-glance,$discount$
§
Marketing-skim$
§
This$is$done$to$make$your$pitch$deck$look$good$
Call$for$a$meeting$
§
How$it$will$be$read$
The$investors$perspective
Executive$summary$
Management$team$
Company$overview
Business$model$
Product$description$
Drives$everything$
§
Market$analysis
Marketing$strategy$
Operating$plan$
Financials$and$financial$analysis$
Must$have$b-plan$content
He$opportunity-elevator$
§
Product/$service$overview$
§
Competition$and$completive$advantages$
§
Market$overview$and$marketing$and$sales$plan$
§
Key$management$
§
Capital$requirements$
§
Summary$of$financials$
§
Progress$to$date$
§
Executive$summary
Relevant$experience$ and$past$successes$
Include$complete,$accurate$resumes$in$the$appendices$
Key$managers$
§
Accurate$representation$of$responsibilities$
Id$gaps$and$future$needs$
Organization$chart$(optional)$
§
Important$
Board$members,$advisors$
§
Key$relationships$(accounting,$legal,$etc)$
§
Management$team$
Progress$to$date$
Background$
§
Legal$description$
§
Mission$and$objectives$
§
Competitive$advantages$
§
Company$overview-only$need$this$if$you$are$pitching$investors$
Dont$need$this$so$much$unless$getting$investors$
§
Most$people$over$do$this$don’t$over$do$it$
§
Keep$it$short$and$easy$to$read$
§
Technical$notes$in$the$appendices$
§
Product$/$services$
Most$B-planning$mistakes$
Invest$time$here$
§
Marketing$section$tips$
Market$size$
§
Customer$profile$
§
Competition$
§
Completive$advantages$
§
Risks/$opportunities$
§
Market$analysis$
Pricing$
§
Each$channel$is$like$its$own$business$
®
Dont$have$to$much$because$having$to$much$distribution$
channel
Sales$channels$
§
Customer$acquisition$program$
§
Customer$retention$program$
§
Key$relationships$
§
Marketing$Strategy$
Income$statements,$balance$sheet,$cash$flow$
Detailed$income$statement$in$the$appendix$
Sum$pro$forms$
§
Financial$statements$
Financial$analysis$
Processes$
§
Expected$results$
§
Measure$of$success$
§
Sum$of$operations-put$things$in$a$diagram$
Where$and$how$to$start$
Taking$over$the$world$
§
You$are$most$likely$to$be$acquired
§
Unrealistic$exit$strategy
Techno-gibber-they$dont$like$things$to$be$complicated$
Super-hero$management$
80%$of$effort$must$go$on$to$this$
§
Simplistic$marketing$
Inconsistencies$
§
Thin$air$numbers$
§
Calculation$errors$
§
Mistake$in$the$numbers$
Financials$that$show$they$don’t$have$a$clue
Poor$elevator$speech$
Must$focus$on$one$thing
§
If$they$see$competent$on$one$area$and$will$make$it$easier$to$learn$
later$on$
§
Lack$of$focus-difficult$thing$because$you$have$trouble$saying$no$
Gargantuan$market$sizes$
Most$important$thing$
§
Under-estimating$the$competition$
Typical$mistakes$to$avoid$
Read$the$business$model$summary$worksheet$for$the$concept$paper$
Lecture'14-week'7
Tuesday,$ February$ 21,$2017
3:36$PM
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Document Summary

100% more likely to get investment or loans. Make mistakes on paper, not in the market. Management- unlikely to get this far unless the executive summary is great and its in their area of domain expertise) This is done to make your pitch deck look good. Company overview- only need this if you are pitching investors. Don"t need this so much unless getting investors. Most people over do this don"t over do it. Don"t have to much because having to much distribution channel. Sum of operations- put things in a diagram. Techno-gibber- they don"t like things to be complicated. 80% of effort must go on to this. Financials that show they don"t have a clue. Lack of focus- difficult thing because you have trouble saying no. If they see competent on one area and will make it easier to learn later on.

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