communicating your business plan to investors james hoggan & associates june 25, 2002

Communicating your business plan to investors

Communicating your business plan to investors

James Hoggan & AssociatesJune 25, 2002

Keys to communicating your business planKeys to communicating your business plan

1.Discuss business value drivers2.Clearly define stage of development3.Explain your business roadmap4.Set and meet milestones5.Know what investors think6.Develop and follow a clear communications

plan

Overview Overview

Selling your story…………….Terry McDonald

Communications planning……Karen Cook Boas

Business Plan Value Drivers Business Plan Value Drivers

• IP protection for technology

• Attractive commercial potential

• Management with track record

• Financial strength

Business Plan Value Drivers (cont’d)Business Plan Value Drivers (cont’d)

• Big pharma partnership

• Third-party validation

• Technology platform

• Pipeline

• Growing revenues and profits

Technology Stage Technology Stage

• Research

• Pre-clinical

• Clinical stage: early, middle or late

• NDA filed

• Approval

• Commercial launch

• Revenues and profits

Road Map for Investors Road Map for Investors

• Where did you begin?• Where are you now?• How far have you come in the past year?• Where will you be in the next year?• What is your ultimate destination?• How are you going to get there?

The Business of Milestones The Business of Milestones

• Milestones help you communicate progress

• Milestones help non-experts monitor your progress

• Measurable milestones vs. hot air

They love us, they love us not They love us, they love us not

• Know what investors expect.

• Know what you can achieve.

• Make sure the achievements and expectations jive.

Competence + integrity = credibility

Selling the story

Communications Planning

Karen Cook Boas

Communications Planning

Karen Cook Boas

Why plan?Why plan?

• strategic approach

• “roadmap”

• builds agreement

• educates team

StructureStructure

Consider format: chronological, by issue, by audience:1.Overview/Analysis2.Goal and measurable objectives3. Target audiences4. Strategies and Tactics5. Action plan/Timeline

Overview/AnalysisOverview/Analysis

Where are we now?

• research-based analysis

• management’s and investors’ perspective

• challenges and opportunities

Goal and measurable objectivesGoal and measurable objectives

• demonstrate progress and achievements• gauge success of program

examples:– # of participants on conference calls– # of media articles– analysts covering company– new meetings during roadshows– new cities on roadshows

Target audiencesTarget audiences

• decision makers• influencers

examples:– analysts/institutions - government– employees - patients– Media - retail investors– investigators/clinicians - VC’s

StrategiesStrategies

• address challenges and maximize opportunities• tied to research and objectives

examples:– research based key messages– regularly scheduled investor meetings– designated, trained spokespeople

TacticsTactics

• outline specific tasks to implement each strategy

examples:– news releases– teleconferences– roadshows– one-on-ones– contact lists

Action Plan/TimelineAction Plan/Timeline

• month-by-month plan of activities

• assigns and tracks responsibilities and due dates

Other Items?Other Items?

• news release approval process

• handling media inquiries

• disclosure policy

• employee blackout policy

Keys to communicating your business planKeys to communicating your business plan

1.Discuss business value drivers2.Clearly define stage of development3.Explain your business roadmap4.Set and meet milestones5.Know what investors think6.Develop and follow a clear communications

plan