Talk about news you can news, check this out. And who says you gotta pay for premium content on the Web? Prepare your own business plan with a table of contents like this one, and investors will be throwing money at you. Make sure you've slathered yourself with glue.
1.0
A one-page "Introduction" that can double as a very brief executive summary. First paragraph must be concise and compelling. Should describe what you're doing in terms of your focus, the technology on which you depend, reference the market and its growth, why people will be interested, and the "problem" you're solving.
Second paragraph explains what people are doing today to "solve" the problem you're addressing and why a better solution is called for.
Third paragraph: the obstacle you overcame, the one that blocked everyone else, to arrive at your solution
2.0
The Market. The more comprehensive (quantitative) and convincing you can be about its size, rate of growth and sustainability, the better. Anecdotal data is good, especially to the extent that it substantiates your professional knowledge and experience; empirical evidence and statistically significant data from industry analysts (vertical and horizontal) is better. If there are market segments, you should detail them. For example, if you were selling CRM software, you would specify the segments of business intelligence (2.1), application service providers (2.2), retail (2.3), vertical industy (2.4), mobile access (2.5), etc.
3.0
Business Opportunity. Literally, answer the question of why this is worth an investment of resources. Describe the stage upon which your vision can and will be realized. Be as concrete and specific as possible with references to the specific content, explanatory analogies, etc. "The opportunity for us is propelled by the increasing demand for _____________________ coupled with desire by organizations and individuals to ____________ which further enables them to ____________________. This, along with the forecasted dramatic increase in _____________________, sets the stage upon which our vision will be realized." These may not be the words, but this is kind of logic investors are inclined to look for.
4.0
Building traffic, attracting and enlarging an audience. In a typical (non-Web 2.0) business plan, this section woulds detail "marketing and sales". Assuming your business is web-based, you should simply and clearly state the specifics of what you intend to do on your site, why it's relevant and realistic, your credentials/experience. Backend, "front-end", technology plan and technological wherewithal to support traffic, etc.
5.0
Competitive environment. Describe the landscape and marketplace by categories of websites out there today. The key is to communicate size, robustness and existing business yet convey a compelling sense of your singularity. Your unique selling proposition. A traditional "SWOT" analysis of the competition is relevant here. Caution: Don't yield to the temptation of describing yourself as one-of-a-kind. Only your value proposition should be unique. You, as an enterprise, must be the best of the "group".
6.0
Management. Credentials, accomplishments, and skillset that amount to a solid match for the tasks at hand.
7.0
Pro forma financials. Ideally -- Revenue projections, site traffic projections, P&L, balance sheet, cash-flow projections, fixed assets summary, staffing plans for years 1 through 3, or 1 though 5. For each year, indicate assumptions by average monthly fees/ad revenue. Indicate assumptions as relevant for projections of income statement, balance sheet, cash flow, etc. The key takeaway for prospective investors: you've thought-through the challenges and the details. "God (and the devil) are in the details"
8.0
Summary of investment opportunity. Basically, you ask for the money. "The purpose of this document is to offer you the opportunity to partner with us by investing in (Series A?) initial round of financing, etc. etc. The obvious benefit to investors is an immediate stake in online enterprise addressing a large and growing market that is not presently served. This equity participation has significant growth value given the market demand for (insert your product here) currently underserved, and the strength of TheCareerSpace team." You may also wish to cite other partners identified to participate in this or later rounds.
9.0
Summary. Reiterate that this is a market promising significant growth into the future. Individuals, small businesses, and divisions of larger organizations are anxious to improve their___________________ in the face of increasingly competitive environments. What we offer is a compelling value proposition addressed to this underserved market. We will be a well-financed, technically proficient, audience-focused enterprise with a strong, audience-sensitive orientation from Day One. As we grow, we develop relationships with audience members that can and will minimize competitive threats and alternatives.
Next, don't hire idiots to do marketing and don't spend all your money doing what the geniuses you do hire tell you to do. Good luck!
Great article that can really help small businesses to get an idea of what they need to come up with to be on the right track!
Make sure to overview all aspects of your business and spend time analysing competition to stay on top of industry-related innovation.
Posted by: Business Plans | April 10, 2007 10:14 AM | Permalink to Comment