The basics of Business Plan writing

A business plan is a management tool used by many businesses, both new and established.

• For new businesses the business plan is used, most often, to present the new idea or concept
to investors that may be interested in investing in the company to help it grow further.
• In established businesses, the business plan can be used as a management reporting tool
where new ideas are summarized for top management in order for them to evaluate several
projects and follow their development.

A business plan generally contains a product description, analysis of the market and potential
customers, marketing and implementation plans as well as financial and budgeting information.
There is no "right" way to write one, but you can get some tips from the sources below.

You can use this business plan outline to structure and develop your business plan. If you need
more inspiration look at these additional questions when writing your business plan. If you cover all
the elements in the business plan outline you will be sure to meet the Venture Cup criteria.

All registered participants in the Entry Manager are able to download "Starting Up", a guide
developed by McKinsey & Company for Venture Cup on how to write a business plan.

Business and Strategic Planning

Kylon Gustin is the president and owner of SMR Services and a partner in an Austin, TX based
software company, Business Resource Software (BRS). BRS develops and markets strategic
planning and business planning software sold throughout the world to over half of the Fortune 500.
He works with entrepreneurs to focus their business plan on issues critical to venture capitalists.

Wednesday, November 21, 2007

Could Santa Claus get funding in today's market?

I wrote the following to demonstrate the components of an Executive Summary. It was also a
fun project, complete with a mock-website at www.SantasPlan.com. I hope you enjoy.

Santa's Inc. mission is to bring joy to children around the world by fulfilling toy requests
via high-speed in-home delivery service.

Santa's Inc. (Santa) is in a unique position to provide quality toys to children throughout
the world by utilizing an innovative patent-pending high-speed delivery system. Santa's
state-of-the-art 'Just in Time' delivery capability provides a significant competitive
advantage. Additionally, Santa will beat any competitors' price by 100%, ensuring niche
market domination.
Santa’s Operation
Manufacturing
Santa's first competitive advantage is the Lean Manufacturing facility to be located in the
North Pole. This location offers a high concentration of skilled toy makers (including
video-gaming and electronics) willing to work year-round for minimal compensation, stock
options, and an annual tropical vacation package. Not bound by International copyright
laws, Santa can duplicate any toy on the market with no development or market research
costs. Santa is in a perfect position to implement a Focused Cost Leadership strategy; we
have used the Business Insight software from BRS-inc.com to identify operational,
marketing and pricing strategies to dominate our niche market.

Fulfillment
Santa will use a highly-classified transportation system (High Speed Santa Delivery or
HSSD) to deliver toys around the world at record speeds and at a fraction of the
competitors' fulfillment costs. Details of the HSSD will be made available to qualified
investors. All orders or change orders requested by 8 P.M. local time (of the shipping
destination) on Christmas Eve will be fulfilled between 12 A.M. and 6 A.M. local time
Christmas Day. The superiority of our once-a-year delivery method will become evident as
details of our HSSD are revealed.

Pricing / Marketing
Competitor pricing is driven by the "old" model of ROI, while Santa's 100% discount (free
toys) is a result of a deep affection for children, supplemented by an advertising and
royalty revenue model. Each toy that is delivered to a child will be accompanied by an
invitation to join the SantasPlan.com social network community. Children can view Santa's
on-line toy catalog, update their wish list, view their Naughty/Nice meter, and meet other
children with similar toy interests. Advertisers selling toys year round through on-line
stores and retail outlets will have the ability to direct targeted advertisements to the
children and their parents. Children can forward a wish-list to their parent's email, which
will also include targeted ads. Santa has created a personal likeness that conveys jolliness,
gentleness, and compassion. For a one month period prior to Christmas, hundreds of
thousands of men will dress up in costumes that depict this image; they will be called
"Santa's Helpers." Retail outlets will pay Santa a royalty for the use of this likeness in order
to draw children and parents into their stores. Many forms of merchandising of Santa's
likeness, including toys, dolls, books, etc., will contribute significant additional revenues.
The combination of these revenue streams will provide a net profit ratio many times
greater than any of our competitors. Our free Christmas toy pricing model combined with
our social network will create a sizable customer exit barrier. SantasPlan.com will become
the destination site for all good little children.

Market
Our primary target is children two to ten years old in developed countries that celebrate
Christmas. The world population exceeds 6.6 billion people and is growing more
commercialized. As the world 'flattens' and heavily populated countries like China and
India embrace Western cultures, Santa's popularity will grow exponentially. In our first
year we anticipate to exceed 500 million toys, all delivered in one night thanks to our
HSSD system. Children outside of our current distribution area that join the
SantasPlan.com community will help create a greater demand for Santa. By year three we
conservatively estimate 1 billion toy deliveries.

Competition
Our objective is to promote a healthy toy industry for Santa and all competitors. It is not
our goal to eliminate our competitors; we rely on them for our advertising revenue model.
Because Santa provides only a fraction of the toys received by children on Christmas, the
remaining competitors will compete amongst themselves for market penetration. They are
forced to compete on price, channel distribution, discounts, retail shelf dominance,
Internet sales, outsourced manufacturing, product knock-offs, and a host of other factors.
As a free, benevolent, and annual delivery service, we project a pure, non-commercial
image – setting us apart from all competitors.

Management Team
Kris Kringle – Founder and CEO. Santa's personal likeness is modeled after Kris, with a
few pounds added for a more "jolly" appearance. Kris has a lifetime of experience in the toy
industry, working in the family business. As former Vice President of Manufacturing for a
major toy company, Kris is imminently qualified to lead our manufacturing-intensive
organization.

Avery Goncalo – Co-founder and CTO. Avery is a member of Mensa International and
has been published several times in the Mensa Research Journal for his research and
discoveries in Quantum Physics. After he and Kris developed the HSSD technology they
realized the significant potential to build a unique business model for the toy industry.

Kylon Gustin – Consultant and CSO. Kylon has been instrumental, providing guidance
as we developed our business model. He has over 23 years experience in the high tech
industry and provides consulting services to entrepreneurs and growing businesses;
information about his services can be found at BusinessPlanAdvice.com. Kylon will
continue in the role of Chief Strategy Officer on a part-time basis and will come on board
full-time when we receive funding.

Aubrie Alverad – Vice President of Marketing. Aubrie has over 25 years of marketing
experience, 15 of those at a senior level. She is the innovator of our Santa’s Helper
marketing strategy and has developed several other publicity and public relation plans to
propel Santa into the toy market.

We have several other senior-level executives ready to join our organization once funding
is acquired.

Financial Projections
(projections in millions)
Year 1 Year 2 Year 3
Revenue $425 $1,135 $3,244
Gross Profit $250 $737 $2,271
EBITDA $100 $331 $1,136
Capital
We are seeking $500 million to upgrade the Kringle family manufacturing facility with
state-of-the-art equipment, complete development of the HSSD system, and implement
our marketing campaign. We will exchange 30% of preferred stock for the $500 million
investment.

Contact Information
Kylon Gustin
2013 Wells Branch Pkwy., Suite 206
Austin, TX 78728
Santa@BusinessPlanAdvice.com
800-423-1228
2MBA, Inc. World Champion
Manufacturing and Marketing Beverage Appliances, Inc. (2MBA) develops innovative
beverage equipment for corporate owners of major food brands.
SanaSana.com Best Written Plan
SanaSana is a B2B2C internet service for consumers of health care and the payers, providers
and suppliers of health services in the Hispanic community.
Fabrica Co., Ltd. Former World Champion
Fabrica is a provider of woven fabric samples from the KS Loom, which gives buyers the
chance to see the actual colors and feel the precise texture of what they desire in less than
one-tenth the time usually required for making samples with a production-weaving machine.
Vusion, Inc. First Runner-Up
Vusion is developing a chemical analyzer and Sensor Cartridge, based upon the Electronic
TongueTM technology, which can instantly analyze complex chemical solutions.
JetFan Technology Ltd. Second Runner-Up
JetFan was established to develop and manufacture commercial applications for an
innovative fan-blade technology. Market applications include those in compact electronic
equipment cooling; heating ventilation and cooling; and domestic appliances.
Internet Services:
AdGrove.com
AdGrove serves as a sales channel for radio ads. Stations can list ad space and broker sales.
Buyers can search for available ad space, plan ad campaigns, buy with discounts, and
monitor services.
ePower Systems
ePower uses the Internet to provide utility companies with electronic billing and bill
payment. The utility achieves significant cost savings by replacing paper bills, faster
payment cycles and an interactive marketing connection to their customers.
AudioRush.com
AudioRush.com offers online purchase and download of music files to be written to CD for
play on a conventional player.
Mindshaker
Mindshaker provides a single, online source of proven books, articles by academic and
industry experts, cases and value added learning aids for more than 2.8 million graduate
students and the faculty that instruct them.
ProTrax, Inc.
 ProTrax offers customized advertising services on the Internet for organizations seeking
highly specialized employees.
Boomerang Pharmaceutical Communications
Boomerang provides educational programs on the Internet to medical and therapeutic
practitioners
Services:
Momentex
Momentex markets beverages, snacks and entertainment items to drivers at toll booths.
VeriType
VeriType is a medical software company that allows medical service providers to ensure
compliance with government regulations and avoid fines and minimize errors.
Time Merchants
Time Merchants references consumers to qualified service providers and provides home
delivery of goods and services.
Eurosky
Eurosky offers shared, fractional ownership of aircraft. The Business Plan is capital
intensive and is based upon the founders' specialized knowledge of the industry.
Green Design Group
Green provides apparel design, import and marketing of active sportwear. It generates
revenue through consulting, royalties and imports.
Airex
Airex offers contract disposal and management of industrial residues based upon the
specialized engineering expertise of the founders.
Nepkar
Detailed, technical business plan in the field of drug screening for pharmaceutical
companies using yeast genetic engineering in the discovery of new drugs.
Walking Peru
Walking Peru is a recreational tourism company that offers opportunities to visit choice
tourist attractions through passive recreational sports.
Products:
Breeze Technology, Inc.
Breeze has designed a new athletic shoe that is air-cooled with both cost and performance
advantages over existing products. The Business Plan documents a strategy for licensing the
technology to existing manufacturers.
J.H. Reid Corporation
J.H.Reid Corp. manufactures a revolutionary chair for watching television in a home
entertainment center.
Application Technologies
Application Technologies introduces a packaging product which is unit-dose and disposable
including a built-in applicator, aimed at the medical and personal care markets.
Expert Application Systems, Inc.
EASI develops packaged software systems for growth markets and needs capital for market
expansion.
True Dimensions, Inc.
True Dimensions manufactures and markets ultra-contemporary, ergonomic furnishings and
is looking for funding to expand their market.
EcoClear, Inc.
 EcoClear developed an innovative self-cleaning water filtration technology and plans to
expand their market.
In the Pipeline
Identifies, develops, and promotes innovative products from concept to commercialization
for repair, redesign and installation of PVC pipe.
Independence Marine
Independence Marine has completed production tooling and field testing of products that aid
in environmentally sustainable harvest of ocean resources. They are seeking capital for
production ramp and marketing.
Zif Medical Devices
Zif has developed a new safety syringe for protecting medical personnel from needle-sticks.
The Business Plan discusses licensing the technology to others and a plan for manufacturing
and distributing.