RYAN ALLIS With Ellen Daly
CEO of Connect.com
More slides at www.startupguide.com
ENTREPRENEURSHIP
Create A plan
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ABOUT THIS PRESENTATION
THIS presentation IS PART OF A LARGER slide DECK on building a better world through entrepreneurship
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cREATE A PLAN SHOULD YOU CREATE A PLAN BEFORE A PROTOTYPE?
SOME ENTREPRENEURS choose not to create a plan at all And just start working
On a prototype or Minimum viable product
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cREATE A PLAN WHY A LITTLE BIT OF PLANNING IS HELPFUL
I find that it’s helpful to at least create a short slide deck or exec summary To ensure you know what you’re building & What problem you’re Solving before you start building
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cREATE A PLAN YOUR COMPANY PITCHDECK Many ‘Business PLANS’ ARE created as sLIDE DECKS WHICH INCLUDE:
1. TEAM 2. PROBLEM 3. PRODUCT & TECHNOLOGY 4. MARKET & COMPETITION 5. revenue model 6. FINANCIAL PROJECTIONS
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cREATE A PLAN the problem
In your plan, CLEARLY ILLUSTRATE THE PROBLEM YOU ARE SOLVING HOW YOU ARE SOLVING IT
AND FOR WHOM
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cREATE A PLAN the product
SHOW PICTURES OF A PROTOTYPE OR WIREFRAMES & MOCKUPS And MAKE YOUR SPECIFIC SOLUTION
EASILY VISUALIZED
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cREATE A PLAN the product
SHARE YOUR PRODUCTION TIMELINE AND KEY MILESTONES TOWARD INITIAL PRODUCT DELIVERY AND DISCUSS FUTURE PRODUCTS AND SERVICES
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cREATE A PLAN the market
ADDRESS THE FOLLOWING ABOUT YOUR MARKET
SUPPLIERS BARRIERS TO ENTRY INTELLECTUAL PROPERTY MARKET SIZE MARKET TIMING DIRECT COMPETITORS POTENTIAL PARTNERS
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cREATE A PLAN revenue model
ADDRESS THE FOLLOWING IN YOUR REVENUE SECTION
B2B or B2c DISTRIBUTION CHANNELS WHOLESALE VS. RETAIL REVENUE ONE TIME VS. SUBSCRIPTION REVENUE USER & CUSTOMER GROWTH ASSUMPTIONS UNIT COSTS AT SCALE UNIT REVENUE AT SCALE
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cREATE A PLAN Financials SECTION
ADDRESS THE FOLLOWING IN YOUR FINANCIAL PROJECTIONS REVENUE ASSUMPTIONS COST ASSUMPTIONS Revenue by Month COST BY MONTH BY CATEGORY NET INCOME BY MONTH BY CATEGORY TIME TO BREAKEVEN FUNDS NEEDED TO REACH NEXT MILESTONE TOTAL EXPECTED FUNDS NEEDED
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your financial projections Should list out expenses by major categories (Labor, Marketing, Servers, OFFICE SPACE, etc.)
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cREATE A PLAN SLIDE DECK checklist
MAKE SURE YOUR DECK ANSWERS ALL THESE QUESTIONS ! Who’s on your team? ! What is their background? ! WHAT IS THE NEED FOR THE PRODUCT? ! HOW WILL THE PRODUCT BE PRICED? ! WHAT IS THE SIZE OF THE MARKET? ! IS THE MARKET READY FOR THE PRoDUCT? ! WHAT WILL IT COST TO PRODUCE THE PRODUCT? ! WHAT IS THE TOTAL START-up COST?
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cREATE A PLAN SLIDE DECK checklist
MAKE SURE YOUR DECK ANSWERS ALL THESE QUESTIONS ! HOW MUCH IS NEEDED TO REACH BREAKEVEN? ! WILL YOU NEED TO ACQUIRE ANY IP? ! WHO IS YOUR TARGET CUSTOMER? ! WHAT ROLES WILL YOU FILL IN THE FUTURE? ! WHAT ARE YOUR FUTURE PRODUCTS? ! WHAT ARE YOUR ANNUAL Revenue PROJECTIONS? ! WHAT ARE YOUR ANNUAL COST PROJECTIONS? ! WHAT ARE YOUR ANNUAL PROFIT PROJECTIONS?
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cREATE A PLAN incorporate
NOW THAT YOU HAVE YOUR PLAN It’s time to become official
AND INCORPORATE
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cREATE A PLAN incorporate
THE BENEFITS OF INCORPORATING
MUCH LOWER TAXES (only pay taxes on profit) LIABILITY PROTECTION BEING TAKEN SERIOUSLY ABILITY TO OPEN A BANK ACCOUNT ABILITY TO HIRE EMPLOYEES ABILITY TO RAISE INVESTMENT ABILITY TO GAIN CORPORATE CREDIT
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cREATE A PLAN incorporate
TO INCORPORATE YOURSELF YOU JUST NEED TO KNOW
THE NAME OF THE COMPANy THE STATE YOU WISH TO INCORPORATE IN
THE NUMBER OF SHARES TO CREATE
THE INITIAL OWNERSHIP OF THOSE SHARES
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cREATE A PLAN incorporate
YOU CAN INCORPORATE VIA
LEGALZOOM.com INCORPORATE.COm OR VIA ANY CORPORATE LAW FIRM
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cREATE A PLAN incorporate
IN THE U.S. you can start a
S Corp C Corp LLC BENEFIT CORP
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Most firms that plan on raising capital are Delaware C Corporations
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cREATE A PLAN incorporate
IN CHOOSING A LAW FIRM LOOK AT
REPUTATION & REFERENCES START-up EXPERIENCE INTRODUCTION TO INVESTORS IPO EXPERIENCE PARTNER CHEMISTRY
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cREATE A PLAN incorporate
ONCE INCORPORATED YOU’ll RECEIVE YOUR
ARTICLES OF INCORPORATION SET OF BYLAWS SET OF STOCK CERTIFICATES
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cREATE A PLAN incorporate
THEN if in the U.S. YOU CAN GET AN EMPLOYER IDENTIFICATION NUMBER FROM THE IRS (YIPEE!) AND OPEN A BANK ACCOUNT
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cREATE A PLAN What matters is execution
Don’t spend too long on planning. BUSINESS IDEAS ARE A DIME A DOZEN WHAT REALLY MATTERS IS THE OPERATIONAL EXECUTION AND THE QUALITY OF the team.
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Building a Better World Through Entrepreneurship
RYAN ALLIS With Ellen Daly
CEO of Connect.com
More slides at www.startupguide.com