Transcript Overview and Orientation

Overview & Orientation
Key Dates
•
04.05.11
•
04.15.11
•
04.20.11
•
05.20.11
•
06.20.11
Writing a Business Plan
workshop
Developing a Financial Plan
workshop
Presenting the Business Plan to
Investors workshop
BPC Application Due, Executive
Summary form & $100 payment
Actual Business Plan Due
•
06.27.11
Judging Phase 1 & 2
•
07.15.11
Business Plan Oral Presentations
•
07.27.11
Business Plan Competition
winner announced at 2011 Small
Business Awards
About the Competition
Purpose:
- Encourage entrepreneurship,
innovation, and job creation in
D.C.
- Make entrepreneurs (national,
regional and local) aware of the
District’s Certified Capital
Company (CAPCO) program.
- The Washington, D.C. Economic
Partnership’s BPC is the ideal
opportunity for national, regional,
and local entrepreneurs to launch
and grow innovative businesses in
the nation’s capital.
AWARDS
• $100,000 CAPCO investment.
• Promotional Video to be aired at the 2011 Small
Business Awards on July 27th.
• $15,000 worth of legal consultation from Venable
LLP.
• $5,000 worth of signage from Gelberg Signs.
• $4,500 worth of products and services from Best
Buy for Business, which includes I-pad & Geek
Squad assistance.
• $2,500 worth of marketing services from B.L.A.
• $2,500 of Tax planning and accounting services
from Reznick Group.
Rules and Guidelines
• The winning business must be deemed eligible by
DISB before receiving the $100,000 investment.
• Competitors must be 18 or older.
• Business plans must describe a business owned
by individual or group submitting the business plan.
• Competitors must submit their business plan by
June 20, 2011 by mail to 1495 F Street NW
Washington, D.C. 20004.
Rules and Guidelines
cont…
• Investment capital is for business expansion or
establishment in D.C.
• Disqualification occurs with:
- Plagiarism or illegal use of copyrights.
- Partial submission of business plan.
- Attempt to influence judges.
- Failing to follow BPC submission
guidelines.
- Fail to Follow BPC requirements.
Rules and Guidelines
cont…
• The District’s CAPCO Program rules
prohibit investments in:
– Businesses that are regional or national
franchises.
– Businesses that are primarily engaged in real
estate development or leasing projects.
– Businesses that are primarily engaged in
insurance.
– Businesses that are engaged in the provision
of professional services of accountants,
lawyers and physicians.
Rules and Guidelines
cont…
• Competitors must be available to receive
their award at the 2011 WDCEP Small
Business Awards on July 27, 2011.
• Companies that have participated in the
District’s CAPCO Program at any time
are ineligible for the BPC.
• Promotional Posters become property of
WDCEP.
How to Apply
1.
Mail a completed copy of your Acceptance of BPC Rules
and Guidelines, Executive Summary and your check for
$100 before 5/20/2011.
2.
Mail five copies of your Business Plan, Executive
Summary Form, CAPCO Eligibility Questionnaire and
all attachments (see Business Plan Requirements and
Appendix D: Letter from Banker) before 6/20/2011
3.
The three finalists are required to give 20 minute oral
presentation to the judges on 7/15/2011 and bring a
poster 36“x36“
Note: Failure to submit these items by mail, by
the deadline will disqualify businesses from the
BPC.
Business Plan Requirements
1. Cover Page (one page max)
- Company name (logo, if any).
- Name and contact information for competitors.
- The words “2011 Washington, D.C. Economic Partnership
business Plan Competition”.
- Date.
2. Table of Contents (one page max)
3. Executive Summary Form (two page form)
4. Business Concept (one page max)
Suggested Content:
- Business concept statement.
- Description of products/services offered.
- Primary customers.
- Value proposition (benefits to customers).
- Critical success factors.
- Business model.
- Opportunity for growth.
- Exit strategy.
Business Plan Requirements
cont…
5. Industry & Market Analysis
Suggested Content:
• Industry Description
– In what industry is this business? What is the definition of your
industry and what is the sector? How does the industry work?
– Why is this industry a good environment for this business?
– Size, life cycle status, characteristics, drivers.
– Trends (historical and current).
– Barriers to entry .
– Sales patterns and profit margins (gross and net).
• Market Analysis and Target Market
– Definition of primary/secondary target markets( location, size).
– Key market factors (demographics, economics, social, and
legal).
– Market segmentation (key variables) .
– Results of primary research (customer profile, needs analysis).
– Value chain analysis .
– Entry strategy and barriers to entry
Business Plan Requirements
cont…
•
Competition
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–
–
–
•
Why is the problem not being solved by the competition?
Direct and indirect competition.
Market share, description, strengths and weaknesses.
Threats from emerging and substitute products.
Product/ Service Differentiation and Competitive
Advantages
– Unique benefits and features .
– Proprietary protection and innovation (if new invention).
– Why will customers buy from you?
Business Plan Requirements
cont…
6. Management Team (one page max.)
Suggested Content:
- Identification and experience of management team that
will execute the concept.
- Roles and responsibilities.
- Any missing talent and gaps in personnel.
- Board of Directors/Advisory board.
- Management philosophy and company culture.
- Legal structure and ownership.
Business Plan Requirements
cont…
7. Operations (one page max.)
Suggested Content:
-Operational philosophy .
-Technical description of product or service.
-Process flow chart of business( representing all the
activities and functions of the business).
-Equipment, facilities and real estate associated with
the process flow.
-Price/cost model ( cost to produce product or provide
service).
-If product-based:
o Status of product development.
o Tasks completed, task to complete, time to
complete.
o Potential difficulties; plan to overcome.
o Distribution channel and strategy (movement
of product/ service to customer).
Business Plan Requirements
cont…
8. Marketing Plan (one page max.)
•
•
•
•
Suggested content:
Summary of Marketing Plan in one paragraph
– Purpose: What will the plan accomplish?
– Benefits: How will the plan satisfy a need?
– Target Market: Who is the primary buyer?
– Niche: Where does your business fit in the market?
– Tactics- Tools to reach the customer?
– Identity: How the customers see your business?
– Budget: % devoted to marketing?
Plan to reach and educate customers
– For example newspaper ads, direct mail, e-mail, face to
face presentation, TV campaign.
Pricing Strategy
Marketing mix
– Strategies for promotion, sales and advertising for each
customer group.
– Positioning and message.
Business Plan Requirements
cont…
9. Financials
Required content for existing company:
- Financial Statements: Annual balance sheet and
income statement through the fiscal year end of the
company for the past three years (up six pages max).
- Projections: Three-year projections to include
income, expenses and net income details – monthly
breakdown with yearly totals (three pages max).
Business Plan Requirements
cont…
Financials cont...
Required content for new company:
• For a New Company
– Sales Forecast: Breakdown of revenue for the next year,
reference clients but do not identify by name, expected
revenue from those clients, and other sources of revenue.
This should match projections (one page max).
– Request: How will the CAPCO funds be used? How will the
investors achieve a return on their investment (one page
max)?
–
Capital Structure (one page max.)
- Plan for financing the company (equity, debt etc).
- Initial capitalization (if any).
- If soliciting other investment, give bullet points
highlighting primary benefits and risks of investment.
Business Plan Requirements
cont…
10. Visuals (one page max).
- Photos of product or service.
- Photos of current building/space or building/space where
business plans to be.
- Other.
Executive Summary Form
- General Information
- Business Opportunity
- Management Team
- Financials