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Welcome to

Product Camp Austin 15“In The Land of The Blind”

How to Write a Successful Business Plan

Hosted byJeffrey Fry

Profit Prophetprofitprophet@austin.rr.com

macromental.fireflyfunds.comAugust 15, 2015

productcampaustin

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“It must be remembered that there is nothing more difficult to plan, more doubtful of success, nor more

dangerous to manage than the creation of a new system. For the Initiator has the enmity of all who

would profit by the preservation of the old institution and merely lukewarm defenders in those

who would gain by the new.”

Niccolo Machiavelli, The Prince, 1513

1315PCTOPICS COVERED

• What is a Business Plan?• Back of a Napkin• It is ALL about PROFITS• The BASICS & The FOUR T’s• The 6 Crucial Questions• Traits of an Entrepreneur• A Simple Outline• In the End…what can I see?

1315PCWHAT IS A BUSINESS PLAN?

Sadland Swamp

B

Nerdvannah

A

You Are Here

The Impenetrable Forest of Financial

WoesMourningMountains

Deficit Dessert

River of

TearsNowhere

Trail Wishful Pass

Hope Crossing

Ruin

Road

1315PCGET A NAPKIN

1315PCGET A NAPKIN

1315PCGET A NAPKIN

1315PCGET A NAPKIN

$S-$C=$P

1315PCGET A NAPKIN

1315PCGET A NAPKIN

1315PCGET A NAPKIN

%P=($S-$C)/$S%P=$P/$S

1315PCSHOW ME THE PROFIT

• If you cannot demonstrate that your return for a single transaction can be at least 70% then rethink your plan…..NOW.

• So if something costs $1 to make or deliver, then I need to sell it for $3.33

SP=Cost /(1-Margin)SP=$1.00/(1-.7)=$3.33Margin= [(Sale Price) – Cost]/(Sale Price)

1315PCTHE BASICS

• A Business Plan Should NOT be More than 10 Pages

• 3 of those Pages should be your financial forecasts

• Only forecast out for 3 years• Use this plan as YOUR guidemap…

1315PCIT IS ALL IN THE TEES• THEME

– What are you trying to do that is Unique? What is your Secret Sauce? Give a BRIEF profile of the business itself: what it will sell and to whom, what is margin dollars, whether the business can grow and how fast, what its economics are, and the barriers that stand in the way of success. Also, your point of INFLECTION (going profitable)

• TEAM– Who are the key MUST have players on the Team. The men and women

starting and running the venture and giving their sweat and blood. Include key outside parties who can provide key services or important resources for your success, such as lawyers, accountants, strategic partnerships and suppliers.

• TIMELINESS– Is your product late, early, ahead of a curve, etc? An assessment of everything that can

go wrong and right, and a discussion of how the entrepreneurial team can respond.

• TERRAIN– Competition, How Crowded? How Big A Market: Growing, Stagnant, Shrinking? This is

the big picture, include any government regulationss, sensitivities (i.e.: interest rates, demographic trends, inflation, and the like) or any factors that inevitably change but cannot be controlled by the company.

1315PCQUESTIONS TO ANSWER

• WHAT – Am I Making or Doing, Does the Company Stand For?

• WHO – Do I need on my Team, Do I need to help me, Am I (my strengths / weaknesses)?

• WHERE – Is this Idea in comparison with other ideas, how far along are we on our journey, Do We make Money, Find Customers?

• WHEN – Do I start, expand, know I reached a milestone?

• HOW – Am I Going to get from point A to B?• HOW MUCH – Money, Time, Help…etc.

1315PCWHAT QUESTIONS

• What Does My Company Stand For?• What Does My Company Do (Product /

Service)• What is MY MAJOR DIFFERENTIATOR?• What is MY SECRET SAUCE?• What should I FOCUS ON?• What are MY Strengths / Weakness

1315PCWHO ARE YOU?

Creative Striving PerseveringSelf-Confident Intuitive Independent Self-Motivated Optimistic Focused

Forward-Looking Decisive Enterprising Disciplined Cooperative Results Oriented Energetic Persuasive Organized

1315PCWHO QUESTIONS

• Who Do I need on My Team to fill out what skills I do NOT have?

• Who do I need to help: – Raise Money– Manage the Team– Grow Sales– Spread the Word– Mentor Me– Run Operations

1315PCWHERE QUETSIONS

• Where does my company stand in comparison to other companies?

• Where do we make MONEY?• Where do my customers come from?• Where can I partner?• Where is my company going (stay private, IPO,

acquisition, etc.)?

1315PCWHEN QUESTIONS• When do we start sales?• When do we make operational profits?• When do we expand?• When do we add staff?• When do we sell the company?• When do we run out of money?• When is it time to STOP and try something

else?• Tied closely to the financial plan…

1315PCHOW QUESTIONS

• How do we operate?• How do we implement our short / long term

strategies?• How do we reach our customers• How do we generate sales?• How do we compete effectively?• How do we grow (adjacent ponds)

exponentially?

1315PCHOW MUCH QUESTIONS

• How Much Money do I need to start?• How Much Time until we begin sales?• How Much Time until we turn a profit?• How Much Money do we need to stay afloat?• How Much Outside Help do I need?• How Much Time Do I Give Myself?

1315PCA SIMPLE OUTLINE

• WHAT WE DO / WHAT WE STAND FOR• COMPETITION / DIFFERENTIATION / STRATEGY• MARKET SIZE (TAM / SAM)• FORECAST/ GROWTH POTENTIAL• CUSTOMER ACQUISITION (MARKETING)• TEAM (EXISTING / NEEDS)• FISCAL NEEDS (BURN & TURN)• FINANCIALS

1315PCSuggested Reading

• The Experience Economy• How to Make Friends and Influence People• The Luck Factor• Give and Take• It is Not What You Sell, It is What You Stand For• 21 Irrefutable Laws of Leadership• 7 Habits of Highly Effective People• The Art of War for Executives

1315PC

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1315PCQUESTIONS

THANK YOU!