subject: Writing A Business Plan? Here Are Three Tips [print this page] Developing a business plan can be an unpleasant experience, especially if you're never attempted one before. There's nothing complicated about the process. It does take research and time. Here are three tips for writing a better business plan.
Nobody's Perfect--But You Have To Be Darn Close
In a document as long as a Business Plan, with the stress of time constraints and the number of revisions that are typically made, it is understandable that there may be a few errors in grammar, or some clumsily worded sections, or even a few math mistakes in the spreadsheets.
But there is a distinction between clumsy wording and not making the slightest bit of sense. There are grammar errors, and there is sounding ignorant. Math errors should only involve rounding, not flubs to the power of 3.
One time I was going to lunch to with a venture capitalist (note to reader: always make them buy) and when I met him at his office he was just finishing reading a plan and had a strange look on his face. "What's the matter," I inquired. "Yuck, this Plan has cooties!" was his reply.
Proofreading is a boring, nitty-gritty task, but it should never be overlooked.
Smaller Bites Are More Digestible
Start the plan with an outline. By breaking the large task down into smaller components, the task will not seem as daunting. A Business Plan can be viewed simply as the answers to a series of questions. Try answering a few at a time. Writing a little bit of the plan at a time is less difficult than trying to lock yourself up in a room for a week and do the whole thing. If you do use this latter approach, please be sure the place you lock yourself up has a shower.
Know Your Audience
(If you are a venture capitalist you can go ahead and skip ahead to the next section).
When a client asks us to review their business plan and tell them if it is "ready to go," one of the things I often tell them is: The Venture Capitalist Is Not As Smart As You Think He Is.
How can this be, you say? The VC has three college degrees, and not one of them from community college. The VC often has Roman numerals behind his last name. And he is very difficult to get on the phone, a sure sign of an Important Smart Person.
Maybe. Maybe not.
Don't assume he will immediately understand why your product is clearly superior. Don't assume he will be able to grasp the way your technology works. He may or may not know how large your market or industry is.
Think about who will be reading the plan before you begin to write it, and tailor your message to the reader's level of understanding or experience. Many investors decline to pursue discussions with companies not because the business does not.
