Posted first here, then LinkedIn, Google+, Twitter, etc.
Preparing Business Documents
Courtesy of the State of Montana
State a succinct Mission
- Problem that needs solving
- Solution – unique and powerful.
- Purpose – providing a universal benefit
Define your Market
- Demographics – type, revenue, workers, expense percentage, stage, growth rate, where you can make a difference
- Size – number or $$
- Penetration – percentage or $$
- Use library and paid Market Databases
Show off your Management Team – what the Founders become:
- Members – 3-5
- Total experience – at least 125 years
- The Best Fit for each Founder – not every Founder is a CEO
- Deepen your Bench with Candidates for the Mgt Team: Board of Directors; Board of Advisors; few meetings – call/email 1-4 hrs/mo; small equity = $30k-$60k+ in years 3-5; show off those resumes!
Clearly outline the Money – your Financial projections:
- Detailed, reasonable Expenses – indicates your business knowledge and includes capitalization
- Realistic Income
- Net Income
- 1st 12 months
- Next 4 quarters
- Next 3 years – longer if needed for decent ROI
- Reviewed by qualified Accounting Advisor (generally a CPA)
- Be careful disseminating too much information so it doesn’t become an illegal “public offering” of an investment
Establish written Agreements with:
- Team Members – duties; compensation; exit contingencies; other negotiated
- Early Investors – shows interest
- Vendors – shows reality
- Potential Customers – LOIs, MOUs or Purchase Orders
Write robust Plans:
- Full Business Plan, such as our suggested format
- Marketing, such as our GOgitMMM™ Power Internet Marketing system
- List all possible – detail at least one in each category
More to come on the Startup 2.0™ Steps.
Feedback and suggestions are always appreciated here, by message or email.