Explanation of Service – Gather background info from entrepreneur re product or service concept.  Quantify addressable market, market penetration, pricing, customer wins, unit sale and other data to develop a sales forecast.  Build assumptions toggles for ‘worst case’, ‘most likely case’ and ‘best case’ sales forecast assumptions.  Understand sales plan and determine resources necessary to achieve sales forecasts.  Build business model based on data points and quantify funding needs.  Review business model with entrepreneur and make adjustments as needed.  Integrate model with Executive Summary and Business Plan and ensure consistency with other plan assumptions.

Tasks and Tactics –

  1. Develop market analyses, long term forecasts, prospective financial statements, enterprise valuations, ROI calculations and executive summary to be included in business plans, offering memorandums and funding pitch presentations.
  2. Meet with other business plan authors to ensure content is consistent, plausible and accurate.
  3. Review operating agreements, term sheets, investor rights agreement, loan agreement and other transaction documents for appropriate terms and conditions.
  4. Assist in debt and equity negotiation and deal structuring.

Deliverables –

  • Comprehensive three to five year financial forecast including full set of prospective Financial Statements.  Suitable for presentation, sensitivity analysis and planning.
  • Quantification of funding needs and planned resources.
  • Polished, consistent, plausible and accurate presentation collateral to make company ready to present to banks, private investors, VC’s and other funding sources.
  • Provide expert resource to entrepreneur to assist in review and negotiation of term sheets, loan documents and other transaction documents.

Purpose and Utilization of Deliverables –

Presentation – the business model will be suitable for presenting the concept or growth opportunity to potential creditors or investors for funding.  The model will allow sensitivity analysis, proof of concept, financial analysis, resource planning and funding quantification.  Planning – the business model will be built in such a way that it can be updated and used in the future to plan and direct the company.