Presented by the

UH Pacific Business Center

Program (PBCP)
David M. Gillespie
PBCP is a partner with the Shidler in providing
economic technical assistance throughout
the Pacific Region. The PBCP also operates
the Honolulu Minority Business Enterprise
Center. We have extensive experience and
expertise in business plan development.
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Document/Submission Requirements
Prefer PDF format
Less than 1mb single file
Single Spaced (min.), 12 Point Font
(min.), 1 Margins all around (min.) &
8.5 X 11 paper size
Emailed as attachment to:
pace@hawaii.edu by 5pm on 4/4/08, AND
Five hardcopies to PACE office
If Mailed - postmarked by 4/4/08
If Hand Delivered At PACE by 5pm on
4/4/08
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Document Specification Requirements
Cover Sheet 1 page
Executive Summary Maximum
2 pages
Business Plan Maximum 10
pages
Attachments or Appendices
Maximum 10 pages, open format
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Judging Criteria
1) Overall Appeal -10%
2) Attractiveness of Market Opportunity-15%
3) Value Created by the Product/Service-15%
4) Competitive Advantage of Venture-15%
5) Operational & Technological Viability-
15%
6) Management Team Capability-15%
7) Capital Requirements & Financial Forecast
-15%
4
Suggested Organization
1. Cover Sheet
2. Exec. Summary - Overall
Appeal (10%)
3. Overview of the Firm

4. Market Analysis Market
Opportunity (15%)


5. Products/Services
Offered Value
Created (15%)

6. Marketing Plan/Strategy
Competitive Advantage (15%)

7. Operations Plan
Operational & Technical
Viability (15%)

8. Management Team Team
Capability (15%)

9. Financial Plan Capital
Requirements & Projections
(15%)

10. Appendices &
Attachments

5
Data Requirements:
Team Name
Business Name
Names of All Team Members

Other:
Logo Development
Balanced Sheet with Lots of White
Use of Color
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Judging Criteria 1 - Overall Appeal of the Plan
(10%): Compelling vision; enthusiasm;
greater than the sum of its parts.
The business plan judge will probably obtain most of
his/her appeal in reading your Executive Summary.

Write the Final Executive Summary Last
Things will change as you write the plan
The Executive Summary you already
turned in can be adjusted/changed.
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Elevator Pitch The reader must get it in the
Executive Summary.
Who Manoa Tansgenics, Inc., a start up life
science company
What Provide genetically modified mice, a novel
gene insertional methodology and gene therapy
research development.
How Use a proprietary gene insertion technology
invented by the two business founders
Why Transgenic mice market at $180 million;
once technology validated potential for gene therapy
market projected at $5.7 billion in 2011
How Much & Return Need $2.5 million for
research; offer 15% equity in the firm. Once reach
20% market penetration, firm sold/merged/IPO.

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Other Key Items to Address:
Mission and Objectives
Product, Process, or New Business
Model
The Pain the Above will relieve
Target Market Customers, Value
Added, Competitors, Competitive
Advantage
Business Model Who pays, how much,
and how often. Model margins
The Executive Summary MUST stand on its own;
dont copy sections word for word from the
business plan narrativea common mistake.
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Include/Expand By the Level of
Importance to Your Business Plan
Technology & Intellectual Property
Management Team
Milestones/Goals
Revenue/Cash Projection
Funding Needs & Use of Proceeds
Investor Potential Return & How and
When Returned


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Major Sections to Consider A way
of introducing the firm
Value, Vision & Mission
History
Distinctive Competence
Technology
Competitive Advantage
Strategy and Objectives of Firm
Major Milestones Achieved to Date
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Judging Criteria 2 - Attractiveness of
Market Opportunity (15%)
Market size and growth
potential

Your firms potential in this
market

Expected margins and net profit
long-term potential



12
Market Profile - Show you know the market you
are entering
Demographic/Geographic/Psychographic or
Business Profile
Maturity of Industry Which Phase: Start-Up,
Growth, Maturity, Decline
Size of Market Units and Dollars
Growth Potential Tie it to research and in units
and dollars over time
Market Pain
Needs What is the pain of this market
Set it up so that your product relieves pain

13
Market/Industry Business Model
What is the current set-up (business
model) for businesses in this market.
What is the margin and net profit
profile of this market/industry
financial research
Is there a niche unsatisfied, or a better
business model set it up so your
product/service, and, or business
model is the answer.
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Competition Who else provides the service or
product and what else do they provide their customers
Competitive Position of Leaders

Market Share Distribution - % of the
market pie by leader, market share
growth

Barriers to Entry How difficult is it to
enter the market youre interested in.

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Judging Criteria 3 - Value Created by the
Product/Service (15%)
How will you relieve the pain- what is
the unique value of product/service
Importance of Product/Service to
Customer
Product/Service Description or
Prototype
Features and Benefits of
Product/Service
Market Reaction to Product/Service
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Product/Service Description Clear,
concise and complete. Detail in
Appendix
Product Benefits & Features The
things that will relieve the pain you
identified in Market Analysis.
Product/Service Customer Reaction
Sampling, interviews, testimonials
Product SWOT If appropriate



17
Cleary Describe Product Need
Need may not be fully recognized by
the market at this time
Describe how you see the need
developing
Product Development Plan
Current level of product development
Phasing plan of product development


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Judging Criteria 4 - Competitive Advantage of the
Venture (15%)
How Will the Product Gain Market
Share Against Competitors
Market Share and Growth Profile
Potential
How Long to Get Product/Service to
Market
What Business Model/Distribution
Method Will Position the Firm Best



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Business Model Proposed
Be as specific as possible. Clear,
concise explanation (B2B, B2C, etc.)
Product Market Development Plan
Phases of development: drawing,
prototype, pilot manufacturing
Overcoming Competition How?
Pricing, Business Model, Quality,
Market Tactics
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Focused Target Market(s) Profile
Size and Trends of Markets
Demographic, Geographic,
Psychographic or Business Profile
Buying Sensitivity
Vulnerability to Economic Factors
Purchasing Patterns

21
Pricing Strategy Image Awareness, Cost
Recovery
How will you fit within the market? - Above
Market, Match Competition, Below Market ?
Promotional Strategy
Media Web-based, Print, TV: what does
the competition do?
Message What will be your key message; Is
it focused on your core business?
Promotional Budget Sales growth requires
a matching promotional budget.


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Sales Strategy How will sales be
developed and processed
Sales Generation in the Business
Model
Sales Force Management
Order Processing
Compensation Plan

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Sales Projections
First Year by quarter; then yearly
By Product/Service Line
By Units and Dollars

Other Marketing Activities
Service and Support Capability
Strategic Alliances


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Judging Criteria 5 - Operational &
Technological Viability (15%)
Product/Service Production
Product/Service Distribution
Production obstacles and how you
will overcome them
Any essential technology property and
how will it be protected
Develop a plan timeframe
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Production Plan Where produced or
developed materials required & sources, outsourcing
Technical requirements of producing
the product/service and how met.
Patent protection or other means of
protection
Distribution Strategy How will you get
your product/service to the customer
Retail, Wholesale, Distributor, Internet,
Licensing, Franchising tie into the
business model
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Manufacturing Requirements by
order of importance to the plan
Facilities plan for growth
Equipment
Outsourcing
Third-Party Agreements
Contracts
Licensing
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Milestones Make/Break Activities
Schedule of key activities to be
accomplished GANTT Chart

Specific/Crucial Objectives:
Timeframe
Responsibility of who?
Results expected
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Judging Criteria 6 -Management Team Capability
(15%)
Venture management/expertise needs
Education, experience, skills of team
Acknowledge skill gaps and show how
you will overcome them hire, contract,
etc.
Role of each team member in the
development of the venture dual roles

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Names
Roles and Positions
Experience and Education
Other Related Experience
Gap Experts Technical skills
Strategic Alliances
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Show that Your Organization is Set to Meet the
Growth You Planned For
Principal Players Do you have the right
people in the right places? Will the firms
expertise requirements change as the firm
grows?
Consultants and Specialist Are industry
changes severe enough to bring on experts?
Organizational Structure What is your
organizational structure and will it be
appropriate for your firms growth?
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Judging Criteria 7 - Capital Requirements &
Financial Forecast (15%)
Capital
Needs Capital asset purchases, start-up
expenses, working capital
Sources Venture Capitalist, lenders, FFF?
Phasing Start-up, 1
st
, 2
nd
, other rounds
Entity Ownership structure
Investment Exit Strategy
Project Evaluators ROI, NPV, IRR
Cash Flow - when turn positive

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Financial Forecast
P & L Summary
Cash Flow Summary
Cash Flow Breakeven When does
firm turn to positive cash flow
Investor Return ROI, Dividends,
Capital Returns, NPV, IRR

33
Stages of VC Funding:
Seed Develop proto-type
Early Stage Launch product
Growth Stage Expand marketing
Mezzanine Add resources,
acquire other firms
Develop a structure/mix of funding

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Income Projections Revenues,
COGS and major expense categories. $
and %.
Cash Flow Forecasts Too little cash
(common problem) for working capital.
Cash Flow Break-Even Analysis
Do you need to generate more or less sales
to cover operating costs than what you
originally planned for?
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Income Statement Format
Major Revenue Categories Ascending
Order
By product/service type
Show Key % - Gross & Operating Margins
Major Expense Categories Ascending
Order
COGS, Personnel, Rent
Level of Detail
By Quarter for the first 12 months
By Year after first 12 months
Three years minimum, five years maximum
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Cash Flow Direct Method
Operating Activities
Revenues, Direct Materials and Labor,
General & Admin. Expenses
Investing Activities Asset
Purchases
Financing Activities Dividends,
Return on Investment

37
Be sure you have a financial macro & micro
understanding of your venture and that micro
and macro are in sync.
Macro View The financial big
picture: Review, understand and
analyze the financial statements you
generate.
Micro View The financial details:
Pricing strategy, margins, mark-up of
the product or service you are offering.
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Examples of what you can put in the Appendix
Detailed Financial Documents
Start-up Cost Schedule
Funding Sources Detail
Detailed Income Projections
Balance Sheet Projections
Detailed Cash Flow Projections
Cash Break-Even Analysis
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Assumptions Critical to Your Plan
Interest Rates: Long & short-term
Sales on Credit
Inventory Turnover
Personnel Overhead
Licensing Agreement
Other


41
Product/Service
Detailed Description, Drawings,
Production Processes
Management Team
Resumes
Consultants/Experts Qualifications
Other
Market Research Data
Relevant News Articles
42
6 Cs Of A Winning Business Plan
Complete No missing sections, cover all the
judging points.
Clear Concept of your product/service, its
market, and business model are explained
completely during the first read of the plan.
Credible The plan makes sense. No crazy
revenue projections, outrageous market share
claims, belief in a lack of any competition, etc.

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6 Cs Of A Winning Business Plan
Compelling Draws the reader into the business
concept they way a good novel draws in a reader. The
reader buys into your idea because your plan is
convincing and your narrative is persuasive.
Customer Focused Show you understand your
customer and how you will relieve their pain.
Concern for Investor/Lender Show how, and
when, debt/equity is returned and ROI is developed.

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Form of the Plan
Use of Charts and Graphs
Simple, Clean, Easy to Read
Font Type and Size Changes
Limited Changes - subtle
Color
Make sure it prints ok in black and
white
Shading and texture for graphs/charts
Number the pages

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Plan Development
Many contributorsone writing voice
Proofread by non-team member
Support assumptions when ever possible
Business Plan Team Skill Needs
Marketing Research, Market Size, Sales Est.
Financial Projections & Statement
Development
Plan Wording
Positive word choices; not might, maybe,
probably; but dont overstate or exaggerate.
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Business Plan Judges Are Hawaii
Business Professionals
Bankers, Business Owners, Govt
and Non-Govt Organization
Employees
Business Service Providers
Accountants, Lawyers, Consultants
Investors, Venture Capitalist
Entrepreneurs
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Software & Website Assistance:
Business Plan Pro palo-alto.com
Business Plan Builder jianusa.com
Business Plan Writer Deluxe
Bplans.com
Businessplans.org sample plans
Microsoft Business Planner Office
Pro
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Good Luck to
All!!
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