Developing A Winning Business plan:
¡°There is no one right way to prepare a business
plan. An effective business plan tells a great story
and draws the reader in. The investor will then
want to learn more, which leads to a meeting that
significantly increases your chances and reduces
the possibility that your plan will wind up in the
circular file.¡±
Kiplinger''s Raising Capital by Andrew J. Sherman, p. 18
Elements of a Business Plan:
1: Executive Summary
2: Company Overview
3: Product/Service Description
4: Market Opportunity
5: Competition Analysis
6: Management Team
7: Financial Projections
Executive Summary:
The single most important component of your
business plan
Keep it Direct, Focused and Brief
Summarize the Business Plan in a Few Pages
Write your summary LAST (even though it appears first)
Target Customer/Pain
- Who is the Target Customer?
- What is their pain or opportunity?
- Profile?
- Who has the money?
- Specific examples you have met¡
- Market size/speed of adoption.
Your Solution
- What is your solution (¡°pencil sell¡±)
- Value Proposition
- Unique Selling Proposition
Why Now?
- Target Customer Decision Making
Process/unit (DMU)
- Market Trends
- Compelling Reasons for Customers to Buy Now
Financials
1: Be careful not to overload!
2: Simple graph with top line growth and cash flow-with Payback, NPV & IRR numbers below.
Key Factors to know and include:
¨C Top line revenue growth (company¡¯s expected revenues and profits for years 1 through 5)
¨C Costs
¨C Cash flow
¨C Investment required (ROA)
¨C Value of company estimations Include long-term goals,
such as expected sales, number of employees, number of locations, and market share of your company five years from now
- Exit strategy
Why You?
Team today:
1: Briefly describe the histories and capabilities of your management and key players
2: Be sure to highlight relevant experience that demonstrates their value to the management team
Team future:
1: What are the company needs in the future
2: Competitors Competitive Advantage
3: Sustainable Competitive Advantage
By Gin Michael Bennett 2009