| First The Bad News.. | | | | are written for the sole purpose of obtaining |
| There is no single magic formula for developing a | | | | investment capital. Clarifying objectives, setting |
| winning business plan (But you knew that anyway. | | | | targets and communicating effectively to other |
| Right?) | | | | members of the business are all goals that can be |
| And Now The Good News.. | | | | accomplished by an effective business plan. |
| There are some common elements which seem | | | | While business plans are a compulsory |
| to appear in every successful business plan, that | | | | requirement for any new business seeking |
| can be successfully modelled by everyone in | | | | external funding, they are also a terrific way to |
| business. (Hooray!) | | | | map out a comprehensive strategy, including |
| The problem is that generic / formulaic plans | | | | everything you need to control your business:- |
| (perhaps built using a business plan template) are | | | | financial ratios and key performance indicators, |
| easily "seen through" by professional investors | | | | timing schedules, personnel requirements, |
| and plan reviewers. These guys are like | | | | marketing tactics, operating procedures and of |
| bloodhounds in this respect. | | | | course funding sources. |
| Check with any professional investor anywhere in | | | | Nonetheless trying to be all things to all audiences |
| the country, and you'll hear sometimes amusing, | | | | is a recipe for failure. Keep your plan tight and |
| often embarrassing tales of poorly conceived, | | | | concise - no more than 15-20 pages, and tailored |
| badly written, or sloppily put together business | | | | to its specific audience. |
| plans. Oh and if not happy with that alone, there'll | | | | Remember the magical powers of review. Proof |
| be even more stories about laughable | | | | read your Plan on a different day to the day it |
| presentations as well. | | | | was written, and even better, get an outsider |
| OK, I get the point, so now what? | | | | who is knowledgeable of business plans ( an |
| Your overall goal is a credible, professional plan, | | | | accountant, bank manager, local enterprise |
| unique in nature, with characteristics that signal a | | | | agency) to review it. The feedback and |
| sound business proposition, along with considered | | | | constructive criticism is worth it's weight in gold. |
| financials and is well researched. | | | | Practice presenting your plan on friends and |
| Before preparing your plan you really need to get | | | | relatives before you have to do it for real, and be |
| a good idea of what a great example of a | | | | prepared for some pointy questions to test your |
| business plan looks like, feels like, and sounds like | | | | commitment and knowledge. |
| to the investor. | | | | Role play being the potential investor or bank and |
| There's no alternative but to do some work. Start | | | | think of as many questions as possible that they |
| with some searches on MSN or Google using | | | | may ask you, and then work out the answers in |
| "sample business plans" or "example business | | | | advance. The less surprises you receive, the |
| plans" as the search phrase, and read the results | | | | more professional you'll appear, and that can only |
| to extract the best bits. | | | | be a good thing.. |
| It is a common misconception that business plans | | | | |