Craig is right, you'll need 3-5 year (you might aswell do 5 year btw) financial projections; a spreadsheet of course, with summary yearly costs/EDITDA etc on a slide in your deck.
The plan can take the form of a slide deck. Use something like this as a template:
10 to 15 Slides
Define the company/business in a single declarative sentence.
Describe the pain of the customer (or the customer’s customer).
Outline how the customer addresses the issue today.
Demonstrate your company’s value proposition to make the customer’s life better.
Show where your product physically sits.
Provide use cases.
Set-up the historical evolution of your category.
Define recent trends that make your solution possible.
Identify/profile the customer you cater to.
Calculate the TAM (top down), SAM (bottoms up) and SOM.
Go to market strategy
If viral, why will it be viral? ('Sharing' is not an answer)
List competitive advantages
What is your unfair advantage?
Product line-up (form factor, functionality, features, architecture, intellectual property).
Average account size and/or lifetime value, LTV
Sales & distribution model, CPA & CAC
Founders & Management
Board of Directors, and any key Advisors
Investment to date
The deal (EXCLUDING valuation OR completion date)
AND financial projections/cashflow (as excel s/sheet, ideally 5 yrs but atleast 3)
** You'll also need, for review before investment (due diligence): **
- Company formation docs, any trademark, patent, etc certificates
- CAP table (current shareholder ownership to two decimal places %
- Contracts of employment (Founders should have these also, and you should have founder vesting agreements)
- IP assignments for employees/contracts current & previous if not included in their employment contracts
- Any insurances, atleast the minimal required by law (i.e. in UK employers liability if you employ anyone, public liability insurance if members of the public visit you at your place of work or if you perform work at places of work owned by third parties, and Professional negligence, not mandatory but sensible (covers you for eg. making a mistake in a piece of work for a customer, Loss of documents or data, Unintentional breach of copyright and/or confidentiality, Defamation and libel, Loss of goods or money, your own or for which you are responsible).
- In the UK, registration with the https://ico.org.uk/ (illegal not to if you store peoples data)
Slide headings based on an amended list from Sequoia.
Long typed out business plans cloud the precision that data and specifics provide. A deck as above with few words, forces you to get to the crux of your business and your go to market strategy and will be valuable both internally to you and your team and of course to raise funding.
If you can't make it concise and clear, you probably have not thought it through enough.
Answered 7 years ago