Business plans for companies looking to go public have a special onus on them. First, understand that a company looking to offer shares to the public needs much more than a business plan. No matter what sort of IPO you envision – pink sheets, a major exchange, a limited sale opportunity, etc. – you will need a whole body of corroborating research, legal filings, and other paperwork. This process requires legal counsel and you should not plan to do the legwork yourself – you must have an attorney vet and file the necessary documents for a true public offering. However, the business plan is one component of this package, and you can work on that yourself provided you can answer:
• What is the market opportunity and scope for your venture?
• What is the exact break-even point you project?
• What are the assumptions underlying your sales estimates and market share?
• What are your major competitive threats and how are your chief competitors performing?
• What strategies will the business use to market its services/products?
The business plan for a company looking to go public also needs to include a management team summary that describes who you are, your role in the enterprise, the base of experience you have for this venture, any educational achievements/certifications/awards, and all other relevant information about your background. Profile each C-level executive and/or VP and include a section for the advisors the company will have once public (the board). The plan also needs a personnel forecast, which should show how the funding will be applied to bring new people on board. The full pro forma includes a sources/uses of funds, a revenue forecast, the break-even point, profit and loss tables, cash flow, and a balance sheet for no fewer than 5 years. MasterPlans can work with you to develop the perfect business plan for taking a company public. Many of the 10,000 clients we've served to date have used the plan to position their firms for an offering of shares on the public market. Call 877-453-2011.
