An alumni business plan could be used to solicit funding from other graduates for a specific program or to start an alumni-related business, as when a group of entrepreneurs from the same school decide to put their talents together for a new business. No matter which of these will apply to you, an important first step in the drafting process is pinning down the service suite, or the product, that your business will create. How is it useful and what does it cost? What competing products or services are on the market now and how can your alumni business outperform them? These are important initial questions that can help guide your thinking and lead to a stronger first draft. It's also important to hash out the specifics of the revenue model, which means answering:
• What amount of funding are you seeking?
• How will this cash be used?
• When can you anticipate break-even?
• Does your cash burn rate line up with similar business models?
• What is your projected net profit year over year?
The business plan's pro forma can be only 3 years if you're taking the plan to an SBA-approved lending source but it will need to model out 5 years for an angel investor or board group. Depending on your alumni business plan's audience and intent, you might want to ask what's expected prior to submitting your plan. You should be prepared to make a market analysis with detailed information on your business potential and the industry as it stands currently. The plan also requires a marketing overview that addresses how you'll promote the business. For help on this plan, you can reach out to MasterPlans. We are a team of experts trained in business planning for all industries. Call a consultant now to learn how we can help with your alumni business plan. (877) 453-2011.
