Oxford University’s Comments on PSI’s Business Plan, followed by PSI’s analysis:
1. Oxford Comment: There is a confusing mix of threats addressed; e.g. terrorism,
natural disasters, and poverty.
1a. PSI Analysis: The business plan needs to show how individual PSI products will
help overcome all three types of threats. As an example, a solar still (for potable water
production) offers solutions in each area of threat; i.e. the need for potable water is very
common for each of the threats. Thus, the intent is to mix the solutions not the threat.
2. Oxford Comment: Paranoia regarding terrorism does not provide a sound basis
for any business.
2a. PSI Analysis: All evidence suggests the terrorist threat is real. Thus, paranoia is
not necessary for people to prepare to defend against the threat. In any event, PSI’s
business is based on sale of duel-use technologies that have market potential even if no
terrorist threat existed.
3. Oxford Comment: PSI has no manufacturing experience, or manufacturing plant
to produce planned products.
3a. PSI Analysis: The above observation is true. For this reason, PSI will contract
with others having the ability to provide excellent, product appropriate manufacturing
facilities as well as an experienced manufacturing staff.
4. Oxford Comment: There is an insufficient discussion of risks in PSI’s plan.
4a. PSI Analysis: The need for PSI’s products is based on known and existing threats
that are expected to be long-term. If PSI’s products offer a safe, efficient, and very
economical solution to each threat, the business risk is minimal. The possibilities of poor
management, improper business decisions, and/or inadequate financing, are standard
business risks ---of potential concern--- for PSI’s investors. (PSI’s risk analysis will be
expanded based upon the Oxford observation.)
5. Oxford Comment: There is no way to substantiate profit and cash flow forecasts.
5a. PSI Analysis: Since PSI is a startup; there is no historical financial data. Thus,
PSI is seeking to conclude several contracts (for PSI products) that will base updated
forecasts upon real numbers. The potential reward to investors can thereby be forecast
with greater accuracy.
6. Oxford Comment: PSI’s frequent use of moral imperatives will not win support
from hard-nosed investors.
6a. PSI analysis: Our business plan was written primarily for social investors who do
seek to find moral imperatives in a business plan. However, more financial data based
upon actual contracts will help impress such hard-nosed investors.
7. Oxford Comment: All types of social enterprises seldom provide a really good
investment opportunity.
7a. PSI Analysis: Not so! Many social enterprises have been very profitable; e.g. the
sale (to hospitals & medical clinics) of volunteer donated blood, by the Red Cross.