ONE IDEA CHANGES EVERYTHING! BUSINESS FEASIBILITY/BUSINESS PLAN OVERVIEW NOVEMBER 15, 2013

1. ONE IDEA CHANGES EVERYTHING! BUSINESS FEASIBILITY/BUSINESS PLAN OVERVIEW NOVEMBER 15, 2013

2. Consider what the judges are looking for • Pueblo location • Growth potential • Primary job creation • Relative low risk • Feasibility • Well thought out and well written business plan How can I improve my chances of being selected as a finalist?

3. Prize eligibility • Does the business have to be started in Pueblo County? • YES! • Do I have to be a Pueblo County Resident? • NO! • Do I have to start the business to be eligible for prizes and venture capital? • YES Pueblo location

4. Why is growth potential important? • This demonstrates long term demand for your product or service • Investors want to know if they can expect a return • How do investors get a return? • You will need to negotiate with venture capitalists what they receive for their investment • Will I have to give up some equity in my business? • Probably, to receive venture capital – this is negotiated with the venture capitalist investors. Growth potential

5. What is a primary job? • A primary job is one that brings money from outside of Pueblo. • PEDCO defines people with primary jobs as those who work for a company that derives most of its revenue from outside the community, thus bringing additional funds to the city. • Job creation is important for Economic Development • Economic development is an important objective of the Pueblo Entrepreneurship Competition Primary Job creation

6. What is risk? • Risk is the likelihood that you might lose your investment • How is risk lowered? • Lower risk by increasing chances of success • Provide verification of demand • Demonstrate that cost estimates are reasonable • Demonstrate experience in the field • Demonstrate ability to run the business RELATIVELY LOW RISK

7. What is feasibility? • Feasibility means that the idea will work, long term, and be profitable. • How do I demonstrate feasibility? • Show that demand is adequate and sustainable • Adequate means in large enough quantity • Sustainable means that it will last indefinately • Show that you are able to meet demand • Identify resources needed, and that you can assemble them appropriately • Resources include money, people, buildings/location, equipment, methods, suppliers, information, materials, and supplies Feasibility

8. A business plan consists of 3 primary parts • Marketing plan • Operations plan • Financial plan Well written business plans…

9. Business information • Description of business • Mission statement • Product and/or service information • Marketing plan • Overall objectives • Customer needs, market size • Distribution • Pricing strategy • Sales/promotion strategy • Sales projections, 3 scenarios • Competitor evaluation • Key competitors, relative strengths and weaknesses Business plan – business description and marketing plan, Competitor Evaluation

10. Location Layout Equipment Materials and supplies Inventory and accounting methods Tasks, skills, jobs, wages Licenses, certifications needed R&D Intellectual property Personnel, HR issues Board of Directors Organization Chart Business plan - operations

11. Sources & uses of funds • Capital equipment list • Break even analysis for a steady-state month • Pro-forma statements • (3 scenarios) X (3 year min) • Income statements • Balance Sheets • Cash flow statements Business Plan Financial