Do you need a formal business plan? Trying to determine what content needs to go into one? Formal business plans can be prepared for an audience of private investors, a venture capital group, or a bank officer controlling a lending decision. The question of what makes a business plan formal is open to debate, but the obvious criteria are these:
• Comprehensive but concise content throughout
• Complete financial model with market-driven assumptions spelled out in full
• Competitive assessment divorced from any non-objective claims
• Direct, CV-style management section
• Honest assessment of management team gaps
• Exact investor proposition with IRR spelling out clearly
• Clean, simple graphical layout with no unnecessary pictures
• No familiar language – third person voice throughout
You should think carefully about your audience when determining how formal the plan should be. It you are targeting angel investors or people who know you or your associates, you should emphasize your business concept's unique niche without worrying too much about how “professional†you come off. On the contrary, a bank officer is accustomed to seeing the same basic plan structure and format in all SBA-backed plans, so you should follow those guidelines closely enough to ensure adequate consideration. Also, venture capital presentations are rarely a good opportunity to showcase your unique flare; this is when a formal document is vital. If you still have questions about what should or should not go into a business plan, or what the ideal structure or presentation is for your audience, MasterPlans may be able to help you. Our in-house team of financial modelers, marketing writers, business writing editors, and market analysts works on business plans all day, every day, with more than 8,000 plans completed to date. Call us at 877-453-2011 to discuss your needs with a consultant.
