Sequoia Capital’s Business Plan Advice
Posted by Pierre de la Fortune on May 7, 2015 @ 12:01 a.m.
Written by David Ronick
As you’ll see, the format and content they recommend is very similar to what I’ve suggested in previous posts. For example, forget the 30+ page word document, and stick to a short slide presentation that’s simple, clear and concise (easy on the text!). The content elements they recommend are also in-line with what I’ve suggested, though in a slightly different order. They don’t put the team up front, for example. One reason for that is the people who land a meeting with Sequoia tend to be well-connected entrepreneurs with proven track records, so they are already “known” to a large extent. I like their section called “Why Now”. I may borrow that one…
We like business plans that present a lot of information in as few words as possible. The following business plan format, within 15-20 slides, is all that’s needed: Company Purpose * Define the company/business in a single declarative sentence.
Problem * Describe the pain of the customer (or the customer’s customer). * Outline how the customer addresses the issue today.
Solution * Demonstrate your company’s value proposition to make the customer’s life better. * Show where your product physically sits. * Provide use cases.
Why Now * Set-up the historical evolution of your category. * Define recent trends that make your solution possible.
Market Size * Identify / profile the customer you cater to. * Calculate the TAM (top down), SAM (bottoms up) and SOM.
Competition * List competitors * List competitive advantages
Product * Product line-up (form factor, functionality, features, architecture, intellectual property). * Development roadmap.
Business Model * Revenue model * Pricing * Average account size and/or lifetime value * Sales & distribution model * Customer/pipeline list
Team * Founders & Management * Board of Directors/Board of Advisors
Financials * P&L * Balance sheet * Cash flow * Cap table * The deal
For more info please visit: http://myventurepad.com/davidronick/33545/sequoia-capital%E2%80%99s-business-plan-advice
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