First, the basic understanding of the venture capital plan
(a) the investment plan is a necessary document to raise funds when creating a new enterprise.
Everyone in the industrial and commercial circles in Taiwan Province Province is very busy, and potential investors are even busier. In particular, it is necessary to explain the investment concept to the big boss, allowing about 1 hour. In this 1 hour, only one summary report can be made to attract his attention and let him know which unit it is and who will handle it. Therefore, it is necessary to prepare a detailed investment plan and give it to the big boss, so that he can take it back to the employees for evaluation. Only with positive comments can he make an investment decision. At present, private enterprises or various enterprises in Chinese mainland want to raise funds from outside, and more than 90% of them lack investment plans. In these investment cases without investment plans, the probability of raising funds is very low.
(2) Investment plan is a sharp weapon to save time.
Creating a new business investment idea is usually quite complicated. It may take several days for investors to fully understand through oral explanation. Few investors have the patience, but they don't fully understand the whole investment idea, so investors dare not invest. The most relaxed and ideal way is to invite investors to dinner, give them some explanations and give them a written "investment plan". After a period of time, ask what is clear and then ask about the willingness to invest, saving time and effort.
(c) Investment planning is a tool for communication and coordination.
If the investment plan needs more funds, the number of potential investors will definitely exceed 20. Because it is not always successful, it is not easy to find time, and there are many participants, the discussion in the meeting is easily out of control and no resolution can be reached. The way to get to know many investors in a short time is to prepare a clear and easy-to-understand "investment plan" and send it to many investors at the same time, and then explain it bit by bit. Let people with * * * knowledge get together for a meeting and reach a resolution as soon as possible.
Planners who create new enterprises should understand that investment planning is a weapon of communication and coordination. If you don't use this tool to face a large number of investors, you may be at a loss and feel deeply tired, which is why many new business plans can't take the first step.
(d) A good investment plan must be correct and clear.
The so-called correctness means that we must pay attention to the quality of numbers. As long as you mention numbers, you must have a basis, such as referring to other people's data and indicating the source; If it is a hypothesis, the hypothesis conditions must be stated. For example, the market value of a product in Taiwan Province Province is now 200 million yuan, and the source must be indicated. In the investment plan, if the sales revenue in the first year is expected to be 22 million yuan, the following assumptions must be stated: the growth rate of products in the Taiwan Province market is 10%, and the market share is assumed to be 10%, that is, 200 million yuan × (1+10% )×/kloc-.
The so-called clear and easy to understand, so that people who get the investment plan can easily understand the whole investment idea without oral explanation. To be clear, we need to pay attention to the following three items.
The investment plan should have a table of contents, indicating the pages of chapters, annexes and schedules, so that investors can quickly find the information they want. In addition, there must be a chapter on "investment case summary" for the big boss or senior staff to understand the general idea of investment plan and know which unit or individual to hand it over to for evaluation.
In addition, a paragraph should have a title to make it clear. It is best to have a title of less than 500 words, so that investors can roughly understand what the following 500 words are about and decide whether to read the details. For example, this paragraph mainly says that "a good investment plan must be correct and clear".
Paragraph structure should be clear, and the general order is "one", (one), 1, (1); Answer, (answer). That is to say, when "1" is divided into paragraphs, (1), (2) and (3) are used. (1) Use 1. 2. 3 1, and use (1)(2)(3) when dividing into paragraphs, and so on. Appendix 5- 1 of this book can be used as a reference.
(5) Investment plans should be written by experienced financial advisors or investment experts.
I often see many investment plans to create new enterprises. I simply don't know where to start. I can only understand what a product or technology is at best. Even with a simple financial budget, most of the figures are intuitive, unfounded and unconvincing. The terms expressed do not conform to the financial accounting terms, which are easy to be confused and the investment conditions are not easy to understand. Even if you understand it, it doesn't conform to business habits. Such an investment plan can't arouse the interest of investors, and it's not surprising that no funds can be raised.
The best solution is to entrust an experienced financial consultant or investment expert to write it. Submit the prepared "cash flow statement and schedule" as reference materials to financial consultants or investment experts. Experienced financial advisers or investment experts can not only passively draw up plans, but also actively set up investment plans for new businesses, draw up investment conditions acceptable to investors, and further seek investors on their behalf.
Private entrepreneurs should not hesitate to give appropriate remuneration to financial advisers or investment experts. As the saying goes, "There is no free lunch in the world", private entrepreneurs have to save money everywhere because they are still poor or not rich, but the money is necessary and worth paying. Starting a new career is often a major choice in life. This kind of thing should not be explored by yourself, and the decision-making mistakes should be minimized.
Usually, the remuneration that must be paid to financial advisers or investment experts is usually obtained by multiplying the time they spend by the fees that should be calculated per hour. However, because it is difficult to calculate objectively, the remuneration for writing an "investment plan" is also based on NT$ 2 to NT$ 2 per word. The ownership of the written "investment plan" belongs to the client, and the client can take it out and give a report to the investor, so no matter whether the investment case is successful or not, these rewards must be paid.
In addition, financial advisers or investment experts may ask all or some investors to look for them. For example, if the financing is successful, they must pay a commission (intermediary service fee), which may be calculated as 1 ~ 5% of the total investment, or get a certain percentage of the shares of the new company for free, or get the rights and interests of the new business founder 10 ~ 20%.
(six) the creation of the new company's investment plan must use computers as auxiliary tools.
The revision of the investment plan is inevitable and cannot be completed at one time. For a big investment plan, it is necessary to gather the opinions of all people and revise it many times. When the strategy changes, the whole investment plan is completely changed. For example, two products were originally made and changed to the same product; Or the original self-production and self-marketing, instead of only accepting commissioned manufacturing, will change the investment plan. In addition, as the information becomes clearer, the content of the plan will be constantly updated. For example, the investment portfolio and business portfolio will be gradually determined, and the market and sales channels will become clearer.
Through the continuous communication, coordination and revision of the investment plan, we can gather everyone's wisdom and make the investment idea more reasonable and feasible. In this case, it is estimated that it will take more than 50 revisions to create a company.
Files of this nature can only be simplified by computer processing. Personal computers are widely used, which can be processed by word processing software such as WordStar and PE2, or by spreadsheet software such as Lotvs- 1-2-3.
Financial advisers or investment experts entrusted to write "investment plans" had better use personal computers, otherwise they will be miserable or extremely inefficient.
Second, the steps of writing a venture capital plan
Although this is advice for financial advisers or investment experts who help write it, those who start new businesses should still understand this part and cooperate fully.
Step 1: Obtain the cash flow statement and all schedules approved by the founder of the new enterprise.
Step 2: First, please ask the founder to provide background information about sales revenue. What is the product? Who is this product for? Where is the market segmentation of products? World market? How is the sales target estimated (that is, what are its assumptions)?
Step 3: Please provide the key technical specifications of the new business founder; Product manufacturing and quality control flow chart, competitor information, and check whether the factory investment, production or experimental equipment and listed digital sources are reasonable one by one?
Step 4: Is it reasonable to estimate the production cost including direct labor, direct materials and factory expenses?
Step 5: Calculate the personnel expenses of sales and management personnel.
Step 6 Are the sales and management expenses underestimated? The average technician will underestimate this cost.
Step 7: Establish a spreadsheet on the computer or modify the spreadsheet provided by the founder of the new enterprise on the disk, and constantly modify it to find out a feasible investment plan.
Step 8: Redetermine the amount of capital. Please refer to Chapter 3 quinquies.
Step 9: Prepare the estimated profit statement and the statement of changes in shareholders' equity for the next five years, and estimate the balance sheet for the next five years.
Step 10 Write this article according to the format stipulated by the investment institution as a legal person or the investment plan format suggested in this book (Annex 5- 1).
Third, case study: creating a new company investment plan format.
(1) background
Yonghui Investment Co., Ltd. is a company with a capital of NT$ 200 million, which specializes in investing in strategic industries. In order to help the investment case, the company specially drew up the Format of Investment Plan for New Business Establishment for reference. This format is suitable for manufacturing industry, and other industries can also apply it after deleting some items by themselves.
2. Description
See annex 5- 1 for the investment plan format drawn up by XX co., ltd.
Attachment 5- 1XX investment plan (format)
Catalogue of investment plans of XX Co., Ltd.
1. investment case summary 2. Establishment of basic company information. Company organization. Ownership structure. Business content 6. Technology and production. Financial estimation. Investment return and sensitivity analysis. Risk analysis and investment management.
* Schedule 1: the first draft of the organization chart after the establishment of the company * Schedule 2: the estimated sales revenue of products in the next five years * Schedule 3: the flow chart of production system and quality inspection of main products.
* Schedule 4: Number of employees and salary list of the factory * Schedule 5: Cash flow statement for the next 12 months * Schedule 6: Cash flow statement by year for the next five years.
* Schedule VII: Income Statement for the Next Five Years * Schedule VIII: Balance Sheet for the Next Five Years
1. investment case summary (no more than two pages for senior staff)
1. 1. Introduction of the company after its establishment.
Including the company's business projects and product content, technical sources, etc. The introduction of the management team after the establishment of the company and the number of shares held by the management team.
1.2. Capital requirements and the expected use of equity.
Including preparation costs, technology transfer fees, land and important fixed assets, equipment, liquidity, etc.
1.3. Investment conditions
Including the amount of capital contribution, the time of subscription, the number of directors and supervisors, technology pricing, patent pricing, asset pricing and other non-cash shareholders.
1.4 estimation of investors' return on investment
Including investment payback period, return on investment in future years, annual return on internal net assets, annual net present value calculated by annual interest rate 12%, annual stock price forecast of investors and internal rate of return for withdrawal time.
1.5. Other projects worth introducing.
Such as major purchase or sales contracts, breakeven points, marketing channels, products and markets, etc.
1.6. What are the risks?
Such as technology development risk, process development risk and market change risk, focusing on the management risk of some important personnel.
2. Create basic company information
2. 1. The origin of the company
2.2. Business content of establishing a new company
2.3. Budget capital
2.4. Procedures for the establishment of the company and its timetable
2.5. Contact person and address
3. Company organization
3. 1. Organization of the preparatory office during the preparatory period
3.2. Draft the organization chart of the company after its establishment.
3.3. Booking information of main managers
Including the main academic (economic) calendar, current positions in other companies, and employment conditions.
4. Ownership structure (this part has little information when it is first drafted, and it will be gradually enriched when looking for investors).
4. 1. Pricing arrangements for technologies, assets and patents.
4.2. Rights and obligations of cash shareholders
Cash contribution by cash shareholders and cash contribution expected by key managers.
4.3. Arrangement of Directors and Supervisors
Including the number of directors and supervisors of major cash shareholders, directors and supervisors of major management personnel and technical shareholders.
5. Business content
5. 1 Industry Market Analysis
5. 1. 1. Market situation and growth rate of Taiwan Province Province.
5. 1.2. The present situation of the world market and the estimation of its growth rate
5. 1.3. Target market and its growth rate in special areas
5.2. Industry Competition
5.2. 1. Overview of competitive manufacturers in Taiwan Province Province
5.2.2. Overview of global competitive manufacturers
5.2.3. Overview of competitors in target markets in special regions
5.3. Introduction of marketing strategy
Including marketing channels and pricing strategies, the signing of important sales contracts.
5.4. Estimated sales revenue of each product in the next five years (including various assumptions)
5.5. Operating budget for expanding business
Including participation in exhibitions at home and abroad, sample fees, media advertising budget, etc.
6. Technology and production
6. 1. Description and source of key technologies
Including major technical cooperation contracts, such as self-development and R&D budget.
6.2. Production and manufacturing
6.2. 1. Main products and production process
Comprises a feed quality control flow chart, a production flow chart and a quality inspection flow chart.
6.2.2. Sources of raw materials for main products and their costs
6.2.3. List of factory employees, education requirements and salary level
6.2.4. Factory Fixed Equipment
Including the estimated factory area, land and workshop area, main machinery and equipment, the maximum production capacity of the factory, and the above-mentioned purchase and construction budget list.
7. Financial forecast
7. 1. Monthly cash flow statement for future 12 months (including assumptions)
As shown in Annex V, at the initial stage of drafting the investment plan, due to incomplete information or too many uncertainties, this part may be drafted incorrectly, but more specific and accurate figures can be provided after the establishment of the preparatory office.
7.2. Annual cash flow statement for the next five years (including assumptions)
7.3. Summary of Capital Requirements
7.4. Income statement for the next five years (including assumptions)
7.5. Balance sheet for the next five years (including assumptions)
8. Return on investment and sensitivity analysis
8. 1. Calculate the payback period of investment according to 7.4.
8.2. Calculate the annual return on investment and net return according to 7.4.
8.3. Net present value calculated at annual interest rate 12% in the next five years according to 7.4 (two cumulative lines per year)
8.4. Estimate the annual share price of Watson's shares for sale, and calculate the internal rate of return (the stock price can be estimated by multiplying the earnings per share of the investment company by the P/E ratio of 12).
8.5. Sensitivity analysis (analyze the impact on the rate of return when the sales revenue reaches 80% and 60%; Or the impact of the successful development of important products or the delay in product listing on the return on investment)
9. Risk analysis and investment management
9. 1. Technology development risk is 6. 1 key technology development risk.
9.2. Production process development risk, used for 6.2 production and manufacturing development risk.
9.3. Market risk, assessment 5.4 Assumptions about sales revenue.
9.4. Investment management, the degree to which investors intend to participate.