USE KUWAIT FINANCE HOUSE (KFH) AS BANK! THE WHOLE PITCH SHOULD BE AROUND SETTING UP AN ISLAMIC BANK IN THE USA!
Pick an entrepreneurial high-growth company in real life. These are the criteria for a good candidate:
▪ The company must be real and operating currently.
▪ The company should have at least 5 employees and be in existence for 12 months.
▪ The company is experiencing growth or plans to make changes in business.
▪ Ideally, it should not be your Dad’s or Mom’s business, unless it is a significant operation that you didn’t know much about.
▪ You should be able to access a C-level executive, such as CEO or CFO to discuss the company issues with him or her
For this project, you will need to develop its pro forma financial statements. This includes the following pieces:
▪ A concise, complete business description
▪ A section that illustrates your assumptions (e.g., revenue drivers, cost drivers, growth rates)
▪ A 5-year income statement, balance sheet and cash flow statement
▪ Break-even analysis (e.g., at what revenue and when does the business turn profitable)
▪ Total investment needed
▪ Detailed use of proceeds
▪ Financing plan/strategy (how much and when) and valuations as well as the terms you will propose to your investors (which kinds?)
▪ All relevant graphs and diagrams
This should basically look like the financial section of a really good business plan. Make sure all your assumptions (growth rate, costs, marketing expenses) make sense and that they are reasonable. Verify them with various financial ratios of companies in the public and private arena. Whenever possible, justify your assumptions and estimates; use reference/source when applicable.
You can work in groups of 2-4 students. The writing and presentation should be highly professional. Please turn in your financial section as well as your spreadsheet of your calculations.
Start with a spreadsheet that is on Brightspace, simplify it (since this one is overly complex) and use it for your business. You might also want to check websites like http://www.exinfm.com/free_spreadsheets.html for sample excel sheets.
You will be graded on, among others: Completeness; Accuracy/Reasonableness of the assumptions; Level of detail and thoroughness; and Presentation (professional look)
PLEASE READ!!!!
Presentation Outline-Key Slides (MODIFY AS YOU SEE FIT)
1. Problem – Must show pain.
2. Solution – Needs to be a solution to a problem rather than a technology looking for an application.
Think of this in terms of existing and potential new revenues
3. Market Potential Most show a large and growing market.
Should have third party validation of market size and growth.
4. Management Team – Keep summary very short.
OK to have holes that need to be filled.
5. Go-To-Market Strategy- Direct, channel, OEM, viral? Remember that customer adoption is often the hardest part of growing a company.
What method for what market at what stage?
Don’t forget to consider the customer acquisition costs.
6. Competition- Competition is good, it validates the market.
Differentiate from your competition.
7. Financial Projections- Multiple years with
Revenue, EBITDA & CASH FLOW.
Present KEY ASSUMPTIONS.
Provide SUPPORTING PROFORMA FINANCIAL PROJECTIONS.
8. Funds Request and Use of Proceeds
VCs like to see sales and marketing as use of proceeds, and they understand the need to support product development. Be clear on how much and why funds are required. Highlight key milestones.
0 comments