This section is designed to help you think about your business plan, and to share with you some thoughts on our perspective when we are reviewing business plans.
What layout should I use?
Pro-forma business plans are available from a wide range of sources on the net. We do not have a strong preference as to a given format, provided you cover the information that we are seeking. An example outline is provided below, together with a TVP perspective section, which identifies the types of questions that TVP considers when reviewing business plans.
Pro-forma Business Plan Outline
- Company Background
- Business Description
- Product or Service Offering
- Technology and Intellectual Property
- Industry Analysis
- Market Entry Analysis
- Route to Market
- Strategic Alliances
- Exit Opportunity
- Competitive Analysis
- Target Market Segments
- Value Proposition
- Promotional Plan
- Critical Success Factors
- Major Risks and Mitigation Strategies
- Major Milestones
- Current Management Team
- Key Hires, Recruitment, and Retention Strategy
- Revenue Model
- 3 Year Revenue and P/L Forecasts
- 12 Months Detailed Operating Budgets
- Key Assumptions and Sensitivities
- Capital Raising Requirements and Strategy
Does the size of the plan matter?
Your initial success in attracting the attention of TVP or other professional investors relies on the ability of your business plan to convey a simple compelling message:
- Here is a great market opportunity
- Here is a team that really understands the opportunity, and has the capabilities and relationships required to exploit it
- We have a great product or service/unique technology/compelling new business model that provides us with a strong competitive advantage
- We have a clear plan to exploit the opportunity
- We understand the resources required to achieve this
- We understand and can manage the risks
- We can build significant enterprise value in a reasonable time frame, which will make the business an attractive acquisition or IPO candidate
There is no ideal length for your business plan, it really comes down to how much third-party evidence and information you need to present in order to make your case compelling to a sophisticated reader. The best business plans convey clarity of thought and purpose, and provide the reader with easily verifiable third-party evidence to support the major assumptions that underpin the business proposal.
We are happy to receive full business plans or executive summaries at the initial assessment stage.
To help management teams critique their own plans prior to application, we analysed a typical pro-forma business plan outline and listed out the typical questions we ask ourselves when we review plans.
For more detailed information please download TVP Perspective In Reviewing Business Plans.