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Note: The following is the minutes of one of the most important training sessions of the third "Challenge Cup" National Student Entrepreneurship Program Competition. The following are the minutes of the most important training session of the third "Challenge Cup" National Student Entrepreneurship Competition. The speaker, Mr. Zhang Tiemin, was a judge of the first two national competitions and an authority in the venture capital field. Mr. Zhang mainly talked about the problems to be paid attention to in business plan writing from the perspective of a venture capitalist, as well as some of the deficiencies in the entries of the previous competitions that he recognized as a judge, some of which are key points that are worthy of our attention and consideration. The organizing committee hereby issues it to all participants for your reference.
Some Issues to be Aware of When Participating in Entrepreneurship Plan Competition - Proceedings of the Training Course for National Students' Entrepreneurship Plan Competition
Time: April 2002
Venue: Wuhan University
Presenter: Zhang Tiemin (Senior Consultant of CITIC Group, Judge of the previous two National Students' Entrepreneurship Plan Competition)
The organizing committee is hereby issuing this report to all participants for reference.
I. Positioning of the Entrepreneurship Competition
The purpose of organizing the Entrepreneurship Competition is not to attract capital, but to improve the quality of students. The Entrepreneurship Plan Competition is a carrier for cultivating students' creative and innovative consciousness, perfecting their knowledge structure, and cultivating their team spirit, which is a higher level of learning.
Second, the entrepreneurial plan competition in the related issues
Entrepreneurial plan, also known as business plan. The specific method of writing is described in the Writing Guide of the competition, and there are also related books on the market that can be purchased, and many websites have guidance on related content.
I'm going to talk about how a plan should be written, mainly from the perspective of a venture capitalist.
I'm a judge, the rating of a business plan mainly consider three factors: first, from the point of view of protecting the interests of investors, as a consultant, I have to be responsible for the investor; secondly, it is the "highlights" and "shortcomings" of the business plan will be compared to determine the "highlights" and "shortcomings The second is to compare the "highlights" and "shortcomings" of the business plan to determine the score; third, from the perspective of the project decision analysis to assess.
Some of the judges of the national competition are venture capitalists or experts in the field, and their requirements for the plan are quite harsh, and, focusing on social reality, will not talk to you on paper. The judges usually focus on the most important three points: technology risk issues, market risk issues and financial risk issues.
A good entry should contain three elements: excellent ideas (e.g., high technology), a good team, and a good business plan.
Regarding the three elements mentioned above, I would like to talk about the team first. Because the mode of the plan is similar to the general feasibility report. Moreover, a good business plan and a good idea can be replicated, but an excellent team cannot be replicated. Therefore, some judges suggested that they would rather have a "first-class team, second-rate ideas" than "first-class ideas, second-rate team". An excellent team should dare to innovate and take up challenges, and it should be able to specialize, collaborate with each other and complement each other's strengths. On the point of expertise, I believe that a good team should have the following specialties: marketing, legal (many teams have ignored this point), production, technology, management, finance and so on. Our evaluation of a team is to look at his comprehensive strength.
Next, I want to talk about the business plan. Once, I heard a story in Zhongguancun, a university research institute found a good idea, however, do not know how to write into a plan, and therefore want to entrust a company to write, the company proposed to help you write can be, to pay the labor fee of 200,000 U.S. dollars - from this, we can see that a good business plan has its own value. Its own value. However, a good business plan written out is not easy, in my opinion, the team to participate, to write a plan, we have to work hard, write well, do not want to just get a few, take it out of the number.
For the basic requirements of plan writing I think the following aspects:
First, the text must be fluent, concise and focused. The judging of the national competition, usually a judge in half a day (about 2 hours judging time) to see 8-10 pieces of work. This works out to be about 15 minutes per piece, which also includes time for scoring and writing comments. In addition, during the defense, teams may have even less time, so it's even more important to be able to focus and condense the summary and highlights.
Secondly, the sense of innovation should be strong and the idea should be new. College students entrepreneurship, should emphasize the high technical content of the work, to be able to be high-tech, or have a "bright spot", rather than the general sale of things. A good idea, should contain three characteristics: originality, advanced and reliability, the specific content of my later will expand in detail.
Third, to do market research. Good market research will be half of the plan's success (a business plan, there are usually 5-6 pages of market research). The first two contests, I met a project, is about medical equipment, at first very unrated, because its target market set in the big city hospitals, after investigation, the prospect is not good. Later, the team did more than two months of market research, and finally found that this equipment is very popular in county-level hospitals, and thus found a solution.
This shows that market researchers are very important and useful. A good market research, to be credible, reliable, however, to do these two points is very difficult, because the market research is very hard, tedious things, but it is a good plan is indispensable part of it is an investment in the "eyes", can help determine the market positioning and product prices. Market research report, must stand up to scrutiny, after the investigation, not only to have an understanding of the market, but also to be able to understand the situation of their competitors.
Fourth, the "plan" to be commercialized, "plan" of the industrialization of plasticity to be high. Here, the main thing is to talk about financial issues. Your business plan must be clear to tell investors, your project to invest how much money, you make money through what way, how to return, when you can recover costs. Because, all investment is business capital, business capital is to talk about return. You ask for the amount of investment, it must be a feasibility analysis, can not just rely on fantasy to set an amount. Previously, some projects, generalized a few million, tens of millions of integer amount, this is very bad, each of your money should have a specific plan and go.
First, the jury's scoring criteria
Here, I mainly according to the content of the parts contained in the plan to talk about our scoring problems.
First, the executive summary part. This part is mainly a description of the product outlook, which is the essence of the plan. Good executive summary, must be able to let the judges in a short period of time to understand the project's general and "highlights", as well as the future development goals. It should be concise, with distinctive features and new ideas. To be able to impress the judges in 2-3 minutes (if not, then the latter will be very passive).
Second, the product or service. In this part, the product or service of their own bragging and self-appreciation does not work, must be objective and reasonable. Because, the judges are industry insiders or experts in related areas, many things are known, know the line, you blow too much, but to make a joke. In addition, this part, you must say clearly, your product is not the leading, we believe that a good entrepreneurial product is best if the international leading, at least if the domestic leading.
Third, market research and analysis part. Including customer response, competitors and customer base. Market research must be done by people who know the specialized knowledge, and do not overestimate the competitiveness of their own analysis.
Fourth, the marketing strategy part. Must consider the issue of marketing channels, as well as marketing costs. Previously, many projects only mention the cost of technology and product costs, that marketing will not spend too much money, but in fact, marketing costs are relatively large, we must pay attention to this issue.
Fifth, the basic strategy part of the company. Strategy must be distributed, phased, investment and development goals for each stage must be clear. For example, the cost of industrialization of a new material product is different at different stages, it is in the "R & D to production to market" three stages of the cost may be 1:10:100. In addition, the company's image design is very important, the previous award-winning project called "Xingzhi net", their company image is very important.
Sixth, the operation, management part. A company's good or bad, the quality of managers has a decisive role. For the difficulty of operation, resource requirements, the various stages of business development is not the same, this point please note. In addition, for the issue of investment, the initial stage of the enterprise and the expansion stage of the resource requirements are different, entrepreneurs should be reasonable and objective estimation of the amount of investment. We must not take the "fishing" method - the first step to the capital rated small, first "fishing" on the investor, and then slowly "big lion The first step is to set a small amount of money for the investor, and then slowly "open the mouth".
Seventh, the financial analysis part. This part we must do seriously, so that the judges can understand the destination of each sum of money, to be realistic about a sum of money a sum of money to calculate. Venture capitalists are not afraid to invest more money, for fear that the money spent is not clear.
Eighth, the return on investment part. Venture capital is not only to return, and the requirement is high return. Usually, we have a "passing line" for return on venture capital, which is about 30%. If your return on investment is lower than this, you may want to consider adjusting your plan.
Ninth, the key risk component. As the saying goes, high risk, high reward, business capital investment is certainly risky, therefore, the business plan must clearly analyze your own risk in what. If there is no analysis of risk in the business plan, it is certainly to be deducted points.
Tenth, the entrepreneurial team part. This is a part of the program that has been generally ignored by participants. I suggest that the teams must be cross-faculty and cross-professional, and the structure should be sound and reasonable. In the introduction and defense, it is important to introduce your respective majors and not to generalize about which department you are from. In addition, it is advisable for each team to hire a senior advisor. Also, each of you must consider the issue of intellectual property ownership, for example, whether your technology has applied for a patent, how to share the money earned in the future. It's best to have an agreement, not a vague one.
I. Problems found in previous competitions
1, the project.
In the first two years, there were more network works, and from this year's Tsinghua University competition, there were fewer network works projects and more technical projects.
2. On the issue of technical risk. Theory is too strong, the technical risk is underestimated, it looks feasible, but in fact it can't stand the scrutiny.
Technical risk here, I mainly emphasize three characteristics:
First, originality. Some previous works were not original enough. However, the issue of originality is often the first concern of the judges and is the key to capturing the market. A good entrepreneurial work, it is best to be a patented work, not a low-level duplication of construction, for example, some of the previous entries, the content of the network advertising, but this kind of thing at home and abroad has been more and more, there is no novelty. Therefore, your entries, must push their own differences where, do not imitate others, to have uniqueness.
Second, advanced.
Second, advanced. That is to say, your work in the relevant field to be able to lead, in the network community, the popular saying, is "the Internet only the first, not the second," is this meaning. You do similar things is not impossible, but to do more advanced than others (the competition "example" in the "crustacean line" of the project on this point to do better), to be able to understand the situation of similar products and competitive strength.
Third, reliability. That is, your work should stand up to scrutiny. Your product should have a certain technical barriers, so that people can not easily break. In addition, the medical industry works, pay attention to the relevant "approval", "identification" and other industry and policy requirements (no identification, no approval number is not production).
3, the problem of market analysis.
The previous project, the market analysis of this piece of work is relatively rough, the lack of depth of scrutiny of the industry, with the requirements of venture capitalists there is a large gap. Because the market is dynamically changing, we need to conduct a dynamic analysis. Previously, we do market analysis, mainly subjective inference, too ideal, put themselves in a fairly high position, here, I suggest that we must seriously do market research and analysis, some of the goals aiming at the national competition of the project, is to be willing to spend a summer vacation time, go to do market research and analysis, at least to answer the question: who are the customers in the end, why customers will accept your product, your What is the attractiveness of the product and other issues.
4, capital operation risk.
Previous entries, the lack of experience in financial analysis, financial analysis is done too simple, which the virtual cost is relatively large, but the risk of inadequate preparation. I mainly remind you of two points, one is the RNB costs (research input costs); one is the marketing costs, which you must not ignore. In addition, we should not over-estimate the value of our technology when financing, so that we do not make a small fortune and lose a big fortune because we are in a hurry to get out of the market. It is suggested that we can ask an appraisal company to evaluate the value of our technology. The state now stipulates that the technology shareholding can not be higher than 35%, but in the reality of Zhongguancun, as long as both sides agree, higher than 35% is also possible.