The BizPlace Business Plan is a document that analyzes the company in detail by projecting it financially over a period of 5 or 7 years.
The objective of the document is to highlight the cash needs of the start-up and then be able to determine the required investment. To achieve this, the BizPlace analysts start from the marketing metrics (KPI) or, where not present, conduct market tests to obtain them. Thanks to the cost per acquisition, it is in fact possible to determine the expenditure necessary to acquire a paying customer and thus obtain the rate of growth and market penetration. Subsequently, it is important to pay great attention to the use of funds year by year; a start-up in the digital sector must necessarily spend at least 30% of its costs in marketing, in order to drive sales. It is also essential to keep an eye on HR figures (at least 10 employees within one million of turnover) and IT costs related to the server.
The final Business Plan is summarized in the income statement and cash flow statement items. After completing the statements, the BizPlace investment team carries out a valuation on the start-up using a proprietary method that refers to different procedures of corporate finance including: multiple method and DCF.
The BizPlace Team