“Use an opening headline statement to capture the attention of the reader”

ISSUE VERSION 1. Page 1 of 2

Business Location Industry Sector Business Description A simple one liner of what the business does

Business Size (Employees) (0; 1-9;10-49;) Stage of Business Start up or established Investment Required Total amount Investor Involvement

Summary

• Maximum of 5 bullet points featuring the main selling points contained in the Business Plan.

• Certainly mention profitability if it is good. • Forget EIS till later in Bulletin. • Most of the businesses are any way. • Keep it punchy

Financial Information

When was company formed and with what capital? It is essential that this section contains accurate historic information and an indication of the current value of the business.

Past Performance Forward Projections In £000s -Year2 -Year1 Year 1 Year 2 Year 3

Sales

Units

Gross Profit

GP%

PBT

Cash Flow

Net asset value

Funding Required

How much investment is required? Equity, bank loans, leasing etc? What other funds are available? How much (if any) is the management investing? Has EIS tax relief been applied for? It is essential that the full reasons for the funding are explained and how it will be spent. What is on offer - equity, secured borrowing, quasi equity etc

The Deal

How do investors get their return? Is equity available? Is EIS tax relief available? How do you value the business? Is it realistic? What % equity is on offer for how much cash?

Exit

What is the preferred exit route, flotation, trade sale, management buy out or pay out.

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ISSUE VERSION 1. Page 2 of 2

Market Opportunity

Describe the market. Size of overall market and what % aimed at. Always recite source of information if reliable and renowned. Any definitive statements on the size of market must have the source of that information. Otherwise statistics should contain some form of qualification like – “in the opinion of the Directors” or even “it is generally believed that”

The Product

Describe the product or service. Simply define what it is so that anyone will understand – do not make assumptions as to the reader’s knowledge. Accuracy and a full concise description are essential. Be sure that you personally fully understand it and are able to describe it accurately to a potential investor. Never use the word “unique” it is the most overused and inaccurate word used in business plans. It is very rarely true and Venture Capitalists hate it, can be a complete turn-off for them.

Sales, Marketing and Distribution

How will the product be marketed and sold? What is the route to the market – simply defined. Who will be responsible for sales and marketing. What market research has been done? Is the business selling to retail, wholesale, direct, over internet, door-knocking etc. What type of sales force. PR agency? Advertising, promotion.

Competition and Competitive Issues

Who are the competition and why is this proposition going to succeed? Why is the product different to make the market place buy it. Never say that this product or service has no competition or is unique. There is always something that will compete. Give details, are they large organisations or small, what will give the business the edge.

The Business Model

How does the business make a profit? What are the key value drivers? Does the business have the infrastructure to progress immediately or, if an existing business, does the infrastructure require strengthening. Is it a Limited company/PLC? Capital structure, main shareholders, are there outside shareholders, VCs etc? How many Directors?

The Management Team

Without mentioning any names who is running the business and what are their particular skills? Are there any skills gaps if so how will they be filled? This section is often rather ignored or is inadequate. Many investors will consider it the most important section. They will be particularly interested in the chief exec and will also want to know about the support team. Industry knowledge is most important.