BUSINESS PLAN - SOCINVER ltda

The best business plan accomplishes five important tasks, says Jim Breyer, managing partner at Accel Partners, a venture capital firm in Menlo Park, California. First, it portrays the passion and experience of the founding management team and its empathy for the customers who will be pursued. Second, it lists anticipated risks and explains how the team will manage those risks. Third, it demonstrates management's deep understanding of the competitive landscape in the chosen market. Fourth, it clearly outlines marketing and sales plans. And fifth, it explains why management believes that the market is ripe for the product or service the company will offer. Most failed ventures, are companies that were too early to the market, not too late. But he adds, "Most entrepreneurs have the misconception that we as venture capitalists will be turned away if significant risks are outlined. In fact our business is investing in companies that effectively manage risk." -Forbes Magazine 08/31/98.-

A good business plan is the key to obtaining funding. Our computer models for business development are accepted by investors, venture capital firms, major banks, and private investment groups. They have been used to successfully finance numerous projects in Bolivia.

We offer our experience to assess client needs and provide from outlines and checklists to the professional document preparation required by investors during the funding process which include:

1. Market Feasibility Study: Basic research done principally by the entrepreneur to identify a market niche for the product or service to be offered. It identifies the size, dynamics, competition, and other factors affecting the proposed business operation prior to investing large sums of money, or proceeding with a venture with little or no chance for success.

2. Executive Summary: The Executive Summary is developed from the completed business plan, and summarizes the project. Usually only 2-5 pages long. It describes target markets, personnel, financial analysis scenarios, and the proposed deal structure.

3. Business Plan: The business plan contains the complete plan for your business, including extensive market and industry analysis, sales and marketing strategy, operational plans and timetables, management organization structure and key personnel, risk analysis (including competitors and comparable industry numbers), potential dilution and complete historical and pro-forma financial analysis (including income and expenses, cash flow, balance sheet and ratio analysis) for three to ten years. The business plan financials should include low, medium and optimum projections for various market conditions.

4. Business Valuation Study: A document that includes several business valuation studies showing business values before and after investment. Business valuations allow you to determine how much stock to sell for the money you are raising. This is extremely important when you are trying to raise money for a business that will be a candidate for a merger/acquisition, or for going public at a later date. It is also required for funding by professional investors so that adequate returns on investment are shown.

5. Investment Plan: Document outlining in further detail the timetable of required equity and debt financing, as well as the payback, or liquidation, of the investors’ position under various scenarios. This is where the "Deal" is structured to make your business attractive to investors and lending institutions.

6. Due Diligence Material: It Includes all additional information to support and supplement the business and investment plans, including Market Studies, Research Papers, Patents, etc.

7. Presentation Package: The presentation package is used to market your program to others. It may be a short series of overheads, or a PowerPoint presentation, used when talking with potential investors or banks. This marketing package is developed along with your business plan and can significantly enhance chances of funding.