Building a Business Case:

Prior to my last tour through Sand Hill Road, I met with a VC/Friend/Mentor. He laid out for me a simple business case process that he had created over his 20+ year career. I have simplified the process a bit which made makes it work in my business.

So here it is: Your business plan or mini-business plan should address!

1. The Problem: Clearly state the business problem.
   
2. The Solution: How do you solve this problem
   
3. The Team: Who is Involved and how does their experience solve the problem.
   
4. The Market Case: How big a problem is this? What is the overall market, addressable market (those who are your targets).
5. The Reach: How are you going to reach your targeted customers? How much should it cost to get to them?
6. The Upside: How will you charge? How does your business model work? How many clients will you need to justify the cost to develop and market?
7. The Exit: If you are raising dollars, everyone wants to know what the exit looks like. What is the value of a public company in your space? If you do 10% the sales of the public entity what should your valuation be?

That's it. This seems very simple but the questions and development of a business plan are mind numbing exercises. It always takes more time than you think!

Cheers,
Mike