3/20/2021 Tip: BP Q&As | Growthink

3/20/2021 Tip: BP Q&As

Today’s Quote

“Control your own destiny or someone else will.”
~ Jack Welch

 

Today’s Tip

Below I’ve answered for you some of the most common business plan questions I get:

Q. How important is the business plan?

A. If you are seeking funding, the business plan is critical. Most types of funding sources (e.g., angel funding, venture capital, bank loans, etc.) REQUIRE a business plan. That is, without one you can’t raise funding.

If you want to be successful, you also need a business plan. Study after study proves that entrepreneurs who develop formal business plans are much more successful than those who do not.

Q. What is the purpose of a business plan?

The purpose of the business plan is two-fold.

From a strategic perspective, your business plan documents your key goals and action plan to achieve them.

From a communications and investment perspective, your business plan shows investors/lenders that you have a well conceived business opportunity that merits their dollars.

Q. How long should my business plan be?

A. Your business plan should be 15-25 pages including the financials. It should be short enough that the investor can read through it quickly. And it should be long enough to answer the investor’s key questions and to show that you really understand the business, the market and the business opportunity.

Q. How complete should my business plan be before I approach investors?

A. 100% complete. You generally get only ONE chance with investors and lenders. So your business plan needs to be perfect the first time.

Q. How important is the Executive Summary?

A. The Executive Summary is absolutely critical. If the reader isn’t excited after reading it (note that the Executive Summary should be 1-3 pages), then they won’t read the rest of your plan.

Of critical importance in your Executive Summary is to 1) clearly explain what your venture is/does and its value proposition, and 2) explain your unique success factors (what it is about you, your company, your market, etc., that makes your venture uniquely qualified to succeed).

 

Today’s Resource

The Fastest Way to Finish Your Business Plan

Looking for a faster way to finish your business plan?

On this page, I reveal how to finish your business plan in 1 day.

Ready to get started and turn your ideas into reality?

Finish your business plan today <–

One you finish your business plan, you can:

  • Raise capital
  • Grow faster
  • Build the company of your dreams

 

Finish your business plan today <–

 

Trivia

Today’s Question: What entrepreneur and founder of a multi-billion dollar franchise didn’t finish high school until the age of 60?

Previous Question: The hotel company Marriott pioneered, and is still the leader in sales, of what non-hotel related industry?

Answer: In-flight catering

A genius at finding niche market needs and ways to fill them, Marriott was the first to pre-box meals for sale directly to airlines, giving birth to the in-flight catering industry.

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