Part 1 of the Start-Up Concept Guide covered the General Information section of the 2020 Competitions entry form including stage of start-up life cycle and type of business model of your start-up.
In the second edition of this Start-Up Concept Guide, we explore the Growth Potential & Industry Experience of a start-up. The information provided below wil help you think through your business plan, its scalability and the current status of your business.
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COMPREHENSIVE BUSINESS PLAN
A written document outlining the business, what you plan to do and how – the strategy for your business. This includes company description, market analysis, company and management structure, product/service offering, marketing and sales plan, funding required and financial projections.
A business plan allows you to outline the goals for your company, how you plan to achieve them and in what time frame. It enables you to strategise comprehensively for the success of your business.
Potential investors will require this document to provide them with a better understanding of your business and assess the return on their investment (ROI).
A BUSINESS FORECAST STRATEGY
BUSINESS FORECAST: allows investors to see that you considered the growth of your company and its viability. Additionally, they can note how or if their investment will grow based on your proposed plan, projected sales and expenses.
How will your business look in 5 years? – expenses and sales projections, business growth.
FORECAST STRATEGY: includes key elements of the business model canvas that will help you achieve your 5-year projection:
What strategies are in place to reach your business forecast? Investors want to know how you’ll grow your business and their investment. What resources, activities, partnerships are needed to achieve this?
REVENUE vs TURNOVER
CURRENT RATIO OF OPERATION
Liquidity ratio used to measure a company’s ability to pay monthly operational costs. This enables investors to analyse how a business makes use of its current assets to cover the operational costs and any debt incurred.
This is the creations of the mind: inventions, prototypes, designs, literary and artistic works. If you have a design or prototype, it is essential to consider obtaining IP protection as there may be value in having it for your business. The law protects your prototype or design and prevents others from replicating it without your permission.