SELECTING A TRACK

A R E Y O U A

Company seeking bank

financing?

You are coming to the

event to present your

business to the

banking panel

O R A N

Organization providing business support services ?

You are attending because you provide services to SMEs but WILL NOT present to the panel

HOW DID YOU HEAR ABOUT THIS EVENT Bank of Industry Organisations affiliated to Pan-Atlantic University U.S. Department of State's African Women's Entrepreneurship Program Participated (applied for and/or won an award) in an African Diaspora Marketplace competition or event Tony Elumelu Foundation's Nigeria Fast Growth 50

U.S. Minority Business Development Agency I was referred by a participating bank I participated last year I received a phone call about the event From the African Diaspora Marketplace Website From another organization, program, or Diaspora group

SME SCREENING FORM – SCREENING FORM TAB

MANAGEMENT

• Provide a brief description of the qualifications and backgrounds of your

business' key personnel.

• Key points

• Don’t overlook this step -- the management team is often a critical aspect of

the loan evaluation process

• Identify the founders and include any key senior personnel

• Include educational background and prior work experience. Highlight any

managerial or technical experience that would be essential to the success of

your business

VALUE PROPOSITION

• Value proposition explains what problem your business solves and how.

• A clear and concise statement that describes how your product or service

addresses a given problem or unmet need.

• A compelling value proposition statement is able to communicate why the

business is:

1. Relevant – the statement makes a viable and realistic connection between

your product or service and a problem in the marketplace.

2. Valuable – identifies the key customer segment and how the business offers

these customers a quantifiable benefit

3. Unique – how the business is different from competitors and substitute

products

• Although a value proposition should be short and concise, it is not a slogan or

positioning statement.

MARKET

• B2C:

• Segment your market according to key

characteristics.

• B2B models:

• Consider the types of industries to target

• Procurement criterion for business

customers:

• Increase revenue

• Maintain status quo

• Decrease expenses

• If your product meets one of these end-goals,

may have a target market

• Resources:

• Primary interviews with customers

• Market analysis reports

• Trade publications

• Explain what market segment your business serves, as well as its size and growth prospects.

COMPETITORS AND COMPETITIVE ADVANTAGE

• Identify your business' primary competitors and explain how your business

provides superior value (i.e. through higher quality, better service delivery, lower

cost, more advanced technology, etc.).

• Assess your competitors and identify:

• who they are

• their products and services

• their market share

• their customer segment

• their current and past strategies (how are they competing in the market – low-

prices, high quality products)

• their strengths and weaknesses (SWOT Analysis)

• By understanding your competitor’s position in the market, you can better

position your business and describe how your company is unique.

CURRENT CUSTOMERS

REVENUE MODEL • Blueprint for how the business will

generate revenue from its

customers

• Keep in mind, your end-customer

may not be the source of your

largest revenue stream

• Although your overall business

may not change, your revenue

model can always be changed or

refined in the future:

• e.g. a services firm may choose

to move from a fee-per-service

model to a bundled

subscription model

• Common revenue models

• Cost-based model – likely for commodity products

• Value-based model – must quantify a large value or savings for the consumer

• Product/service is free – revenue generated from ads

• “Freemium” model – free basic services, with premium services available at a fee

• Razor-blade model – base unit sold below cost but revenue is driven by ongoing purchase of required supplemental products

FUTURE GROWTH PLANS • Short-term goals

• (1 year)

• Highlight any specific revenue or sales volume goals

• In the short-term, focus on more specific and tactical goals such as:

• specific revenue goals (in monetary value and/or volume)

• Medium-term goals (2-3 years)

• In addition to sales goals, identify any growth in the size of the company across other characteristics:

• number of employees

• number of distribution outlets

• new product lines

• growth in market share

• expected reduction in liabilities

• Long-term goals (3-5 years)

• Long-term goals are typically more strategic but remember to keep these goals realistic

• In addition to earlier goals, other possible objectives in the long-term include:

• plans for geographic expansion in terms of where products are offered and new offices, stores or operational facilities

EXTERNAL FINANCING NEED & USE OF FUNDS

• Explain the amount and sources (debt, equity, or grants) of

financing your business needs to meet its growth goals.

• Please detail how your business plans to use debt

financing

• to purchase assets (e.g. equipment, facilities)

• to use as working capital

• to develop a new product

• to enter a new market

CURRENT CREDITORS & EQUITY INVESTORS

• List current creditors and equity owners

• Include the following information

• who the creditors or equity investors are

• the terms and tenor of debt holders

• the percentage of equity that each investor holds

• Remember, this information will be kept confidential

COLLATERAL AVAILABLE

• List the assets that your company can post as

collateral and their value

• Remember, banks are usually very conservative

about how they value collateral – consider the fair

market value of the asset (not the original price).

• A viable asset will likely have a title of ownership

• Consider the risks before listing a personal asset as

collateral

NOTES TO FINANCIAL INFORMATION

• Has the information provided in the Input Tab and

summarized on the Debt Profile been audited by a

professional independent auditor?

• If so, please provide the name and location of the

firm that conducted the audit.

NOTES TO FINANCIAL INFORMATION

SME SCREENING FORM – INPUT TAB

SME SCREENING FORM -- ASSUMPTIONS TAB

SME SCREENING FORM – DEBT PROFILE TAB

QUESTIONS?

THANK YOU!

Contact: SME@diasporamarketplace.org