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Book Summary : The 18 Immutable Laws of Corporate Reputation
This article is based on the following book: The 18 Immutable Laws of Corporate Reputation By Ronald J. Alsop Wall Street Journal Books ISBN 074323670X 320 pages Everything an individual or company does or produces contributes to its...
gomembers’ Virtual Booth for ASAE Annual Conference a Big Success!
The gomembers new “virtual booth” concept was in full swing for the company’s attendance at the ASAE (American Society of Association Executives) annual conference recently held in Minneapolis, MN. Hundreds of visitors to gomembers’ booth were able...
How Do You Explain Public Relations To A Non-Public Relations Audience?
Here’s the way I’d explain it: First, I want to give you a quick overview of where I believe public relations is today. And second, an equally brief run-through of how I believe the process can work to the advantage of your organizations. Now,...
How To Write a Business Plan
This is a simple but effective guide on how to write a business plan. The following outline of a typical business plan will give you an insight into what is generally required. You can vary it to suit your specific business profile. Breaking down...
The Case Of The Spooky Tenant
You, Mr. Landlord are pleased to find qualified tenants for your rental house. The man and woman sign a one-year lease on Tuesday. On Thursday the male tenant contacts you and says they have changed their minds because his girlfriend thinks she...
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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 plan has not been fully developed, or he or she 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.
About the Author
As President of Growthink, Dave Lavinsky has helped the company become one of the premier business plan development firms. Since its inception, Growthink has developed over 200 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. For more information please visit http://www.growthink.com
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