OpenTTO - DILIGENT Phase 8 – Test & Resource Plan

1. OpenTTO.org - DILIGENTPhase 8 – Test & Resource Plan TRP Objective Business Plan (Purpose, Content, Musts) Preparing The Financials Executive Inputs Testing the Draft

2. TRPObjective To build and test the Business Plan: • Is it feasible, and achievable? • Are resources available to execute? • Is the risk and reward consistent with the global commercialisation objective? The Plan should represent the optimum value creation and capture process for the invention, consistent with the global commercialisation strategy.

3. Test & Resource Plan 5.0 FCS 6.0 PMR 7.0 SPB 8.0 TRP 8.1 Review Entire BP 8.2 Confirm Feasibility 8.3 Confirm Resources 8.4 Ensure Consistency 8.5 Sign-off Strategy Overview Prior to delivering the final Business Plan test the draft with knowledgeable sources for feasibility, achievability and sustainability, and resourcing. Process Output Supplier 8.1 Review all components of the assembled Business Plan for quality of content and analysis 8.2 Confirm feasibility of overall plan as a first level document to Executive and strategic partners 8.3 Confirm that resources necessary to enact the next steps and future steps are obtainable 8.4 Ensure consistency of purpose and objectives and tactics between all sections – reinforcing each other. 8.5 Sign off the Business Plan as the best value-creating and value-capturing mechanism for the invention. 8.6 Complete and review Confidence Index for TRP Technical & Researchers Marketing and Sales Business Leads Commercial and Finance HR and Executive Team • Specific Commercialisation Objective • Business Plan • Licensing/Development options • Strategic Partner roles • Risk Plan Input Customer 7.0 SPB plus all Prior Steps Global Commercialisation Objective Executive Priorities Champion Resourcing Executive Team Strategic Partners

4. I O S P C Transform Templates TRPSuppliers and Inputs Typical questions for suppliers and inputs: • Is all outstanding work on prior stages completed? • Is the Business Case a quality document? • Is the global commercialisation strategy clear? • Are Executive priorities for this invention internally consistent? • Is there Executive agreement on the draft specific commercialisation strategy for this project? • Are the right people assembled to review the feasibility? • Are the options for resourcing (finance, people, partners) clear? • Are the risks sufficiently specific to make an informed decision? • Do we understand the audience for the Business Plan?

5. I O S P C Transform Templates TRPProcess and Transformation Testing and resourcing the draft plan: • Has input from key stakeholders been gathered and assessed? • Can the Plan be tested with potential partners/stakeholders? • Have the right experts contributed appropriately? • Are there any specific or important gaps in input? • Are there any key resources that will be difficult to provide? • Is the resource requirement and load unrealistic? • Can we check the draft Business Plan with experts? • Who is responsible for the Executive Summary? • Can we use a “captive audience” who will give feedback? • How do we ensure outside unbiased review?

6. TRPBusiness Plan The prime output from this stage is a good BP: • Company overview – including the business opportunity foreseen • Capabilities, experience and/or passion of the management team • Quality and potential of the technology, including patents etc • Market size, and value and competitive position of the technology • Industry analysis and key forces and trends • Market and sales strategy to penetrate the market – branding • Pricing strategy and channel and distribution strategy • Significant barriers to entry and business risks • Finance - the money required and how and when will it be utilised • Exit strategies and timing Demonstrates the knowledge and understanding of what it will take to meet the objectives

7. TRPBusiness Plan Purpose The purpose of the Business Plan: • To get the first meeting with investors / partners! • As a management tool • To guide immediate steps and interim investments and resourcing • To set short-term measured milestones as credibility The first meeting is crucial – the BP will be altered anyway. It is a marketing document, like a response to a tender.

8. TRPBusiness Plan Contents The first few pages are the most important for investors: • They may not read more than the Executive Summary • Research VC preferences and prepare a quality Summary • Find out if they prefer figures, words, diagrams, colour, b&w! • Capture the essence and make it great reading: • Company Overview – when, where, where from, milestones, plans • Management Team – qualifications and relevant track record • Product – markets, value proposition, competition, position, plans • Market – size, trends, distribution, players/forces, growth • Funds – Specific key needs and projections and additional rounds • Show only revenue, net income, assets, liabilities

9. TRPBusiness Plan Musts To increase the chances of a first meeting: • Be brief – 2 to 3 page Executive Summary + 7 to 10 pages • Make it clear early the business and how it will make money • State clearly the company’s objectives • Ensure the strategy and tactics link clearly to the objectives • Cite the money needed, over what timeframe and for what • Avoid jargon • Outline the risks and show how the plan manages them • Be realistic in making sales estimates and conservative in costs • Don’t make unsubstantiated claims or statements • Write it again and make it shorter!

10. TRPPreparing The Financials Detailed financial forecasts: • Must reflect the development, marketing and support strategies • Integrates the financial goals with the company goals • Are what the ROI is all about! • Must be realistic, and provide for contingencies and risk • Investors will focus on: • All overhead costs to keep them as low as possible • All assumptions especially development times and sales projections • That sales and marketing expenses are realistically high • What financing is required if development runs over • Cash flow breakeven and maximum working capital • When on what terms they would inject further rounds The Financials must be congruent with the other plans

11. TRPExecutive Inputs Detailed financial forecasts: • Must reflect the development, marketing and support strategies • Integrates the financial goals with the company goals • Are what the ROI is all about! • Must be realistic, and provide for contingencies and risk • Investors will focus on: • All overhead costs to keep them as low as possible • All assumptions especially development times and sales projections • That sales and marketing expenses are realistically high • What financing is required if development runs over • Cash flow breakeven and maximum working capital • When on what terms they would inject further round

12. TRPTesting The Draft Detailed financial forecasts: • Must reflect the development, marketing and support strategies • Integrates the financial goals with the company goals • Are what the ROI is all about! • Must be realistic, and provide for contingencies and risk • Investors will focus on: • All overhead costs to keep them as low as possible • All assumptions especially development times and sales projections • That sales and marketing expenses are realistically high • What financing is required if development runs over • Cash flow breakeven and maximum working capital • When on what terms they would inject further round

13. I O S P C Transform Templates TRPOutputs and Customers Business Plan output: • Is additional work needed to complete the Plan? • Are all sections fit-for-purpose? • Are the contents consistent with the business theme and value? • How is value created for the owner of the IP? • Which strategic partners will most likely invest? • Is an execution team available – or can be assembled as needed? • Are there any key resources that will be difficult to provide? • Are the key milestones in place and understood by the team? • Is a backup plan in place if the milestones fail to be met? • Is the risk management plan adequate for the project? The Business Plan contains the specific commercialisation objective and the risk plan.

14. I O S P C Transform Templates TRPTemplates The TRP Phase Report: • The Draft Business Plan • Contains sections describing: • Executive Summary – 2 to 3 pages • Body of Plan – 6 to 7 pages • Company Overview • Products and services • Market Analysis • Management and ownership • Marketing Plan • Pricing and distribution channels • Promotion • Competition • Operations • Risk Plan

15. TRP Confidence Index How confident are you that: • The potential audience is well defined and understood? • The right investor groups have been targeted? • The Business Plan represents the project in the best way? • The Executive Summary will get the first meeting? • The Business Plan is not too long? • A credible team member is a good presenter of the Plan? • The Plan has been tested on the most credible outsiders? • The Plan will be able to be delivered if resourced as requested? • The Plan is consistent with the commercialisation objectives? • The project is worth proceeding with compared to others?