| This is the tale of two business plans with very | | | | the business. The headline is followed by an outline |
| different cover pages. They both contain a unique | | | | of the business plan with concise single-paragraphs |
| and exciting business opportunity with the | | | | that summarize the company, its management |
| potential for high investment returns. Arriving in | | | | team, its products/services, the funds being |
| the morning mail, each neatly bound plan lands on | | | | requested, available collateral, the use of |
| the desk of the same potential business investor. | | | | proceeds, and a likely exit. The column ends with |
| Both plans are competing with hundreds of other | | | | a small table of financial projections.The right hand |
| documents, worksheets, phone calls, and articles | | | | column, about two inches wide, begins by |
| for the investor's attention. And, they compete in | | | | identifying the stage the business is in and its |
| time, because each one, seen for a few seconds, | | | | primary industry or market. This information is |
| is either heeded or passed up and seldom | | | | followed by the owners contact information and |
| returned to by the investor.The first plan is tightly | | | | ends with a table of contents. The layout is not |
| bound. It has a cover page made from thick | | | | crowded and has plenty of white space to make |
| paper stock. The cover page resembles the | | | | it easy to read and easy on the eyes.As the |
| cover page to a term paper. The company's | | | | investor attempts to read this business plan, he |
| name in the center of the page and the owner's | | | | receives another phone call. This time the investor |
| contact information in the bottom left corner | | | | doesn't have to wrestle with the business plan to |
| provide the first bits of information about the | | | | read it. With one hand on the receiver, the other |
| business to the investor. Not being familiar with | | | | simply holds the plan or takes notes.More |
| the company name or the owner, the investor | | | | importantly, the investor never has to actually |
| must now open the plan in order to learn anything | | | | open the business plan to find out basic |
| meaningful about the business venture.However, | | | | information about the business venture. A quick |
| the stiff cover page complicates this simple task | | | | scan of this business plan's cover page tells |
| by preventing the document from easily flipping | | | | whether or not this business venture meets the |
| open and laying flat. Aggravating the investor who | | | | investor's investment criteria in terms of market |
| suddenly has to divert one hand from the | | | | focus, business stage, and deal size. By simply |
| uncooperative business plan to answer the phone | | | | highlighting a few key elements on the cover |
| as it rings for attention, leaving the remaining free | | | | page of the business plan, the investor can pass |
| hand to wrestle with the cover and hold the plan's | | | | along meaningful information to a colleague for |
| pages flat.After wrestling with the business plan, | | | | further review and follow-up.But let's say that this |
| the quick-handed investor gets a glimpse of the | | | | business plan doesn't fit this investor's investment |
| first page of the plan: a standard confidentiality | | | | criteria. What would happen then? Well, instead of |
| agreement. So the battle to find some meaningful | | | | just being passed up and never returned to, this |
| information continues. This time, after some | | | | investor, who was able to quickly glean some |
| contorted efforts, the investor arrives at the | | | | good insight into the business plan straight from |
| next page, which is...the table of contents.At this | | | | the plan's cover page, is now in a position to |
| point, the investor is reminded of the caller on the | | | | forward the information to another investor who |
| phone. Not wanting to be rude, the investor | | | | might be looking for this type of investment |
| apologizes to the caller and returns to the | | | | opportunity.Remember, investors are typically |
| business plan challenge at hand. Eventually the | | | | very busy people; often juggling more than one |
| investor reaches a page titled "Executive | | | | major project or deal at a time. To separate your |
| Summary." Anxiously the investor scans the page | | | | business plan from other plans and increase your |
| only to see an endless ocean of words and | | | | chances for getting the funding you need, lay out |
| "information-less" headings like "The Company," | | | | and package your plan to fit their busy schedules |
| "The Market and Industry," "Business Model | | | | and work styles. Start with an effective business |
| Strategy" and so on. Not wanting to be rude to | | | | plan cover page. Click here for an example.Mike |
| the caller any longer, the investor decides its best | | | | Elia is a chief financial officer and an advisor to |
| to put this document aside...The second business | | | | venture capitalists and leverage buyout specialists. |
| plan is also neatly bound. However, the binding on | | | | His business plan ebook "Business Plan Secrets |
| this plan allows the cover and pages to flip open | | | | Revealed" and free business plan guide help you |
| and lay flat. In addition, the cover page is divided | | | | make your business the most appealing |
| into two columns.The left column is about five | | | | investment choice to venture capitalist, bankers, |
| inches in width. It contains a brief headline at the | | | | and other business investors. |
| top of the column that captures the essence of | | | | |