Do you need a simple completed business plan? No matter how simple it seems, the task probably entails a few more steps – and a few more hours of research and modeling – than you imagine. In order to be used for a funding purpose, a business plan typically needs to be 25-30 pages with a complete financial pro forma and market analysis. Only these complete documents will pass muster with angel investors, venture capital firms, or banks in a position to offer SBA-backed lending. But common software programs and business plan templates may seem like they're steering you towards a 50- or 60-page document, and that's not necessary either. So how do you strike a balance? What does a simple completed business plan absolutely need to cover in order to get attention? These pieces are imperative:
1) Executive Summary – all plans have one, and all investors look for one
2) Market Analysis – it needs to include detailed research on your target market, industry, relevant trends, chief competitors, and the need you fill
3) Marketing/Implementation – the “how†behind your vision needs to be articulated as cogently as possible
4) Management Team – who your executives will be and what management team gaps you will need to fill is important information for any capital backer
5) Financials – whether a 3-year or 5-year forecast, the model needs to be assumptions-driven and include cash flow, balance sheet, break-even point, P&L statement, and a monthly breakdown for the first year post-funding
Even simple plans have to cover the major points in a reasonable amount of detail. Not having a complete and market-integrated financial model, or a complete industry and competitive assessment, can be the death-knell for your audience. While it varies by industry and may depend on your funding source, for the most part, you have to develop a full plan to get noticed. If you have questions about this, or want a free quote for help with your own business plan, call a MasterPlans consultant at 877-453-2011 to discuss your project. MasterPlans.com's in-house team of trained marketing writers, financial modelers, market analyst, and editors has helped more than 8,000 clients to date, and we would be happy to add your venture to our growing roster of success stories.
