BusinessplanforanewbusinessThebusinessplanconsistsofanarrativeandseveralfinancialworksheets.Thenarrativetemplateisthekeytothebusinessplan.Itcontainsmorethan150questionsdividedintoseveralsections.Omitanyquestionsthatdonotapplytoyourtypeofbusiness.Whenyouhavefinishedwritingyourfirstdraft,youwillhaveacollectionofsmallessaysonthevariousaspectsofthebusinessplan.Thenextstageistoeditthemintoasmooth-flowingnarrative.Therealvalueofcreatingabusinessplanisnotinhavingthefinishedplaninyourhand;rather,thevalueliesintheprocessofresearchingandthinkingaboutyourbusinessinasystematicway.Theactofplanninghelpsyoutothinkthingsthroughthoroughly,studyandresearchifyouarenotsureofthefacts,andlookatyourideascritically.Ittakestimenow,butwillhelpavoidcostly,perhapsdisastrous,mistakeslater.Thisbusinessplanisaspecificmodelsuitableforhigh-techbusinesses.Beforeyoubegin,lookatthe1stsectionTailoringtheplan.Ithastipsforfine-tuningyourplantomakeaneffectivepresentationtoinvestors.Ifthisiswhyyou’recreatingyourplan,payparticularattentiontoyourwritingstyle.Youwillbejudgedbythequalityandappearanceofyourworkaswellasbyyourideas.Ittypicallytakesseveralweekstocompleteagoodplan.Mostofthattimeisspentinresearchingandrevisingyourideasandassumptions.Butthisisthevalueoftheprocess.Somaketimetodothejobproperly.Thosewhodosoneverregrettheeffort.Andfinally,besuretokeepdetailednotesonyoursourcesofinformationandontheassumptionsunderlyingyourfinancialdata.TailoringtheplanThegenericbusinessplanpresentedshouldbemodifiedtosuityourspecifictypeofbusinessandtheaudienceforwhichtheplaniswritten.ForraisingcapitalForinvestorsInvestorshaveadifferentperspective.Theyarelookingfordramaticgrowth,andtheyexpecttoshareintherewards:oFundsneededshort-termoFundsneededintwotofiveyears’timeoHowthecompanywillusethefunds,andwhatthiswillaccomplishforgrowthoEstimatedreturnoninvestmentoExitstrategyforinvestors(buyback,saleorIPO)oProportionofownershipthatyouwillgiveuptoinvestorsoMilestonesorconditionsthatyouwillacceptoFinancialreportingtobeprovidedoInvolvementofinvestorsontheboardorinmanagementFortypeofbusinessHigh-techcompaniesEconomicoutlookfortheindustryWillthecompanyhaveinformationsystemsinplacetomanagerapidlychangingprices,costsandmarketsWillyoubeonthecuttingedgewithyourproductsandservicesWhatisthestatusofresearchanddevelopmentAndwhatisrequiredto:oBringproduct/servicetomarketoKeepthecompanycompetitiveHowdoesthecompany:oProtectintellectualpropertyoAvoidtechnologicalobsolescenceoSupplynecessarycapitaloRetainkeypersonnelHigh-techcompaniessometimeshavetooperateforalongtimewithoutprofitsandsometimesevenwithoutsales.Ifthisfitsyoursituation,abankerprobablywillnotwanttolendtoyou.Venturecapitalistsmayinvest,butyourcasemustbeverygood.Youmustdolonger-termfinancialforecaststoshowwhenprofittake-offisexpectedtooccur.Andyourassumptionsmustbewelldocumentedandwellargued.BusinessplanOWNERSYourBusinessNameDateE-MailWebpageTableofcontents1.Executivesummary..........................................................................................................................................2.IntroductiontotheCompanyanditsManagement..........................................................................................CompanyOverview............................................................................................................................................
