How a Business Plan should look like 2

Contrary to what and how some website I visited puts it, suggesting that you must peg the number of pages to a specific fix number of pages, I pick holes in their explanations, because the nature of the business differ, the potential investors are different, so the approach should be different in different situations  to help attract the investor’s interest to fund a business. Some business demands that you begin with your business plan writing an executive summary at the beginning and the financial statements at the end of it, so the middle, where sections that describe the business idea and provide the data for developing the financial forecasts will take the center stage. It is the company and it o operations that will provide you with the flexibility to arrange the discussion in such a logical manner that best describe the situation to your reader. I must say that there is no binding rule that says a business plan must be prepared or structured in a particular way or approach-it is not a stereotype process . But your focus should be on how to use a format/design, organized, clear and purposeful way that your audience is used to, so that they will fund it simple and less time consuming to read your business plan and bet approval.

The bottom-line is to help your audience to know what information they need and how you present it through writing to guide them act favorably on your funding request on time. The angel investor wants to know that the business can grow and that there is an exit rout and strategy in three to five years when he/she can achieve a three to five times return on investment. On the other hand, a banker wants to know how much money is requested, what it will be used for, then how long the funding is needed for, and through a reasonable projections that you will have the resources to repay the loan in full, as reflected in the financial statement. I must emphasize here that even though both potential investors focus on many things, the number one thing among those things is the entrepreneur and his/her management team in particular, is key to them. They want to know if they have the experience and capability to lead and substantially grow the company to success over several years ahead. That is to mean that the potential investors consider the above as criteria for loan.

Some people argue that if they present and floored their business plan pages with lots of charts and pictures as now relatively new trends, it might be a good approach to help demonstrate the entirety of the business idea. Well, that may be true to some extend, but do not forget that the traditional funding sources require more than just providing several graphics in your business plan. Your graphics must be sure the subject of the graph or chart is worth showing and it tell or send  a compelling messages across to the reader, other wise, you may not be passing reasonable information that require appropriate attention from the potential investors, because, most especially the traditional business plan expects that you demonstrate the idea clearly, irrespective of the forma used.

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