| VC Secrets: What the Business Plan Books Don't Tell | | | | the |
| You | | | | real deal. Find out how you can order a |
| | | | samplebusiness plan to use as a guide as you prepare |
| Most business plan books and software do a | | | | yourown. Go to |
| thorough job ofteaching you to describe your | | | | *** |
| business from an entrepreneur'sperspective, focusing | | | | ========== *** |
| on your product or service. | | | | QUESTIONS ANSWERED BY THE BUSINESS PLAN |
| Unfortunately, if you wrote your plan in order to | | | | 1. How much can I make? |
| obtainfunding, it's vital to write it from an | | | | 2. How much can I lose? (including loan |
| INVESTOR's point ofview. | | | | guarantees,opportunity cost, and non-financial |
| HOW INVESTORS READ a BUSINESS PLAN | | | | considerations) |
| A potential investor will initially spend only 5 minutes | | | | 3. What is unique, innovative or technologically |
| withyour plan. The following areas will be evaluated, | | | | different? |
| each areataking about 1 minute! | | | | 4. What is the perceived value of your product |
| 1. Determine the characteristics of (1) the industry | | | | versus whatyour product actually does? |
| and | | | | 5. Why will everyone need your product or service? |
| (2) this particular company. | | | | 6. What will happen to your customers if they don't |
| - What other publicly held similar companies are | | | | buy yourproduct or service? |
| there? | | | | 7. Who says this is a good investment? |
| - Is there a larger company that is extremely | | | | BUSINESS PLAN DO's AND DON'Ts |
| successful? | | | | 1. DO keep the business plan as short as possible |
| - Is the company in a 'glamour field'? (important to | | | | withoutcompromising the description of your venture |
| ensurea good public offering) | | | | and itspotential. Venture investors are NOT patient |
| 2. Determine the terms of the deal. | | | | readers. |
| - How much of the company is being sold for what | | | | 2. DON'T over-diversify your venture. Focus attention |
| price? | | | | on oneor two key products or services. |
| - What is the form of debt or equity being | | | | 3. DON'T have unnamed, mysterious people |
| requested? | | | | on your managementteam. A 'Mr. G. who is CFO of |
| - How will the funds be used?o To retire old debt | | | | XYZ, Corp.' who will joinyour company later. |
| (bad idea)?o To undertake new activities that will, in | | | | 4. DON'T describe technical products or |
| turn,increase profitability? | | | | manufacturingprocesses with jargon that only an |
| 3. Review the bottom line with special emphasis on | | | | expert can understand. |
| years threethrough five. | | | | 5. DON'T estimate your sales on the basis of what |
| - Earnings or potential earnings are reviewed to | | | | you can orwould like to produce. |
| determinecompany's valuation. | | | | 6. DON'T make ambiguous, vague or unsubstantiated |
| - Sensitivity analysis, or what if analysis to see how | | | | statements. |
| thebusiness model adjusts to changing prices, | | | | Be precise about market size, rates, etc. |
| expenses andcompetition. | | | | 7. DO involve your management team in the |
| 4. Determine the caliber of the people in the deal. | | | | preparation of thebusiness plan. |
| (The mostimportant aspect of the business plan!) | | | | 8. Do disclose any current or potential problems with |
| - What is the track record of the founders and | | | | yourventure. |
| managers? | | | | While a well prepared business plan is never a |
| - How much balance and experience does the inner | | | | guarantee thatyour business will be funded, it can |
| managementteam possess? | | | | increase the odds in yourfavor. |
| - How long have the members worked together? | | | | *** ============= PowerPoint Biz Plans |
| - Who are the banker and accountant, and what are | | | | ============= *** |
| theircredentials? | | | | These PowerPoint BUSINESS PLAN templateshave |
| 5. The marketing plan is reviewed with careful | | | | raised MILLIONS!o Five PowerPoint Business Plan |
| considerationto current and future threats. | | | | Presentationso PowerPoint Guide for Your VC Pitcho |
| - Is the product or service in demand now or will it | | | | BONUS - Sample Executive Summary |
| be in thenear future? | | | | Click here and go to the *order* button at the |
| - What is the Unique Selling Proposition for the | | | | bottomof the page: |
| product? | | | | NOTE: This is a special offer for readers of this |
| - What other company or companies are already in | | | | article. |
| this spacethat could leap frog this business? | | | | *** |
| - Can the customer be easily identified and marketed | | | | ========== *** |
| tosuccessfully? | | | | Please feel free to pass this article, in its |
| *** =============== SAMPLE BIZ PLANS | | | | entirety,along to your associates. |
| =============== *** | | | | Copyright 2002, Venture Planning Associates, |
| High Tech and Traditional Business Plans | | | | Inc.ciates, Inc. |
| We find that few entrepreneurs have actually seen | | | | |