Instructions for Business Summary

Information to include in the business summary form:

  1. General Information
    • Company name
    • Contact person
    • Amount of funding sought
    • Funding history (Amounts invested so far, angel investors, “sweat equity” by president/founder and co-workers)
  2. Business Description — Give a general description of the business, including when and where it was incorporated, as well as name of parent company (if applicable). Explain how and why this venture came into existence.
  3. Management Team — Provide concise biographies of individuals who have (or will have) a major position in your endeavor. Make sure to include critical information, as well as previous assignments and other credentials that will enable us to make a proper evaluation.
  4. Technology/Product/Service — Provide a detailed description of the technology/product/service. The technical description should be thorough, yet understandable, avoiding the use of technical “buzz terminology.” The reader should be able to develop a general understanding of the functionality of the product. Use pictures, diagrams or actual models, if available. Validate the technology and its application, as well as demonstrate how it works. Typical questions to answer include the following:If research and development occurs, please provide a description and a timeline, including critical milestones (such as beta testing, targets, survey data and estimated or actual results). What is the product development/manufacturing process? Are there key elements to be outsourced? What are the lead times?
    • What is it?
    • How does it work?
    • What does it do?
    • What need does it fill?
    • What problems does it solve?
    • What is unique about it?
    • Will your customers buy it?
  5. Market Size and Analysis — Provide credible statistics for industry and market size, number of customers, price points and growth trends. What are the barriers to entry, customer buying power, supply power, market dynamics and structure? Provide a meaningful description of the unfulfilled need of the market and why the product fills this need.
  6. Marketing Strategy — Describe the overall marketing strategy. Describe the marketing and sales organization. Describe the brand and how it will be developed. What is the marketing plan, and what are the distribution channels and possible promotions? Is there a proven need for the product/service and are there representatives or future customers ready to purchase that can be interviewed? If your product/service requires sales, describe the sales strategy, including details about the sales cycles.
  7. Compellingness of Product/Service — Why is there a definite need for the product/service? What is compelling about the product/service in comparison to others in the marketplace?
  8. Competitive Activity — Who are the main competitors? What are their target markets? What differentiates their products from the one being sought for funding? What is the level of competition within the industry? Will it be easy for competitors to copy this technology/product? Why should a customer buy this product instead of the competitor’s product? What are the strengths and weaknesses of the competitors?
  9. Revenue/5-Year Projections — Summarize 5-year pro-formas under reasonable expectations including the following:
    • Unit sales, revenue, cost of goods sold, gross margin, EBITDA, EBT
    • Breakeven and profitability point
    • Current cash position, cash on hand and cash flow
    • Compensation for management
    • Use of proceeds (equipment, R&D, working capital, cost of marketing, inventory, start-up expenses etc.)
  10. Legal/Intellectual Property — Describe key and sustainable competitive advantages of the product, including the following: patented technology, trademarks, exclusive contracts, etc. Outline steps taken to secure product as legal and intellectual property? Has the technology been patented and/or are the patents pending? Are there any binding approvals necessary, such as FDA approval (Food and Drug Administration)?
  11. Strength of Business Model — Describe the specific strength of your business model? Where are your strengths and opportunities in the marketplace?
  12. Public Market Acquisition/Sector Attractiveness — Describe the appropriate exit strategy? Do you anticipate an IPO or an acquisition? Note: there must be a clear understanding of the exit strategy and the willingness to cooperate with the investors to work together towards this goal.