VENTURE NAME HERE
REV NUMBER
DATE
Name of Founder Member 1 (e-mail address)
Name of Founder Member 2 (e-mail address)
Name of Founder Member 3 (e-mail address)
DELETE THE FOLLOWING INSTRUCTIONS FROM YOUR FINAL DRAFT
On the title page, list your venture name and indicate the revision number of this business
plan and the date it was created. List the founding members and their e-mail addresses in
the place holders provided above. Delete the place holders you do not use.
On the following page, open the Header and replace “VENTURE” with the name of your
venture.
In the remainder of this document, please synthesize your assignments through the
summer to create this preliminary business plan so that mentors can understand your
logic and thinking. We have provided a structure to help you organize your thoughts.
Previous e-scholars have found this structure helpful. However, we do not intend for this
structure to be a strait jacket. It is OK to deviate from the structure if another structure
permits you to make the case for your venture in a more powerful way.
Remember, you business plan is a marketing document you use to market you and your
venture. Take pride in what you write. For many potential investors, you business plan
will be their first introduction to you and your venture. For these readers, you will never
get another chance to make a good first impression.
VENTURE
IDEA FAIR BUSINESS PLAN
(DELETE THIS PAGE FROM YOUR FINAL DRAFT)
HOW TO PASTE TABLES FROM POWERPOINT
In POWERPOINT, open your completed file. In the POWERPOINT window, select all
elements (control + A), Right click your mouse and GROUP all elements. Select and
COPY the chart. Go to your WORD Business Plan and select the place where you want
to place the table. Select EDIT + PASTE SPECIAL. Select PDF as the option. The
chart should now be in your WORD document. Your can click on it and resize it by
dragging the corners to make it larger or smaller.
HOW TO PASTE TABLES FROM EXCEL
In EXCEL, open your completed Sales and Revennue Table file. Start in the lower right
corner and work up and left, highlighting only those cells you want to copy. Select EDIT
+ COPY from menu. Go to your WORD Business Plan and select the place where you
want to place the table. Select EDIT + PASTE SPECIAL. Select PDF as the option.
The chart should now be in your WORD document. Your can click on it and resize it by
dragging the corners to make it larger or smaller.
HOW TO SIZE OR MOVE CHARTS IN THIS DOCUMENT
Click on the chart to make it active. Then right click and select FORMAT OBJECT.
Select LAYOUT. Select the IN FRONT OF TEXT OPTION. You should now be able
to move and resize the chart.
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(Correct this page numbers when your draft is complete and then delete this line.)
TABLE OF CONTENTS
Executive Summary .............................................................................................................3
Venture Description .............................................................................................................5
Problem ................................................................................................................................6
Solution ................................................................................................................................7
Differentiation ......................................................................................................................8
Revenue Model ....................................................................................................................9
Founding Team ..................................................................................................................10
Financial Projections ..........................................................................................................11
Appendix I: Gap Analysis ..................................................................................................12
Appendix II: Business Model Canvas................................................................................13
Appendix III: Income Statement ........................................................................................14
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EXCECUTIVE SUMMARY
Insert your two-page executive summary here. Do not insert the Gap Analysis chart or
Business Model Canvas here. You will insert those two items in the Appendices.
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IDEA FAIR BUSINESS PLAN
VENTURE DESCRIPTION
In one paragraph, describe your venture. Your description will eventually be your
elevator pitch – so make it no more than five sentences. We suggest that you write your
description in five sentences:





Sentence 1: Describe your venture.
Sentence 2: Describe your first product (service) and its key benefit.
Sentence 3: Describe the target segment(s) for your first product (service).
Sentence 4: Describe the unique (differentiating) feature(s) of your product
(service) that allow you to addres the targeted customer’s poin point(s).
Sentence 5: List or describe plans for future products (services).
Your first sentence should describe:




The category of products (services) offered by your company;
The singular customer benefit provided by the products (services) you offer;
The customers for that product (service) category; and
The problem you solve for these customers.
The first sentence is the one-sentence summary of your venture’s product (service)
category and key benefit, so take the time to get this sentence right. Consider using the
following template for the first draft of your first sentence:
“[Your venture Brand] provides A that “Provides Benefit B” for Customers C
who have Problem D.”
In this sentence:




A is the products or services you provide. Make sure that the words you
use reflect your category definition (as defined above).
“Provides Benefit B” is the word or phrase you have selected to express
your singular benefit (as defined above). You do not have to use the verb
“provides.” Pick the verb that is most appropriate given your singular
benefit.
“Customers C” are the customers you plan to serve who want the benefit
you have just described. You do not have to use the word “customers.”
Pick the label that is most appropriate for your customers
“Problem D” is the problem you are solving (or the want you are
satisfying) for the customers identified in C.
Once you figure out how to get this information into a single sentence, you can revise for
smoothness and memorability. For example, this template was used to generate the
following sentence:
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BHB Insurance Services, LLC, provides insurance products that protect the
family assets of customers whose jobs or activities expose those assets to punitive
damage awards.
As noted above, the remaining four sentences sentences should describe:
 Your first product or service;
 The customers for that product or service;
 The unique (differentiating) characteristics of your product (service) that allow
you to address the targeted customer’s pain points; and
 An overview of future products (services) that you plan to offer and the
customers you will serve with those products (services).
Here is an example adapted with permission from the business plan of Larry HunterBlank, an e-scholar from the class of 2012.
Example: BHB Insurance Services, LLC, provides insurance products that protect the
family assets of customers whose jobs or activities expose those assets to punitive
damage awards. Our first product, Partner Protection, P2, is an insurance policy designed
to protect the family assets of a police offer or corrections officer from a punitive
damages award. There are currently 1.6 million police and corrections officers in the
United States whose jobs require them to engage in activities that create this exposure.
While the law does not allow us to directly insure these officers, our unique and patented
policy uses the “innocent spouse doctrine” to insure and protect the assets of their life
partners. Future products will allow us to offer similar services that protect the family
assets of other government employees and private citizens.
THE PROBLEM
In three paragraphs (more if you need it), describe the problem that consumers are trying
to solve (or want they are trying to satisfy) and the pain points that are generated by
current solutions to that problem or want.



INSERT Paragraphs 1 and 2 of your E-Scholars Application Assignment here.
REVISE based on what you have learned this summer from Assignment 2.
ORGANIZE your discussion in a minimum of four paragraphs. Each paragraph
should have at least 3 sentences. If your paragraphs become too long, break them
into shorter paragraphs.
Paragraph 1: Importance of Problem (Want). Describe the problem that customers
have (or the want they are trying to satisfy). Explain why this problem (want) is
important. For example, talk about the costs of not addressing the problem and the
amount of money, time, and effort people spend dealing with the problem.
Paragraph 2: Current Solutions. Describe the current ways in which customers try to
solve this problem (satisfy this want). Your focus here should be on the kinds or types of
solutions that customers use, not necessarily individual competitors. However, if each
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type of solution is associated with a specific competitor, feel free to mention that
competitor.
Paragraph 3: Pain Points. Describe the pain points generated by these solutions that
you plan to solve (don’t talk about your solution yet, you will do that in the next
section). Make the person experiencing this pain come alive to the reader. Show the
implications for the target customer if the pain points continue. What else is hurt or
delayed? What are the emotional costs? What additional costs does the customer
experience trying to reduce the pain? How do customers describe their pain? What is the
emotional cost?
Option: If the pain experienced differs by segment (by archetyeps), consider writing a
separate paragraph about the pain points experienced by customers in each segmen (by
each archetype).
Paragraph 4: Size of the Problem. Estimate the number of people (companies) who
have the pain points you have identified. If you have described the pain experienced by
different segments, estimate the number of customers in each segment.
THE SOLUTION
In two paragraphs (more if you need it), describe your solution and the benefit of that
solution to customers.



INSERT Paragraph 3 of your E-Scholars Application Assignment here.
REVISE based on what you have learned this summer.
ORGANIZE your discussion in a minimum of two paragraphs. Each paragraph
should have at least 3 sentences. If your paragraphs become too long, break them
into shorter paragraphs.
Paragraph 1: The Solution. Describe the characteristics of your product or service.
You may need to explain your product and technology. Particularly if your idea is
technology based, you may have to explain it to a non-technical audience. Don’t fall in
love with the bits and bytes, because your audience probably doesn’t love them as much
as you might. Explain it so that a nine-year-old would get the picture, not because your
audience isn’t smart, but because, if you can do that, you know what you are talking
about.
Option: If you have multiple products (services), consider writing a separate paragraph
to describe each product (service).
Paragraph 2: Customer Benefits. Describe how your product (service) addresses the
pain points you have identified in the previous section. Make sure that your discussion of
benefits is linked to your discussion of target customer pain points. Describe how it will
save your customers time, money, and/or hassle. If you serve consumers, talk about the
personal outcomes for users when the problem goes away? If you serve businesses, talk
7
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IDEA FAIR BUSINESS PLAN
about the business outcomes for your clients. How much better off will clients be, a little
or a lot? the current ways in which they try to solve this problem (satisfy this want).
Option: If you have multiple products (services), consider writing a separate paragraph
to describe the benefits of each product (service) OR consider devoting one paragraph to
each product in which you describe both the product and the customer benefits.
DIFFERENTIATION
In three paragraphs (more if you need it), describe your competitors and why your target
customers will buy from you instead of these competitors.



INSERT Paragraphs 4 and 5 of your E-Scholars Application Assignment here.
REVISE based on what you have learned this summer from Assignments 1 and 2.
ORGANIZE your discussion in a minimum of three paragraphs. Each paragraph
should have at least 3 sentences. If your paragraphs become too long, break them
into shorter paragraphs.
Paragraph 1: Competitors. Describe the key competitors from who you expect to take
customers. What are the characteristics of their products or services? Why do customers
buy from them? How successful are they? What are their strengths? What are their
weaknesses?
Paragraph 2: Differentiation. Why will your target customers buy from you instead of
from a competitor? Focus your discussion on the things that address customer pain
points and make your product or service unique. Identify the attributes of your product
(service) that are not available from competitors. Link those attributes to benefits that (1)
are not available from competitors and (2) reduce or eliminate the pain customers feel
from using competitive products or services that do not have these attributes. Invite the
reader who wants more detail on your differentiation to review the Gap Analysis you
have attached in an Appendix. (Example: “For more details on our differentiation from
competitors, please see the Gap Analysis contained in Appendix I).
Paragraph 3: Unfair Advantage. If you are successful, competitors will try and copy
your strategy, products, and services. How will you protect your product and services
from competitive imitation? What will make it difficult for competitors to imitate your
strategy?
REVENUE MODEL
In three to four paragraphs (more if needed), describe the prices you plan to charge and
the rationale for these prices.


INSERT the “One-Page Summary: Pricing Rationale” from the Revenue Model
assignment (Summer Assignment 3).
REVISE based on what you have learned this summer from Assignment 3.
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
IDEA FAIR BUSINESS PLAN
ORGANIZE your discussion in a minimum of one paragraph. Each paragraph
should have at least 3 sentences. If your paragraphs become too long, break them
into shorter paragraphs.
Paragraph 1: Describe Your Revenue Model. Describe the revenue streams in your
business model. Explain how each revenue stream is linked to the segments you
identified in the “Problem” section and the products (services) you described in the
“Solution” Section. Invite the reader who wants more detail on your business model to
review the Business Model Canvas you have attached in an Appendix. (Example: “For
more details on our differentiation from competitors, please see the Business Model
Canvase contained in Appendix II). The following example uses two paragraphs to
describe two revenue streams.
Example 1a: New Revenue Streams from New Products. “Our revenue model
is based on N revenue streams. The first revenue stream will be generated by
sales of product X1 to customer segment Y1. In Year 2 we will add a second
revenue stream arising from sales of Product X2 to customer segment Y2.”
Example 1b: New Revenue Streams from Geographic Expansion. “Our
revenue model is based on N revenue streams. Our first revenue stream will be
generated by sales of product X1 to customers who live in the Kansas City
Region. In Year 3 we will add a second revenue stream arising from geographic
expansion into the Omaha Region. ”
Paragraph 2: Retail Prices. Specify the prices you expect to customers to pay for your
product or service associated with each revenue stream that you have identified.
Paragraph 3: Rationale. For each important product or service, compare your price to
competitive prices and explain the rationale for your price. If you plan to charge a
premium relative to competitors, explain why you expect target customers to pay that
price. In particular, explain (1) how you calculated the dollar value of the unique value
of your product or service and (2) how much of that value you expect to capture through
the price premium that you plan to charge.
Option: Depending on the length of your explanation, you may wish to create a separate
paragraph to explain the rationale for the prices associated with each revenue stream.
Paragraph 4: Channel Margins and Manufacturer Prices (complete only if
relevant). If you do not sell directly to customers, identify the middlemen (e.g.,
wholesalesrs, disrtributes) to whom you will sell your product. Identify their percentage
margins (the difference between their selling price and their buying price, expressed as a
percentage of their selling price), and identify the price you will receive for each unit
sold. Explain why the channel members will accept the margins you have projected for
them. For example, are your margins consistent with the margins they receive on other
products they sell?
9
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IDEA FAIR BUSINESS PLAN
If you have several products, it may be helpful to report these prices in a table. If you
choose to insert a table, remember to clearly label each column and row.
Option: If you have multiple revenue streams, consider organizing your discussion by
revenue stream. In other words, describe your first revenue stream, specify the retail
prices associated with that revenue stream, and describe the rational for those prices. If
this revenue stream involves sales to wholesalers or distributors, describe the prices and
margins at each level of your distribution chain. Then repeat this process for your
remaining revenue streams.
FOUNDING TEAM
In one paragraph (more if needed), explain why you are the right person to start this
venture.



INSERT Paragraph 7 of your E-Scholars Application Assignment here.
REVISE based on what you have learned this summer.
ORGANIZE your discussion in a minimum of one paragraph. Each paragraph
should have at least 3 sentences. If your paragraphs become too long, break them
into shorter paragraphs.
Paragraph 1: Founder. Explain why you are the right person to start this venture.
What abilities, experience, resources, and connections do you bring to this venture? In
short, what do you know, what can you do, who do you know, and what do you have that
uniquely qualifies you to succeed in this venture?
Additional Paragraphs: Other Members of the Founding Team. Use additionial
paragraphs to provide similar information about other members of your founding team (if
any).
FINANCIAL PROJECTIONS
In two paragraphs (more if you have multiple revenue streams), project unit sales,
revenues, and profits over the first five years of your venture. Your financial projections
are important, because mentors, investors, and other potential providers of funds will use
your projections to assess whether the business as you have conceived it to date can
generate adequate revenue and has sustainable costs. In the text of your business plan
you need to need to summarize the key elements of your financial projections for the
reader. Invite those who want more details to review the income statement that you will
attach in an Appendix.


REVIEW the projections you made in Summer Assignment 4.
ORGANIZE your discussion in a minimum of two paragraphs. Begin with one
or more paragraphs summarizing the unit sales and revenues generated by each
revenue stream in your financial model. After the first paragraph, include a Table
summarizing each revenue stream and totaling these revenue streams in each year.
10
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The final paragraph should report total revenues and income in Years 1 and 5.
After the final paragraph, include a Table summarizing your income statement.
Example Paragraph 1. “Three revenue streams will drive the overall financial
performance of VENTURE NAME. These revenue streams are summarized in Table 1.
The first stream will be generated by sales of PRODUCT 1. In year 1 we expect to sell
X11 units of PRODUCT 1 at price P, which will generate first year revenues of $R11.
By Year 5, we expect that PRODUCT 1 unit sales will reach X5 units and revenues will
total $R15. These revenue projections are reasonable because….”
Revenue Stream
Revenue Stream 1
Revenue Stream 2
Revenue Stream 3
Total Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Example Paragraph 2. The second revenue stream will come from sales of PRODUCT
2, which will be launched in YEAR 3. First year sales of PRODUCT 2 are expected to
be X21 units, yielding revenues of $R21. By Year 5, unit sales and revenues are
expected to reach X25 units and $R25. These revenue projections are reasonable
because….”
Example Paragraph 3. “The third revenue stream will come from sales of PRODUCT
3, which will be launched in YEAR 5. We expect first-year unit sales to total X33 units,
yielding revenues of $R33. These revenue projections are reasonable because….”
Example Paragraph 4: “Together, revenue streams 1 and 2 are expected to generate
first-year revenues of $T1. After subtracting direct costs and general and administrative
costs, our first-year EBITDA will be $E1. By year five, total revenues and EDITA are
expected to rise to $T5 and $EBITDA, respectively. For more details on the costs
underlying these projected profits, please see Appendix III.”
Revenue Stream
Total Revenue
Direct Costs
Operating Income
G&A Expenses
EBIDTA
Year 1
Year 2
Year 3
Year 4
Year 5
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(REPLACE THE FOLLOWING CHART WITH YOURS AND DELETE THIS LINE)
APPENDIX I: GAP ANALYSIS
COMPETITOR GAP ANALYSIS
Attribute/Benefit
Your
Product
Competitor
1
Competitor
2
Competitor
3
Competitor
4
Attribute/Benefit 1
Attribute/Benefit 2
Attribute/Benefit 3
Attribute/Benefit 4
Attribute/Benefit 5
12
Competitor
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(REPLACE THE FOLLOWING CHART WITH YOURS AND DELETE THIS LINE)
APPENDIX II: BUSINESS MODEL CANVAS
VENTURE NAME HERE
REV 1.0
6-23-13
BUSINESS MODEL CANVAS
PROBLEMS
SOLUTIONS
UNIQUE VALUE PROP
UNFAIR ADVANTAGE
CUSTOMER SEGMENTS
1. Start here
1. Start here
1. Start here
1. Start here
1. Start here
KEY RESOURCES
SALES CHANNELS
1. Start here
1. Start here
COST STRUCTURE
REVENUE STREAMS
1. Start here
1. Start here
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(REPLACE THE FOLLOWING EXCEL TABLE WITH YOURS AND DELETE THIS
LINE)
APPENDIX III: PRELIMINARY REVENUE STREAM FORECAST
FIVE YEAR SUMMARY
ACME ENTERPRISES
6/17/13 9:51
ROUGH FINANCIAL PROJECTIONS
Year 1
Year 2
Year 3
Year 4
Year 5
REVENUES
$
5,000
$
5,000
$
5,000
$
5,000
$
5,000
DIRECT COSTS (COST OF GOODS SOLD) *
$
2,500
$
2,500
$
2,500
$
2,500
$
2,500
CONTRIBUTION MARGIN ($)
CONTRIBUTION MARGIN (%)
$
2,500 $
50%
2,500 $
50%
2,500 $
50%
2,500 $
50%
2,500
50%
100
21
100
100
100
100
100
100
100
100
100
100
100
76
100
100
100
100
1,697
34%
100
21
100
100
100
100
100
100
100
100
100
100
100
162
100
100
100
100
1,783
36%
100
21
100
100
100
100
100
100
100
100
100
100
100
258
100
100
100
100
1,879
38%
100
21
100
100
100
100
100
100
100
100
100
100
100
330
100
100
100
100
1,951
39%
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
100
21
100
100
100
100
100
100
100
100
100
100
100
413
100
100
100
100
2,034
41%
549 $
11%
467
9%
GENERAL ADMINISTRATIVE
Employee Salaries
Employee Benefits
Outsourced Services
Rent
Utilities
Telephone
Transportation
Insurance
Bad Debt Expense
Legal & Accounting
Marketing
Office Supplies
Equipment Leases
Equipment Purchases
Other Expenses 1
Other Expenses 2
Other Expenses 3
Other Expenses 4
TOTAL G&A EXPENSES
G&A Percentage
Earnings Before Interest, Taxes, & Depreciation
EBITDA (%)
BREAKEVEN ANALYSIS
Year
Cumulative EBITDA
Cumulative EBITDA Minus StartUp Costs
Breakeven Sales
Non-discounted Payback Period (in years)
$
21% $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
803 $
16%
717 $
14%
622 $
12%
803 $
(1,497) $
3,394 $
2
1,521 $
(780) $
3,565 $
3
2,142 $
(158) $
3,757 $
1
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
4
2,691
391
3,902
3.06
$
$
$
5
3,158
858
4,067
14