Skip to main content

Writing a great Business Plan




Most financial institutions, be they Banks, Private Equity of High Net Worth individuals like a business plan that presents a lot of information in as few words as possible. The following business plan format, within 15–20 pages, is all that’s needed.
Many business plans also fail to visually present well, people get lost in the importance of the substance of the plan, they forget about the visual impact ... don't. The visual plan is the first contact and whilst the content must be credible and written well, don't forego a great plan for poor presentation.
Company purpose - Define the company/business in a single declarative sentence. Don't mistake this for your mission statement, your elevator pitch or your exec summary, simple one sentence based on fact.

Executive summary -  This is your elevator pitch, a couple of paragraphs giving a broad outline of your business idea and why its going to work and more importantly why its worth investing in.
Problem - Describe the current challenge for the customer (or the customer’s customer). Outline how the customer addresses the issue today.
Solution - Demonstrate your company’s value proposition to make the customer’s life better. Show where your product or service physically sits. Try and give case studies or testimonials where your solution has already been tested.
Why now - We have all seen it, a great business idea ahead of its time or, you're to late to the party. Set up the historical evolution of your category. Define recent trends that make your solution possible and credible.
Market size - Not only do you need to qualify your total addressable market, you should also where possible define a market map. Who sits where, how is the product or service channelled. This is a critical piece of work and one which often gets the least amount of time. The reason is people dont dig and get to grips with the actual market dynamics, they guestimate and make wild assumptions of share gain. Be realistic, spend time doing your hoemwork and make sure you can substantiate any claims with industry verified date where possible.
Competition - Who's who in the sector, dont be concerned about opening up on what they are good at, or bad at, investors want to see what you are up against and if it was that easy, everyone would be doing it ... right.
Product - If you are going to be producing a physical product then you need to map out the timeline for launch. List all your IP, Patents and agreements, whats the timeline and do you require any approvals before launch. Is part of the investment to secure production, if so list out the critical path and timelines. Again, be realistic, investors need to know iof you are gfoing to need further funding before they commit.
Business model - Here we need to identify your revenue model. Whats your pricing strategy, who are you targeting, average account size, distribution model if applicable and who are your customer pipeline.
Team - When you present your team, about a paragraph on each is sufficient, add a photo and keep the facts succinct and relevant. Investors don't need to know your hobbies, they need to know why they should invest in you, what are your credentials and how do you and your team stack up.
Financials - Again, this is surprisingly an area where a lot of business plans fail. It is well worth investing in a professional to review and support your financials. Investors are not just interested in your P&L, you need to complete one of course, about three years is acceptable unless you are in a high capital investment model and five to seven may be required. Make sure you add a credible cash flow forecast, cash is king in any business and if you haven't completed at least a monthly cash flow forecast you are going to quickly come unstuck. Everyone hears of the statistics why businesses fail in the early years, running out of cash is one of the highest contributors to this problem.

The Deal - OK, whats the deal, you are asking for investment, what are you offering in return. Decide and take advice before you put pen to paper. If you are offering equity, make sure you value the business realistically, don't undersell yourself, but make it credible so as to make the return an attractive one. Whilst there is a lot of cash out there waiting for a good home, the competition is tough and the return on the investment will need to be realistic and worth the risk.

So, there you go, it takes time to write a good business plan, make sure you invest the time up front to get it right and you will find the funding of your business easier, in turn it will take the pressure off and allow you to do what you want to do most, deliver on those targets and make your mark in the business world.

Rosia Bay

Comments

Post a Comment

Popular posts from this blog

The Importance of a People Strategy

As a business owner, you may have a great product or service, a solid business plan, and an excellent marketing strategy. However, without a people strategy, your business may struggle to succeed in the long run. A people strategy is a plan for how your business will attract, develop, retain, and motivate the people it needs to achieve its goals. It is about putting people at the center of your business and making sure that they are engaged, productive, and aligned with your company's vision and values. Here are some reasons why having a people strategy is crucial for your business: Attracting top talent Your people strategy should include a plan for attracting top talent to your business. This involves creating a strong employer brand, offering competitive compensation and benefits, and providing opportunities for career development and growth. By attracting the best people to your business, you can gain a competitive advantage and ensure that you have the skills and expertise nee
Post a Comment
Read more

8 Benefits of Having a Staff Engagement Survey

When was the last time you ran an employee survey? or, have you even ever ran an employee survey ? We keep hearing and seeing evidence of a shortage of labour for recruitment, and that then puts pressure on retention.  Do you know what your company retention rate is ? Do you have a retention target? if not why not? its a great measurement to  understand  how your  employees feel about the company and that in turn will tell you how attractive your company is to potential employees. Now, don't get me wrong, a level of staff churn is healthy, as long as its the right churn and you're not losing your best people. Your company will fail to thrive unless you have tenacious, passionate, and engaged team members. Engaged employees produce higher-quality output, are more loyal and productive, and are more likely to stay with the organisation for longer. And yet, an overwhelming number of people still feel disengaged at work. According to the worlds largest  study  of employee  happiness
Post a Comment
Read more

Employee Leadership Development from the Ground Up

I n the UK, the current retirement age is 67, however this is due to change to 68 and the timetable for this is currently under review. Life expectancy at birth in the UK in 2018 to 2020 was 79.0 years fro males and 82.9 for females according to the ONS and this is also set to increase. If people are living longer, then as a natural consequence, they’ll need to work longer, which requires continual career growth. The old rules of retirement were written toward an economy where most of the work being done was manual labour, and reaching the age of 65 was viewed as being liberated from the intensive daily grind. However, as disruptive technologies emerge and change the business environment, working professionals are being tasked with having to upskill continually, which presents new opportunities to grow and develop. As more businesses increasingly identify the need for employees with leadership skills, they’ll soon discover, growing current employees is a lot more cost effective and imp
Post a Comment
Read more