|
|
|
6 Steps to Effective Communication
Effective leaders are known for being excellent communicators. Here's what to do.
1) Avoid "Not." Negative talk encourages arguments, counter attacks, and attempts to solve your problems. It also creates a negative impression. For example, when...
A Whack Up 'Long Side The Head Of Human Resources: The Leadership Imperative
When we perceive the simple center in the seemingly complex, we can change our world in powerful new ways.
Albert Einstein perceived the simple E=MC2 in the complexities of physical reality and changed the history of the 20th century.
Big...
Five Secrets to Showing Your Customers You Really Care
Five Secrets to Showing Your Customers You Really Care Copyright © Ed Sykes. All rights reserved During our recent online poll, we asked the following question: What upsets you the most when receiving poor customer service? Eighty percent of the...
Little Known Secret: Eliminate your Mortgage in 23 years or less!
Wanna know a little secret? There is an ingenious method you can use, to pay off your 30 year fixed rate loan, in 23 years or less. It’s straightforward, simple, and easy to understand. In this article, we’re going to explore this little known...
Twitch Speed: Reaching Younger Workers Who Think Differently
Every parent, educator, and manager knows that "Nintendo children"--those born after 1970 and raised on video and computer games, Walkmans, the Internet, etc.--are different. Unfortunately, the Gen-X discussion has focused mainly on the youths'...
|
|
| |
|
|
|
|
|
|
The Ideal Length of Your Business Plan
How long should a business plan be? A business plan needs to be whatever length is required to excite the investor, prove that management truly understands the market, and detail the execution strategy. From surveys of investor needs, Growthink has found that 15 to 25 pages of text is the optimum length in which to accomplish this. Any more and the time-constrained investor will be forced to skim certain sections of the plan, even if they are generally interested, which could lead them to miss essential elements. Any less and the investor will think that the business has not been fully thought through, or will simply not have enough information to make an investment decision.
Many management teams feel that their company is too complex to describe in 15 to 25 pages. While this is sometimes true, the business plan is not meant to tell the whole story. Rather, the company must be “boiled down” into its essential elements. If the investor is interested, there will be plenty of additional time to tell the whole story.
Business plans, like other marketing communications documents, should be visually appealing and easy-to-read. This can be accomplished by using charts and graphics and by formatting the plan for readability. Effectively using these techniques will enable the investor to more quickly and easily understand the company’s value proposition within fewer pages.
While the body of the business plan should be 15 to 25 pages, the Appendix can be used for supplemental information. The Appendix should include a
full set of financial projections, and as appropriate, technical and/or operational drawings, partnership and/or customer agreements, expanded competitor reviews, and lists of key customers among others.
If the Appendix is long, a divider should be used to separate it from the body of the plan, or a separate Appendix document should be prepared. These techniques ensure that the investor is not handed a thick business plan, which will make them queasy before even opening it up.
To summarize, the goal of the business plan is to create interest – not to have an investor write you a check. In creating interest, the full story of your company need not be told. Rather, the plan should include the essential elements regarding why an investor should invest and spend more time examining the business opportunity. The shorter length does not mean that your business plan should take less time to prepare. Rather, it will take more time. As Mark Twain once said, “If I had more time, I would write a shorter story.” Likewise, condensing your business plan to a concise, compelling document is challenging and time consuming. Fortunately the rewards are significant.
Growthink Business Plans has developed over 200 business plans for clients that have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. Growthink Business Plans is the sister site of GT Venture Capital.
|
|
|
|
|
|