I finally broke down over the weekend and attacked the stack of 5 Business Plans that I promised to read and comment on. They ranged in length from 15 to 80 pages and covered multiple industries and segments. My mind was whirling as I completed the last "...in conclusion" section. As I compared and contrasted the individual documents I was inspired to write a couple tips to help those Entrepreneurs with their next versions.a) Capture My Attention Quickly - Perhaps its starts with your overarching vision, but find a clever way establishing and leading our interest in your product or service quickly.
b) Make it Easy to Read and Compelling to Turn the Pages - Think about that spy novel that drives you aborb the content and turn the pages as the plot unfolds.
c) Follow Business Plan Protocol - There are many protocols & templates out there and they all lead the reader through a time tested process. All of the heading and topics will need to be addressed so there are no short-cuts to be taken. One client suggested that since their product was so unique they had no competitors and "never would' - therefore they left the section completely out!
d) Cadence your Content with Appropriate Emphasis - A colleague of mine at MaRS - Andy Haigh (ahaigh@marsdd.com) has developed a 25 page format for the business plan. His rationale is simple - create something that the reader can digest in a single sitting - lean towards 25 pages rather then 60. The flow goes something like:
- Executive Summary (2-3 pages) - Company description, Value Proposition, Key Highlights
- Introduction (2-3 pages) - What is the problem that the company is trying to solve?
- Product & Technology (2-4 pages) - How does your technology solve the problem?
- Market Size (2-4 pages) - Start with the big numbers and narrow it down to your market.
- Go to Market Strategy (2-3 pages) - How do you plan on attacking the marketplace?
- Competition (2-3 pages) - How are you "better, faster, cheaper" ?
- Management (2 pages) - Do you have the team to make it all come together?
- Financial Summary (2-3 pages) - Financial Model, Investment Opportunity, Cash Flows.
- Strong Summary (1 page) - Re-iterate Key Points
e) Visualize at Every Opportunity - 25 pages of solid text will not work for your reader. Since a picture tells a 100o words - the photogragher or graphics designer are the world's most effective writers. Use charts, graphs, pictures, white space and section headings to help illustrate the points and focus the reader.
f) Proof Points - Do you have the customers, beta trials, strategic partnerships and trending financials to clearly demonstrate that you have it right?
g) Strong Finish - Having lead the reader through a compelling 25 page journey, re-iterate the key points to leave them with a lasting impresssion.
I have tried to capture in a few words what is clearly a significant art form. Have Andy and I missed anything? We look forward to your feedback.
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Great stuff David. I think the only other point I would add is that it's important to say it once and say it well. There will be some overlap between the executive summary and the rest of the plan, but redundancies in the business plan make it confusing and difficult to read.
ReplyDeleteI can say from personal experience, having been fortunate enough to have Andy's assistance with our business plan, that these tips are indeed excellent! Following these tips really help to ensure that you clearly communicate your business opportunity by keeping focused on the main key points and that your plan has a flow which makes it an easy read... which is what you want to ensure the reader does! Thanks David for sharing this!
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