● Business Plan
○ A business plan is a written narrative, typically 25 to 35 pages long, that describes what a new business plans to accomplish.
● Dual-Use Document
○ For most new ventures, the business plan is a dual purpose document used both inside and outside the firm.
● Structure of the Business Plan
○ To make the best impression a business plan should follow a conventional structure, such as the outline for the business plan shown in the chapter.
○ Although some entrepreneurs want to demonstrate creativity, departing from the basic structure of the conventional business plan is usually a mistake.
○ Typically, investors are busy people and want a plan where they can easily find critical information.
○ Software Packages
■ There are many software packages available that employ an interactive, menu-driven approach to assist in the writing of a business plan.
■ Some of these programs are very helpful. However, entrepreneurs should avoid a boilerplate plan that looks as though it came from a “canned” source.
○ Sense of Excitement
■ Along with facts and figures, a business plan needs to project a sense of anticipation and excitement about the possibilities that surround a new venture.
● Content of the Business Plan
○ The business plan should give clear and concise information on all the important aspects of the proposed venture.
○ It must be long enough to provide sufficient information yet short enough to maintain reader interest.
○ For most plans, 25 to 35 pages is sufficient.
● Types of Business Plans
○ There are three types of business plans, which are shown below
Presenting the Business Plan to Investors:
● The Oral Presentation
○ The first rule in making an oral presentation is to follow directions. If you’re told you have 15 minutes, don’t talk for more than the allotted time.
○ The presentation should be smooth and well rehearsed.
○ The slides should be sharp and not cluttered.
● Questions and Feedback to Expect from Investors
○ The smart entrepreneur has a good idea of the questions that will be asked, and will be prepared for those queries.
Twelve PowerPoint Slides to Include in an Investor Presentation
1. Title Slide
2. Problem
3. Solution
4. Opportunity and target market
5. Technology
6. Competition
7. marketing and sales
8. management team
9. Financial projections
10. Current status
11. Financing sought
12. Summary
