Context
Regulatory, market conditions, etc. Regulatory, market conditions, etc. Examples:Examples: Opportunities thus exist….Opportunities thus exist….
Purpose of Plan
Identify opportunities provided ….Identify opportunities provided …. Audience: potential investors and partnersAudience: potential investors and partners Contents: Contents:
The MarketThe Market The Business Opportunity & ProductThe Business Opportunity & Product The CompetitionThe Competition The People & The NumbersThe People & The Numbers
Target Market
This target market includes organizations This target market includes organizations that ….that ….
SegmentsSegments
Market Segment Size ($) Upper Bound Estimates
Total Market Higher Segment 1Total Market Higher Segment 1 Revs = units x ave price = $total revsRevs = units x ave price = $total revs
Total Market Higher Segment 2Total Market Higher Segment 2 Revs = units x ave price = $total revsRevs = units x ave price = $total revs
*Assumes an average typical expenditure per product by segment
Value Proposition:
ApplicationApplication What it doesWhat it does
CustomerCustomer WhoWho
ProductProduct HowHow
Elevator Pitch
For X who need Y, Product A does Z.For X who need Y, Product A does Z. Unlike competitor(s) ABC which only Unlike competitor(s) ABC which only
provide D, Product A does E and provides provide D, Product A does E and provides the following benefits….the following benefits….
Revenue Model - 1
Software Licensing ModelSoftware Licensing Model Revenues derive from:Revenues derive from:
Describe how revenues are generatedDescribe how revenues are generated
Sample Sale
Configuration fees - $500Configuration fees - $500 License fees - $2000/seat x 3 seats = $5000 License fees - $2000/seat x 3 seats = $5000
(with discount)(with discount) Support and Maintenance fees @20% per Support and Maintenance fees @20% per
year = $1000/yryear = $1000/yr Customization fees = $4500Customization fees = $4500 Revenue for client over 5 years = $15,000Revenue for client over 5 years = $15,000
Distribution Channels
Direct (e.g., Web)Direct (e.g., Web) Independent AgentsIndependent Agents Sub-licensingSub-licensing Joint VenturesJoint Ventures OEMOEM
Technology - Status
Has the technology been developed?Has the technology been developed? Status?Status?
Technology - Protections
LegalLegal Trade secretTrade secret CopyrightsCopyrights TrademarksTrademarks PatentsPatents
TechnicalTechnical Proprietary technologiesProprietary technologies
Technology - Technical Specs
What is distinctive?What is distinctive? PlatformPlatform ArchitectureArchitecture InterfaceInterface DB’sDB’s otherother
CompetitionCompetition
Major forms of competitionMajor forms of competition Give examples by classGive examples by class
Competitive Advantages
MyCompany vs. Competitor 1MyCompany vs. Competitor 1 Cost and differentiation advantageCost and differentiation advantage
MyCompany vs. Competitor 2MyCompany vs. Competitor 2 Cost and differentiation advantageCost and differentiation advantage
Industry Structure
Barriers to EntryBarriers to Entry Industry ConcentrationIndustry Concentration BuyersBuyers
Management Team
Management teamManagement team Positions to be filled through internal(I) Positions to be filled through internal(I)
candidates or via outsourcing (O)candidates or via outsourcing (O) Marketing and Sales (I)Marketing and Sales (I) Accounting and Finance (I)Accounting and Finance (I) Technology (I)Technology (I) General Management (O)General Management (O) HR (O)HR (O)
Advisory Board
Will include following functional areas:Will include following functional areas: ManagementManagement Sales & MarketingSales & Marketing FinanceFinance PRPR TechnologyTechnology HRHR
Projections
Projections for 2001-2005 are provided in Projections for 2001-2005 are provided in the accompanying spreadsheet:the accompanying spreadsheet: RevenuesRevenues ExpensesExpenses Gross ProfitsGross Profits
Recap
Recap the needs of the market, the Recap the needs of the market, the opportunity and revenuesopportunity and revenues