Module 12.1

Why Write a Bplan?

Jim Beach & Chris Hanks

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d. What’s Wrong?

• “I don’t need a business plan”

• “Just let me buy you lunch and tell you about my idea”

• “Waste of time, market- place changes too fast”

• “It takes too much time”

• “I’ll email what I have”

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d. Why Plan?

• Vision of Success

• 72%

• Beat the odds - 31%

• Process vs Product

• Raise Money

• Forces team to work together

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d. Why Plan?

• Corridor principle: Once an entrepreneur starts a business, the entrepreneur begins a journey down a path where corridors leading to new venture opportunities become apparent

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d. Basics

• Page length

• Contact information

• Make it easy to read

• Title sections vary little

• Worry about: – quality of writing,

– substance of the plan, and

– the degree to which the plan convinces the reader that the business opportunity is exciting

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d.

Audience

• Internal vs External

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d. Red Flags

• Founders with none of their money at risk

• Poorly cited plan

• Defining market too broadly

• Overly Aggressive financials

• Hiding or avoiding weaknesses

• Sloppiness in any one area

• Too long

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d.

Business Plan vs Personal Goals

Be careful what you wish for

• Survival

• Lifestyle

• Managed Growth

• Aggressive

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d.

Other

• Living, breathing document vs set in stone

• Guy Kawasaki – Write Deliberate, but Act Emergent

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d. Sections

• Executive Summary

• Market Analysis

• Company Description

• Marketing & Sales Activities

• Products & Services

• Management & Ownership

• Funds Required & Their Uses

• Financial Data

• Appendices & Exhibits

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d.

THANKS!

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