| In most business plans, no matter how striking the idea, | | | | Summarize the material events in the development of |
| the covers arecritically important. The majority of | | | | your business (including any material mergers or |
| investors may flip to the executivesummary, if they | | | | acquisitions) during the past five years, or for |
| get past the cover, when deciding whether or not | | | | whatever lesser period you've been in existence. |
| theyare interested. Exactly like the front page of a | | | | Describe the industry in which you sell or expect to sell |
| daily newspaper, a businessplan cover puts the | | | | your products or services and any related trends |
| important highlights of the proposal upfront forpotential | | | | within that industry. Describe that part of the industry |
| investors to read. | | | | and the geographic area in which your business |
| The success of an entire business plan campaign may | | | | competes or will compete. |
| stand or fall on whatis said on the cover of the | | | | 6. Management: Simply list the top two or three key |
| business plan. In his book, the Venture Capital | | | | people with a two-sentence description of their |
| Handbook, David Gladstone wrote that of the | | | | backgrounds, what they will be doing for the company |
| one-hundred proposals aweek an investor receives, | | | | and unique skills and experiences each adds to the |
| maybe ten are read. | | | | company. |
| So, providing critical information on your cover is about | | | | 7. Product/service and competition: Very briefly |
| the mostimportant thing for sparking the interest of | | | | describe your products or services and how you'll |
| prospective investors. In fact,your cover page | | | | produce or render them. If you plan to offer a new |
| competes with hundreds of other documents, | | | | product(s), tell its present stage of development, |
| worksheets,phone calls, articles, and other information | | | | including whether or not you have a working |
| for the attention of prospective investors. And, based | | | | prototype(s). Indicate what it will take in terms of |
| on Gladstone's figures, it competes in time,because, | | | | money, resources, and approvals to completely |
| seen for a few seconds, it is heeded, or passed up, | | | | develop the product. Disclose if you are dependent |
| and seldomreturned to by readers. | | | | upon one or a limited number of suppliers for essential |
| Here are the ten critical pieces of information to include | | | | raw materials, energy or other items. Describe any |
| on the cover page ofyour business plan. | | | | major existing supply contracts. |
| 1. Headline: Start your cover page with an appropriate | | | | 8. Funds requested and collateral: State exactly how |
| headline that will interrupt and engage your prospective | | | | much money you are raising and a description of the |
| investors. Use the headline to tell them something | | | | form you are requesting it in (debt or equity). Also tell |
| news worthy about your venture. | | | | what you are offering as security to investors, if |
| 2. Company: Be sure the name of your company is on | | | | anything. |
| the cover, but the name of your company is not the | | | | 9. Financial data |
| headline or the most important trigger to an investor. If | | | | - Provide a summary schedule outlining how you'll use |
| your company is a start-up company, your name will | | | | the proceeds you raise. Keep it at a high level; you'll |
| likely have no meaning to investors. | | | | have the details in the plan itself. |
| 3. Contact: Indicate the name of the person you want | | | | - A columnar summary of key historical financial |
| prospective investors to contact about the proposal. | | | | figures like sales, net income, assets, liabilities and net |
| Be sure to include a phone number and email address | | | | worth. What you ultimately list here will also depend on |
| at which they can be reached. One thing about the | | | | the type of financing you are seeking (debt or equity). |
| email address, make sure it is professional; avoid cute | | | | - A columnar schedule of key projected financial |
| addresses. | | | | figures for three or five years out similar to those listed |
| 4. Type of business: In ten words or less state the | | | | in your history. |
| industry you are in and the stage of your business, | | | | Exit: Briefly tell how investors will get a return on their |
| such as 'start-up" or first round financing, development | | | | investment. For example, you might plan to go public in |
| stage or second round financing, and so on. | | | | five years, buy back their initial investment at four |
| 5. Business summary: A brief paragraph describing | | | | times in four years, or perhaps sell the business to a |
| what your business does or proposes to do. | | | | financial or a strategic buyer. |