The Newel K. Whitney Business Springboard

Business Plan Guidelines

Written Content Required:

Each Business Springboard participant must complete a SIFE Business Plan Workshop before submitting documents to the Business Springboard.  Each business plan must be presented in your most professional-looking spiral-bound package (no 3-ring binders, and no stapled pages).  Each plan must contain all of the major sections listed below, explicitly separated from each other, and given in the order listed below.  You may include other sections of interest after these.  Plans that do not meet these requirements will be returned to you and you will not be allowed to participate in the Springboard.

 

Sections Required

1.  Cover Page listing your company name, contact person, address, telephone and fax numbers, and email addresses. 

 

2.  Business Plan addressing fundamental issues that would be of interest to potential investors. The plan should be no more than 8-10 numbered pages in length excluding cover page, but including any tables, graphs, photos, and financial information; no compressed type; no more than 12 characters per inch with one inch margins all around.  The plan must specifically address the five areas highlighted

below.

 

The criteria weight (located in parentheses) was developed by venture capitalists from around the country, and indicates what emphasis the investor places on various parts of your plan. For example, on a 100 point scale, financial information is worth only 10 points, while marketing is worth 35.  Please note that the marketing strategy and the management are the most important elements of your venture.

 

1.  THE COMPANY (15% WEIGHT)

• State the purpose of your business. Explain what business you are in and why (i.e., what market opportunity you are going to exploit).
• Give a brief summary of your company's history and current status, including whether the company is publicly or privately held, or a start-up.
• State your company's overall strategy and objectives (i.e., to go public in seven years, to command 10% market share after ten years, to reach $5 million in sales after five years, etc.)
• If you are currently in business, describe your revenue growth and closeness to profitability.

 

2.  THE PRODUCTS OR SERVICES (15% WEIGHT)

• Describe the important features and user benefits of your product.  Relate the features of your products and services to market needs and to the competition.
• Discuss pricing and margins for both your products and your competitors' products.
• Explain any proprietary positions (such as trademarks, patents, trade secrets, special production skills, proprietary processes, etc.) that apply to your product.
• Describe the specific products and projects planned, their status, when due out, expected product life, and potential revenues.
• Articulate any regulatory or environmental issues, if any.

 

3.  THE MARKET AND MARKETING STRATEGY (35% WEIGHT)

• Describe in detail what needs in the market you intend to satisfy (i.e., what situations in the market you intend to exploit).  Who buys your products and why?
• Describe your market in terms of size, anticipated growth, and key changes. What issues, if any, are driving or forcing the market to need your product/service.
• Describe your competition. Who are they, how much of the market do they have, and what is their strategic position?
• Discuss your unique capabilities.  What makes you different?  What gives you a special advantage?
• Describe how you will penetrate the market.  How are you going to reach the market?  What are your channels of distribution/promotion?  What is the anticipated cost of the market program?
• Describe your pricing methodology.  How are your prices determined and what are the margins resulting from those prices?
• Discuss any issues or circumstances that "drive" or create the market, or compel people to purchase your product.

 

4.  MANAGEMENT (25% WEIGHT)

• Give very brief backgrounds of the key individuals in your business.  Why can they do this job, and what is the specific value they add to the company?  List their past successes and achievements.
• Describe your history of working together as a team.
• Identify your immediate personnel needs and the anticipated initial organizational structure.

 

5.  FINANCIAL SUMMARY (10% WEIGHT)

• List the funding required to start your business.  Detail how much you want to raise, both initially and subsequently.
• Discuss the history of past investments, if any; offering(s), type of security, price, other terms, if appropriate.
• Provide your best estimate as to how and when an investor will get his money back.  Indicate an exit strategy (i.e., mergers, acquisitions, or initial public offerings). Describe, if possible, similar businesses and what their returns to investors have been.
• Describe your funding needs at each stage of development, along with each stage's bench marks or milestones to be accomplished.
• You must include a simple projection of sales, revenues, income and expenses over a 3-5 year period.  State and briefly justify your financial assumptions.
• If you are an existing business, include a past financial history.
• Identify your liquidity strategy.

 

Presentation Requirements and Information

• Dress--all participants must be dressed and groomed in their most professional but conservative business attire, and in accordance with BYU-Idaho standards.
• Time--all participants will have 15-20 minutes to fully present their plan to the judges.  In this presentation, you are required to fully demonstrate your communication skills, your sales ability, and your enthusiasm for your proposal.  All presentations must address the five major areas listed above, in the order given, matching the order of material in your plan.  It is inappropriate to simply ask the judges if they have any questions and use their responses as the basis for your presentation. 
• Facilities--you may use Power Point slides, or product demonstrations/models in your presentations.  You will have access to the Internet and overhead projection.   It is up to you to ensure that devices, such as jump drives, etc., are fully compatible with the facilities at the University prior to your presentation.  Since Business Springboards are open to all students, you should prepare to address a large audience.
• Approach--you should assume that you are presenting your plan to a group of potential investors or bankers in the hopes of obtaining funding sources.  The judges will be viewing both your written plan and your presentation from the perspective of an investor.  You will need to do well in both the written and the verbal presentations in order to obtain Springboard funding.  Consequently, students are encouraged to seek business plan writing and presentation skills offered through various campus Societies and Departments.