Tips for Crafting Exceptional Business Plans
Tips for Crafting Exceptional Business Plans
In order to attract possible funders, your executive summary must be reviewed first. An old adage goes something like, "No great script is ever written, only rewritten," and that basically applies to your executive summary. Because it serves as an introduction to the plan within and must entice potential investors, it is the most important component of your plan.
Instead of using five words, why not use three? Being direct is preferable than being evasive. Don't be scared to rewrite it till you memorize it; it needs to be impactful and punch above its weight class.
Do not repeat yourself; instead, begin with a paragraph outlining each critical component of the broader strategy. In the initial paragraphs, describe your firm in detail, including what it does, who does it, why, and how it earns money. Also include the funding requirements, repayment/exit strategy, and how the money is made.
Being as precise as possible is ideal.
In order to finish first, you must finish first.
Having a living, breathing document for internal purposes isn't a bad concept, but failing to put things to a finish is a huge turnoff for external investors. Knowing when to terminate your strategy is truly an art form. More than half of them think business plans are excessively lengthy, which causes them to lose interest or means they have other important things to take care of before reading yours.
However, the converse is also true: if it's too brief, the investor will think you haven't done your homework or given the matter enough attention; if it's too long, they'll think you don't have enough data to make an informed investment decision. Doubt grows out of uncertainty, and you can't risk your investment capital when you're doubtful.
Plans need to be "just right" like Goldilocks's porridge; while every company is unique, most people appear to devour those ranging from twelve to twenty-five pages.
Give Evidence of a Need, Not a Greed.
There will come a point when you'll need to demonstrate that you've researched the market and considered the implications for your company.
Think about the subsector, specialty, or zone in which you operate. As an example, the global market for automobiles is worth billions of dollars, yet this won't be enough to support a little hand car wash in your town.
Consider the customer's reality and relevance. You may want to rule the hand car-washing world, but you have to get your feet wet. Prove that your product will fulfill a need or want for the consumer. You can't presume that the investor is aware. Make it clear.
Give an account of how your goods and services will meet that demand. Talk about the customer's journey to reach you or the message you want to convey. Find out how often it's needed. Some individuals in sales refer to this as the itch cycle. You gotta scratch it every once in a while.
Take auto maintenance as an example; it's something that every car owner should do annually. When the ketchup runs out, everyone who enjoys it will want more.
Think about these purchase cycles as you conduct research.
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