What does Sequoia Capital want in a business plan? I’m quoting exactly from a post:
Take a look at this business plan outline:
- Define the company/business in a single declarative sentence.
- Describe the pain of the customer (or the customer’s customer).
- Outline how the customer addresses the issue today.
- Demonstrate your company’s value proposition to make the customer’s life better.
- Show where your product physically sits.
- Provide use cases.
- Set-up the historical evolution of your category.
- Define recent trends that make your solution possible.
- Identify/profile the customer you cater to.
- Calculate the TAM (top down), SAM (bottoms up) and SOM.
- List competitors
- List competitive advantages
- Product line-up (form factor, functionality, features, architecture, intellectual property).
- Development roadmap.
- Revenue model
- Average account size and/or lifetime value
- Sales & distribution model
- Customer/pipeline list
- Founders & Management
- Board of Directors/Board of Advisors
- Balance sheet
- Cash flow
- Cap table
- The deal
The original post also includes a list of the elements of sustainable companies which Sequoia Capital seeks when evaluating opportunities.