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DESCRIBE YOUR START-UP using this fictitious template

Mike Harrop
Posted Apr 21, 2008 10:33 AM
harropmike
Group Organizer
Lausanne, CH
Post #: 12
Fictitious example below of an Executive Summary....

Instructions:
If you are not able to write an Executive Summary, someone can write it for you. Tell us.
If you are able to write an Executive Summary, follow the outline below:
1. Put your text in lieu of the fictitious one.
2. Add your detailed resume, mentioning special experience that makes you more interesting.
2. Add your cash-flow projection for 1-3 years (email an excel sheet so we can play with it).
3. We'll also run a role-playing session with you and some other ad-hoc 'experts' - this adds a real life facet like a reality-TV scenario.
4. Even if you don't have a product yet, you can provide proof-of-sellability in the form of a commitment letter from typical future clients saying they would be interested to buy your company's products. This exercise avoids making a lot of mistakes later.

EXECUTIVE SUMMARY

WE SELL....
A new type of vertical wind turbine.

TO WHAT MARKETS ?
Electricity generation.

WHAT'S INNOVATIVE ?
Vertical spiral instead of propellers. Can be made from standard materials. No composite blade technology required. Efficiency can be increased with concentrator flaps. Trailer-mounted.

WHAT'S OUR DIFFERENTIATOR VERSUS INCUMBENTS ?
Compared to propeller type, more efficient in wind-to-energy conversion, easier to install, cheaper to make, cheaper to run, visually more discreet, smaller land footprint, smaller danger perimeter, quieter, needs lighter support structure, can be installed from base, no crane required, mobile, does not kill birds. Converts movement direct to torque without gears, thus reducing energy wastage. Mid-tech so manufacturing/sales/installation licensees easy to find in almost all countries.

NAME OF COMPANY ?
Upwind Generators SA

NAME OF BRANDS ?
"Upwinder 1"

WHERE ARE WE LOCATED ?
No location yet.
There is no requirement for special location.
Preferred location: near first installations (windy valley or hilltop) because more practical for installation transport and monitoring.

WHAT'S OUR STATUS ?
Pre start-up.
Inventor has a full-time job as salesman in aero engineering company, wife + 2 children 7 and 10 years, no previous entrepreneurial experience.
No other people.
Company name is not registered or protected.
Brand name is not registered or protected.
No logos.
No money.
No patents.
No registered designs.
No business plan.
Available documents: executive summary, 3-year cash flow projection, resume.
Proof-of-concept: working 1:50 scale model built and funded by inventor with help from co-workers in employer's workshop at weekend.
Proof-of-sellability: one letter of interest from prospective client.

WHAT DO WE NEED ?
R+D capital for working alpha test-prototype - Eur 30'000 (can be done ugly for less).
R+D capital for visible beta show-and-tell prototype - Eur 30'000.
R+D capital for exhibition prototype - Eur 30'000.
Working capital for initial 3 sellable units - 3x Eur 20'000.
Working capital for overheads first 6 months - Eur 100'000.
Capital for international patent examination, drafting and registration - Eur 100'000.
Brokerage fees to raise Eur 500k at 15% = Eur 75'000.
Non-employed engineer with expertise in energy generation, feeding energy to grid, energy flux management.
Non-employee sales agent with expertise in institutional marketing and approval process.
Directors and advisors with contacts.
Sub-contractor workshop 30m x 15m horizontal minimum, large unroofed yard 50m x 50m.
Patent law firm with all-country reach.

WHO COULD WE PARTNER WITH ?
Energy producers.
Generator producers.
Trailer/truck manufacturers
Manufacturing sub-contractors.
Greentech/cleantech investment funds.

WHAT'S IN IT FOR AN INVESTOR ?
Rare disruptive design model overcomes almost all negatives of incumbents.
Very early stage (pre-seed) - cheap entry.
Guerilla engineering model (mobile, correctable, low-impact, non-hard).
Growth industry (alternative energy).
Concept proven in working scale model.
Could get national or eureka funding and help from local research centers.
Socially contributive product.
Provides local jobs in each installation country.
Break-even est. 3 years. Standard return est. 5 years. Risk return est. 7 years.
Exit via trade-sale - many players worldwide in this electroengineering/energy space.

START-UP DATE SOUGHT ?
Now (one month's notice required to current employer).
Euro 4'000 per month (gross) secure income for 6 months required.

GUESSTIMATED VALUE IN 5 YEARS
Projected sales 500 units/year at Eur 50k each = Eur 25m turnover.
Net after-tax earnings 12% = Eur 3m.
Using P/E ratio for utilities of 20x, capitalization = Eur 60m.
Using 20m share issue, projected share price = Eur/share 3.00.

SHARE PLACEMENT NOW
Selling shares today at Eur/share 0.50.
To raise Eur 500k, need to sell 1m shares (5% of company).
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