"SMOLENTSEV & Partners". Management of Possibilities | Consulting and Investments
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The uniqueness of our concept lies in our initial help for leaders to orient their businesses on achievement of successful long-term results, developing in the “open” world.
Konstantin Y. Smolentsev
SMOLENTSEV & Partners » Services » Organization of Angel and Venture financing »

Recommendation on business plan consistency

We recommend the business plan to be developed in a simple and understanding for a non-specialist form without using narrowly specialized terms. It has to be consistent enough to embrace all major parts of the project, and at the same time it has to be relatively short to keep up the investors’ interest. For visual effects, we recommend graphs and diagrams. For the investor to get interested, the business plan has to provide proof that the planned data will be achieved. Business plan has to be done correctly, accurately and in a simple form for reading for the impression not to turn against you.

Very important advices: provided prognosis has to be realistic and the business plan has to be a working document, not simply a presentational instrument to sell a business idea to an investor. Experienced investor sees the difference right away and on that basis can make a final decision.

We do not recommend providing confidential information. This information is better to be shared after signing an according written agreement about confidentiality (NDA) with a concrete interested investor.

It is better to have two variants of the business plan – one in English, another in Russian languages. In the worse case scenario, at least the title page and the resume of the business plan should be in English.

Structure of a business plan

Title page

The title page has to consist of a name of the company, name of the document (has to reflect what is inside the document), by who and when was it done, contacts of the architect of the business plan.

  1. Resume
    The main mass of business plans are rejected only after reading the resume, that’s why it’s quality is extremely important to grab the investor’s attention.

    It has to be short answers to questions which potentially could be asked by the one who makes the decision on possibility and conditions of financing the project. General volume of the resume has to not exceed 3-5 pages and has to consist of main thesis divisions of the business plan.

  2. Description of a business and company 
    • Name of the company, form of ownership, date of creation, location
    • History of creation and development
    • Owners of the company with information on shares  
    • Organizational structure of the company
    • System of corporate management
    • Material assets
    • Liabilities
    If you have not registered your company yet, it is not a reason to skip this. Write down your thoughts on when and under which conditions you are planning to do it, which assets are planned to be given to the Company.

  3. Problem and solution
    • Detailed description of the business idea, product (service), level of innovation  
    • Solution to which market problem is offered
    • Readiness of the product (service) for commercial realization, time frame of the commercialization 
    • Existing analogues in the world
    • Graphs of comparison of the product (service) with the analogue (precisely imported) will all main parameters    
    • Description of advantages in comparison to the analogues
    • Necessity of certification, existing certificated
    • Predicted cycle of life of the product in market
    • Necessity and opportunities to modernize the product
    • Existing limitations
    • Ecology
    • Social direction
    • Stages of the project’s realization
  4. Description of the used technique
    • Degree of novelty, expediency of use
    • Description of the used technique
    • Advantages in comparison to existing techniques
    • Existing or offered protection of intellectual property
    • Accessory of the rights to intellectual property now and in the long term
    • Validity of existing patents
    • Existing restrictions 
  5. Market opportunities and limitations
    • Description of the market, in which the company is located, its geography
    • Sales volume of the company, main groups of consumers
    • Estimation of the market’s volume, by who was it made, market’s tendencies
    • Company’s share of the market, planned share
    • Main competitors of the company, their shares of the market
    • Description of advantages in comparison to competitors
    • Existing restrictions
    • Barriers of entering a market
  6. Business model
    Goals and strategies  
    • Mission of the company (if it is clearly formulated and reflects the reality)
    • strategic goals of the company
    • Key factors of success
    Marketing strategy 
    • Product: design and packaging
    • Pricing
    • Ways of distributing the product
    • After sale service
    • Positioning
    • Advertisement and PR
    • Marketing personnel
    Operative plan 
    • Location
    • Equipment
    • Raw materials and materials
    Risk analysis 
    • Identification of possible risks
    • Plan of compensatory events
  7. Team
    • List of staff
    • Education, qualification, management and specialized experience, achievements of main managers and owners of the company
    • Authors of inventions
    • Qualification, experience, duties of non managing experts
    • External consulting companies
    • Organizational structure
    • Wages and system of motivation
    • Board of directors
  8. Financial model  
    • Material and non material contribution to the project of the initiating side
    • History of previous financing
    • Available means
    • Volume, structure and stages of receiving necessary investments
    • Direction of investments’ use
    • Current constant and variable costs
    • Forecast of sales under pessimistic, realistic and optimistic scenarios
      • Financial prognosis for the following 3-5 years
      • Reports on losses and profits
      • Commentary for reports of losses and profits
      • Monthly plan of money flows
      • Parameters of financial activity
    • Estimation of the current cost of the company
    • Forecasts on capitalization changes of the company
  9. Offers to the investor
    • Conditions offered to the investor
    • Additional stages of financing
    • Exit strategy of the investor

Additionally:

  • Financial reports for the past 2-3 years
  • Copies of authorized documents
  • Technical information
  • Resume of the key team members
  • Key contracts and agreements on intentions
  • Photographs, pictures
  • Other documentation consisting of important details for different divisions of the business plan, clarifying statements or numbers.

One of the most important standards of our work is strict confidentiality of information, received from Clients.

We provide security for information and documentation, received or developed during work, and do not disclose without the Client’s consent, as it is established by the international norms and professional etiquette.

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