Transformer

Provide a concise description of the business, emphasising fundamental aspects such as the problem it addresses, any statistics to illustrate the issue, how your product or service will provide a solution and any other important points that you think people may want to know about. 

The value proposition is the reason why customers will choose your product over another. Elaborate on the benefits your product offers, the problem it addresses, the points of difference to other similar products and why customers would buy your product instead of others. Be clear about who your target market is, their needs and wants, and the price point they are willing to pay. If you have multiple target markets, explain how your products address the differences.

Market opportunity is calculated by multiplying the estimated number of potential customers by the projected sales price, to give the total market opportunity available in $. This section should be based on your research of the market, existing offerings, and existing customer numbers. You could also include information on trends, future developments and external factors that may influence the market opportunity, including potential influences such as a global pandemic.

Present a high-level plan showing the next steps you intend to pursue, along with approximate timeframes in weeks or months. Ideally, your plan will include the business's launch and extend into subsequent phases; even if in-depth details may not be available for later stages, a high-level timeline would suffice. The execution plan should directly relate to activities outlined in the Need for Funding breakdown (see below). You may use a timeline, a checklist, or any other way to present your plan effectively.

While many businesses commence with a single founder, achieving substantial growth requires an efficient leadership team. Maintaining a realistic outlook on the evolving workload and skill requirements is crucial as the business progresses. Initially, you may operate as a solo entrepreneur and later assess the need for management capabilities as the business grows. You could also mention assistance provided by unofficial team members such as mentors and other connections. 

Provide a comprehensive breakdown of the expenses of delivering your product or service and the income you will generate from sales. This needs to include costs directly related to the production, delivery, and maintenance of your offering and any significant indirect costs relating to the overall operation of your business. For example, if you are selling a physical product, your direct costs may include raw materials, equipment and packaging, and indirect costs may include expenses like marketing and hosting a website. Revenue streams for a product may be a price per unit, bulk pricing, a subscription fee, an hourly labour rate or a unique price for a custom offering based on a combination of hourly labour rate and materials. 

Early startup traction can mean the difference between the success or failure of a startup because it indicates early momentum. Demonstrating traction is a sign that you have a solution that people want to use. It shows that your big idea is more than just an idea. Typical examples of traction include web page visits, social media followers, registered users, endorsements, positive media coverage, MOU’s with key partners, technical performance data (proof of concept), early sales figures, etc.

Competition can come from an incumbent, indirect competition or alternatives that may solve a problem differently, as well as the most obvious direct competition. Founders who have done their homework can talk about their sustainable competitive advantages and the barriers to entry – in other words, how they will compete in the marketplace. Clarify what sets your business apart from other similar offerings.

Lastly, it is essential to provide a breakdown of the funding you are seeking from investors. Clearly articulate how you intend to allocate the funds. Potential expenses might include business registration, website development, prototype production, equipment purchase and materials and other relevant expenses.