Biz Plans

[Antonio.]

I'll be the first one to say I really hate doing business plans and executive summary. I'm in the process of creating these two documents for a another start-up of mind. The question I have is that how long do they really have to be. I have heard people creating 80 page, 300 page, 100 page business plans for what? I can get my point across in 10 pages or less with all the information necessary. I remember a thread about Business plan I used that software but I've heard people don't really like bplans in that format and is frown upon. So my question is it really a proper format for a business plan and does length really matter per say.

 

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[BryanC]

In my opinion, most start-ups should be about 25-50 pages and no more. If you decided to go over that, you should obviously have exciting and mentally stimulating information to share.

Your business plan is very important either way. It's your personal reference for your goals, ideas, and the overall operating manual for the business in it's development stages. When I wrote my last business plan, I did it myself but, before that I had another venture and used an organization called SCORE help me out.

They will take you through the whole thing for free.

You should mainly keep your Customer in mind -- the person buying into your business by providing start up funds -- because that's where the seed capital comes from.

Overall, focus on creating a short and sweet plan. 2 pages on the ES and no more than 3. I would keep the plan to under 30 pages and have a nice seal for my business on the jacket of my business plan.

 

[Antonio.]

I've talked to score I might have them guide me though the process I want this to be solid. I'm seeking a small amount of capital for start-up I know it would be successful. The only reason it wouldn't be because of bad execution. Everything else is right according to market research and other research I have done thus far.

 

[BryanC]

Sounds good man! I hope to see updates on your progress. SCORE has a group of great people who will help you. Keep up the good work.

 

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[Antonio.]

Yea; I'll keep everyone update on the status of this venture. I was down in Palm Beach late last year I really like it down there it's great.

 

[BryanC]

Yeah, it's a great place to relax and go out on the boat. I wouldn't trade the weather or the environment for the world. I am considering getting a condominium in a place called Tequesta. It's 9 stories up and over looking the ocean. I want to setup my office out of it as it's overlooking the Atlantic... this time of the year the water is basically sky blue and that high up you can see out for miles.. .

 

[MJ DeMarco]

Your answer depends on your audience. Who is the audience? Investors? Just yourself? Friends and family?

I never wrote a business plan even when I sold my company to private investors (They did ask for one however). My ideas/strategies always are written down but to call it a business plan would do a disservice to real business plans.

 

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[BryanC]

I see where you're going with that. The personal formulas you develop should definitely be archived. Even if they are chaotic chicken scratch stick figure drawings, comments, one liners, and poorly scribbled flow charts like mine. LoL.

MJ, is the fastlane philosophy against BP's altogether or are you suggesting to outsource it to a planner and business plan writer? To me, the organization of the plan is somewhat invaluable as it helps me organize and string together my ideas.

 

[Antonio.]

Your answer depends on your audience. Who is the audience? Investors? Just yourself? Friends and family?

I never wrote a business plan even when I sold my company to private investors (They did ask for one however). My ideas/strategies always are written down but to call it a business plan would do a disservice to real business plans.

MJ my audience is investors. I want to have a solid operations section that's what going to sell the plan and make then want to invest there money. I have to see what's goes into a solid operations section and go from there.

 

[MJ DeMarco]

MJ, is the fastlane philosophy against BP's altogether

Absolutely not. Again, depends on the audience for the BP and you personally. I like to "dive in" and get busy on the project versus writing 50 pages of stuff for my self-viewing-pleasure.

Also, I believe it is easier to sell something tangible (A PROTOTYPE) than it is something intangible (HERE IS MY 200 PAGE BUSINESS PLAN).

Furthermore, a business plan is nothing but a manifestation of an idea (IDEAS ARE CHEAP) whereas a prototype is an incarnation of an idea and shows execution (EXECUTION IS WHERE THE $$ ARE)

 

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[Antonio.]

Absolutely not. Again, depends on the audience for the BP and you personally. I like to "dive in" and get busy on the project versus writing 50 pages of stuff for my self-viewing-pleasure.

Also, I believe it is easier to sell something tangible (A PROTOTYPE) than it is something intangible (HERE IS MY 200 PAGE BUSINESS PLAN).

Furthermore, a business plan is nothing but a manifestation of an idea (IDEAS ARE CHEAP) whereas a prototype is an incarnation of an idea and shows execution (EXECUTION IS WHERE THE $$ ARE)

Very true it's an incarnation but I see two companies use similar business models and they worked like a charm. This is a need and the industry is wide open at the moment and will be for 10 years.

 

[BryanC]

Providing a little more clarity on my position, I'd like to demonstrate that I wouldn't begin planning until I have completed my own interactive tests between buyer(s) and the said product or service. It seems conservative to say that it is as easy as selecting a product and matching it with a customer and then taking it to the market. But, there it is. You are right MJ, a prototype is a more fastlaneish but, so is hiring an agency and having them pitch both your prototype and your plan to potential investors. I am no expert at raising capital but, why not employ both the Prototype, Plan, and credible accounts Consumers have had with the product? Getting more wrapped up in my ideas, I also came up with the idea of getting footage and short clips of customer testimonials to go with any future capital acquirement proposals I assemble or hold.

 

[Antonio.]

Providing a little more clarity on my position, I'd like to demonstrate that I wouldn't begin planning until I have completed my own interactive tests between buyer(s) and the said product or service. It seems conservative to say that it is as easy as selecting a product and matching it with a customer and then taking it to the market. But, there it is. You are right MJ, a prototype is a more fastlaneish but, so is hiring an agency and having them pitch both your prototype and your plan to potential investors. I am no expert at raising capital but, why not employ both the Prototype, Plan, and credible accounts Consumers have had with the product? Getting more wrapped up in my ideas, I also came up with the idea of getting footage and short clips of customer testimonials to go with any future capital acquirement proposals I assemble or hold.

The agency idea isn't a bad idea. I'm just going to get my solid biz plan together with a solid operations and start networking so I can get this to market. Any tips or advice about making a strong operations manual would be appreciated.

 

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[neverfastenough]

Absolutely not. Again, depends on the audience for the BP and you personally. I like to "dive in" and get busy on the project versus writing 50 pages of stuff for my self-viewing-pleasure.

Also, I believe it is easier to sell something tangible (A PROTOTYPE) than it is something intangible (HERE IS MY 200 PAGE BUSINESS PLAN).

Furthermore, a business plan is nothing but a manifestation of an idea (IDEAS ARE CHEAP) whereas a prototype is an incarnation of an idea and shows execution (EXECUTION IS WHERE THE $$ ARE)

Building on what MJ said, and this relates more to tech startups, is that you should be iterating so rapidly that your initial business plan becomes irrelevant relatively quickly anyway. To a VC/ angel investor, they would much prefer to fund someone who's spent their time on development, as opposed to, writing a 50 page BP that likely won't get read anyway. AT MOST, you should do a 10 slide powerpoint. I don't know what you're intentions are, whether you're interested in going after institutional money or just looking for friends and family to invest (sophisticated vs. unsophisticated investors).

As always, I can't recommend What should I send investors? Part 2: Deck - Venture Hacks enough.

Having essentially just said that BPs aren't necessary, I'll leave you with this quote:

In preparing for battle I have always found that plans are useless, but planning is indispensable. -Dwight D. Eisenhower

 

[ZDS]

I personally think it's all about the research. The actually businses plan is pretty irrelevant IMO, but it's doing the research, answering the questions and focusing your self where the gain is.

 

[BryanC]

Man you guys shouldn't say that document is worthless, it's a terrific marketing tool for raising capital. I would think of it as a salable derivative of your mind more than anything else. If somebody invests $5,000,000 in your company because they like your business plan. It's more than paid off.

To me it's a product for my customer over anything else. Basically an organized demonstration of what my philosophy on business is.

 

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[Antonio.]

I agree with all the above nice quote. I also believe you can plan to much and not take any action. Like i stated up above I really don't care for biz plans but it's something you have to do if you are serious about it making money and getting a business of the ground. I know people that had very successful companies that didn't biz plans but a year after they made one. Research is very important when it comes to potential market growth and several other key factors in a biz. I think the bottom line is that you have to pave the ground before you walk on it. What it ever takes to get that ground paved I'm going to do it rather it's writing a business plan or going outside picking up cans. The ground will get paved and I will walk on it to the road of success

 

[rzach41]

I personally think it's all about the research. The actually businses plan is pretty irrelevant IMO, but it's doing the research, answering the questions and focusing your self where the gain is.

I agree. Business Plans force you to think through practically every aspect of your business, and answer questions you may not have asked. That's the most important thing in my opinion. I am not so much concerned with the final product of the plan, but more so that I have covered every angle.

 

[rzach41]

Those are the BEST business plans...

Like I mentioned in another thread, too many people look at a BP as a checklist...fill in this section, then fill in this section etc. That's NOT how a good BP should be written.

I'd rather see an unorganized brain-dump then a well-organized "form letter," yet most people are so concerned with format that the important information never comes out.

lol I wish I would have known this over the summer. I spent a good amount of time trying to convert my organized brain-dump into a perfectly written business plan.

R

 

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[Davidla]

Its all about differing between importent and unimportent:


To me the importent parts of BP's are:

1) Organizing your thoughts on paper.

2) Examinig your business idea, and forcing it to pass reality checks.

3) It is in someway the first practical step of starting your business - once you have one ready you can follow it step by step like you planed (Or get financed by investors if thats what you need to get started). Altough I believe it is first of all for you rather for anyone else.

4) Any written document (some people have such a great memory they dont even need a hard copy for themselves) that answers the above with, no matter how many pages it ends up to be.

We actually use a lot of "formats" simliar to BP's when we make training plans in the military - and they are really proving themselves.

 

[MJ DeMarco]

The best business plans are written on napkins ...

 

[czach41]

Thats exactly How Arte Moreno and his partner created Home Depot.
Napkins serve more purposes than cleaning up ketchup from the cheek these days.

 

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[lu liu]

If I were pitching my venture towards VC or Angels, yes I would look into writing a very good 15-30 pages BP.

But, if it was just for myself...piece of paper will do it. I rather spend the time focusing the how to execute the plan than writing a pleasing BP.

 

[365]

"In preparing for battle I have always found that plans are useless, but planning is indispensable."
Eisenhower

Sums it up for me. If you dont need investor's money then a BP's objective is to get your thoughts organised and think everything through while type it down.

Plus I'll go with Warren Buffett: if it takes more than a couple of short sentences and numbers to outline why your idea is great, it probably isnt. The opportunity has to scream at you. If an investor is not persuaded after reading your exec summary, your obviously toast. Those other pages are just there to show you did your homework.

 

[Davidla]

Plus I'll go with Warren Buffett: if it takes more than a couple of short sentences and numbers to outline why your idea is great, it probably isnt. The opportunity has to scream at you. If an investor is not persuaded after reading your exec summary, your obviously toast. Those other pages are just there to show you did your homework.

I like this qoute.

Altough in cases of revulotionairy concepts - like when Steve Jobs tried to get some funding to manufacture personal computers the opportunity was screaming - but most of the people were deaf.

 

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