 DO
be brief. Begin
your start-up business plan with a
two-page executive summary.
Limit
the body of the plan to twenty
pages. Note that internal business plan and budgets are normally more detailed
than those presented to
external investors. Include everything important to the business and
financing decision, but leave secondary issues and information, such as
detailed financial information for discussion at a later meeting.
Venture Financing Process: 4 Steps
-
DO
let the reader know, early on, what type of business the company is in. While
this may seem obvious, many plans tell the reader this information on page
20, for example, and with other plans, the reader is never certain.
-
DO
state the
company’s objectives.
-
DO
describe the
strategy and tactics that will enable the company to reach those
objectives.
-
DO
cite clearly how much money the company will need, over
what period of time, and how the funds will be used.
-
DO
have a clear and logical explanation about the
investor’s exit strategy.
-
DON’T
use highly technical descriptions of products, processes
and operations. Keep it simple and complete.
-
DO
be realistic in making estimates and assessing market and other potentials.
-
DO
discuss the company’s business risks. Credibility can be seriously damaged if
existing risks and problems are discovered by outside parties.
-
DON’T
make vague or unsubstantiated statements. For example,
don’t just say that sales will double in the next two years or that new
product lines will be added without supporting details.
-
DO
be specific. Substantiate statements with underlying data and market
information.
-
DO
summarize and properly structure internal budgets and plans to facilitate
review by outside parties.
-
DO
enclose the proposal/business plan in an attractive but
not overdone cover.
-
DO
provide extra copies of the plan to speed the review process.
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