Writing a Business Plan

Dr. Michael Entzeroth

CSO/COO

Cennerv Pharma (S) Pte Ltd,

Singapore

Agenda
Reasons for writing a business plan
Business plan content
Executive Summary
The company: description and goals
Products and/or services
Market analysis and strategy
Operational plans and SWOT Analysis
Management, Board and team members
Financial statements and plans
(Environmental impact)
Kiss of death
Summary
-2-

Why Writing a Business Plan

Define goals what do you achieve by when
Elaborate objectives for how and when the goals are met
Describe how to access personal and operational resources required to
achieve the goals
Delineate how these resources will interact to meet the goals

Rationalize the feasibility and financial viability of the business plan

To access financial means to meet the goals and objectives

-3-

Notes for Consideration

The author of a business plan must remember:

Who is the audience to read the business plan
Banker
Venture Capitalists
Angel Investors
Emphasis is on the financial plan and business opportunity
Even of relevance and interest, science is secondary

-4-

Notes for Consideration

Keep language simple and avoid jargon and acronyms.
Technical terms must be explained in laymans terms
Using graphics, flow charts and pictures can greatly help
understanding
Despite your interest in painting the brightest picture, stay
with the facts and dont shy to mention risks and
challenges.
Most complete but succinct plans are between 30 50
pages
-5-

Executive Summary
The part of the business plan investors may read to learn about:

the industry, the products and services

how much money is required and proposed capitalization terms, i.e.
debt or equity, terms and use of the proceeds
current net worth of the company
Profile of top management/ key people, including their track records

Any unique competitive advantage, such as patents or proprietary

technologies

-6-

The Company: Characterization and Goals

The section needs to describe
the company history
the company organization and legal structure
relevant background of key players

NB Do not replicate information found in later sections

-7-

Products and/or Services

Description
What to make and sell

Is there a regulatory process to comply with

Who are the component suppliers and is there a backup
Are products new or mature in terms of their sale cycle
Has there been a test marketing
Exhibit buyers a pattern when purchasing

Include drawings or pictures of the products

-8-

Products and/or Services

Proprietary/Ownership position
Copyrights, trademarks, patents or other legal proprietary
rights
Potential for Growth and Development
How to the products fit into the landscape
Is there a differentiation or unique selling point (USP)
Technologies and Skills
Does the product process require specific technologies or
skills
Does the company have staff with the required talent set
-9-

Market Analysis and Strategy

The topic comprises two sections, i.e.

a) Market Identification and Evaluation and

b) Strategic Market Planning describing

The Industry Description and Trends

Target Markets - Existing and proposed
Market Size, Potential and Location
Competitor Situation Key Players and Strength
Projected Sales and Market Share
Tools for Ongoing Market Evaluation
- 10 -

Market Analysis and Strategy

Strategic Market Planning

Product Warranties and Service Policies
Pricing Policies

Sales Strategy and Management

Distribution

- 11 -

Production and Operational Plans

Covering:

Location: City, Region and Site

Land and Structural Improvements
Plant/Facility Layout
Production Strategy and Control Methods
Labor Needs

- 12 -

SWOT Analysis
SWOT stands for Strengths, Weaknesses, Opportunities and Threats
It describes internal and external factors that might influence the future of an
enterprise:
Strengths: characteristics of the business or project that give it an advantage
over others.

Weaknesses: characteristics that place the team at a disadvantage relative to

others
Opportunities: elements that the project could exploit to its advantage
Threats: elements in the environment that could cause trouble for the
business or project
- 13 -

SWOT Analysis- Example

Strength

Weaknesses

Global presence
Strong industry standing
Robust launch portfolio with revenue
growth underscored by the
commercialization of main product
High growth of cardiovascular product
franchise

Patent expiry for biggest selling product

franchise
Weak core portfolio key product
franchises into expiry
Blockbuster growth strategy with certain
therapy markets to just one or two
products

Opportunities

Threats

Therapeutic diversification and expansion

into other diseases segments
Strong potential growth from vaccines
Diversification into biologics market via
acquisitions

Continued exposure to patent expiries

and risk of generic competition
The high generic-exposure expiry
portfolio, requires growth from its launch
portfolio, reflecting a higher risk growth
strategy versus predominant core-driven
growth
- 14 -

Management Personnel
One of the most important chapters in a business plan:

Legal Organization
Organization Chart
Ownership and Methods of Compensation
Key Personnel
Board of Directors and Advisors
Support Services, e.g. Accountant Services
Management Development and Training

- 15 -

Financial Statements and Plans

Provide information on
Historical Income Statements, Cash Flow Statements, and Balance Sheets (if
available)
Projected Income Statements, Cash Flow Statements, and Balance Sheets
Projected Breakeven Analysis by Product/Service
Capital Requirement
Proposed Exit Strategy

- 16 -

Income Statements

- 17 -

Cash Flow Statements

- 18 -

Balance Sheet

- 19 -

Optional
Impacts on the community may be added if appropriate, including
Environmental impact

Employment impact, local recruitments, training

Economic benefits, e.g. use of local resources and suppliers

- 20 -

Appendix
Any material that does not easily fit into the body of a business plan
should appear in an appendix. Examples of materials that might appear in
the appendix include:
Resumes of the top management team members
Photos or diagrams of product or product prototypes

Certain financial data

Market research projections.
- 21 -

Kiss of Death Phrases

Avoid to use statements such as:

Growth is inevitable
The product/service will sell itself
We have no competition
The business runs itself
Our target market is the general public everyone can use our
product/services
Our past experience guarantees the success of this business

- 22 -

Sources for Business Information

Trade associations
PhRMA
Trade magazines
Business press
WSJ
Business Times
Company documents
Annual reports
SEC 10Ks

Investment banks
Venture capital firms
Public Databases
Clinicaltrials.gov
Fda.gov/cder
Globocan.iarc.fr
Commercial Databases
Thomson Reuters
Frost & Sullivan
FiercePharma
- 23 -

Conclusion
A business plan is the most important document to describe the
companys activities and prospects
It comprises a detailed descriptions of the financial prospects of a
company, its structure and organization and key management
One of the main objectives of a business plan is to convince
possible investors of the benefits investing in the business

- 24 -

Presenting the Business Plan to Investors

Tips on Making an Oral Presentation to Investors
When asked to meet with an investor, the founders of a
new venture should prepare a set of PowerPoint slides that
will fill the time slot permitted
The presentation should be smooth and well rehearsed.
The slides should be sharp and not cluttered with material
The first rule in making an oral presentation is to follow
instructions of the investor

The 10 20 30 Rule
Guy Kawasaki (born August 30, 1954) is a Silicon
Valley author, speaker, investor and business
advisor
He strongly advises that a PowerPoint presentation
should have ten slides, last no more than twenty
minutes, and contain no font smaller than thirty

points
Video

- 26 -

Presenting the Business Plan to Investors

Ten PowerPoint Slides to Include in an Investor Presentation

1. Title slide
2. Problem
3. Solution

4. Business model
5. Management team
6. Industry and target market
7. Competition
8. Intellectual property

9. Financial projections
10.Current status, amount of money requested, and projected use of funds

Questions?
Thank You
For more information, please contact:
Dr. Michael Entzeroth, Cennerv Pharma (S) Pte Ltd
Email: michael@cennervpharma.com

Website: http://www.cennervpharma.com
- 28 -