Investment business plan = business plan + investment terms
1. Business-plan overview
1) Business plan = idea
+ market (is this really possible?)
+ execution (how to build + delivery + is it really possible?)
+ revenue (spending how much, over how long, for how much return)
2) Business plan (' < ' = the size of the scope)
idea < revenue model
< BM (flow) + targets (numbers: how much, how, over how long / revenue stream)
< business plan
3) Business planning | BM + targets (how much, how many) + operations (who, how) |
| market (customers, competitors) + product/service (BM) + organization and capital |
=> capital raising (budget allocation (approval), investment attraction, management)
2. Interpretations that reflect context
1) Classical business planning
: market analysis (of a market that exists) -> segmentation (can be segmented) -> marketing strategy
2) Startup business plan
(1) If it's certain, it's not a startup.
(2) external funding source for your business
A business plan that matches your stage.
(3) The process of validating and creating an unvalidated market.
- The current decision-makers only judge by numbers, so they can't help not believing.
- The step of finding the BM.
- Customer development process.
(4) The customer's problem (find it).
- You may not know what they want, but you have to be able to describe the customer's problem on a fact basis.
- Not numbers — a customer problem that lets you GUESS at revenue.
- If the product we build didn't exist, what inconveniences would the customers face, and how many are they?
(5) Customer discovery -> customer validation (price, design)
: how many people we've asked, what the reaction to the prototype we built was,..
3. In the end, a business plan is for decision-making.
1) One-line company intro
(1) "We are Y for X." (Only if Y is well-known.)
ex) on-line dispute resolution
Mim + Quora for parents
Airbnb for board
(2) Three words: purpose, value (not features, not design, not functions).
2) Audience and time
(1) Average investor pitch — 15 min.
(2) Who is listening? Their background? The type of companies they already invest in?
3) Length: 10–15 pages
4) DEMO: videos or prototypes with a clear storyline.
5) Market size, competitors > product.
6) Distribute materials separately.
7) Table of contents (text = example)
(1) Idea (1–2 pages)
- Partial-paid comics service for adults: customer, revenue, (value)
(2) Why us (1 page)
- Double-digit years of experience.
- Lezhin, whom every comics artist knows.
- Jeonghyuk, whom every developer knows.
(3) Current problems (2–4 pages)
- Difficulties for consumers/customers (adults & comics artists — uniform pay model)
- How they currently solve them.
(4) Our solution (3–4 pages)
- Estimates grounded in fact.
- How we solve the problem.
- Current methods and how we respond.
(5) (Competitive landscape) Why now? (2–4 pages)
- Why is this method possible only now vs. "there's no market."
- Why is now/the future the optimal time?
(The collapse of the single-volume comics market; candidate replacement markets exist — being replaced by Naver and Daum.)
/ Is the market big enough?
/ What share can I capture?
/ What value am I creating?
(6) Early consumer response (1–2 pages)
(7) Next steps (1 page)
8) Tough questions? Just the sharpest form of reality.
(1) What if Samsung, Apple, or Chinese companies enter?
- Not a market they'll enter within 3 years.
- A market in the tens of billions of won; Samsung only enters above 1 trillion.
- Planned defense through which channels and, at minimum, partnerships.
- Exit plan.
(2) The two-sidedness of platform markets (chicken vs. egg): early customer acquisition — how much is needed?
(3) Hardware VS software + delivery
(4) Hardware: platformize the service -> customer lock-in
-> even if they move, they shouldn't be able to move all at once.
-> Exit or plan B.
(5) Product vs service: ownership, customer relationship, one-line-only issues (SKT can't switch handsets).
-> Whether to make a product or not is a matter of choice.
(6) IoT = product + service + platform (10 years) = exit (3 years)
