【正文】 e price? How high is the profit margin (estimated)? ? What sales volumes and sales revenues are you aiming for (estimated)? Marketing and sales only briefly touched in idea description。s customers* CASE EXAMPLE 020607MVA1_ZXK_265_V5 CONTENT OF MANAGEMENT TEAM SECTION Source: McKinsey ? Outlines educational background and professional experience of founders ? Describes how existing skill gaps can be closed in the future ? Convinces potential investors that both managerial and technological expertise is present to run the venture Venture capitalist will invest only if the venture is managed by an excellent team Executive summary Product/ service Management team Market and petition Marketing and sales Business system Implementation plan Opportuni ties and risks Financ ing 020607MVA1_ZXK_265_V5 MANAGEMENT TEAM – KEY QUESTIONS Source: McKinsey Complete business plan ? Who are the members of your management team and what distinguishes them: education, professional experience, success, standing in the business world? ? What experience or abilities does the team possess that will be useful for implementing your concept and setting up your pany? ? What experience or abilities are lacking? How will the gaps be closed? By whom? ? What targets do the team members pursue by starting up the business? How high is the motivation of the individual team members? 020607MVA1_ZXK_265_V5 REASONS FOR BUSINESS PLAN REJECTION – BIOTECHNOLOGY VENTURES* Percent** Weak management team Not marketdriven Long time frame Money mitment too large Not patentable Inadequate technical expertise Other If you find good people, they can always change the product. Nearly every mistake I have made has been picking the wrong people, not the wrong idea– Arthur Rock Arthur Rock Co. 52383125151217 * Reasons for rejecting business plans by firms experienced in biotechnology venture capital ** Multiple responses given Source: Coopers and Lybrand, McKinsey 020607MVA1_ZXK_265_V5 TEAM RAMPUP – EXAMPLES CEO Technology Sales Finance Marketing Idea and team development Venture begins Proof of economic viability Explosive revenue growth Technology mkt. validation Sustained earnings growth ? ? ? ? ? ? X X X X X X Source: McKinsey analysis, external interviews EXEMPLARY 020607MVA1_ZXK_265_V5 PERCENTAGE OF FOUNDERS OF FAST GROWING COMPANIES* 4221141364Unemployed or recent graduate * 4year growth rate of 573% or higher, 1984 1990, 456 panies Source: McKinsey Not from business Running other businesses Small established panies Midsize to large panies (including Fortune 1000) Startups Examples include ? Intel ? Microsoft ? Lotus ? Sun Microsystems ? Mattel ? CompuServe ? Advanced Micro Devices ? Raytheon ? Fairchild Semiconductor ? TRW ? CondeNast ? News Corp 020607MVA1_ZXK_265_V5 Traditional corporate experience does not fit new venture needs … ? Skills aligned to achieving near term earnings and sustained revenue growth ? Processes based on internal milestones ? Staff support allows extensive delegation (., HR, finance, marketing) ? Decision making enabled by significant capital resources Catherine Hapka, CEO Rhythms NetConnections ? Former EVP of US West ? Responsible for business and telemunications units with USD billion in revenues ? Started and built US West’s INTERPRISE Networking Services Unit to USD 400 million in revenue ? Established partnerships with 15 leading hardware and software providers Richard Thompson, CEO Aradigm ? Former President of Johnson Johnson subsidiary, Lifescan ? Built Lifescan from the ground up ? Led within Johnson Johnson expansion into Europe and Japan ? Business building roles, ., – Led expansion into new geographic markets – Built new product line or division – Provided marketing leadership to develop a new brand ? Relevant industry sector experience Source: Executive search firm and VC interviews … but corporate experience is valuable when it includes NECESSARY EXPERIENCE FOR VENTURE MANAGEMENT 020607MVA1_ZXK_265_V5 SKILL SET OF TEAM MEMBERS High skill level Medium skill level Team members Technology Finance Project management Contacts Marketing/sales Production Human resources Social petence Initiative Communication Sales/negotiation skills Hard factors Soft factors Obvious skill gaps to be filled with additional team members EXAMPLE J. Chapuis S. Fischer M. Tscharner Source: Planen, gr252。s operational efficiency Exercise 1: Training participants check quality of executive summary with key questions* CASE EXAMPLE 020607MVA1_ZXK_265_V5 EXERCISE 1 – EXECUTIVE SUMMARY (1/2) Source: McKinsey Key questions for idea description ? What is your business idea? In what way does it fulfill the criterion of uniqueness? ? Who are your target customers? ? What is the value for those customers? ? What market volume and growth rates do you forecast? ? What petitive environment do you face? ? What additional stages of development are needed? ? How much investment is necessary (estimated)? ? What longterm goals have you set? Evaluation of Rusmar summary – Answered questions Missing element See appendix for proposed solutions EXERCISE 020607MVA1_ZXK_265_V5 EXERCISE 1 – EXECUTIVE SUMMARY (2/2) * In addition to key questions answered by idea description (step 1) Source: McKinsey Additional questions* for rough business plan ? How high do you estimate your financin