Writing a Business Plan

Although there is an established list of contents, such as History, Marketing, Production, Management, there is no magic formula or software package to replace the hours of in-depth analysis, research and planning that a successful plan needs.

About 15-25 pages is the usual length, and the founders themselves should draft it.

The plan has a dual function:

• Internally: Provides the company with a clear map, with signposts and milestones against which progress can be monitored and evaluated.
• External: Selling your business idea/service/product, and yourself to an outside investor.
  With the latter in mind you need to think about what your investor needs to know, and how you sell him/her the idea.

Like any sale, the process of targeting the plan to your investor starts by defining who the recipient is: a banker, an individual or angel investor, or a venture capitalist.

What do they want out of you? It will almost certainly be a combination of things such as a regular dividend, - a capital gain, security of investment, a job, reassurance and belief in your credibility, or fun.

You also need to think about what you want from the investor? It may be an investment in exchange for some share of the business (equity), a loan, advice, expertise, or credibility through association with your company.

The framework should look something like this:

• Summary - 1-2 pages (Sometimes an introduction is useful here in addition)
  Brief history of the business
• What is the product/service?
  Management - who will run it; what are their objectives?
• The market and existing competitors (market-research)
• The business? marketing plan
• The technology - how it works, and how it is protected
• Production and operational issues
• Finance - make sure to include your assumptions here
• Risks, returns and exit options
• Appendices - cash-flow forecasts, technical data etc.

Samples of Business Plans:

More Business.com - Business Plan Sample: www.morebusiness.com/templates_worksheets/bplans/amt2.brc

Advice on How to Write Your Business Plan:

Venture Capital Report Ltd.: www.vcrdirectory.co.uk

Small business information website - business plan advice: http://sbinformation.about.com/cs/businessplans/index.htm

Bizplanit?s Virtual Business Plan: www.bizplanit.com/vplan.html

How to start a small business - business plan: http://home.inreach.com/sbdc/book/bizplan.html

VenturePlan.com: www.ventureplan.com/business_plans.html