| How ever you count them up, the basic parts of a | | | | - Show how your company fits into the industry. |
| business plan are pretty similar from plan to plan. Here | | | | - Include charts to visually show strength of industry. |
| they are. | | | | - Include demographic information. |
| 1. COVER | | | | Bankers and lenders like figures and statistics. It is easy |
| Is the cover of the business plan really part of it? | | | | for them to compare and analyze. It is a whole lot |
| Good grief, guys. | | | | harder to analyze your character. |
| Yes, it is. Just as the cover of any magazine is part of | | | | So give them solid figures. They will see these stats |
| it. Or the cover of any annual report. It is absolutely | | | | whether you include them or not. They have got their |
| true that the same chocolate eclair can be inside a | | | | own sources. So include them. And show them off in |
| plain box, but I will pick the box that says "Scrumptious, | | | | a manner that benefits you. |
| made just for you, utterly delicious French chocolate | | | | 6. BIOGRAPHICAL INFORMATION ON PRINCIPALS |
| eclair." | | | | While venture capital companies consider the strength |
| 2. EXECUTIVE SUMMARY | | | | of the management team the most important |
| This is the one page masterpiece that tugs at the | | | | component of the business, this section by itself is not |
| reader's interest. Include important contact information, | | | | necessarily the most important. They will see the |
| as well as the nature of the loan/investment. | | | | strength of the team in the Industry Information, the |
| 3. TABLE OF CONTENTS | | | | Marketing Plan and the Financial Summaries. This |
| Most people would not consider this a real part of a | | | | section is to give them a notion of who they are talking |
| business plan, but it is. Without it, the plan looks very | | | | with. |
| amateurish. | | | | Most business plan writers tell you to write a |
| 4. INFORMATION ON THE COMPANY ITSELF | | | | paragraph on each officer. I do not. I tell you to write a |
| There is a bunch of factual information that needs to | | | | page on each principal. That page is not a bio. It is a |
| be included, such as | | | | summary of accomplishments. If you have not got a |
| - When was it formed? | | | | page of accomplishments, maybe you have got the |
| - What kind of company is it? | | | | wrong management team. |
| - If it is a corporation, how many shares are issued? | | | | 7. MARKETING PLAN |
| To whom? | | | | So what makes you think you can promote this idea |
| - If it is a partnership, who is involved? | | | | or product or service? How will you go about it? What |
| - Who formed the company? | | | | will it cost? What are other doing, and how can you |
| - If you are not the founder, how did it come to be | | | | compete with them? |
| yours? | | | | If you have a history of successes, this is the place to |
| - Who is presently involved? What is the nature of | | | | shout about them. |
| their involvement? | | | | 8. FINANCIAL DOCUMENTS |
| There is also a good dollop of information that is not | | | | For existing companies, the rule of thumb is that you |
| really "factual", but it does need to be included. That is | | | | summarize by year the past 5 - 10 years, depending |
| The Story of the Company. Why was it founded? | | | | on your industry. Then project as for new companies. |
| What are the dreams of the owners for this | | | | For new companies, project quarterly for the first year |
| company? Why do the owners want to devote their | | | | or two, then annually until the loan is comfortably paid |
| lives to this business rather than to any other business | | | | back, or the investment has made a profit. |
| in the world? | | | | The more you can put into charts for easy reference, |
| It is The Story that will grab the lender. Lenders see | | | | the better. |
| facts and figures all day long. Rarely do they hear a | | | | Then make it unique. All the parts of a business plan |
| compelling story. Make yours good. Make it real. | | | | need to look sharp, be concise, and provide all pertinent |
| 5. INFORMATION ON THE INDUSTRY | | | | information. Putting all of that together in a convincing |
| Here is where a good statistical source is worth its | | | | presentation is what separates one business plan from |
| weight in gold. | | | | another. |
| - Show how the industry is growing. | | | | |