www.venture.ch | 1
Executive
Summary
Entrepreneurs and VCs:
* Details can be found further in the document
Jurors
Components of evaluation
Evaluated aspects of business plan
Product/
Service Idea
Management
Team
Marketing
Implementation
of Plan
Finance Risk Overall
Impression
Business System/
Organization
Grade business plans
Give constructive feedback
Total pts based on avg. of 2 jurors
Total pts = accumulation grade & nomination pts
20 extra pts when nominated as winner by juror
1. Grade
2. Nominate
3. Feedback
+ Ranking
Top 25 Teams*
Overview of evaluation process
www.venture.ch
Evaluation process: besides the grade evaluation, jurors can
nominate teams to increase chances for the Top 25
| 2
Juror feedback constitutes a valuable part of the »venture» experience for
the teams. Constructive and critical feedback helps teams to further
develop their business plan.
1 Determines final ranking
3. Feedback
5 = very good
4 = good
3 = fair
2 = poor
1 = very poor
0 = not covered
2. Nominate
1. Grade
Jurors nominate teams as potential winners
A nomination adds 20 points
to the total grade given by the juror
Jurors can nominate as many teams as they wish,
but we recommend them to only nominate 1
Each business plan is graded by 2 jurors
Jurors rate each area of the business plan TOTAL GRADE
BY 1 JUROR
Sum of rates of
each area
+ nomination points
TOTAL GRADE1
Average of grades
of 2 jurors
www.venture.ch
Management
team
1–2 pages
Product /
service
2–4 pages
Executive
summary
1-2 pages
| 3
Highlights experience, skills and competencies of team members
The management team brings in the necessary content related skills (e.g.
technical expertise) and business acumen or is aware of current gaps
Convinces potential investors that the team unites managerial and
technological expertise
The customer need/benefit is clearly identified in detail.
Target customer is clearly identified and specified as a subset of the population
The proposed product/service has as a defined unique selling proposition and
can be patented/protected otherwise (e.g. trade secret, first mover advantage)
Gives the reader a concise and complete overview of the product/service
Highlights key topics of the business plan and guides the reader through it
Presents the product/service attractively and spark the reader’s interest
Evaluation criteria (1/3)
www.venture.ch
Business
system/
organization
2–3 pages
Marketing*
6–8 pages
| 4
The paying customer is clearly defined (e.g. Google end-users don’t pay for
the service, advertisers do)
The chargeable product is clearly defined (e.g. Google sells traffic,
not search results)
Strategic partnership requirements are outlined
The revenue mechanism is effective and realistic for the product/ service
Evaluation criteria (2/3)
Provides thorough understanding of markets and competitors
Market size
Market growth
Overall competition
Determines segmentation and selection of target markets
Relevant market segmentation for proposed product/service
Selection of target segment
Positioning of product vis-à-vis competition
Outlines planned marketing and sales activities (e.g. “four Ps” framework)
* Deep-dive for marketing section further in the document
www.venture.ch
Risks
1–2 pages
Finance*
4–6 pages
Implementation
Plan
1–2 pages
| 5
Presents plausible financial forecasts including base/worst/best case
scenarios for income statement, balance sheet and cash flow statement
Outlines plausible liquidity planning and forecasts on capital requirements
Outlines deal proposal for investors
Identifies risks and assesses their potential impact (e.g. worst case scenarios)
Develops suitable countermeasures against risks
Describes the most important activities and milestones for the development
of the business
The implementation plan is action-oriented and can realistically be executed
Highlights the interdependence of milestones and activities on critical path
The business plan is readable (also for non-expert readers) and interesting
The document is well structured, concise and consistent
The document can be established in MS Word or Powerpoint
Evaluation criteria (3/3)
* Deep-dive for finance section further in the document
Overall
Impression
www.venture.ch
Product
Price
Place
Promotion
Overall Market Size
Overall Market Growth
Overall Competition
Segmentation
Selection of target segment
Positioning in target segment
Estimate market share in segment
| 7
Segmentation and selection
of target market
Determine your marketing
strategy
Number of potential
customers
Number of units sold
Total potential sales (CHF)
Market growth during
the last five years
Forecast for the next
five years
Most important current
and potential competitors
Strategy of competitors
SWOT1 analysis
Meaningful grouping of
potential customers
(e.g., with similar needs,
attitudes and behavior)
Match between offered
product/service and
customer needs
Financial attractiveness
and growth potential
of the segments?
Differentiation from
competition
Development of market
share and sales volume
Customers per segment
Product meets relevant
needs of customers in
the selected segments
Adjustment of product
to each target segment
Pricing strategy
Objective of pricing strategy
Market penetration
Skimming
How are customers reached
Potential outsourcing
of distribution
Means of communication
(advertising, direct
marketing, etc.)
"Unique Selling Proposition”
Overall market potential
and competition1 2 3
1 Strengths, weaknesses,
opportunities, threats
There are 3 essential steps to undertake for a good
marketing strategy
www.venture.ch
Key questions Hints
| 8
1
Number of (potential) customers?
Number of units sold?
Total sales in CHF in product-relevant
areas?
Analyze total market size and each
segment
Possible sources: investment banking
reports, official statistical bureaus,
specialist associations, specialist
journals, surveys
In the last five years?
Forecast for the next five years?
Forecasts regarding market growth
need to be realistic and
understandable
Most important current competitors?
Their market share?
Their strategy?
Their strengths and weaknesses?
Potential new competitors?
Can business idea be copied?
How quickly?
Possible substitute products?
An attractive market is ideally
characterized by:
Few competitors
High entry barriers
No (foreseeable) substitutes
Many equally good suppliers
Many potential customers
The overall market needs to be assessed in terms of size,
growth and competition
Competitive
Environment
Market Growth
Market Size
www.venture.ch | 9| 9
2Within the overall market, attractive segments need to be
identified and approached
Which customer needs will our
product primarily satisfy?
Which customers/customer groups
are especially financially attractive?
Get to know the markets that you can
serve with your products very well
Set target to dominate first a part of
the market, in order to later expand
into neighboring segments
How is our offer differentiated from the
competition?
What additional benefits does our
product offer?
Possible additional benefits: easier to
use, greater safety, etc.
What share of market and what sales can
we probably achieve with our customers?
How many customers can we reach in
each target segment?
Convert from the competition?
How will our market share and sales
develop over time?
Be aware of the non-linear market
penetration dynamic
Be aware of the 6-12 month delay in
the sales process for expensive
products (B2B)
How to meaningfully group potential
customers with similar needs?
Segmentation is possible, e.g., by
industry, geography, purchasing power,
intensity of customer needs
Simple & feasible segmentation
Estimate Market
Shares and
Sales Volume
Position
Yourself Against
Competitors
Choose Target
Market
Segment Market
Key questions Hints
www.venture.ch
Product
Key questions
| 10
What price can we ask for the product?
What objective are we following with
our price strategy?
Market penetration: quick
penetration with low price?
Skimming: fewer customers at a high
price in order to later gradually
expand the target segment?
There are three approaches to pricing
Market price
Costs plus margin
Customer benefit as basis (value-
based)
Customer benefit is ideal as a basis,
costs plus margin is not recommended
As a rule, start-ups use the skimming
strategy, as higher prices can be
justified by an innovative product
Avoid price wars!
Does our product meet the relevant
needs of customers in the selected
target segments?
Do we want to adjust our product to
each target segment?
Customer needs can be defined along
three dimensions
Functional level: product attributes,
value, quality, etc.
Process level: user-friendly
transactions, easy access, etc.
Relationship level: personal service,
loyalty program, etc.
3Target segments need to be served with orchestrated
marketing strategies based on the 4P’s (1/2)
Price
Hints
www.venture.ch
Place
Key questions Hints
Promotion
| 11
1 One-time sales argument
How do we want to reach the customer
with our product?
Do we want to outsource distribution or
do it ourselves?
Possible criteria for selecting distribution
channel: # of potential customers,
companies vs. private individuals, need
to explain the product; upper vs. lower
price segment
Sales focus changes with time:
Convince the first five customers
through outstanding service
Convince the next fifty customers with
your first five references
Convince other customers through
segment-specific standardization
With which means of communication do
we want to convey the advantages of
our product to customers? (advertising,
direct marketing, PR, trade fairs, visits to
customers, etc.)
Is our "Unique Selling Proposition“1
precise, brief (two lines) and formulated
from the customer's perspective?
Focus your energies on fewer but more
effective means
Calculate how much advertising you can
allow for each sales completion
Differentiate between
Users
Technically-focused buyers (IT dept.)
Economically-focused buyers (e.g.,
CFO). Note: an economically focused
buyer has the last word on the budget!
3Target segments need to be served with orchestrated
marketing strategies based on the 4P’s (2/2)
www.venture.ch
The financial section can be structured into two pillars
| 13
Plausible revenue model and cost projection
Cash flow projection
(for 5 years and detailed for first 24 months)
Detailed profit & loss forecast
(for 5 years)
Balance sheet forecast
(for 5 years)
Best/base/worst case scenario
Underlying assumptions
Capital needs resulting from projected
cash flows
Planned financing rounds
Usage of funds
Current shareholder structure and
funding history
Investor shares for each financing round
Internal rate of return (IRR) for investors
Exit strategy
Financial projections11Finance requirement
& deal structure2
1 For teams in startup phase we advise to show also historical/actual financials
www.venture.ch
Key
Components
Key aspects
Assumptions
Hints
| 14
Cash flow, P&L and balance sheet
projections: be realistic! Startups rarely
achieve enormous growth rates, or
become a “unicorn” in no time. Be
transparent on the logic and assumptions.
Investors like to see a graph of the cash
balance
Figures should demonstrate that you
understand the major financial
implications of your business plan and
that you have not been over-optimistic
Highlight your action plan if things do not
go as planned.
What logic has been used for the sales
forecasts? Make clear it was not invented.
Provide assumptions behind costs
(production, offices, staffing, etc.)
Mention policies adopted (depreciation of
assets, number of days credit to
customers, etc.)
Provide detail behind any loan (expected
interest rate, etc.)
Plausible revenue model and cost
projection
Cash flow projection
(for 5 years and detailed for first 24
months)
Detailed profit & loss forecast
(for 5 years)
Balance sheet forecast (for 5 years)
Best/base/worst case scenario
Underlying assumptions
Integrate this in each section
(cfr. Key components)
1Key financial data and financial projections
should be provided
www.venture.ch
Finance
Requirements
Key aspects
Deal structure
Hints
| 15
Capital needs resulting from projected
cash flows
Planned financing rounds
Usage of funds
Mention how much money you need to
execute the plan, and when it is needed
Elaborate on the sources of this money
(e.g. Business Angels, Venture
Capitalists, Bank Finance,… or a mixture)
Specifically how will that money be used?
What is your financial safety margin if
your plans or forecasts are delayed?
Current shareholder structure and
funding history
Investor shares for each financing
round
IRR for investors
Exit strategy
Provide details on what you offer, in terms
of ownership (shares) in the company,
and for which price
Clearly mention what you expect investors
to receive in return for the risk taken
Mention details behind any banking facility
or other forms of finance you expect
Exit strategy: how do you expect investors
to get their investment and return and
when. Will this be through a trade sale,
a flotation, or a management buy-out?
2Elaborate on finance requirements and deal
structures with investors
www.venture.ch | 16
16
For further information
please take a look at our supporting material
This handbook gives you answers to the essential questions that rise
during the planning of a startup project. The goal is to establish a
professional business plan that can convince potential investors.
Numerous novice entrepreneurs have already made use of this
handbook on their way to a successful business plan. Using this manual
does not require any prior knowledge, as the business language used is
easy to understand. Two case studies demonstrate how a real business
plan is constructed.
Planen, Gründen, Wachsen Mit dem professionellen
Businessplan zum Erfolg (in German only)
Recommended book:
Further reading:
Richard Stutely: The Definitive Business Plan: The fast-track to intelligent business planning for
executives and entrepreneurs (Financial Times Series), 3rd edition, 2012
Guy Kawasaki: The Art of the Start 2.0: The Time-Tested, Battle-Hardened Guide for Anyone
Starting Anything, 2nd edition, 2015
Bart Clarysse: The Smart Entrepreneur, 2011