The Right Business Plan
Before you start writing a business plan, consider for whom you’re writing it. A business plan written to secure a line of credit will be at least 20 pages long, but a business plan for yourself will look much different.
Your Outcome: You communicate in the best possible way to the person reading your plan
Topic Objective: To learn about business plan formats and choose the right one for you.
Business Plan Audiences to Consider
1. A Bank or Credit Union
Length of Plan: 20-40 pages
Purpose of Plan:
To secure a:
– Line of credit
– Bank loan
Focus of Plan:
Proof that you:
– Came up with a great idea!
– Have security
– Have equity and investment in the idea
– Are the best person to execute your idea
2. Venture Capitalist or Angel Investor
Length of Plan: 20-50 slide deck
Purpose of Plan:
– Getting prospect to invest
– Leveraging the prospect’s contacts and experience
Focus of Plan:
Proof That:
– You have a great idea!
– Your product or service is marketable
– Your business has a sustainable competitive advantage
– You’re the best person to execute your idea
3. Potential Partner or Customer or Supplier
Length of Plan: 5-10 pages
Purpose of Plan:
– Securing a contract
– Establishing a relationship of trust
Focus of Plan:
Proof That:
– You have a great idea!
– Implementation is feasible
– There’s financial benefit for both parties
– You’ re the best person to execute your idea
4. Employees or a Partner
Length of Plan: 1 page
Purpose of Plan:
– Creating a direction for the team
– Team motivation and engagement
Focus of Plan:
Demonstration of…
– Big picture and rationale
– High level financials to show personal benefit for reader
– Your high level of motivation!
5. Yourself!
Length of Plan: 5 pages or less
Purpose of Plan:
– For use in strategic planning process
– To test your assumptions
– To create direction for yourself
Focus of Plan:
Demonstrate that…
– The outlined pieces of the idea work together
– You’ve double-checked the details and overlooked nothing.
– You’ve got realistic financial projections
– You’re self-motivated
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