Rozen Business Plan Atuge At'ventures Mars 2017

Le Start-up Business Plan :
la loupe en mode acclr

Alon Rozen, Dean & Prof. of Innovation & Management
Ecole des Ponts Business School
ATUGE AtVenture 8
18 mars 2017
Cl de la russite : un mindset orient questions
?????... Alon Rozen / cole des Ponts Business School 2

Startup development process
Based on Damien Newmans Design Squiggle
Customer Product Biz Model Market Traction Scale

Development Development Development Development
Rozen - startup - EIVP 3

Cest quoi un business plan pour les start-up ?
OVERVIEW of A new, viable A ROADMAP for next

key aspects BUSINESS MODEL phase of development
Alon Rozen, Ecole des Ponts Business School 4

Business plan comme audit stratgique
Where you are
Where you Where you

want to be want to be
Execution
Alon Rozen / BPD

Based on: Bryson and Alston (2004) 5
Le B-Plan aujourdhui : less is more
Document SlideDoc Presentation
Texte & data, Equilibre texte, Trs visuelle,

50-80 pages data & visuels, 30 slides PPT
Word document 50 pages PDF (souvent templat)
6
Business Plan Development Customer
development
(Steve Blank)
Agile & Scrum Lean start-up (Eric

Development (IT Ries, Ash Maurya)
geeks, Schwaber)
Business plan
development
Innovators method Design Thinking
(Christenson, Dyer, (Stanford)
Furr)
Evidence-based
entrepreneurship
(Berkeley, Aulet)
7
Old business plan versus new business plan (very different)
A document A process
Presents a finished product Presents present phase of project
Describes execution Describes development process
Target = all potential customers Target = specific early adopters
Focus on ROI Focus on traction & scalability
Predictive: scenarios Descriptive: next steps
Having all the right answers Having all the right questions
8
B-Plan Methodology
1. Ideation (customer and business model development)
2. Verification (feasibility study + market interaction)
3. Decision (Go / No Go / New Go)
4. Maturation
Customer development
Business model development
Product development
5. Definition
Business (Extended)
Concept Market Financials Strategies
model Team

3D model (A.Rozen) : 3 formes de dv en parallle
Customer Development
Desk research >> Interviews >> Interactions >> Tests >> Sales >> Loyalty
Business Model Development

Operable >> Viable >> Scalable >> Sustainable
Product Development
Faux-totype >> Prototype >> MVP >> MDP >> MAP >> Wow!

tude de faisabilit (implicite)
Market feasibility Technical feasibility Financial feasibility Team feasibility

Is there a market? Has it been done?
Profitable? All necessary skills?
Is it attractive? Can this be done?
Can we do it? Size of investment? Can we hire/pay for
Is it accessible?
Payback? the missing skills?
Can we access it? How will this work?
Size of business? Project-team fit?
Alon Rozen / Ecole des Ponts Business School

11
KISS B-Plan structure
Executive Summary
Concept
Team
Market
Strategy
Operations
Financials
Annex
KISS B-Plan structure - dtails
Executive Summary 1 page
Concept: description, business model, value proposition, use case, vision
Team: founders & bios, management, board, advisors, key hires, experts
Market: opportunity, target customers, competitors, marketing plan
Strategy: mission & ambition, strategy, growth phases, growth model
Operations: operation & business model details, legal, HR
Finances: assumptions, pro forma, breakeven, sources & uses, ROI
Annexes: CVs, detailed financial tables,
Business Plan: what they read
1 Executive Summary
3 Concept
2 Team
Market
Strategy
Operations
4 Financials
Annex
Cover page
Business Plan
Professional NewCo Limited

Sober A new approach to using
RFID on farms in China
Personalized
Presented to: John Smith
Dated Date: 22 February 2013
Contact: Jean Dupont

Contact information dupont@email.com
Tel. 0123456789
Confidential

Table of Contents
Table of Contents
Simple version not the
1. Executive Summary......................... 3
detailed version!!! 2. Concept ........................................... 4
3. Team ................................................ 8
4. Market ............................................ 10
1-page only! 5. Competition ................................... 15
6. Operations ..................................... 20
7. Financials ....................................... 23
More than 1 page = first 8. Conclusions ................................... 30
9. Annex Detailed Financials. 31
warning sign for reader 10. Annex Team Curriculum Vitae 35
11. Annex Supporting Documents...40
Confidential

Executive Summary
Executive Summary
1 page only!
Summary of key things to know which
means that I dont need to read the rest! Executive Summary
Covers the key points of the business plan in
an interesting way. The concept is
Very few, but memorable, numbers! The team is composed of

The size of the opportunity
A tight and positive synthesis but not an
advertisement or teaser The market
After reading it: I know if this could be right Our unique aspect is (special sauce)
for me and if I want to read more
Financial highlights, ROI, traction,
Extremely professional = 0 spelling mistakes,
perfect editing, well presented We are now looking to (call to action)
It is NOT an introduction

Executive Summary: example
Najmi Diamond will be the first organic high-end Najmi sheep breeding farm in the Emirates
and will sell sheep both for meat and for breeding.
The Gulf region sheep-for-meat market is estimated at $500M and the sheep-for-breeding
market is estimated at $50M. With a premium pricing policy, the Najmi Sheep Farm will
generate estimated revenues of $55M by year 3.
While sheep farming is normally a relatively low-margin business, the organic meat market, in
general, and the Najmi breed, in particular, are both highly profitable. With an up-market
positioning, XYZ generates an estimated 35% net margin by year 5m, with margins for
breeding at ~75%, ours will rise even further as the brand equity rises for our luxury breeding
concept.
One of the founders of the Najmi Sheep Farm has 20 years experience in sheep farming and
comes from the family of the 2nd largest sheep farmer in the UAE. Other members of the
founding team include a marketing specialist and a veterinarian.
We are now looking for $10 million to purchase the farmland (10 acres), build the farm facility
and purchase 20 Najmi ewes and 2 Najmi stud sheep.
Concept
The Concept elements to include in this section
Clear and simple description of project
Business model description
Target customer + early adopters
Value proposition (A+R+E)
Use case
Vision where is this going?
Clear and Simple Description of the Concept
Keep it simple!
o Make sure it passes the grandmother test
o Ex.: We are launching a chain of wholly-owned healthy
bakery and coffee shops, offering health-conscious
customers delicious sugar-free and gluten-free baked
goods.
We will be located first in a prime shopping center in
Shanghai, and later in other prime shopping centers in and
around Shanghai, before expanding to Beijing.
Your idea = a solution to which problem?
Are you solving a real problem (pain point)?

Is it a problem worth paying to solve?
Do a lot of people have this problem?
What kind of problem is it? (see next slide)

The problem, your solution and its relative value
Oxygen cant live without it
Pain killer removes a real pain point
Vitamin makes life better

5. Definition
Jewel a luxury
A problem worth solving: shark bite, mosquito bite or flu ?
Pain
High
Low
Frequency
Low High
Alon Rozen / cole des Ponts Business School 25
A business model is a system
Rozen / BPD
26
B-model as a value deliver y system...
Models within the model (marketing, sales, ...)

Rozen / BPD
27
Business Model Canvas (Osterwalder) (www.businessmodelgeneration.com/canvas)
Rozen / BPD
28
Ash Maurya: Lean Canvas
PRODUCT MARKET
Rozen / BPD (http://leanstack.com)

Business Modeling Worksheet (A. Rozen)
Customers Pricing / Payment Revenues

Growth
A dynamic system,
everything is connected!
Distribution Costs
Marketing Cash flow / Working capital Operations Margins

Rozen / BPD
From B-model to B-Plan
Customer
Marketing Experience
Income
&
statement
Strategy
Balance Sheet
Cash flow
31
GROWTH Model CUSTOMER Model PRICING Model REVENUE Model
SALES (channels, partners) PROBLEM SOLUTION COST Model
VALUE PROPOSITION
MARKETING Model WORKING CAPITAL OPERATIONS Model MARGIN Model

Model
GROWTH Model CUSTOMER Model PRICING Model REVENUE Model
How will you scale? Who is the customer? How much do they pay? How What type of revenue model?.
How will you finance growth? Target (first 10): do they pay? What are the revenue streams?
When will you need to raise Target (1st 100): When do they pay? How much revenue is recurrent?
funds? Target (1st 1000): Expected revenue year 1?
SALES Model PROBLEM SOLUTION COST Model

How / where will customers find What is/are the pain points you We offer _ _ _ _ _ _ _ _ _ _ _ What are the main costs?
your product? Where can they are addressing? to _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Are the costs mostly fixed or
buy it? Sales force? Commissions? so that they can _ _ _ _ _ _ _ variable? Do the costs change
Partners, intermediaries, with scale?
channels? VALUE PROPOSITION(S) Expected costs year 1?
Absolute (benefits), relative (compared to other solutions) and
emotional (how it makes the user feel) value propositions
MARKETING Model WORKING CAPITAL OPERATIONS MARGIN Model

How will customers hear about Cash flow requirements? What will you do? What is the expected gross
you? High inventory or accounts What will you outsource? margin? Is the margin high,
What is your main message? receivable? medium or low? Implications for
Do operations require a lot of
What is your marketing approach? the nature of the business (e.g.
resources (people, capital,
Anything original or different? low margin / high volume, high
assets)?
margin / marketing)
33
Growth model Customer model Pricing / Payment Revenue model
Financing growth equity, B2B, B2C, B2B2C, B2G,? Pricing strategy Revenue streams
debt, subsidy, operations? Customer segments? Schedule of prices Revenue model 1 (example):
Scale how will 10x growth End-user (if different than Discounts Nb clients x 10 x 12
be achieved? customer) Payment methods Revenue model 2:
Phase 1, 2, 3 Pioneers (first customers) Payment terms Nb subscribers x 100/yr.
Ambition and vision Early adopters (narrow Purchase frequency
Strategic plan segmentation)
Sales model Solution Cost model

Salesforce? Describe the concept simply (We offer X to Y in order to Z). Cost structure
Mode of distribution. Consider adding the X for Y approach (it is like AirBnB for Cost drivers? (main costs by
Sales model (online, VAR, restaurants). category)
intermediaries, commission- Value proposition Cost (dis)-advantages (sourcing,
based) Evolution of costs over
Absolute value proposition (benefits to target customer) time/scale? Are costs fixed,
Path to customer? Relative value proposition (compared to similar solutions) semi-variable, variable, non-
Emotional value proposition (how it makes customers feel) recurring?
Marketing model Working K/ cash model Operating model Margin model

Marketing model Cash flow issues High or low volume? High or low margins?
Marketing message CAPEX/OPEX requirements Lean operation? EBITDA, EBIT, net margin.
Network effects or virality? CCC? Value & supply chain issues. Are margins different than
Customer lifetime value? Inventory, A/R, A/P issues? In-house vs. outsourcing? the industry? How and why?
Customer acquisition (cost)? Payment conditions? Scalability? Expected margin evolution?
Churn, referral, conversion? Steady-state margins?
Avg. purchase size? Margin-drivers. 34
Business model description example: Dell
Dell operates a volume-based business model by which it sells
computer-related hardware and electronics, 3rd-party software
and, increasingly, services (what) directly to consumer (mass
market), corporate and government clients (who), using an online
direct sales model in mature markets and retail outlets in
emerging markets (how & where). This allows Dell to keep
inventory low, receive payment before orders are filled (when),
thus generating above industry-average margins and a negative or
neutral cash conversion cycle (why).
Note: the 6Ws are implicit and have only been added for illustration!
Also note that not all of the business model sub-components are included in the description only the most
important/unique.
Alon Rozen / BPD 35

Visual business model example: Gleamr
We charge detailers a 15% transaction fee
Job $75.00
Detailer $63.75 Gleamr
Gleamr $11.25
Copyright 2015 Gleamr. Created by PitchDeckCoach.com

Segmentation : TAM, SAM, SOM
MidCaps
SAP at La
Dfense Early adopters
MidCaps SAP
in IDF Target customers SOM
MidCaps using SAP in
France SAM
TAM
Enterprises using SAP in
France
Segmented addressable market =

Enterprises using SAP Europe
Total Addressable Market = Enterprises using SAP world 37
Rozen / BPD
Value Proposition formulation: example
We offer our customers healthy, delicious, sugar-
free and gluten-free pastries as well as gourmet
coffees and teas. (absolute value)
In terms of existing alternatives, we offer health-
conscious customers much more value for a slightly
higher price.(relative value)
Our customers can thus regularly enjoy the guilt-free
joy of indulgence. (emotional value)
Relative Value Proposition Matrix (Pr. Alon Rozen)
VALUE MUCH LESS MUCH MORE DIFFERENT
LESS VALUE SAME VALUE MORE VALUE
PRICE VALUE VALUE VALUE
MUCH LOWER Much less value Less value for Same value for More value for Much more value Different value
for much lower much lower price much lower price much lower price for much lower for much lower
PRICE price price price
Much less value Less value for a The same value More value for a Much more value Different value
LOWER PRICE for lower price lower price for a lower price lower price for a lower price for a lower price
SIMILAR PRICE for a similar price similar price for a similar price similar price for a similar price for a similar price
HIGHER PRICE for a higher price higher price for a higher price higher price for a higher price for a higher price
MUCH Much less value Less value for a The same value More value for a Much more value Different value
for a much much higher for a much much higher a much higher for a much
HIGHER PRICE higher price price higher price price price higher price
DIFFERENT Much less value Less value for a The same value More value for a Much more value Different value
for a different different for a different different for different for different
PAYMENT payment payment payment payment payment payment
Value proposition make it visual, simple and clear
Gleamr iPhone app and website.
Get an affordable, professional auto detail wherever you are, whenever you want
CONSUMERS
GREAT
SAVE TIME SAVE MONEY SATISFACTION
detailers come detailers compete for
to their home or office their business detailers work hard for
great reviews
DETAILERS
EARN MORE GROW FASTER

SAVE TIME
MONEY
less time chasing great reviews + great
customers more time prices = more work
detailing cars

Use Case: visual example
1. BROWSE 2. COMPARE 3. SELECT,

AVAILABLE DETAILERS REVIEWS & PRICES BOOK & PAY
Amazing Amazing Amazing

screenshot screenshot screenshot
Filter by
Standardized services & prices Option to add tip after job
date/time/availability/ratin
Detailer can discount (bid) on Review required after job
gs/reviews/bid
the fly based on demand

Use Case example: Tasty Free (make it visual!)
Jeanne, 40 ans, vit Paris.
Ella adore les ptisseries mais elle a la diabte.
Jeanne a vu une pub sur Facebook pour Tasty Free, une

boulangerie qui propose ptisseries sans sucre et gluten
Aprs avoir essay et trouv cela trs bon, Jeanne
commande en ligne pour ne plus avoir se dplacer.
Jeanne rejoint le programme fidlit et parrainage pour
jouir de livraisons gratuites
Customer Journey Maps (source: tisdt.com)

Team
Management / Team
Founders Managers
Who are the founders? Who is the boss?
Founder-business fit? Key positions?
Track record of success? Key first hires?
Bios in body of report Bios in body of report

CVs in Annex CVs in Annex
Alon Rozen / BPD 45
The Extended Team
Key Hires
Missing competences (and if you will hire or outsource them)
Advisors (who are they?)
Professionals (lawyer, accountant, developers, etc.)
Board members (if applicable)

Missing Key Competences (examples)
Missing skills Solution Comments
Marketing director First hire Experience in B2B marketing, social media
and technology; if possible app store
marketing experience too.
App store Work with specialized Ensure experience with Apple, Google and
marketing marketing agency Amazon stores
Developers - Outsource First contact with XYZDev of India, awaiting
Python price quote
Accounting Outsource ABC accounting service has agreed to
charge 50% until we make our first sales
Distribution Partner? We are considering the use of an agent but
havent found a good one yet.
Alon Rozen / BPD 47

Market
The Market elements to include in this section
Clear description of market(s)
Market analysis
Customer analysis (Target + early adopters)
Competitive analysis
Marketing plan
Marketing strategy
Market
Market Analysis
Qualify the market
oQuantify the market
oIdentify target segments/customers/early adopters
oCustomer analysis 6Ws
oIndustry dynamics (Porters 5 Forces)
oIndustry KPIs
oKey competitors and comparables
Marketing Plan
Elements of Market Analysis
Market Customers Competitors
Market size Potential customers
(5 forces model)
Market structure Target customers Key competitors
Customer behavior Comparable

Market dynamics
(6Ws) competitors (concepts)
Market segments Customer economics If none, find one

Market Analysis
Market Market Market

Market size
structure dynamics segments
Global Leader Highly-contested Demographics
Local Challenger(s) Monopoly, B2B, B2C, B2G,
Target Followers oligopoly, B2M, P2P
Early adopters Nichers fragmented Specialist, Mass,
TAM, SAM, Mature Luxury,
SOM Consolidating or Economy,
new entrants Discount, Hard
discount, Low
cost

Pricing strategies
3 principal pricing Other schemes

strategies: include:
Activity-based pricing (pay-per-use)
Cost+ pricing
Freemium
Competitive-pricing Decoy pricing
Micro-pricing (micro transactions)

Customer-based pricing Pay-as-you-go pricing

Segmentation : TAM, SAM, SOM
MidCaps
SAP at La
Dfense Early adopters
MidCaps SAP
in IDF Target customers SOM
MidCaps using SAP in
France SAM
TAM
Enterprises using SAP in
France
Segmented addressable market =

Enterprises using SAP Europe
Total Addressable Market = Enterprises using SAP world 54
Rozen / BPD
Segmentation
3rd tier
Tiered target markets
2nd tier
Potential customers by tier or in the
tier you are targeting. 1st tier
Different ways of segmenting any

given market, know the common 100%
way in your industry (then change it). 80%
60%
How you will find your target 40%
customers and communicate with 20%
0%
them is part of your marketing plan! 2012 2013 2014 2015
B2G B2B B2C
Segmentation the technology adoption cycle
Mass Market
Early / Followers
# customers
/ users
Late
Early
Adopters
Adopters
Pioneers
Time
Competitive analysis make it visual! (value mapping)
MORE CONVENIENT
Competitor
Logo
Gleamr
Competitor
Logo
MORE EXPENSIVE LESS EXPENSIVE
Competitor
Logo
Competitor
Logo
Competitor
Logo
Competitor
Logo
LESS CONVENIENT
Elements of the Marketing Program
Target
Customer (C)
Marketing
+ = Strategy
Marketing
Mix (4Ps)
+ = Marketing
Plan
Time-related
Details

Marketing Strategy (use the 4Ps)
Marketing
strategy
Distribution /
Product / service Promotion
Pricing strategy channel / sales
strategy strategy
strategy

Marketing Plan Dynamics
Consumer
INFLUENCE ANALYZE
Behavior
Target
Marketing LEARN Measures /

Actions PLAN Feedback
Product Price
Place Promotion
Market research
Alon Rozen / BPD 60

Marketing: Revenue Model
Acquisition How do users find you?
Activation Prospects to user conversion?
Revenue 6Ws of customer payment
Retention How do you keep users come back?
Referral Do users tell others or bring others?

Marketing Budget (in %)
Marketing Budget 000
Operational marketing
10%
20% 40% On-line advertising and SEM
Marketing collateral
30%
Specialized press/media
Alon Rozen / BPD 62

Financials
The Financials elements to include in this section
Assumptions
Financial business model
Simple financial statements (P&L, BS, CF)
Breakeven analysis
Sources and uses of capital
Return on investment (ROI, IRR, payback, )
Risk analysis
Table of key assumptions
Key Assumptions Assumption Benchmark / comparable / justification / comments
Revenue
Sales +50%, +40%, +30%, +20%, +10%
Price +5% every year
Average purchase 100, +5% every year
Frequency 3 purchases/year on average
Growth
New customers +50%, +40%, +30%, +20%, +10%
Average purchase price growth +10% every year
Customer attrition 10% per year
Costs
Raw materials Stable over period
Insurance 1% of sales
Accounting
Loan amortized over 7 years Accelerated for fiscal purposes, straight line in P&L
Suppliers payment conditions 30 days year 1-3, 45 days year 4-5
Customers payment conditions 30 days year 1, 15 days year 2-5
Average inventory 15 days
Alon Rozen / BPD 65
Basic relationships
Numbers Statements Period

Income Historic
Sales
Statement (if applicable)
Costs Balance Sheet Current

(if applicable)
Capital Cash Flow

Future
spending Statement
Elements of Financial Analysis
Income Balance Sources &
Cash Flow
Statement Sheet Uses
3-5 years
3-5 years 3-5 years List all sources
(until profits or
(like P&L) (like P&L) of funds
full speed)
Consider Monthly 12, 18

Detail Uses of funds
asset light or 24 months
assumptions (investments)
approach (until CF>0)
Identify Depreciation
Identify big Make sure it
maximum table
ticket items balances!
need (if assets)
Simplified in Link with Amortization

Identify timing
Financials, full Sources & table
issues
in annex Uses (if debt)
Financial Analysis
Revenues
Detail sales by product/service/activity
Establish a Price Schedule as well as avg. price & purchase
Yearly growth should be explicit (in assumptions) & explained
Assumptions
All assumptions must be explicit, justified & explained!
Justify every assumption with an objective comparable
This is where you will be challenged and judged!
Financial Analysis from Comparables
Identify a comparable (or industry) cost structure
o Create a simplified industry income statement
o Identify industry reference KPIs (COGS, EBITDA, Marketing %)
Compare your income statement with the industrys.

Explain/discuss the differences.

Comparable IS vs. your IS
Notice that all numbers are in % and thus easy to compare!
Sales 100% Sales 100%
COGS 35% COGS 35%
Gross Profit 65% Gross Profit 65%
Lower labor
Payroll 15% costs Payroll 7.5%
More aggressive
Marketing 20% marketing Marketing 25%
Lower cost
SGA 5% base SGA 2.5%
EBITDA 25% EBITDA 30%
DA 1% DA 1%
EBIT 24% EBIT 29%
Equity
Interest 4% financed Interest 0%
Pre-tax income 20% Pre-tax income 29%
Income tax 7% Income tax 7%
Higher
Net income 13% profitability!
Net income 22%
Simplified Income Statement (3-5 yrs)
Income statement (000) Notes Y1 % Y2 % Y3 %
Sales a, b 1 553 100% 1 834 100% 2 093 100%
Operating expenses c 110 7% 116 6% 121 6%
Marketing d 233 15% 275 15% 314 15%
Amortization & Depreciation e 206 13% 195 11% 188 9%
EBITDA f 31 2% 37 2% 42 2%
Other taxes or expenses g 16 1% 18 1% 21 1%
Operating income (EBIT) h 105 7% 272 15% 487 23%
Interest i 45 3% 39 2% 32 2%
Pre-tax income (EBT) j 60 4% 233 13% 455 22%
Income tax k 20 1% 80 4% 156 7%
Net income 39 3% 153 8% 299 14%
Notes: explanations for each line item: a) explain revenue model assumptions
and the line by line calculation of sales b) show a table of annual growth rates
with explanations c) breakdown main operating expenses d) a pie chart of the
Example key assumptions: a) Sales
Y1 Y2 Y3
Sales Y1: based on avg purchase of 100 (due to discounts), avg

capacity utilization 50%; sales start 2 months after start of fiscal year.
Sales Y2: avg purchase of 150, avg. capacity utilization 75%
Sales Y3: avg purchase of 175, avg. capacity utilization 90%

Example of key assumptions: b) Growth rates
Y1 Y2 Y3
- 50% 100%
Growth Y2-Y1: the growth rate was extrapolated from our calculation of
average capacity utilization. However, this growth rate is similar to that of XXX
Hair Salon (see Comparable Analysis) in its second year.
Growth Y3-Y2: the growth rate was again extrapolated from capacity
utilization; it is slightly below that of XXX Hair Salon which posted 150%
growth in its 2nd year of business (source: XXX Hair Salon fiscal report).

Income Statement (3-5 years) - Annex
Income statement (000) Y1 % Y2 % Y3 % Y4 % Y5 %
Sales 1 553 100% 1 834 100% 2 093 100% 2 307 100% 2 505 100%
Rent 525 34% 530 29% 536 26% 541 23% 546 22%
Maintenance 110 7% 116 6% 121 6% 127 6% 134 5%
Utilities (water, gas, electricity) 107 7% 108 6% 110 5% 112 5% 113 5%
Percentages
Percentages
Percentages
Percentages
Percentages
Insurances 8 0.5% 9 0.5% 10 0.5% 12 0.5% 13 0.5%
Payroll 198 13% 258 14% 247 12% 256 11% 264 11%
Marketing 233 15% 275 15% 314 15% 346 15% 376 15%
Amortization and Depreciation 206 13% 195 11% 188 9% 128 6% 123 5%
SGA 31 2% 37 2% 42 2% 46 2% 50 2%
Other taxes 16 1% 18 1% 21 1% 23 1% 25 1%
Other expenses 15 1% 16 1% 17 1% 18 1% 19 1%
Operating income (EBIT) 105 7% 272 15% 487 23% 699 30% 842 34%
Interest 45 3% 39 2% 32 2% 26 1% 19 1%
Pre-tax income (EBT) 60 4% 233 13% 455 22% 673 29% 823 33%
Income tax 20 1% 80 4% 156 7% 231 10% 282 11%
Net income 39 3% 153 8% 299 14% 442 19% 540 22%
Simplified Balance sheet (3-5 years)
Simplified Balance Sheet ( 000) Y1 Y2 Y3 Y4 Y5
Fixed assets
Current assets
Cash and cash equivalents
Total Assets (balance sheet total)
Shareholders equity
Financial debts
Operating debts
Balance sheet total
Full balance sheet in the annex!
Cash flow statements
A monthly breakdown of cash flows is needed at least
until the cash flow situation is sustainably positive.
o12 months minimum, often 18, 24 or 36 months.
Also, a 3-5-year annual cash flow statement (like P&L).
Two approaches to cash flow statements:
oThe net income to net change in cash flow approach
oThe cash in, cash out approach (more informative)

CF Statement (cash in, cash out approach)

Cash Conversion Cycle (CCC)
Accounts Accounts
Inventory
CCC = receivable + - payable
days
days days
CCC = days cash needed to finance the

business
CCC = A/R days + INV days A/P days
Ex. Supplier to Carrefour = 90 + 60 30 = 120
days Alon Rozen, Ecole des Ponts Business School 78
Sources & Uses (year 1)
Sources EUR Uses EUR
Owners 1M Office equipment 1M
Business Angels 1M IT equipment 1M
VCs 10M Vehicles 3M
Bank loans 6M Rent guarantee 1M
Government fund 2M Cash 14M
TOTAL 20M TOTAL 20M

Depreciation table
Depreciation
Duration Cost Y1 Y2 Y3 Y4 Y5
(EUR 000)
Light equipment and
12 0 0 0 0 0 0
fixtures
Equipment 7 810 116 116 116 116 116
Office + IT 5 70 28 17 10 8 8
Vehicles 4 20 5 5 5 5
Start-up investments 3 173 58 58 58
Total depreciation 1 073 206 195 188 128 123
Cumulative depreciation 206 401 589 718 841

Breakeven analysis (graphic)
Of course all visuals,
diagrams, tables and
graphics need to be
given a title and MUST
BE commented on!
Figure 12
As shown in figure 12
Breakeven
Breakeven the rapid
growth which begins in
year 3 allows the
company to break even
after 4.5 years. After this
period profitability grows
quickly as costs remain
stable
Numbers tell a story
$$$ Story
The story should be evident from the numbers and vice versa!
Make sure both are saying the same thing, including in terms of
speed of growth, marketing budget and ambition!

Financials: story, not numbers! dont do this!
Sales Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
$USDM 0.5 1.0 2.0 3.0 4.2 5.7 6.8 8.0 9.0 10
Growth Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
% - 100% 100% 50% 33% 25% 18% 14% 12% 11%
Costs Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
$USDM 0.6 1.05 2 2.25 3.0 3.5 3.9 4.1 4.5 4.7
Profit Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
% -10% -5% 0% 25% 33% 37% 42% 47% 50% 53%
P-O-S Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
# 1 1 2 2 3 6 10 15 20 25

Presenting financials: few numbers, high impact do this!
1 salon 2nd salon Franchising

53
%
33%

Risk Analysis
Discuss the specific risks
that can effect your
business. Not all the risks,
just the main risks.
Alon Rozen / BPD 85
Risks and Assumptions (adapted from Ash Maurya)
Product Risk do you have the right product?
1. Make sure you have a problem worth solving.
2. Then prototype the smallest possible solution (faux-totype, prototype, or MVP).
Customer Risk do you have potential customers?
1. Who has the pain.
2. Who are the early adopters who really want your product now.
Market Risk do you have a viable business?
1. What are the existing alternatives to your solution
2. Establish a price or pricing strategy for your solution.
3. Test pricing by customer interviews
4. Test pricing by customer actions (set up tests).
5. Adapt the business model or pivot.

Key Assumptions
Table of key assumptions
Assumption Test / benchmark / justification / comments
Revenue
Sales
Price
Average purchase
Frequency
Growth
Customer acquisition
Average purchase price growth
Customer attrition
New products / markets
Costs (not investment!)
Raw materials
IT / development
Accounting
Suppliers payment conditions
Customers payment conditions
Average inventory
Risk Analysis
Risk Analysis: very different per project
oIf significant, in a dedicated Risk Section
oOtherwise in the section that is appropriate (Marketing,
Financials, Operations) depending on the primary nature of the
risks
Identify the primary risks for your project (if applicable use the risk
matrix template with severity & probability for each risk)
oProduct risk, market risk, customer risk
oHR (key man), operational risk, supply chain risk
oFinancial risk, cash flow risk, ...
Alon Rozen / BPD 88
Risk Matrix
Low Medium High Comments on
Probability Probability Probability mitigation
High
Severity
Medium
Severity
Low
Severity
Alon Rozen / BPD 89

Operations
Operations - Workflow example
(source: http://www.conceptdraw.com/How-To-Guide/process-flowcharts)
Alon Rozen / BPD 91

Operations
The concept in more detail (but not too much):
o Operating model (from business model)
o HR: Staff and Personnel (salaries, recruitment, training)
o Operating hours
o Seasonal elements
o Supply chain details
o Sourcing and procurement issues
o Outsourcing
o Diagrams, visuals, 3D renderings, mock-ups.
v Some elements should go in the Annex.

Where to put things in your business plan e.g. Hair Salon
Artistic rendering
Concept Diagram
Workflow
Operations Map of location (if physical)
Detailed explanation (e.g. patent)

Annex Detailed architectural floor plan
Alon Rozen / BPD 93
Strategy
Strategy elements to include in this section
Vision and ambition
Overall strategy discussion
Growth strategy (phases of development)
Link to other strategies (financial, marketing, HR )
Risk analysis
Strategy
Define the overall strategy
Define the vision and ambition
Define your different strategies (as applicable) :
oMarketing (new product development, new market penetration)
oGrowth / Expansion (10x organic growth, expansion plan)
oPartnering
oOperational (outsourcing, logistics, )
oFinancial (how will you finance growth)
Link to phases and milestones
Several strategies, one Strategy
Marketing
strategy
Financial
strategy
Growth
strategy
Operational
strategy
Strategy
Strategy and Strategies
Marketing Growth Financial Other
Product / Business
Speed Operational
service strategy model
By nature Equity &

Pricing strategy (organic, M&A, Source of Partnering
franchising, ) funds
Distribution / Exit HR /
By (logical)
channel / sales Management /
phase strategy
strategy advisors
Promotion Link with other

Dividends R&D
strategy strategies
Reality Test = Clarity + Coherence!
Strategic clarity
Are the strategies clearly defined?
Do they make sense? In general and for the team?
Strategic coherence
All strategies pointing in the same direction?
Are all strategies mutually compatible / reinforcing?
Final elements
Business Plan: Conclusion (1 page, optional) before Annex
We have performed rigorous analysis to prepare this business plan and the
business appears viable under all realistic scenarios.
Our concept of Najmi Sheep Farming is based on existing breeding techniques
with an experienced team, and has the potential to be a $55 million business
within 3 years in a market estimated at $500 million.
Based on our analysis, our concept differentiates itself from competitors in terms
of creating an organic luxury brand for sheep with high quality, high price and
high-end positioning.
Our strategy of starting in the UAE and then expanding to the entire Gulf Region
allows us to achieve rapid growth while minimizing risk.
The primary risks we have identified, notably low demand, can be managed or
turned into an opportunity by exporting or selling only during religious holidays
when demand is naturally high and price sensitivity is low.
Our financial projections show high margins (35-75% by activity) and a potential
return on investment of x3 in 5 years.
Annexes (becoming close to extinction)
Purpose:
osupport information presented in the B-Plan
oReinforce the credibility of your project
For most elements now available upon request
Typically (still) includes :
oFounder and Management CVs
oDetailed competitive analysis (comparables)
oPhotos/drawings of product, prototype
oLOIs, MOUs, contracts, price quotes, rental agreements, orders,
oFull Financial Statements now available upon request
What investors look for in a B-Plan
Realism, credibility, passion, and conviction
Dedication + skin in the game (so you cant run away easily)
A concept that is feasible and scalable
Product-market fit
Attractive market and target customer segment
Very innovative or very simple business model
Something special (a secret sauce)
Team-project fit
ROI in line with the risk (high-high, medium-low)

Suggested business plan format
1. Cover page (1 page) 7. Operations
2. Contents (1 page) 8. Strategy
3. Executive Summary (1 page) 9. Financials
4. Concept 1. Key assumptions
1. Description 2. Sales forecasts
2. Business model description 3. Income statement
3. Business model canvas 4. Balance sheet
4. Value Proposition 5. Cash flow statement
5. Use Case 6. Sources & Uses
5. Team 7. Breakeven analysis
6. Market 8. ROI
1. Market analysis 10. Annex
2. Competitor analysis o CVs of founders
3. Marketing plan o Detailed financial tables
1. Target customers o Other supporting documents
2. Marketing mix
3. Marketing budget
4. Marketing strategy Alon Rozen, Ecole des Ponts Business School 104
A business plan is not about B-plan
creating a perfect document.

It is (just) the visible part of the The work
iceberg in the business

planning process

Last word

Rozen Business Plan Atuge At'ventures Mars 2017

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Le Start-up Business Plan :

la loupe en mode acclr

?????... Alon Rozen / cole des Ponts Business School 2

Customer Product Biz Model Market Traction Scale

Rozen - startup - EIVP 3

OVERVIEW of A new, viable A ROADMAP for next

Alon Rozen, Ecole des Ponts Business School 4

Where you Where you

Alon Rozen / BPD

Texte & data, Equilibre texte, Trs visuelle,

Agile & Scrum Lean start-up (Eric

Alon Rozen, Ecole des Ponts Business School 9

Business Model Development

Alon Rozen, Ecole des Ponts Business School 10

Market feasibility Technical feasibility Financial feasibility Team feasibility

Alon Rozen / Ecole des Ponts Business School

Professional NewCo Limited

Contact: Jean Dupont

Alon Rozen, Ecole des Ponts Business School 15

Alon Rozen, Ecole des Ponts Business School 16

Very few, but memorable, numbers! The team is composed of

Alon Rozen, Ecole des Ponts Business School 18

Are you solving a real problem (pain point)?

Alon Rozen, Ecole des Ponts Business School 23

Oxygen cant live without it

Pain killer removes a real pain point

Vitamin makes life better

Models within the model (marketing, sales, ...)

Rozen / BPD (http://leanstack.com)

Customers Pricing / Payment Revenues

Marketing Cash flow / Working capital Operations Margins

SALES (channels, partners) PROBLEM SOLUTION COST Model

MARKETING Model WORKING CAPITAL OPERATIONS Model MARGIN Model

SALES Model PROBLEM SOLUTION COST Model

MARKETING Model WORKING CAPITAL OPERATIONS MARGIN Model

Sales model Solution Cost model

Marketing model Working K/ cash model Operating model Margin model

Alon Rozen / BPD 35

We charge detailers a 15% transaction fee

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Segmented addressable market =

EARN MORE GROW FASTER

Copyright 2015 Gleamr. Created by PitchDeckCoach.com

1. BROWSE 2. COMPARE 3. SELECT,

Amazing Amazing Amazing

Copyright 2015 Gleamr. Created by PitchDeckCoach.com

Ella adore les ptisseries mais elle a la diabte.

Jeanne a vu une pub sur Facebook pour Tasty Free, une

Alon Rozen, Ecole des Ponts Business School 43

Bios in body of report Bios in body of report

Missing competences (and if you will hire or outsource them)

Advisors (who are they?)

Professionals (lawyer, accountant, developers, etc.)

Board members (if applicable)

Alon Rozen / BPD 47

Market Customers Competitors

Market structure Target customers Key competitors

Customer behavior Comparable

Market segments Customer economics If none, find one

Alon Rozen, Ecole des Ponts Business School 51

Market Market Market

Alon Rozen, Ecole des Ponts Business School 52

3 principal pricing Other schemes