Last time we talked, we spoke about expert advice on writing a business plan. Well today I want to pick up were we left off. I learned a lot from researching these veterans in their fields of business. Today I will talk about what I personally will do to update my business plan now since I've learned a few more pointers.
Dr. Steven Gedeon’s advice on writing business plans for
different audiences was something that I intend to incorporate because he is
absolutely correct. We need to understand Angel Investors, our management team,
and even judges in a contest like Shark Tank will all want to see a different
style of business plan than the others.
Dr. Steven Gedeon also spoke about avoiding useless big They
don’t want to see these huge useless numbers. They only want to know your addressable
market size numbers and how you’re going to advertise to those people. I plan
to change that part of my industry overview to a more specific part of my
industry.
numbers. He stated that it’s more important to have a realistic numbers for your market size. Writing your business plan with the numbers of the entire retail industry sales and say your company only needs one percent of it is not what the investors are looking for.
After researching these experts and taking Business Plan
Development here at Full Sail University, I feel that the most important elements of a
business plan that investors are looking for are the executive summary, the
description of the management team and advisory board, and the financial
projections.
The executive summary is a very crucial part of the business
plan. Rhonda Abrams wrote in Successful
Business Plan that “only a clear, concise, and compelling condensation of
your business right up front will persuade readers to wade through the rest of
your plan” (Abrams, 2010).
The description of the management team and advisory board
gives the investors an inside of who will be managing the directions and
finances of this proposed plan. The educations and experience backgrounds of
your management team speaks volumes to the investors. They know that the
management team has a greater impact on the long-term fortunes of the company
than the product or service provided.
Abrams wrote that the financial projections are merely the
reflections of decisions you make. Numbers are attached to every decision you
make for the company. If you decide to take advertisement with a local magazine
then there is a number attached to that decision. You want your numbers to show
the result of careful planning. The better you have an understanding about your
financial statements the better you have control of your company (Abrams,
2010).
Hope some of this will help you as well on your business adventures, Real Talk!
Reference:
Abrams, Rhonda M., and Eugene Kleiner. The successful business plan: secrets & strategies. 4th ed.; Deluxe binder ed. Palto Alto, Calif.: Planning Shop, 2003. Print.
