Capogee Venture Advisors

Business Plan Guidelines

This section is specifically designed to help you, the entrepreneur, improve your business plan. It's also a guide to the issues we consider when evaluating prospective clients.

If your business plan and/or PowerPoint presentation is market ready, we encourage you to send an electronic version of files (bplan@capogee.com), whereby we'll provide you with an analytical assessment of your materials, time permitting. Please note that your materials will be maintained in a secure environment, under strict confidential protection, and will not be distributed to any party outside our firm without your express written permission.

Business overview
1. Vision
  - Does the team have a clear view of what it wants to achieve?
  - Is the vision exciting and achievable?
2. Business Description
  - What is the business?
  - How does it make money?
  - What are the products or services being offered?
  - Who is being sold to?
  - How does the business deliver its products or services?
  - Is additional development required?
  - What is the business today?
  - What is the proposed business?
  - Does the team really understand what business it is in?
  - Can the team clearly communicate what business they are in?
Business Strategy
1. Industry analysis
  - Does the team have a deep understanding of the market: including the market dynamics, participants' market power, market trends and changes?
  - Is there a major market opportunity that could be addressable by this team?
2. Market entry strategy
  - Is the team intending to work within the existing industry value chain and power structure or disrupt the industry?
  - Does the team intend to take on the world, or focus on selected target niches?
  - Is the team intending to partner with others to enter the market?
3. Strategic alliances
  - Who is the team partnering with?
  - What is the nature of the relationship?
  - What do the other parties bring to the table?
  - Does the team posses the business development skills required to form key strategic relationships on favorable terms?
4. Exit opportunity
  - If the business is successful, who would be the most logical buyer?
back to top
Marketing Plan
1. Competitive analysis
  - How well does the team understand the competitive landscape, both existing players and potential new entrants and substitutes?
  - What level of analytical skills does the team have?
2. Target market segments
  - Does the team have a clear idea of the different "buyers" for its products or services?
  - How well does the team understand the needs and motivations of target buyers?
3. Value proposition
  - How compelling is the strength of the value proposition; to consumers; to channel partners?
  - Is the value proposition strong enough to overcome inertia and resistance to change on the part of conservative customers?
4. Pricing & Revenue model
  - Will the market support the proposed pricing?
  - Is the pricing level consistent with the intended market positioning?
  - Does the revenue model generate one-off sales or recurring income?
5. Promotional plan
  - Is the proposed promotional plan sensible in terms of reaching the target market in an efficient manner?
  - What level of marketing skills does the team have?
Operational Strategy
1. Critical success factors
  - Does the team have a clear understanding of the things that it must do well in order to make this venture succeed?
2. Major risks and mitigation strategies
  - Does the team have a realistic understanding of the major risks involved?
  - How deeply has the team thought about ways to manage the risks?
3. Major milestones
  - Is the team already familiar with the discipline of setting and meeting business milestones?
  - Has the team considered what business milestones could be used to measure their progress towards stated goals?
  - Does the team have a realistic understanding of what business milestones would have to be achieved prior to subsequent rounds of financing?
back to top
People
1. The current management team
  - What is the current capabilities and experience mix on the team?
  - How realistic is the team in understanding their strengths and in identifying areas where additional capabilities are needed?
  - Has the entrepreneur demonstrated the ability to attract and motivate a top class team?
  - Has the entrepreneur personally committed hard capital to the venture?
2. Key hires, recruitment & retention strategies
  - Who, when and how?
  - Does the entrepreneur already have individuals identified?
  - How hard will it be to fill key posts?
Financials
1. Revenue model
  - How does the business make money?
  - 3-5 year Revenue & P/L forecasts
    - Is this going to a big enough business within a reasonable time frame to justify our time and the risk?
  - 12 months detailed operating budgets
    - How well does the team understand their cost base?
    - How fast does the business burn cash?
  - Key assumptions & sensitivities
    - How robust are the projections?
    - What basis exists for the assumptions used?
  - Capital raising requirements & strategy
    - What future rounds of financing are anticipated to get this venture to exit?