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About Writing a Business Plan…a note to a friend

by Rick Baker
On Jul 8, 2010
As promised, I'm writing to provide a summary of content for a mini business plan. By "mini business plan", I mean something much more like an executive summary than a detailed MBA-style document. I mean paperwork designed to be well-received by potential funders.
 
As a first step, I am forwarding what Guy Kawasaki recommended for a business plan executive summary. The following is an excerpt from his book, 'Reality Check', pages 33-34.
 
1. Problem. What pressing and important problem are you solving or opportunity are you addressing?
 
2. Solution. How are you solving this problem or tapping this opportunity?
 
3. Business model. Who are your customers and how will you make money?
 
4. Underlying magic. What makes your company special?
 
5. Marketing and sales strategy. What is your go-to-market strategy?
 
6. Competition. Whom do you compete with? What can you do that they can't? What can they do that you can't?
 
7. Projections. What are your financial projections for the next three years? What are the key assumptions and metrics to achieve these projections?
 
8. Team. Who is on your team? Why are they special?
 
9. Status and timeline. Where are you now and what are your major, close milestones?
 
Guy Kawasaki thinks these are the most-important things potential investors want to know. And, investors have a very-limited interest in things outside these topics or an avalanche of details at the early stage of discussion.
 
Guy is not that keen on using Powerpoint, however, when it is used for 'funding pitches' he recommends a 10-slide limit.
 
I think it is better to start with brevity...and build content carefully. I'd suggest writing out answers to Guy's questions under each of the 9 topics. Then you can add (selectively add) more details. I suggest limiting the entire mini business plan to 4-1/2 pages...1/2 page for each of the 9 topics. Less is better. And, I suggest leaving white space on each of the pages...make sure about 1/3 of each page is white.
 
I'm suggesting the white space for 3 reasons: (1) it makes it easier for you to highlight most-key points, (2) it makes it easier for the reader to write notes, and (3) it will stand out from the stuff written by others, signalling you have your pen under control.
 
And when this is coupled with a quality personal presentation it confirms you have more to say but don't want to bog others down with unnecessary or untimely details.
 
Later, when you prepare a presentation you can make it align with the mini business plan. If you use Powerpoint then you can have one slide for each of the 9 topics.
 
I have written a number of blogs that cover similar territory, using different words. We ask a lot of questions during our strategic planning training...starting with questions like those discussed yesterday.
 
For example, please visit the series on "7 Powerful Answers". That series is an example of our "CEO Thinking”. When you visit my blogsite – www.activestor.ca – go to the Search tool and type the words “powerful answers”…that will take you to the blogs.
 
You could consider our Spirited questions after you have answered Guy's questions. [or vice-versa] Our questions require more interpretation than Guy's...that is, our questions were designed for one-on-one discussion while Guy's were designed for a book.
 
I hope this helps.
 
Rick

Tags:

Business Plan: Writing Plans | Communication: Improving Communication

Comments (1) -

Rick Baker Canada
1/8/2011 9:42:23 PM #

"Give me six hours to chop down a tree and I will spend the first four sharpening the axe."

Abraham Lincoln

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