CREATING HIGH-IMPACT COMPANIES

Report
Abillama Competition
Workshop
21 February 2015
What to expect from a business plan competition
• Unique opportunity to validate your idea, and if you are chosen get start-up
capital
• The real prize is the preparation you need to do and the feedback you will
receive
• Not being selected does not mean your idea has no merit, it just means
another idea fit the criteria for the prize better
• Use the opportunity to work well with a team, align your expectations with
each others, have the difficult conversations to be best prepared
• BE detailed focus, make sure formatting is perfect and don’t include
anything you cannot defend or justify!
• Above all…. ENJOY the experience!
What criteria will you be judged on?
Eco-Friendly
- Does your idea pollute or improve the environment?
Entrepreneurship
- How innovative is your idea?
- Will it give you a long-term competitive advantage?
Feasibility
-Can the business be a profitable and self sustaining?
- Can it create wealth and value for shareholders?
Scalability
-Can the business be scaled efficiently?
- Is it capital intensive or efficient?
-Have you research the project well?
- Can you defend your assumptions convincingly?
Knowledge about the project
Presentation
Team
-Does the team present well and with confidence?
-Is there a clear action plan and good explanation?
-Is there the right chemistry among team members?
-Is it a coherent team or a team that will disintegrate?
Presentation Slides Order
• Five slides, to present in five minutes followed by 5 minutes Q&A
1.
What the project is, What problem/issue it is solving
2.
How big is the market opportunity
3.
Who the team is
4.
Who the competition is/What does the competitive landscape look like
5.
Financials
What the project is, What problem/issue it is solving
• Describe what the challenge is and how your idea solves the problem
• Explain how it does that
• Use an example to make it more tangible and interesting
• What it the environmental benefit and impact
How big is the market opportunity
• What is the market size
• Quantify the market size
• Share the assumptions you are making
• Don't just think for Lebanon but regionally and globally as well
Who the team is
• Who is the core team?
• Pictures and Bios
• Explain why experience is relevant
• Explain the right complementarities in the team
Who the competition is/What does the competitive
landscape look like
• Who is the competition? Everyone has competition!
• What are the other options available to users?
• What is the gap that we are filling?
• How will you compete effectively and carve out your market
Financials
• 3 to 5 year projections
• What are the revenue assumptions and the cost assumptions made
• Have a clear P&L, and know what is in each line item
• How much capital you will need
• Use of proceeds: How you will use the $20k
Projections
P&L Line Items
Explanation
Revenues
Sales, commissions, fees, all money coming in
Cost of Goods Sold (COGS)
All direct cost related to manufacturing the product or
service
Gross Profit
Revenues – COGS
Sales, General and Administrative Expenses
(SG&A)
All other costs related to the operation: marketing, sales
office expenses, distribution
Earning Before Interest, Tax, Depreciation
and Amortization (EBITDA)
Gross Profit – SG&A
Depreciation and Amortization
Net Interest
Interest expense – Interest Income
Taxes
All corporate taxes
Net Profit
EBITDA – D&A – Net interest - Taxes

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