Time to write a killer business plan?
Lately I’ve been spending a lot of time both in workshops and online researching how to build that killer business plan that’s going to anyone’s company to the next level. What I’ve discovered so far is that there really is no template for success when making a business plan (I know this may be obvious but its incredible the variation and quantity of suggested templates available). There are however key sections that need to be covered that I have found in any worthwhile template. Below I wanted to present a layout that I have since found to be the best (in my opinion) for a solid start to your business plan that can be used for pitching to potential investors (and business competitions).
1. The People – I know this has become more obvious recently, but to reiterate: most research and studies point to the fact that most big money investments in risky (yet possibly rewarding) ventures are made based majorly on the people in the company. The people section not only requires explanation of who is in the company and their credentials but more importantly how they fit into the company and how they complement the skills that the other employees have or don’t have.
2. The Opportunity – For me being in the high-tech start-up space it is easy to get bogged down in the technical aspect of the inventions’ opportunity, BUT remember that anyone who is going to invest in your company wants to know HOW you are going to make money (sales!). What’s the death of most startups? Nope not the tech, its lack of SALES!
3. The Context – This is really where you get into some the nitty gritty of the regulatory environment, financial environment, and any other factors that are external to the opportunity that you as the entrepreneur have to adjust and accommodate for regardless of how good your technology/idea/service is.
4. Risk and Reward – What are your major risks? What can cause your company to fail in the next week? Month? 6-months? Year? 5-years? After explaining these risks, the most important part is to discuss how you plan to mitigate these risks with or without the resources you have at your disposal. It is also important to discuss different paths to success and different paths to the reward (financial, ethereal) that you and your shareholders seek.
Additions? Recommendations for new sections or more refined section focus? Let me know in the comments